Leadership Ethics

Ethics in leadership has been a question that has been the subject of discussion for quite a long time. Many leaders use their position of influence to perpetrate their own selfish interests as opposed to the interests of the people whom they are supposed to lead and protect their interests (Stern Burger, 2012). This paper will examine the major unethical practices that were perpetrated by George Halvorson who was the CEO and chairman of Kaiser Permanente healthcare plan based in Oakland, California.

The main unethical issue relates to his compensation where he earns more than he is supposed to. Kaiser Permanente is a not for profit organization and hence it benefits from tax exemptions by the government. The tax exemptions are aimed at helping the organization to offer better services to the community since such organization are supposed to work in interest of the community. The CEO of this organization was found to be earning more than what his counterparts in the for profit organizations executives were being paid (Melanie, 2013). The amount paid to the CEO as compensation raises ethical issues as to the appropriateness of the pay package.

Although it is agreed across the board that executives in not for profit organizations should be compensated competitively, it is unethical for them to receive more pay than the market rates. Since the core reason why these organizations are established is to help the community access services, it is only prudent to invest more money into service delivery so as to ensure that service delivery is improved. It is therefore unethical for leaders such as George Halvorson to use the money from such an organization to pay themselves hefty pay packages as opposed to provision of better services. I strongly agree with the writer that the act of the CEO of getting more than his counterparts is unethical.


Melanie, E. (2013). Package deals, modern healthcare, retrieved from <


Stern Burger, (2012). Stern Burger with Fries, SEIU’s Dave Regan Reveals Plans for

Concessions at Kaiser Permanente, <retrieved from> http://sternburgerwithfries.blogspot.com/2012_01_01_archive.html


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