Business Ethics, the Environment & Responsibility, EarlyView.

Inclusive businesses that combine profit making with social impact are claimed to hold the potential for poverty alleviation while also creating new entrepreneurial and innovation opportunities. Current research, however, offers little insight on the processes through which for-profit business organizations introduce social innovations that can profitably create social impact. To understand how social innovations emerge and become sustained in business organizations, we studied a telecom firm in Kenya that successfully extended financial services across the country through a number of mobile (...) banking innovations. Our qualitative analysis revealed the strong role of being embedded in local networks and structures for initiating and implementing social innovations. Strong embeddedness enhanced the pragmatic and ethical imperative for internalizing social issues, but also provided access to diverse resources for implementing and legitimizing social innovations. However, hybridization processes that emphasized social issues introduced organizational tensions by increasing goal diversity and requiring adapting organizational processes and structures. The case shows how developing a mission-driven identity enabled the sustenance of social innovations by providing a meta-narrative that bridged goal diversities and rationalized organizational change. (shrink)

Leaders in a variety of organizations are beset by challenges that test their commitments to ethical behavior in interactions with stakeholders who make up their working environments. Situations that present themselves include complex management of expectations, people, and resources, which require novel solutions that also test the boundaries between right and wrong. Such conditions arose after the 9/11 terrorist attacks on the World Trade Center Twin Towers. President Bush asked the Central Intelligence Agency to round up persons who represented a (...) continuing threat of harm to U.S. interests. What followed was a series of decisions and actions by a number of internal and external constituencies based on inaccurate reporting of treatment of and information gleaned from detainees. Lessons for understanding and avoiding resulting leadership ethical dilemmas and a novel stakeholder perspective are provided in the close. (shrink)

This article focuses on the collective leadership of the civilian authorities of the British Channel Islands during the Nazi Occupation (1940-1945), and draws lessons from their ethical performance. The first part of the article determines that local officials in the Channel Islands disposed of operative margins, but that - in the interest of collaboration - these were not always used to the full. This article then details institutional factors that contributed to commonalities between the two bailiwicks of Jersey and Guernsey, (...) as they faced up to occupation. The second part of this article follows up with the dissimilarities, one of which is that Guernsey travelled further down the road to collaboration than her sister island. Social capital depletion is credited as being responsible for this; and this situation was further compounded by lack of 'ethical leadership'. The final part explores the relationship between social capital and leadership ethics, suggesting that virtue serves as a catalyst for social capital stock in crisis situations. The core research outcome is that ethical leadership produces tangible efficiency and moral effects in situations of extreme duress (such as Nazi Occupation) where one could have expected very little or no scope for such a thing. This is an uplifting message that runs counter to scepticism as to the practical value of business ethics. Implications are drawn with regard to the challenge of reconciling MNE activities with the moral complexity posed by globalization. (shrink)

There is widespread agreement in both business and society that MNCs have an enormous potential for contributing to the betterment of the world, A paper from the Tomorrow's Leaders Group of the World Business Council for Sustainable Development). In fact, a discussion has evolved around the role of "Business as an Agent of World Benefit."¹ At the same time, there is also growing willingness among business leaders to spend time, expertise, and resources to help solve some of the most pressing (...) problems in the world, such as global warming, poverty, HIV/AIDS, and other pandemic diseases. One example of business leaders engagement in citizenship activities is PricewaterhouseCoopers' leadership development program called "Project Ulysses" which we present and discuss in this article. Using a narrative approach we ask: "What can business leaders learn from selected Ulysses narratives for acting as agents of world benefit and with respect to engaging responsibly in the fight against some of the most pressing social problems at the local level?" Our contribution is organized as follows. We begin the article with a brief discussion on the role of business leaden in the fight against world's social problems and address some areas of concern as to whether or not business leaders should play a role in fighting these global issues. We then introduce "Project Ulysses" which takes place in cross-sector partnership in developing countries. Following an overview of the research methodology we present four Ulysses narratives which tell us about learnings in the light of fundamental human problems, such as poverty and misery. Each story is analyzed with regard to the above question. We conclude the article by summarizing key lessons learned and some recommendations for business leaders as agents of world benefit. (shrink)

