The Daniels College of Business has long prided itself on a model that prioritizes business ethics.
Key Takeaways
- Ethics is a competitive advantage, not a constraint: Employers rank ethical judgment as highly as adaptability and critical thinking.
- Principles matter most under pressure: Short-term targets, the temptation to cut corners and profit-versus-people tradeoffs test a leader’s moral compass. Principle-based leaders rely on firm anchors to choose what’s right over what’s easiest.
- The Daniels College of Business has long been a leader in ethical education. It was one of the first programs to integrate ethics into its core curriculum and offers numerous in-class and out-of-class opportunities.
- Bill Daniels’ eight principles form the foundation. Integrity, trust, accountability, transparency, fairness, respect, rule of law and viability guide the Daniels curriculum.
- Principled leaders give progress direction. In a “move fast and break things” culture, these leaders help organizations innovate ambitiously while staying mindful of their purpose and their impact on employees, customers and communities.
Good business is profitable. Better business is principled.
The Daniels College of Business stands out because it has long stood for ethical leadership, in service of the public good. It was one of the first schools in the country to incorporate integrity into its core curriculum.
Corporate America is starting to see things the same way. According to a report from Drexel University, employers value ethical judgement as much as they value adaptability and critical thinking.
“It would be great if all business leaders acted in a principle-based manner,” said Bud Bilanich, an associate teaching professor in the Department of Management. “However, in today’s world, we see too many examples of leaders who do not. Principle-based leaders, those who conduct themselves in a manner consistent with their moral compass, make their organizations and the world a more fair and equitable place. Our goal at Daniels is to develop leaders who do the right thing when faced with morally ambiguous situations”
What is principled leadership and why does it matter? The Daniels Newsroom spoke with three faculty who are experts in the field of management and regularly teach ethical business practices in their classrooms.
Bud Bilanich
Associate Teaching Professor
Department of Management
Lily Morse
Assistant Professor
Department of Management
Kathie Novak
Teaching Professor
Department of Management
What does it means to be a principle-based leader?
According to Kathie Novak, a teaching professor in the Daniels Department of Management, a professional’s moral compass is put to the test when conditions are the toughest.
“It can be easy for leaders to fall prey to the many temptations they face, whether that is pressure to meet short-term expectations, cut corners, maximize profits at the expense of people or avoid difficult decisions,” Novak said. “Principle-based leaders have anchors that help them navigate those situations and stay focused on what is right, not simply what is easiest or most profitable in the moment.”
Lily Morse, an assistant professor in the Department of Management, agrees. Businesspeople are not innately unethical, she said.
“It tends to start with small compromises that gradually become normal, or with people doing bad things for what they believe are good reasons,” she said. “For example, leaders may justify harmful decisions because they think it will help their organization succeed. People often overlook how principles help us recognize ethical crossroads and notice when we’re drifting away from our values.”
Which values do principle-based leaders hold?
When Bilanich thinks about a principle-based leader, he pictures Bill Daniels. Daniels was a highly successful businessman who was widely regarded as “the father of cable television.” Over the course of his career, Daniels became known for his great business sense and his commitment to integrity.
In 1989, Daniels challenged the University of Denver’s business school to update its graduate curriculum to comprehensively include his eight ethical principles:
- Integrity: Act with honesty in all situations.
- Trust: Build trust in all stakeholder relationships.
- Accountability: Accept responsibility for your decisions.
- Transparency: Maintain open and truthful communication.
- Fairness: Engage in fair competition to create equitable and just relationships.
- Respect: Honor the rights, freedoms, views and property of others.
- Rule of Law: Comply with the spirit and intent of laws and regulations.
- Viability: Create long-term values for all relevant stakeholders.
“The important thing for leaders is to develop a set of ethical or guiding principles and stick to it, even when it can be difficult to do so,” Bilanich said.
The Daniels College of Business honors these principles through its participation in the Daniels Fund Ethics Initiative Collegiate Program. In recent years, orientation for new faculty has included a stop at the Daniels Fund building in Denver, for an in-depth introduction to what Bill Daniels stood for.
Teaching principle-based leadership at Daniels
Students at the Daniels College of Business calibrate their moral compass through an innovative curriculum that centers the public good. In 2026, it received recognition from the Positive Impact Rating for Business Schools, which celebrated its real-world, partnership-based learning, as well as its incorporation of sustainability.
All undergraduate students go through a required Ethics Bootcamp, that students often cite as one of their most impactful experiences. Many also complete a popular minor through the Department of Business Ethics and Legal Studies.
MBA students, meanwhile, take on the Social Good Challenge—a specific directive to tackle a sustainability or social impact issue for a nonprofit. Past cohorts have partnered with Mile High United Way, Art from Ashes, Denver Food Rescue, Denver Sister Cities, EarthLinks, Goodwill Denver, Growing Colorado Kids and The Gathering Place.
A social impact project is also a cornerstone of the Executive MBA program. Students leverage the EMBA alumni network and the College’s community partners, connecting with a nonprofit of their choosing with whom they spend six months as a consultant.
Other students have traveled to places like Guatemala, where an interterm trip turned classroom learning into real-world impact.
Bilanich, Novak and Morse all infuse their classes with lessons in principle-based leadership.
“Through reflection, discussion and real-world examples, they begin to think more intentionally about the kind of leaders they want to become and how they will respond when faced with difficult decisions,” Novak said. “One impact I hope our ethics-forward curriculum has on students is helping them recognize that ethical leadership is not an occasional consideration, but an essential part of business leadership.”
How do ethical values benefit a business?
Ultimately, a company’s ethical principles do more than create a healthy internal culture. Research from Columbia University found that financial firms that embraced a code of ethics “experienced clear financial benefits,” through higher valuations, increased profitability and fewer shareholder disputes.
“The impact of principle-based leadership extends beyond individual decisions,” Novak said. “These leaders build trust, strengthen organizations and create cultures where people can thrive. They consider the broader impact of their actions on employees, customers, communities and society.”
The research also found that employees performed better when ethical conduct was ingrained in corporate culture and decision-making processes.
Daniels College of Business faculty experts agree that principle-based leaders are invaluable assets to any company that wants to be successful.
“In a business world that increasingly celebrates ‘move fast and break things,’ we risk making progress without considering where we’re headed or the consequence of getting there,” Morse said. “We need principle-based leaders to provide the compass that helps organizations innovate and pursue ambitious goals without losing sight of their purpose or impact on others. They give progress direction.”
Frequently Asked Questions
What is a principle-based leader?
A leader whose conduct consistently reflects their moral compass, especially in morally ambiguous or high-pressure situations. They prioritize what is right over what is expedient or most profitable in the moment.
Do ethical practices actually benefit a company financially?
Research from Columbia University found that financial firms with a code of ethics saw higher valuations, increased profitability and fewer shareholder disputes. Employees also performed better when ethics were built into the company’s culture and decision-making.
Why do good people sometimes make unethical business decisions?
According to professor Lily Morse, it often starts with small compromises that gradually feel normal, or with people convincing themselves that a harmful choice serves a good purpose, such as helping their organization succeed.
How does the Daniels College of Business teach ethical leadership?
Undergraduates complete a required Ethics Bootcamp, and many pursue a minor through the Department of Business Ethics and Legal Studies. Faculty also weave ethics into their courses through reflection, discussion and real-world examples.