The ongoing cynicism about leaders and organizations calls for a new standard of ethical leadership that we have labeled “transformative leadership.” This new leadership model integrates ethically-based features of six other well-regarded leadership perspectives and combines key normative and instrumental elements of each of those six perspectives. Transformative leadership honors the governance obligations of leaders by demonstrating a commitment to the welfare of all stakeholders and by seeking to optimize long-term wealth creation. Citing the scholarly literature about leadership theory, we (...) identify key elements of the six leadership perspectives that make up transformative leadership, suggest leaders who exemplify each perspective, describe the ethical foundations and message of each perspective, and offer ten propositions that scholars and practitioners can use to test the dimensions of this new transformative leadership model. (shrink)

Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment—compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person's mediating lens. That lens and each person's interpretation of the social contract impact one's commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.

Although leadership of organizations rarely is discussed in terms of the religious construct of repentance, we propose that repentance and continuous improvement are closely related ideas that profoundly impact individuals and organizations. We identify six parallels between repentance and continuous improvement and then show how these parallels apply to the fundamental principles associated with highly regarded leadership perspectives. We conclude by identifying five contributions of the article to the management literature.

The raging cynicism felt toward businesses and business leaders is a by-product of perceived violations in the social contracts owed to the public. Business schools have a unique opportunity to make a significant impact on present and future business leaders, but ‘practicing what we teach’ is a critical condition precedent. This paper presents frameworks for ethical practices for assessing the social contracts owed by business schools in their role as citizens in the larger community. We identify the ethical implications of (...) business school practices to guide the development of tools for self-assessment and to focus on delivering the implied duties owed to the stakeholders of business schools. (shrink)

Individuals who demonstrate organizational citizenship behavior (OCB) contribute to their organization’s ability to create wealth, but they also owe their organizations a complex set of ethical duties. Although, the academic literature has begun to address the ethical duties owed by organizational leaders to organizational citizens, very little has been written about the duties owed by those who practice OCB to their organizations. In this article, we identify an array of ethical duties owed by those who engage in extra-role behavior and (...) describe those duties in context with personality theory. We suggest that employees who understand the complex nature of OCB and the associated duties they owe to others are more likely to reach their potential and make greater contributions within their organizations. (shrink)

Organizational citizenship behavior (OCB) has been widely recognized as a contributor to improving organizational performance and wealth creation. The purpose of this article is to briefly summarize the motives of many employees who exercise OCB and to identify the ethical duties owed by organizational leaders to the highly committed employees with whom they work. After reviewing the nature of OCB and the psychological contracts made with highly committed employees, we then use Hosmer’s framework of ten ethical perspectives to identify how (...) OCB is viewed from each of those ethical viewpoints. We offer six propositions about OCB that relate to building employee commitment and trust. (shrink)

This article is an attempt to understand ethical theory not just as a set of well-developed philosophical perspectives but as a range of moral capacities that human beings more or less grow into over the course of their lives. To this end, we explore the connection between formal ethical theories and stage developmental psychologies, showing how individuals mature morally, regarding their duties, responsibilities, ideals, goals, values, and interests. The primary method is to extract from the writings of Kohlberg and his (...) students the cues that help to flesh out a developmental picture of a wide range of ethical perspectives. Thus, developmental psychology benefits from gaining a broader understanding of “morality” and “ethics,” and ethical theory benefits from a richer understanding of how moral maturity arises from youthful beginnings in juvenile and adolescent thinking. Results of this study offer insight into the difficulty of teaching ethics and a refined ability to assess moral maturity in business activity. (shrink)

Many believe that colleges of business have a role to play in improving the level of marketing ethics practiced in the business world, while others believe that by the time students reach the level of university education, their ethical beliefs are so ingrained as to be virtually unalterable. The purpose of this study is to add to the literature regarding university students’ ethical value judgments. It utilizes scenario studies to assess base line ethical values of junior level undergraduate business administration (...) students, then techniques are employed to influence students’ perceptions of the ethics of various marketing practices, and students’ values are reassessed. A total of 667 junior and senior level students majoring in business administration (52% female; 48% male; 72% 22-years old or younger) participated in the pre-tests and 525 students (47% female; 53% male; 70% 22-years-old or younger) participated in the post-tests. The results of the before/after studies indicate that some experimental techniques are more effective than others in affecting change, but it is difficult to affect long-run change in those predisposed to unethical behavior. (shrink)

Many believe that colleges of business have a role to play in improving the level of marketing ethics practiced in the business world, while others believe that by the time students reach the level of university education, their ethical beliefs are so ingrained as to be virtually unalterable. The purpose of this study is to add to the literature regarding university students' ethical value judgments. It utilizes scenario studies to assess base line ethical values of junior level undergraduate business administration (...) students, then techniques are employed to influence students' perceptions of the ethics of various marketing practices, and students' values are reassessed. A total of 667 junior and senior level students majoring in business administration participated in the pre-tests and 525 students participated in the post-tests. The results of the before/after studies indicate that some experimental techniques are more effective than others in affecting change, but it is difficult to affect long-run change in those predisposed to unethical behavior. (shrink)

This paper advances the conception of social entrepreneurs as caring entrepreneurs. We argue that the care ethics of social entrepreneurs, implying the pursuit of caring goals through caring processes, can be challenged when they engage in the process of scaling up their ventures. We propose that social entrepreneurs can sustain their care ethics as the essential dimension of their venture only if they are able to build a caring enterprise. Organizational care designates the set of organizing principles that facilitate the (...) embedding of care ethics at an organizational level, beyond the imprinting induced by social entrepreneurs’ personal ethics. (shrink)