Instead of the currently prevailing competitive model, a more collaborative strategy is needed to address the concerns related to the unsustainability of today’s business. This article aims to explore collaborative approaches where enterprises seek to build long-term, mutually beneficial relationships with all stakeholders and want to produce sustainable values for their whole business ecosystem. Cases here analyzed demonstrate that alternative ways of doing business are possible. These enterprises share more democratic ownership structures, more balanced and broader governance systems, and a (...) more comprehensive view of organizational goals and performance – which goes beyond the narrow concept of financial bottom line and into a stronger and systematic care of the needs and requirements of the different stakeholder groups. Thanks to this evidence and different theoretical and empirical contributions, we suggest that the strength and sustainability of enterprises come from their ability to fit into the environmental, social, and cultural context in which they operate. By creating values for all stakeholders, enterprises can involve them and gain deep support based on their commitment. This may lead to superior performance from a multiple-bottom-line perspective. (shrink)

This paper explores the relationship between business experience in cross-sector partnerships and the co-creation of what we refer to as ‘dynamic capabilities for stakeholder orientation,’ consisting of the four dimensions of sensing, interacting with, learning from and changing based on stakeholders. We argue that the co-creation of dynamic capabilities for stakeholder orientation is crucial for CSPs to create societal impact, as stakeholder-oriented organizations are more suited to deal with “wicked problems,” i.e., problems that are large, messy, and complex. By means (...) of a grounded theory approach of inductive research, we collected and interpreted data on four global agri-food companies which have heterogeneous experience in participating in CSPs. The results of this paper highlight that only companies’ capability of interacting with stakeholders continually increases, while their capabilities of sensing, learning from, and changing based on stakeholders first increase and then decrease as companies gain more experience in CSP participation. To a large extent, this can be attributed to the development of corporate strategies on sustainability after a few years of CSP participation, which entails a shift from a reactive to a proactive attitude towards sustainability issues and which may decrease the need or motivation for stakeholder orientation. These findings open up important issues for discussion and for future research on the impact of CSPs in a context of wicked problems. (shrink)

This article examines the contribution of one Islamic scholar, Fetullah Gülen to the debate about the meaning and practice of responsibility. It analyses Gülen’s thinking in terms of three inter-connected modes of responsibility: relational accountability, moral agency and liability. This view of responsibility is contrasted with major western philosophers such as Levinas, Buber and Jonas, Islamic tradition and the major views about corporate responsibility, including stakeholder theory. The role of dialogue in embodying the three modes of responsibility is then analysed. (...) The social responsibility practice of business leaders who are part of Gülen’s Hizmet Movement is briefly surveyed to illustrate the embodiment of responsibility. This focuses on the contribution of business to education and peace building, and includes the example of Zaman Daily. (shrink)

Organizational leaders are increasingly emphasizing a stakeholder perspective in order to address concerns about business ethics. This study examined the choices of 94 groups in the context of a business decision-making simulation to determine how specific actions and communications can facilitate the consideration of different stakeholder perspectives. In particular, we examined whether generally framing the business situation as one involving diverse stakeholders versus a primarily profit-driven operation (referred to as framing), and whether specific suggestions that participants consider the concerns of (...) stakeholders versus stockholders in maximizing the value of the firm (referred to as vision priming), would influence group choices and decision outcomes. We tested four experimental conditions against a control in a 2 × 2 experimental design to determine the effects that group choices had on decision outcomes when groups were exposed to stakeholder versus stockholder decision framing and stakeholder versus stockholder vision priming. The results revealed that the consistent conditions outperformed the control condition and that vision priming has a greater impact on decision outcomes than decision framing. (shrink)

The objective of this paper is to explore how the various stages of consciousness development of top managers can influence, in practical terms, their abilities in and commitment to environmental leadership in different types of SMEs. A case study based on 63 interviews carried out in 15 industrial SMEs showed that the organizations that displayed the most environmental management practices were mostly run by managers at a post-conventional stage of consciousness development. Conversely, the SMEs that displayed less sustainable environmental management (...) practices were all run by managers at conventional stages of development. Drawing upon diverse examples of environmental leadership, this paper analyzes the reasons why the stages of post-conventional consciousness development of top managers seem to foster corporate greening in SMEs. The study also sheds light on the key values and abilities associated with both environmental leadership and the upper-stages of consciousness development, which include a broader and systemic perspective, long-range focus, integration of conflicting goals, collaboration with stakeholders, complexity management, collaborative learning, among others. (shrink)

