The Ethical Trap: When Doing The Right Thing Costs You Your Leadership

As a leader, you invariably face difficult choices. This might include deciding how to invest your time, what initiatives to champion and which battles to fight. For values-driven leaders, doing what is right often tops the list, whether that’s advancing diversity, improving sustainability or creating a healthier workplace. Typically, that commitment entails speaking up for the underdog or challenging established systems. But sometimes, doing what is "right" isn’t what is strategic or political. And it can cost you your influence, your goals and even your job.

A Cautionary Tale

Consider the story of Dan, an experienced healthcare executive who came to me after being unexpectedly let go as chief operating officer of a midsize regional hospital. Dan wasn’t fired for poor performance, ethical lapses or failure to deliver measurable impact. He lost his job because he overindexed on doing what he believed was right.

When Dan stepped into his role, he immediately recognized that the hospital’s resource allocation was out of sync with community needs. For decades, the hospital heavily invested in its state-of-the-art pediatrics ward—a legacy of its largest donor, a local factory owner. But due to demographic shifts, the demand for pediatrics had drastically decreased in recent years. On the flip side, the hospital was now serving a much larger elderly population, including many patients with chronic conditions.

Dan’s solution seemed obvious: rebalance resources to serve an aging community better. His plan was applauded by staff, patients and families alike. The hospital maintained its strong pediatric reputation, even attracting patients from outside the region. Yet despite these wins, Dan was abruptly terminated. Why? His critical errors were overlooking the hospital’s deep historical relationship with its chief donor and failing to build trust with the trustees who saw the pediatrics ward as part of their identity and legacy. Dan had done the right thing, but not the strategic or politically astute thing. In doing so, he undermined his ability to achieve lasting impact.

Four Key Questions

If you want to avoid doing what is right but not also strategic, ask yourself the following questions:

1. Am I Moving Too Fast?

Sometimes, what’s “right” in principle isn’t right in practice. Even when legacy issues are apparent, leaders who push ahead without reading the room risk backlash. Before launching change, assess the organization’s cultural dynamics, political landscape and readiness. Develop the relationships, allies and political capital needed to lead lasting change.

2. Who Might I Alienate?

Not all stakeholders are equal. Disappointing employees might sting, but alienating a powerful trustee, board member or influential stakeholder could be career-ending. Identify who holds absolute power and understand what matters to them, including their reputations and legacies, before making your next move.

While leaders are often focused on leading down, as Wharton School of Business Professor Emeritus Michael Useem suggests, leading up may be just as or more important. "Leading up," he explains, "is the act of working with people above you—whether one boss, several bosses, a chief executive, a board of directors or even stockholders—to help them and you get a better job done."

3. Am I Ignoring Culture And History?

Organizations are living systems with long memories. As John T. Seaman and George Davis Smith noted (registration required) in Harvard Business Review, “leaders with no patience for history are missing a vital truth: A sophisticated understanding of the past is one of the most powerful tools we have for shaping the future.” Don’t try to rewrite the story until you’ve learned how it’s been told.

4. What Happens If I Fail?

A good intention won’t matter if you lose your position before you can make an impact. Ask yourself: Who loses if I’m no longer here to advocate for the constituents I aim to help most?

The Bottom Line

Doing what is right is essential. But doing it in a way that is also strategic and politically astute is how you protect your ability to lead and create lasting impact. Ethical leadership isn’t just about integrity—it’s about timing, influence and sustainability. Sometimes the best way to change the system is to first make sure you stay in the room.