The article briefly reviews the external pressures for teaching business ethics. It then summarizes why teaching business ethics across the curriculum is essentially a necessity in the current environment. This leads to a discussion of six commonly adopted elements used when seeking to improve a business ethics curriculum. The case study uses these six elements to provide insights into contemporary challenges facing many business schools. The particular contribution of this article is in the area of methods to assess the status (...) of the curriculum. The case study provides details about a faculty survey used as a compelling tool to kick-start a business ethics curriculum upgrade, not only based on the information that it yields, but the potent opportunity for conversation and collaboration. The conclusion summarizes the contemporary challenges and opportunities that business schools face. The instrument itself is in the appendix. (shrink)

This paper presents the results of and conclusions from a survey of 2,830 college and university undergraduate business andphilosophy departments regarding their business ethics offerings. The impetus for this survey included seeking a better understandingof the problems for which business ethics courses are the solution. It was proposed that, if we knew what it is that professors teachingbusiness ethics believe they are teaching-not in terms of content or methods, but in terms of what criteria they are using to assessstudents' achievement (...) of the course objectives-we would have a better understanding of what issues business ethics attempts toresolve. The survey focused on ranking six possible assessment criteria drawn from the literature on teaching business ethics.In addition to disclosing the specific survey results, the paper draws conclusions based on the fact that there are statistically significantdifferences between the rankings assigned to the six assessment criteria by business professors as contrasted with philosophyprofessors. The results of the survey indicate that there is more uniformity expressed in the responses by the philosophy professorsteaching business ethics than by the business professors. (shrink)

This paper describes a live ethics case project that can be used to teach ethics in a broad variety of business classes. The live case differs from regular cases in that it involves a current situation. Students select an on-going or current event that involves ethical violations and write a case about it. They then present their case and run a debate about the challenges and issues outlined in the case and the actions that could have or should have been (...) taken. The dynamic project fulfills the key criteria for effective ethics education since it increases awareness of the complexity of ethical challenges, allows application of concepts, creates a personal emotional engagement in the case, is relevant, holds students accountable for their position, and creates a setting that encourages students to think critically about ethics. (shrink)

This paper combines a review of existing literature in the field of business ethics education and a case study relating to the integration of ethics into an undergraduate degree. Prior to any discussion relating to the integration of ethics into the business curriculum, we need to be cognisant of, and prepared for, the arguments raised by sceptics in both the business and academic environments, in regard to the teaching of ethics. Having laid this foundation, the paper moves to practical questions (...) such as who should teach ethics, and when and how can ethics be taught. The paper presents alternative models for the teaching of ethics in the curriculum of undergraduate and postgraduate business programmes. An integrative model is elaborated on in more detail with a case example describing the six-stage process undertaken in the move from a single entry course to an integrated approach. The case study details not only the planning and initial implementation of ethical education in the context of an undergraduate business degree programme, but also the means by which a change in the way that ethics is taught was achieved in a business faculty in a tertiary institution. (shrink)

This paper combines a review of existing literature in the field of business ethics education and a case study relating to the integration of ethics into an undergraduate degree. Prior to any discussion relating to the integration of ethics into the business curriculum, we need to be cognisant of, and prepared for, the arguments raised by sceptics in both the business and academic environments, in regard to the teaching of ethics. Having laid this foundation, the paper moves to practical questions (...) such as who should teach ethics, and when and how can ethics be taught. The paper presents alternative models for the teaching of ethics in the curriculum of undergraduate and postgraduate business programmes. An integrative model is elaborated on in more detail with a case example describing the six-stage process undertaken in the move from a single entry course to an integrated approach. The case study details not only the planning and initial implementation of ethical education in the context of an undergraduate business degree programme, but also the means by which a change in the way that ethics is taught was achieved in a business faculty in a tertiary institution. (shrink)

This paper presents conceptual arguments to suggest that trust within organizations and trustworthiness of organizations are built through ethical governance mechanisms. We ground our analysis of trust, trustworthiness, and stewardship in the business literature and provide the context of business school governance as the focus of our paper. We present a framework that highlights the importance of knowledge, resources, performance focus, transparency, authentic caring, social capital and citizenship expectations in creating a basis for the ethical governance of organizations.

The buyer–supplier relationship is the nexus of the economic partnership of many commercial transactions and is founded upon the reciprocal trust of the two parties that participate in this economic exchange. In this article, we identify how six ethical elements play a key role in framing the buyer–supplier relationship, incorporating a model articulated by Hosmer (The ethics of management, McGraw-Hill, New York, 2008 ). We explain how trust is a behavior, the relinquishing of personal control in the expectant hope that (...) the other party will honor the duties of a psychological contract. Presenting information about six factors of organizational trustworthiness, we offer insights about the relationship between ethics and trust in the buyer–supplier relationship. (shrink)

Unethical conduct has reached crisis proportions in business :A1–A10, 2011) and on today’s college campuses :58–65, 2007). Despite the evidence that suggests that more than half of business students admit to dishonest practices, only about 5 % of business school deans surveyed believe that dishonesty is a problem at their schools :299–308, 2010). In addition, the AACSB which establishes standards for accredited business schools has resisted the urging of deans and business experts to require business schools to teach an ethics (...) class, and fewer than one-third of businesses schools now teach a business ethics course at the graduate or undergraduate levels. In this paper we briefly introduce the status of business ethics education and report the results of a survey of business students, deans of the top business schools, and business ethics subject matter experts about ten ethical outcomes. We then offer five specific recommendations to encourage business ethics faculty and decision makers to improve the teaching of business ethics. (shrink)