In a world of glossy corporate social responsibility reports, the shallowness of the actual CSR results may well be its counterpart. We claim that the possible gaps between aspirations and implementations are due to the company's overrating abilities to deal with the irrational and complex moral world of business. Many academic approaches aim to lift business ethics up to a higher level by enhancing competences but will fail because they are too rationalistic and generalistic to match the pluralistic and situational (...) practice constituted by the mosaic of values and set of constraints. This is demonstrated by describing and analyzing the CSR development of the multinational caterer Sodexo and in particular its Dutch branch. We explain what they do and why they are not successful. We present a new tool named Ethical Room for Maneuver that centers experiences and concrete situations in a playground of inquiry and experiment to enhance abilities to operate in themoral world and to meliorate business and society with more effectiveness. (shrink)

Pushing through a logical continuum of closed-to open-system views of organizations necessarily changes the conceptualization of a firm from a strongly bounded entity to a configuration of networks and sub-networks, which exists and operates in a larger systemic network configuration. We unfold a classification of management processes corresponding to views of the firm along the closed/open-systems continuum. We examine ethical issues that are likely to devolve from these classes of management processes, and we suggest typical means by which managers will (...) attempt to control their firms' exposure to such issues. The final class of management processes examined focuses on the achievement of out-comes that are mutually satisfactory in the set of networks and sub-networks that constitute the focal firm, and that support the sustainability of the whole system. The article contributes to organizational theory, business ethics, and computer and information ethics by providing a comprehensive analysis of the impact of managerial views of the firm and of networks - virtual, social, informational - on managerial processes and on our understanding of how business ethics issues are linked to perceptions of what a firm is, does, and can do. (shrink)

Networks and the World Wide Web seem to provide an answer to efficiently creating and disseminating knowledge resources. Knowledge, however, is ambiguous in character, and contains both explicit (information) and tacit dimensions - the latter being difficult to value as well as to transfer. Participant identity, commitment and behaviour within the network also affect the sharing of knowledge. Hence, existing laws and norms (including property rights) which have been established on the basis of discrete transactions and monetary value-oriented exchange may (...) not be adequate to deal with the whole spectrum of knowledge transfer. A model is needed to address transfer across a large heterogeneous network. We introduce the concept of sub-networks where tacit knowledge resides and argue that considering social norms underlying trust and other informal mechanisms provides a more suitable basis for understanding the exchange of tacit knowledge. Norm establishment is complicated by the fact that values differ across cultures; however, the social norms that underpin sub-networks can sustain knowledge transfer within them. The purpose of this conceptual article is to introduce the concept of sub-networks and to identify the sub-network/network relationship as an area in which it is necessary to look beyond property rights and raise the issue of norms. We believe that an analysis of the role of social norms in knowledge sub-networks and their interaction with global networks points to a key element in understanding networks and any emerging theory of network ethics in the twenty-first century. (shrink)

For four decades, research on the role and responsibilities of business in society has centered on the business case for corporate social responsibility (CSR) and an increasing number of studies on the corporate social performance (CSP)—corporate financial performance (CFP) link emerged leading to controversial results. Heeding the call for a deeper understanding of the mechanisms linking certain CSR efforts to certain performance outcomes, this study provides a stakeholder-based organizing framework rooted in an extensive review of existing literature on the link (...) between CSP and CFP. In so doing, we aim at guiding research and practice toward less simplistic understandings of the CSP–CFP connection, thus advancing the debate over the consequences of voluntary integrating CSR into business operations and into relationships with stakeholders. By disentangling specific drivers and outcomes of the CSP–CFP link, we underline the importance of setting clear boundaries and specifying levels of analysis to generate comparable results. (shrink)

The Samenleving and Bedrijf (S&B) network of Dutch organizations seeks to embed corporate social responsibility (CSR) within business practices but faces challenges with regard to how to do so across various organizational practices, processes, and policies. The integration of CSR demands cultural change driven by senior management and other change agents, who push CSR principles throughout the organization. This study examines the change processes that S&B member organizations have initiated, with a particular focus on the role of high potentials—those persons (...) who have been selected for the fast track into senior management. Interviews with nine S&B organizations document their levels of CSR integration and implementation, the role of senior managers, and the effects of high potentials’ competencies on the realignment process. High potentials have the ability and opportunity to act as CSR change agents, but organizations’ expectations of their purposes as future senior managers prevented them from doing so. In the existing organizational cultures, leadership focused on economic success, and the CSR implementation process had just initiated. Therefore, a measure of CSR embeddedness might refer to the performance measurement and expectations of high potentials as potential CSR change agents. (shrink)

