Leaders & Teams

Ethical Leadership a Crucial Factor in the Life Sciences Sector

The trust that patients, health care professionals and consumers place on organisations that operate in the life sciences sector is more critical now than ever. Each leader operating in this sector plays a personal and individual role in strengthening this trust. Below we describe what is required to be an ‘ethical leader’, we unpack some of the very human challenges that might impede our ability to lead ethically and explore some important ideas to bear in mind the next time our ethics are being tested.
Article

Ethics and the Life-Sciences sector

The subject of ethics in the life-sciences sector is not new. So much as been written about drug pricing, safety and transparency in recent years, you may be asking yourselves whether you really want to read another article exploring the role of ethical conduct in pharma.

However, the focus of this article is not on the industry itself, but on those who lead it.

Leaders make a difference! And I believe it is worth offering a challenge to leaders within this sector to think about their own moral and ethical positions. In some respects, this article is therefore intended to be something of a ‘light’ provocation – An opportunity for self-reflection.

When we, our teams or our organisations are being tested, leaders will be called upon to make some tough decisions. In this article I would like to explore what things might help to guide those decisions, and whether we feel we are personally up for the challenge.

Ethical Leadership a Critical Component of Success

In my research, I recently came across a telling quote that felt immediately relevant today (even though it was nearly thirty years old):

“Health care professionals are bound together by a common moral purpose: to act in the patient’s best interest. Thus, each health profession is a moral community, which must determine and promote ethical behaviour among its members” (1)

Whether 1995 or 2025, few would disagree that our own personal standards are at the core of ethical leadership. It is these standards that will ultimately guide how the life sciences sector navigates ever more complex challenges, while at the same time, maintains a steadfast commitment to public health.

Ethical conduct, particularly in leadership populations, ought to be an inalienable and immovable characteristic for personal and organisational success. Indeed, it would be surprising if ‘ethical leadership’ was not even more important now considering the increasing complexities of this ever evolving business landscape.

Ethical leadership – a style that emphasizes ethical principles and values in guiding decisions and actions – is a daily exercise. As unmet medical need grows around the world, big pharma’s reputation continues to be a hot topic in the media. Ethical leaders therefore need to balance market delivery on one hand and a firm moral compass on the other. These leaders recognise that it is possible to achieve groundbreaking products at speed whilst remaining utterly committed to integrity, the needs of the patient and the needs of the planet.

Why Ethical Leadership Matters

The trust bestowed upon a life sciences organisation by consumers and healthcare providers alike is critical to its continued survival. Unsurprisingly, at the heart of every life sciences organisation I have worked with has been the prioritisation of patient well-being.

Governance and compliance efforts help to describe the behaviours and culture the organisation wants to encourage. Yet still, leaders have their own work to do!

Ethical leadership matters because each individual leader has a profound opportunity to demonstrate and role-model their own set of ethics. The individual standards that each leader holds for themselves is key. After all, what each leader says and does matters!

For example, ethical leaders feel a personal commitment to ensuring compliance with regulations and standards. They see the link to patient well-being and know that these standards matter. They prioritise honesty and integrity in R&D projects and want to engage with patients, organisations, and communities in a responsible and transparent way. Beyond this, they might also be described as ‘walking the talk’—consistently being observed by others as making decisions that prioritise patients as a daily activity—a habit deeply ingrained in their leadership practice.

As a leader working within the life-sciences sector, the question you might wish to ask yourself is “What honest assessment might I give myself against the qualities described above?”

What processes get in the way of ethical leadership

Ethical leadership is not easy. Whatever the sector, those working to steward organisations towards profitability and integrity are confounded by the same biases and challenges as the rest of us. Some of these biases are so pervasive we are almost unable to detect them (2) let alone manage them.

How might we navigate these biases and challenges in pursuit of a more ethical leadership practice?

Challenge #1: Leaders benefit from feedback regarding their own biases and blind spots.

Psychologists have long known that most of us are rarely honest with ourselves. Studies have suggested that, even jailed criminals rated themselves as kinder, more moral, more trustworthy and honest than the average member of the public (3). People in general radically over-rate their own sense of moral decency and are usually more cautious in their judgement about the moral decency of others. (4) This can be amplified in leadership populations, particularly in science led industries where status, seniority and educational achievement have the potential to create a unconscious bias towards the efficacy of one’s own decisions.

In the pharmaceutical sector in particular, deep expertise resides in almost every part of the organisation. However this deep and expert knowledge is often confined to within functional siloes. Sharing knowledge across specialisms is difficult because it is so difficult to codify for those who ‘don’t speak the language’. The danger is that specialists (such a deep medical, compliance or commercial experts) chance not being challenged by others around them – or at least by those who reside elsewhere in the business and might see another ‘story’.

