Heeding the call for a deeper understanding of how cross-sector social partnerships can be managed across different contexts, this article integrates ideas from institutional theory with current debate on cross-boundary collaboration. Adopting the point of view of business actors interested in forming a CSSP to address complex social problems, we suggest that “appropriateness” needs shape business approaches toward partnering for social change, exerting an impact on the benefits that can be gained from it. A theoretical framework is proposed that identifies (...) and frames four CSSP styles, as resulting from combinations of dominant institutional orientations in a field and its general level of coherence. We show how, depending on prevailing institutional logics, intervention models underlying the CSSP have to emphasize either the business soundness of the initiative or its social value, together with a consistent leadership style. Moreover, while directive approaches based on concentrated governance structures aimed at setting the rules of the game are shown to prevail in fields characterized by low level of institutional coherence, participative models emerge in more established fields, with CSSP’s promoter playing an integrative role through distributed governance structures. The article concludes with a summary and implications of an institutional-based view of CSSPs. (shrink)

Leaders in today's world face the challenge of earning the trust and commitment of organizational members if they expect to guide their companies to success in a highly competitive global context. In this article, we present empirical results indicating that when leadership behaviors are perceived as trustworthy through the observer's mediating lens, trust increases and leaders are more likely to be viewed as ethical stewards who honor a higher level of duties. This article contributes to the growing body of literature (...) about the importance of ethical stewardship in the trust relationship. (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)

As stated by previous researchers, in an increasingly competitive environment, organizations need to develop successful innovations to compete and survive in the long term. Furthermore, sustainability and social issues are gaining increasing importance, to the extent that they are now a matter of high concern for firms and for society. Therefore, organizations cannot improve their results at any price and must be responsible for the consequences of their activities, including innovation. In these conditions, a growing demand for new leadership styles (...) and behaviors arises to face this complex context. Stewardship is a leadership behavior that shows great concern for the impact of the organization’s activity on society. A quantitative study has been conducted with the purpose of providing empirical evidence of the relationship between leaders’ stewardship behavior and innovation success, using radical innovation as an explanatory variable. To confirm the hypotheses, structural equations were used on a dataset from a sample of 300 questionnaires from Spanish companies. The study empirically validates the proposed conceptual model. Results show how radical innovation fully mediates the relationship between leaders’ stewardship behavior and innovation success. (shrink)

We introduce the concept of “organizational terrorism” to describe dysfunctional leaders who are abusive and who treat organizational members with contempt and disregard. After identifying the moral duties of leaders in organizations, we explain how organization members respond to their dissatisfaction with organizations through Exit, Voice, Loyalty, or Neglect. We explain why exercising voice is the most effective moral choice in dealing with dysfunctional leaders.

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)

The ability of leaders to be perceived as trustworthy and to develop authentic and effective relationships is largely a function of their personal identities and their self-awareness in understanding and making accommodations for their weaknesses. The research about self-deception confirms that we often practice denial regarding our identities without being fully aware of the ethical duties that we owe to ourselves and to others. This article offers insights about the nature of identity and selfawareness, specifically examining how self-deception can create (...) barriers to self-awareness within both a personal and a business context. (shrink)

Previous literature has demonstrated that ethical leadership could predict employees’ voice behavior. However, it’s not clear how to heighten these positive effects of ethical leadership on employees’ voice behavior. Building on the AET and moral disengagement studies, we developed an integrated model. A three-wave field study investigated the relationship between ethical leadership and voice behavior by focusing on the mediating role of employees’ affective commitment and the moderating role of employees’ moral disengagement. Our matched data analysis results indicated that: employees’ (...) affective commitment partly mediated the relationship between ethical leadership and employees’ voice behavior. In addition, employees’ moral disengagement moderated the effect of ethical leadership on employees’ affective commitment and the effect of employees’ affective commitment on voice behavior, similarly, the indirect effect of ethical leadership on employees’ voice behavior via employees’ affective commitment. Theoretical and practical implications of these results are discussed. (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.