The article advances an understanding of responsible leadership in global business and offers an agenda for future research in this field. Our conceptualization of responsible leadership draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. We discuss the concept in relation to existing research in leadership. Further, we propose a new model of responsible leadership that shows how such an understanding of leadership can address the (...) challenges of globalization. We thereby propose positive outcomes of responsible leadership across levels of analysis. The model offers research opportunities for responsible leadership in global business. (shrink)

In this paper, I present a systematic approach to stakeholder theory based on social capital: the stakeholder social capital approach. Social capital is a relatively novel concept in stakeholder theory, which in previous research was not properly defined or systematically developed. This paper aims to fill this gap by taking into account the specificities of the stakeholder theory, which implies an explicit consideration of values. Therefore, the stakeholder social capital concept is defined by four dimensions (relational, cognitive, structural and evaluative) (...) instead of three (relational, cognitive and structural). I present the stakeholder social capital approach according to Donaldson and Preston's distinction: the descriptive, instrumental and normative. The descriptive perspective implies mapping the stakeholder networks based on the four dimensions and implies a shift toward relationships rather than groups of stakeholders. The instrumental perspective based on the relational view focuses on the drivers of relational rents within the network (relational assets, knowledge routines, complementary resource endowments and effective governance) and the normative perspective aims to foster a relational view of society. (shrink)

Many of the negative connotations of corporate social responsibility (CSR) are linked to its perceived role as a public relations exercise. Following on calls for more positive engagement by public relations professionals in organisational strategic planning and given the rapidly increasing interest in CSR as a business strategy, this article addresses the question of how the theory and practice of public relations can provide direction and support for CSR. To this end, this article explores leadership styles and motivations of a (...) sample of corporate leaden from prominent Australian-based corporations in relation to their chosen CSR activities to examine the current position of, and potential for, professional communicators' impact in shaping CSR-driven policies at a strategic level. We find that while public relations theory has evolved, many leaders still see public relations professionals only as a source of positive publicity. Our findings suggest that the model of distributive leadership has more relevance to an emerging idea of public relations involvement in CSR than more traditional understandings of leadership. We conclude that the public relations profession needs to develop a greater understanding of senior management approaches to the development and dissemination of CSR activities to support organisational leadership as it currently operates with respect to CSR. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The taken-for-grantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

In the management and business ethics literatures, stakeholder engagement has been demonstrated to lead to more ethical management practices. However, there may be limits on the extent to which stakeholder engagement can, as currently conceptualized, resolve some of the more difficult ethical challenges faced by managers. In this paper we argue that stakeholder engagement, when seen as a way of reducing five types of knowledge problems—risk, ambiguity, complexity, equivocality, and a priori irreducible uncertainty—can aid managers in resolving such ethical challenges. (...) Using a practical illustration of the ethical challenges surrounding the development and application of genetic modification technologies, we demonstrate how stakeholder engagement enables managers to better address these knowledge problems, thereby to manage more ethically. In this way, we suggest that stakeholder engagement has an even more crucial role to play in business ethics research and practice. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

As the world is getting increasingly connected and interdependent it becomes clear that the world’s most pressing public problems such as poverty or global warming call for cross-sector solutions. The paper discusses the idea of business leaders acting as agents of world benefit, taking an active co-responsibility in generating solutions to problems. It argues that we need responsible global leaders who are aware of the pressing problems in the world, care for the needs of others, aspire to make this world (...) a better place, and act in word and deed as global and responsible citizens. The argument is structured as follows: first, in highlighting some leadership challenges we discuss why it takes a responsible, global, and ultimately cosmopolitan mindset to enhance human values on a global scale. Second, we define more specifically responsible global leadership and the (potential) role of business leaders acting as agents of world benefit. Third, drawing on latest research on cosmopolitanism, we discuss the hallmarks of contemporary cosmopolitanism. Fourth, and concluding our argument, we propose key cosmopolitan business principles to help leaders build a more inclusive world. (shrink)

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related (...) to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The takenforgrantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

This paper explores the antecedents of intra-organizational social capital from a comprehensive perspective that integrates leadership as the main antecedent. To be precise, we propose that intra-organizational social capital is a direct consequence of an organizational ethical and community context to which leadership in the servant dimension plays a transcendental role. Indeed, since the seminal work of Greenleaf the servant leadership concept has been widespread among business academics and professionals for the value it brings to the organization not only in (...) ethical but also in excellence terms. Among the recent styles and theories on leadership up to date, servant leadership fits perfectly an organizational ethical context both at the organizational or group level, acting in addition as a main promoter of that context. Furthermore, servant leadership is linked to the cultivation of helpful, altruistic and servant attitudes among the employees which are useful elements in the generation of social capital inside the organization. A model then for understanding the causes of intra-organizational social capital with a focus on servant leadership is here elaborated from which conclusions and implications for Management will be delineated. (shrink)

