Until very recently, ethical issues were given little attention in administrator-preparation programs. This digest outlines the ethical responsibilities of school leaders and the dilemmas that they face. It offers the following suggestions for resolving ethical dilemmas: (1) Leaders should have and be willing to act on a definite sense of ethical standards; (2) leaders should examine dilemmas from different perspectives; (3) leaders can reframe ethical issues; and (4) leaders should have the habit of conscious reflection. Educators can create ethical institutions by developing an ethics committee or a shared school covenant. The virtues that leaders must practice include honesty, courage, and stewardship. The leader's responsibility is complex and multi-dimensional, rooted less in technical expertise than in simple human integrity. (Contains 10 references.) (LMI)