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

Drawing on the Agency-Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results (...) show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically. (shrink)

In a world that has become increasingly dependent upon employee ownership, commitment, and initiative, organizations need leaders who can inspire their␣employees and motivate them individually. Love, forgiveness, and trust are critical values of today’s organization leaders who are committed to maximizing value for organizations while helping organization members to become their best. We explain the importance of love, forgiveness, and trust in the modern organization and identify 10 commonalities of these virtues.

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees (...) ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption. (shrink)

In this paper we suggest that the ethical duties of business schools can be understood as representing stewardship in the Aristotelian tradition. In Introduction section we briefly explain the nature of ethical stewardship as a moral guideline for organizations in examining their duties to society. Ethical Stewardship section presents six ethical duties of business schools that are owed to four distinct stakeholders, and includes examples of each of those duties. Utilizing this Framework section identifies how this framework of duties can (...) be used in the process of self-examination and transformation within business schools. Why It Matters section concludes by explaining why the process of examining ethical duties at business schools is vitally important for both business schools and the larger communities that they serve. (shrink)

Based on the literature on stakeholder management and family firm dynamics, this research analyses the relationship between three constructs: the identification of business families with their family firms, FFs’ orientation toward key non-family stakeholders, and the achievement of better economic performance. Data analyses from 374 family and non-family members of 173 Spanish FFs show that a high level of family identification with their firms affects the orientation of FFs toward key non-family stakeholders in setting corporate goals and that this orientation (...) will lead to higher economic performance only when it is built on family identification with the firm. Our results also show that the significance of both relationships changes with the degree of family involvement in the management of the FF. (shrink)

Mohandas Karamchand “Mahatma” Gandhi discussed corporate responsibility and business ethics over several decades of the twentieth century. His views are still influential in modern India. In this paper, we highlight Gandhi’s cross-level CR framework, which operates at institutional, organizational, and individual levels. We also outline how the Tata Group, one of India’s largest conglomerates, has historically applied and continues to utilize Gandhi’s concept of trusteeship. We then compare Gandhi’s framework to modern notions of stakeholder and stewardship management. We conclude that (...) trusteeship has strong potential to help firms and their stakeholders achieve shared value by considering the interactions between individual, organizational, and institutional factors, and paying attention to a range of multi-level stakeholder obligations. (shrink)

The research about strategic human resource management (SHRM) has suggested that human resource professionals (HRPs) have the opportunity to play a greater role in contributing to organizational success if they are effective in developing systems and policies aligned with the organization's values, goals, and mission. We suggest that HRPs need to raise the standard of their performance and that the competitive demands of the modern economic environment create implicit ethical duties that HRPs owe to their organizations. We define ethical stewardship (...) as a model of governance that honors obligations due to the many stakeholders and that maximizes long-term organizational wealth creation. We propose that if HRPs adopt an ethical stewardship framework and the qualities of transformative leaders, they will be more aware of their ethical duties to their organizations and more effective in helping their organizations to create increased wealth, achieve desired organizational outcomes, and establish work environments that are more satisfying to employees. (shrink)

Using a sample of multinational firms in Germany, we develop and empirically examine a model to test the effects of ethical climate and its antecedents on purchasing social responsibility (PSR). Our results show different effects of benevolence dimensions of ethical climate on PSR: employee-focused climate has no effect, but community-focused climate is a significant driver of PSR. The results also show that top management ethical norms and code of conduct implementation impact PSR directly as well as indirectly through ethical climate.

Trust is a crucial factor for the long-term economic success of a company. However, not only does the company establish trust, but the CEO representing the company builds up trust as well and, therefore, also influences the company's success. Our study examines how different dimensions of trust (i.e., ability, integrity, benevolence, and information quality) influence the degree of overall trust in a company and in CEOs. Nevertheless, dimensions that influence trust in a CEO can be completely different to those influencing (...) trust in companies. Companies and CEOs that act on an international level can hardly be experienced individually, and thus people get information about the company via media use. Therefore, additionally we examine which kind of media is used for getting information about a company or CEO and whether a relationship exists between media use and trust. Findings from a survey in Switzerland (n = 245) show that companies are more trusted than CEOs and that the items which influence overall trust differ between CEOs and companies. Social responsibility as a benevolence item is important for both groups. Regarding information on different media channels, users of traditional media like newspapers, TV, and radio are most critical regarding trust in companies and CEOs. (shrink)