We conducted an international survey of 211 scholars with expertise in business ethics. Each respondent was asked to identify the three most important issues that business ethics academia will face in the coming decade. Using content analytic procedures, responses were categorized and analyzed for commonalities. The results suggest that the most important issues facing business ethics academia in the future will be the following: issues relating to business ethics education such as curriculum, pedagogy, faculty, and accreditation the credibility of the (...) business ethics field, environmental issues, issues relating to business ethics research such as research tools and quality of business ethics research the decline of ethical behavior in society and organizations, corporate social responsibility, globalization, and the institutionalization of ethics into business. We maintain that these issues have important teaching and research implications for the future sustainability of the business ethics discipline. (shrink)

As concepts of corporate social responsibility (CSR) continue to evolve, the predicament facing CSR managers when attempting to balance the differing interests of various stakeholders remains a persistent management challenge. A review of the extensive literature in this field reveals that the conceptualisation of corporate approaches to responsible stakeholder management remains underdeveloped. In particular, CSR practices within the specific context of the pharmaceutical industry, a sector which particularly dramatically depicts the stakeholder management dilemmas faced by business managers, has been under-researched. (...) To address this gap, this paper utilises qualitative, exploratory data, obtained via multiple research methods, to investigate the CSR practices of major pharmaceutical companies in the UK and Germany. The data are employed to critically re-examine and revise a previously published explanatory framework which identifies the management steps involved in CSR stakeholder engagement. The resulting revised explanatory framework is the main contribution of this paper. By abstracting those factors which influence CSR practice, it provides an analytical tool which is designed to be of practical use for business decision-makers when managing their stakeholder engagement activities. Given that the research addresses values and ideals and prescribes practical recommendations for practitioners, it is essentially applied and normative in nature. Ultimately, the framework proposes a set of steps for developing CSR strategies which could help CSR professionals to make a ‘mindset transition’ from a narrower ‘traditional’ approach to CSR to a more innovative way of thinking. (shrink)

The current globalization process excludes a significant part of humanity, but organizations can contribute to a more inclusive form by means of dialogue with other organizations to create economic and social value. This article explores the main leadership traits (visions, roles and virtues) necessary for this dialogue. This exploration consists of a comparison between two theoretical approaches and their illustration with two cases. The theoretical approaches compared are Responsible Leadership, a management theory focused on the contribution of business leaders to (...) create a better society as developed by Maak and Pless; and the Work of Translation, a sociological theory which stresses the need for dialogue between organizations to build an alternative to hegemonic or the so-called neo-liberal globalization as formulated by Santos. Both approaches, in what seems an unlikely pairing at first, are compared in terms of their perspectives, diagnoses of the present situation, the main task to be performed by leaders, styles of this task and leadership outcomes. The illustrative cases include a federation of co-ops in Nicaragua and an employer organization in the Democratic Republic of the Congo. We contend that, although these economic development organizations are not private firms, the leadership characteristics of their respective leaders are highly valuable and inspiring for business leaders and multinational corporations wishing to act responsibly at the local and global levels, thus contributing to this more inclusive form of globalization. (shrink)

This paper develops a theoretical model to explicate stakeholder-related mechanisms that affect university adoption of sustainability in curricula. This work combines stakeholder and institutional theories so as to extend both. By examining change in the university context wherein there is confusion about sustainability adoption, this research adds to previous institutional theory focusing on strongly contested practices, primarily in the for-profit firm setting. Sustainability is a transformational challenge and may be adopted reactively or proactively. Also, stakeholder theory is extended in a (...) mixed profit and non-profit context. Propositions suggest how the extent of embeddedness affects an organizations’ selection of stakeholders, consequently affecting the type of adoption. This facilitates a greater understanding of why two competing definitions of stakeholders may operate. Moreover, extrinsic and intrinsic motivations are discussed as affecting adoption in different ways. A responsible leader organization is newly defined and intrinsic motivation is proposed as underlying its choice of the widest set of stakeholders leading to broad, proactive adoption. (shrink)

