The Williams Institute for Ethics and Management (TWI) was formed as a 501(C)(3) nonprofit corporation in 1993 by co-founders, Linda and Jim Williams. Unknown even to the founders, the thoughts and concerns that led to the development of TWI were taking shape seven years prior to its actual creation. In early 1986, Linda M. Williams was working in a policy position at NASA Headquarters in Washington, DC, when the Space Shuttle Challenger exploded on January 28, 1986, at 11:39 AM EST—73 seconds into its flight—killing all seven crew members. This moment stands out as a vivid experience that led many to "rethink" how we approach organizational decision making.

Although decision makers were usually guided in their ethical decision making by the 83-page Standards of Conduct for Employees of the Executive Branch, nothing in that document could have assisted NASA managers in avoiding the tragedy that January morning. The Rogers Commission, appointed by President Reagan, found that NASA’s organizational culture and decision-making processes had been a key contributing factor to the disaster.

Immersed in analysis related to questions of ethics surrounding the Challenger disaster until her resignation from NASA in June 1988, Linda Williams decided to change direction in her career and follow a long-standing vision to serve the community through the social services sector. She realized that her undergraduate and graduate degrees in business did not adequately equip her to make some of the tough decisions related to ethics. She returned to school in 1990 and earned a PhD in ethics and public policy from the Arizona State University College of Law and Social Sciences with the intent to form a nonprofit corporation that could assist decision makers in addressing the kinds of ethical issues they are faced with every day. The Williams Institute for Ethics and Management (TWI) became a reality in 1993 with Dr. Linda M. Williams serving as President and CEO.