The existing analysis of heterogeneous social responsibility in small and medium enterprises has considered the effects of individual factors. However, no holistic analysis has been performed on how different factors of heterogeneity interact and how they collectively affect SR in SMEs. Here, we propose a new systemic approach—employing the social capital concept—with the aim of identifying how and why SR is built diversely in SMEs. In particular, we focus on a positive and holistic perspective that integrates the factors proposed in (...) the literature into the social capital construct. Through a case study of four Spanish SMEs, this article proposes a systemic approach to the study of heterogeneous SR in SMEs. (shrink)

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)

The purpose of this study is to investigate the role of school principal trustworthiness components (i.e., ability, integrity, benevolence) in helping shape teacher trust and affective commitment within schools. Using data from 1,026 teachers in Spain and structural equation modeling (via EQS 6.3), this study establishes how a principal’s integrity and benevolence are key in determining, both directly and indirectly (via trust in the principal), teachers’ affective commitment to their school. It also reveals that the perceived ability of a principal (...) is not effective in generating trust or affective commitment to the school in teachers. As a contribution to the literature, these findings reveal that the ethical trustworthiness (benevolence, integrity) of principals is key in engendering trust and affective commitment to schools. Thus, to shape work environments that are high in trust and commitment, principals should focus on behaving in ways that make their integrity and benevolence manifest to their teachers. (shrink)

In this article, we draw on established views of CSR dysfunctionalities to show how and why CSR is regularly observed to be both shaped by and supportive of capitalism. We proceed to show that these dysfunctionalities are maintained by both the pro- and anticapitalist approaches to CSR, both of which imply an ill-defined separation of the economy and society as well an overly strong problem or solution focus on political and economic issues. Finally, we present a post-capitalist approach to CSR (...) that overcomes (1) the ill-defined separation of the economy and society, (2) the capitalist bias towards economic rationalities, and (3) the overidentification of society with its political system; this approach thus helps to manage the abovementioned CSR dysfunctionalities. (shrink)

Manager stewardship behavior, defined as an ethical initiative whereby managers subjugate their personal interests to protect their organization’s long-term welfare, has been widely considered beneficial for organizations and subordinates. However, is manager stewardship behavior also viewed as good in the eyes of peers? This research examines peer reactions to manager stewardship behavior. Drawing on person perception theory, we expect that a peer may credit and support manager stewardship behavior or stigmatize and undermine it depending on his or her attributions (organizational (...) concern versus impression management). Study 1 (a vignette experiment: _n_ = 200) found that manager stewardship behavior is related to credit evaluation by a peer and subsequently increases peer support and decreases peer undermining when attributed to organizational concern motives; however, it is related to stigma evaluation by a peer and subsequently increases peer undermining and decreases peer support when attributed to impression management motives. Study 2 (_n_ = 221) replicated the results of Study 1 using a field survey design. These findings expand our understanding of the implications of stewardship behavior from a peer perspective and offer insight for managers into how to engage in stewardship behavior wisely. (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)

Buyer–supplier relationships are often framed as principal–agent relationships, based on contractual arrangements that temporarily align the goals of both parties. The underlying notion is that the relationship between buyers and suppliers is adversarial in nature and that the supplier, acting in the role of the agent, will take advantage of the principal if not sufficiently controlled. We propose that there is empirically also another type of partnership which reflects the propositions of stewardship theory. According to this theory, suppliers are motivated (...) to work autonomously towards contractually agreed objectives. We analyse how the agency and stewardship theories differ regarding their descriptions of autonomy, motivation, identification, authority, stakeholder orientation and short- versus long-term collaboration. We analyse the case of a first-tier supplier and four second-tier suppliers situated in Turkey in the area of Istanbul which collaborate with the aim of improving their social and environmental performance. The results show that the relationship between the partners in this case has become more collaborative over time and can now be described in terms of stewardship theory rather than in terms of agency theory. We conclude that the distinction between agency and stewardship relationships is empirically meaningful in the context of supplier–buyer relationships and adds a new aspect to our understanding of how to achieve more sustainable supply chains. (shrink)