ABSTRACT:The purpose of this paper is to critically evaluate the instrumental perspective on Corporate Social Responsibility (CSR) in practice and theory by relying on sociological analyses of a well known organization: the Italian Mafia. Legal businesses might share features of the Mafia, such as the propensity to exploit a governance vacuum in society, a strong organizational identity that demarcates the inside from the outside, and an extreme profit motive. Instrumental CSR practices have the power to accelerate a firm's transition to (...) Mafia status through its own pathologies. The boundaries of such instrumentalism are explored and lessons for future CSR research derived, with specific emphasis on a firm's social and normative embeddedness, taking into account the inherent challenge of regulating corporate behaviour in the global economy. (shrink)

This article maps current thinking in the emerging field of responsible leadership. Various environmental and social forces have triggered interest in both research and practices of responsible leadership. This article outlines the main features of the relevant research, specifies a definition of the concept, and compares this emergent understanding of responsible leadership with related leadership theories. Finally, an overview of different articles in this special issue sketches some pathways for ongoing research.

This paper examines the influence of internal barriers on the relationship between the organizational capability of stakeholder integration and proactive environmental strategies. We adopt a moderate hierarchical regression model to test the hypotheses using data from a sample of 73 managers in the business education industry. The paper contributes to stakeholder theory by showing that stakeholder integration positively influences the development of proactive environmental strategies when managers perceive internal barriers to the development of such strategies. This article also explores an (...) ethical dilemma—managers may use the stakeholder integration capability to support their own interests rather than to benefit stakeholders. (shrink)

The purpose of this article is to investigate how Human Resources (HR) contributes to responsible leadership. Although Corporate Social Responsibility (CSR) practices have been embraced by many corporations in recent years, the specific contributions of HR professionals, HR management practices and employees to responsible leadership have been overlooked. Relying on the analysis of interviews with 30 CSR and HR corporate executives from 22 corporations operating in France, we specify the HR contributions to responsible leadership at the functional, practical, and relational (...) levels of analysis. We analyze whether and how HR support employees’ involvement in CSR, and highlight areas of collaboration and tension between HR and CSR functions around emerging practices of responsible leadership. Our findings uncover the multiple yet often implicit roles of HR in responsible leadership as well as the interrelation between functional, practical and relational dimensions of these roles. Finally, this study suggests that the organization of the HR–CSR interface can enable or undermine the HR contributions to responsible leadership and points to underlying cognitive factors that shape the HR–CSR interface. (shrink)

This article explores strategy-making modes within organisations. The implications of certain strategy-making modes for the responsible leader as an architect or change agent are highlighted. The study on which this article is based, showed that the use of emergent strategy-making is as prevalent as the use of deliberate strategy-making. This article reports on the thinking of organisational leaders, managers and non-managers regarding strategy-making processes and records empirical findings from mixed method research. It was found that emergent strategy-making is associated with (...) quick response and adaptation to environmental changes, more autonomous decisions and actions, less control and higher intangibility whereas the deliberate strategy is known for its clear objectives, articulated vision and direction and specific ends and means. It is recommended that organisational leaders should take cognisance of the growing use of emergent strategy-making as well as its characteristics in facilitating effective governance. A knowledge and understanding of these characteristics of strategy-making modes should be sought to serve as guideline for organisational leaders who want to be responsive and responsible in all their actions areas for future research. (shrink)

The paper advances the conceptual understanding of responsible leadership and develops an empirical scale of discursive responsible leadership. The concept of responsible leadership presented here draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. Ideal responsible leadership conduct thereby goes beyond the dyadic leader–follower interaction to include all stakeholders. The paper offers a definition and operationalization of responsible leadership. The studies that have been conducted to (...) develop the discursive responsible leadership scale validated the scale, discriminated it from other leadership scales, and demonstrated its utility in affecting unethical behavior and job satisfaction in organizations. Responsible leadership is shown to be first, dependent on the hierarchical level in an organization; second, capable of reducing unethical treatment of employees; and finally, a means of enhancing the job satisfaction of employees. The paper concludes with study limitations, future research directions and practical implications. (shrink)

This study argues that actions taken during a crisis within the responsibility compass impacts reputation. The lens of responsible leadership was chosen from among the different foci of leadership scholarship because of its emphasis on relational and ethical dimensions. The focus of this study was the actions undertaken by the CEOs of United and Delta Airlines after the forceful removal of the passengers and its influence on the reputation capital as measured by the changes in the respective share prices of (...) the airlines. The overarching question was whether there was clear statistical evidence that linked the actions undertaken as part of the crisis management efforts and the reputation of the airlines. Findings from this study suggest that actions taken as part of responsible leadership compass explained the variations in the share prices. In the case of United Airlines almost 70% of the variations in the share prices could be explained by responsible leadership, whereas in the case Delta airlines only 50.6% of the variations in the share value could be predicted based on the role of leadership in crisis management. (shrink)

