Beyond the Unethical Leader: A Dispositional Analysis of Unethical Leadership in the Case of Theranos

Abstract The downfall of the once heralded Theranos has captured the attention of the media, producing a plethora of reports presenting the case from a range of perspectives and sparking debate over the culpability of various parties and their contributions. This paper considers the case of Theranos through a dispositional analysis, bringing together 47 reports on the company to highlight an array of contextual factors that collectively contributed towards the leadership processes and eventual organisational demise. The complexity and nuance of the case are highlighted by taking a holistic-heterogenous approach to leadership ethics, considering the influences of the leaders and on the leaders, with factors both internal to the organisation and external included in the analysis. The findings highlight the impact of interconnected ‘dispositives’—including Silicon Valley culture, organisational culture, the press, and the legal situation—which together created an environment in which unethical practices were able to flourish. This analysis calls into question the suitability of binary distinctions between ‘ethical’ and ‘unethical’ leaders and illustrates the need to consider a far wider range of factors both within and beyond the organisation under investigation. Through outlining the contribution of dispositives it is possible to identify structural and systemic causes of unethical leadership, rather than attributing blame to a small number of individuals, which may enable the development of more robust systems of auditing, governance, and accountability that may minimise the potential for harm.