The study investigated the question: What is the process that Christian higher education administrators and faculty members used when understanding the challenges of postmodern thought at the institutions, and what are the challenges for ethical leadership? Utilizing a grounded theory methodology, the researcher sought to develop a theory that examined how fifteen Christian higher education administrators and faculty understood the challenges of postmodern thought at their institution and determined what were the implications for ethical leadership. The findings of this study revealed the following theory: The study identified six categories that served as the framework for understanding the process Christian higher education leaders used when understanding postmodern challenges at their institutions and the factors they determined to be implications for ethical leadership. The six categories were (a) attitude towards openness, (b) constructivist approach, (c) critical thinking/embracing diversity of ideas, (d) curriculum consideration, (e) tolerance, and (f) leadership. Additionally, attitude towards openness was developed as the central phenomenon. The integration of the six categories produced a central category that shaped the theory of the process Christian higher education leaders used in understanding the challenges of postmodern thought at Christian higher education institutions and the implications for ethical leadership. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]