In this article we explore the conceptual relationship between corporate social responsibility (CSR) orientation and real option reasoning. We argue that the firm's attitude, communication, and behavior toward CSR will act as significant determinants to the firm's sensemaking approach to real options; that is, if and how it (the firm) acknowledges, receives, and manages strategic real options. Integrating the previous work of Basu and Palazzo with Barnett, we propose a new model that extends the influence of CSR orientation/character to general (...) strategic decision making while simultaneously developing the attention‐based view to real options. (shrink)

In this conceptual paper we argue that, to date, principles of responsible management have not impacted practice as anticipated because of a disconnect between knowledge and practice. This disconnect means that an awareness of ethical concerns, by itself, does not help students take personal responsibility for their actions. We suggest that an abstract knowledge of principles has to be supplemented by an engaged understanding of the responsibility of managers and leaders to actively challenge irresponsible practices. We argue that a form (...) of moral reflexive practice drawing on an understanding of threshold concepts is central to responsible management, and provides a gateway to transformative learning. Our conceptual argument leads to implications for management and professional education. (shrink)

Project citizenship behavior has an important positive impact on project success. Researching how to promote PCB is an important issue in project management. Based on social learning theory and social cognitive theory, this paper adopted the method of questionnaire survey and hierarchical linear model to analyze the collected data derived from the sample of Chinese construction enterprises and verified this hypothesis. The results show that responsible leadership has a significant positive effect on PCB, moral identity mediates this relationship, and collective (...) moral sensitivity positively moderates this mediating effect. The findings of the study systematically and deeply reveal the intrinsic mechanism of the cross-level influence of responsible leadership on PCB, and provide new enlightenment for the practice of project management. (shrink)

In this paper, I present a systematic approach to stakeholder theory based on social capital: the stakeholder social capital approach. Social capital is a relatively novel concept in stakeholder theory, which in previous research was not properly defined or systematically developed. This paper aims to fill this gap by taking into account the specificities of the stakeholder theory, which implies an explicit consideration of values. Therefore, the stakeholder social capital concept is defined by four dimensions (relational, cognitive, structural and evaluative) (...) instead of three (relational, cognitive and structural). I present the stakeholder social capital approach according to Donaldson and Preston's distinction: the descriptive, instrumental and normative. The descriptive perspective implies mapping the stakeholder networks based on the four dimensions and implies a shift toward relationships rather than groups of stakeholders. The instrumental perspective based on the relational view focuses on the drivers of relational rents within the network (relational assets, knowledge routines, complementary resource endowments and effective governance) and the normative perspective aims to foster a relational view of society. (shrink)

The aim of this article is to develop a new classification of stakeholders based on the concept of corporate and social engagement. Engagement is analyzed as an organizational learning process between the managers of an organization and its stakeholders. It is a necessary condition to improve the organization’s impact on its economic, social, and natural environment. Applied to the membership of a French mutual bank in order to identify the members’ varying levels of engagement, this new mapping technique may help (...) managers to adapt their practices to the degree of engagement of each identified group of members, and to modify their financial products and communications to foster engagement among as many of these groups as possible. (shrink)

We examine the influence of social capital in the municipal bond market. Defined as the norms and networks that encourage cooperation, social capital is a social construct which captures a region’s level of altruism, trustworthiness, and propensity to honor obligations. We expect that municipalities with high social capital are more trustworthy and likely to honor their debt obligations, which will result in lower bond yields. Our findings confirm that the bonds issued by municipalities located in high social capital counties exhibit (...) lower yields compared to the municipalities located in low social capital counties. Our findings are also supported by bond prices in the secondary market, which shows that bonds from the municipalities located in high social capital regions have higher prices. Additional tests reveal that the influence of social capital is stronger for general obligation bonds, suggesting that social capital matters more for bonds where the willingness of municipalities to pay taxes is an important factor. Lastly, we document that the bonds of municipalities in high social capital areas are less likely to have insurance, suggesting that social capital may act as a substitute for bond insurance. (shrink)

