Enough attention has been paid to what leaders at all levels should do that several principles of ethical and moral leadership have emerged. Because terms dealing with the ideal behavior of leaders are used so loosely, it is helpful to define what these terms have generally come to mean in the business community. Ethics is the study of moral obligations, or of separating right from wrong.

Ethics can also be a plural noun meaning the accepted guidelines of behavior for groups or institutions. In this sense, it means much the same as morals, which are an individual’s determination of what is right or wrong; morals are influenced by a person’s values. Values are tied closely to ethics because ethics become the vehicle for converting values into action. A leader who values fairness will evaluate group members on the basis of their performance, not personal friendships.

A leader should do the right thing, as perceived by a consensus of reasonable people. None of these terms can be pinned down with great precision.