For this reason, there is an increased need for leaders to be given feedback on the quality of their decisions. If a leader’s decisions seem self-serving, this should be highlighted with openness and honesty, because it is unlikely the leader will have spotted it. In this manner, leaders and team members all play a role in holding a mirror up to those in power, or in positions of influence. This is also true of peers who might reside in other functions or specialisms.

Challenge #2: When things get complex, leaders benefit from a credo to help guide them.

A clear organizational purpose or a set of guiding principles or values has long been recognised as essential to all large organisations.

Michael Gibney, a writer with PharmaVoice, takes large pharmaceutical companies like Johnson and Johnson as an example, where patient safety is stated as a core consideration for everyone.

“It’s an integral part of our decision making,” says Dr. Craig Tendler, vice president of oncology clinical development and global medical affairs at J&J Innovative Medicine… “Johnson & Johnson has a credo … that everything we do has to be for the benefit of patients. It is a core element of our plans, our decision making and everything we do.” (5)

One of the reasons why a credo, or a set of organisational values are important for leaders is that they dissuade us from being potentially ‘led astray’ by others or influenced by ‘group think’. For example, the effect of team norms can be a powerful influence on us. Much of the time the ‘group’ to which we belong will keep us in check by giving the kind of feedback I’ve described above. However, the groups we belong to can also drive us towards unethical decision-making.

Diane Vaughan – an American sociologist– is probably most famous for coining the phrase ‘Normalisation of Deviance’. This is where a clearly unsafe practice comes to be considered ‘normal’ by the team if it is repeated and does not immediately cause a catastrophe. The idea is simple, if everyone around is embarking on ethical questionable behaviours (and getting away with it) then eventually we will too.

Organisational values or principles remind us that there is an ethical ‘north star’ that we all should follow when making complex decisions. Ethical leaders not only espouse these as the organisation’s credo when acting on behalf of the organisation, but they live by them too. Their persistent role-modelling of the right attitudes and behaviours does not allow an inch of space for normalising this kind of harmful deviation.

Ethical leaders are guided by – and guide others by – A clear organisational credo.

Challenge #3: Leaders benefit when they are willing to update their ethical ‘map’ in response to the ever-changing nature of work.

Few sectors will change as much and as fast as the life sciences sector over the next decade. This will require leaders to constantly reevaluate and revisit their positions in light of new commercial, technical and medical models and approaches.

Each new development has the potential to conjure up ethical and moral dilemmas that we simply haven’t encountered before. Novelty can be intimidating. Daniel Kahnemann (6) references ‘Ego Depletion’ to describe the fact that we sometimes become tired and lazy in our thinking when faced with novelty and complexity. Ethical leaders need to be vigilant to this bias and be willing to constantly evaluate their own ethical positions as the world moves rapidly around them.

One example of this is the AI revolution. Here the question is; ‘How will ethical leaders lead in a world where Artificial Intelligence is making many of the decisions for us’?

For example, drug development and research are a dependent on large data sets. One of the major ethical concerns in the life sciences sector is the potential for AI to perpetuate or even exacerbate biases present in the data it is trained on – potentially impacting treatment recommendations (7). So, despite the capabilities of AI, human oversight remains critical. Ethical decision-making in biopharma should involve a combination of AI insights and human judgement (what some researchers describe as ‘algorithmic audits’) to ensure that decisions are made in the best interests of patients.

Leaders within the life sciences sector must be ‘in front’ of these developments, ensuring that the very human science of ethics is applied to the very inhuman generative and large language models that will pervade our lives.

In Summary

Ethical leadership is a vital component of success for any life-science organisation. Ethical leaders are adept at spotting and counteracting their own biases, espousing and living by a strong set of standards and constantly interrogating and updating their ethical positions.

These qualities do not come easily to many of us.

So, to those of you who have read this far and have taken the choice to read another article on ethics in pharma, the final question I might have for you is:

“What do I need to do the next time my own leadership is being tested?”

Literature

(1)The ethics of leadership in pharmacy – Barbara K. Redman, PH.D. American Journal of Health-System Pharmacy, Volume 52, Issue 19, 1 October 1995, Pages 2099–2104,
(2) Thinking Fast and Slow – Daniel Kahnemann
(3) British Psychological Society: Readers Digest (Feb 2014)
(4) Tappin and McKay. Soc Psychol Personal Sci. (Aug 2017)
(5) How pharma leaders talk about ethics in a highly criticized industry. PharmaVoice. Michael Gibney (Nov 2023)
(6) Ethical considerations and concerns in the implementation of AI in pharmacy practice: a cross-sectional study. BMC Medical Ethics. Hisham E. Hasan (May 2024)
(7) Ethical Concerns Grow as AI Takes on Greater Decision-Making Role. American College of Surgeons. Ameera AlHasan (February2023)

Contact

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ssc@mannaz.com
+44 7990 036110

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