Motivated by contemporary debates concerning whether directors inappropriately deploy corporate funds for corporate political donations and the limited research into managerial influence on corporate political donations, we examine the impact of director influences from a network perspective. Using a sample of large listed Australian corporations and their political party donation activity during 2000–2007, we find that both the professional and non-professional networks of directors influence corporate political donations. We observe these influences in relation to donations at the federal and state (...) levels, and with respect to the choice of recipient political parties. (shrink)

In the business ethics literature, a commons paradigm orients theorizing toward how civil society can promote collaboration and collectively govern shared resources, and implicates the common good—the ethics of providing social conditions that enable individuals and collectives to thrive. In the context of representative democracies, the shared resources of a nation can be considered commons, yet these resources are governed in a top-down, bureaucratic manner wherein public participation is often limited to voting for political leaders. Such governance, however, can be (...) motivated by values of solidarity and stewardship, and a bottom-up approach to participation, in ways that are consistent with a social commons ethos. We employ an inductive methodology focused on successes and possibilities, using data from interviews with 93 policy-makers and national-level government leaders in 5 democratic countries, and observational and archival data. We reveal how governments can operationalize a social commons ethos in decision-making. This approach to governance involves stakeholder engagement that is Broad, Deep, and Continual. In this model, leaders engage a wide breadth of stakeholders, engage them deeply and meaningfully throughout the decision-making process, and sustain this engagement in a continual manner. Implications for governance of non-governmental bureaucracies are discussed, including the normative and strategic benefits of engaging stakeholders in this manner. (shrink)

Chief Executive Officers and other organizational leaders can affect how corporate social responsibility initiatives are perceived in their organizations. However, in order to be successful with regard to promoting CSR, leaders need to have strong network competencies and to move beyond charismatic leadership. In this paper we offer a critique of charismatic leadership as it relates to CSR, posit that the intellectual stimulation brought about by transformational leadership is more important in this regard, propose that internal and networking is a (...) leadership competence highly relevant to CSR, and emphasize the importance of working through highly credible opinion leaders in promoting CSR. (shrink)

Does responsible leadership matter when assembling an inclusive supply chain at the Base-of-the-Pyramid? Current literature implicitly assumes that it does not. BOP scholars initially focused on the importance of shaping innovative and disruptive offerings, with radically improved price–performance ratios. Subsequent studies tended to focus on barriers to implementation of large-scale ventures at the BOP. Their common characteristic was the fact that the attributes and roles of the individuals involved were deemed unimportant. If the opportunity was there, provided barriers were removed (...) and the right value proposition was offered, the inclusive venture should take off. We evaluate three cases of leaders who succeeded in building inclusive ventures at the BOP, in contexts marked by institutional voids—where formal markets were weakly structured or nonexistent. Building a viable business under those circumstances entailed two tasks: imagining what is possible and then turning that vision into a reality. We found that, in carrying out those tasks, individuals do matter. Sampled cases show that working with nontraditional partners in inclusive supply chains requires more than aligning material incentives. Our analysis suggests that responsible leadership with a strong ethical foundation can provide powerful leverage to ensure buy-in and commitment from the various actors involved. We show how RL can impact organizations and external stakeholders through positive upward spirals. Our analysis contributes to the literature on BOP and RL by confirming, extending, and challenging existing knowledge. We propose two novel attributes and argue that context matters, influencing how RL is operationalized and defined. Understanding the critical role of RL in the construction of inclusive supply chains adds a critical missing link that sheds light into the micro level of new business creation, development, and consolidation at the BOP. (shrink)

The emerging field of responsible leadership holds various possibilities for business and society. The wide range of conceptualizations, definitions, and theorizations of RL as a distinctive or unique leadership construct has not previously been investigated through a systematic review. To conceptualize the intrinsic meaning of responsible leadership as a distinct leadership construct, and to bring coherence to the expanding body of literature on responsible leadership, evidence from 162 peer‐reviewed journal articles on responsible leadership, ethical leadership, servant leadership, authentic leadership, transformational (...) leadership, and values‐based leadership have been analyzed through a systematic review. The aim was to synthesize a coherent and intrinsic meaning of responsible leadership in order to identify the place of responsible leadership in the leadership domain. The findings suggest that responsible leadership is not an independent leadership construct, but largely builds on and leverages other leadership theories and approaches. However, the findings indicate that the core meaning of responsible leadership is distinctive in its relational focus on, and accountability for, the active engagement of stakeholders; the balancing of stakeholder interests; the building of social capital; and the assurance of long‐term sustainability of society and the natural environment, beyond responsibilities to internal stakeholders. (shrink)