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)

This study involved using a mixed method research design to examine the moral philosophy difference between the ethical decision-making process of CEOs in U.S.-led and non-U.S.-led within the luxury goods industry. The study employed a MANOVA to compare the ethical profiles between the two leader types and a phenomenological qualitative process to locate themes that give indication as to the compatibility of the luxury strategy values and practices with the principles and concepts of responsible leadership and conscious capitalism. As the (...) luxury goods industry is facing the first slowdown since 2000, pressure to achieve sales targets in the U.S. to make up for losses in other markets will place these CEOs under extreme pressure from their headquarters. These leaders must possess the ethical decision-making capability to balance legal and moral dilemmas unique to multinational luxury goods organizations while delivering business results in a challenging environment. Results of the study show no evidence of difference in the ethical decision-making profiles between the two groups of leaders. The themes and emergent findings resulting from the qualitative analysis indicate a profound incompatibility between the values informing decision-makers using the luxury strategy and those employed by leaders operating within the principles and parameters of responsible leadership and conscious capitalism. Recommendations for future research include replicating the study with a larger sample, within a different geographic region or comparing leaders using the luxury strategy to those using conscious capitalism. (shrink)

In this paper, we propose reconceptualizing diversity management from a communication-centered perspective. We base our proposal on the observation that the literature on diversity management, both in the instrumental and critical traditions, is primarily concerned with fostering the diversity of organizational members in terms of individual-bound criteria. By drawing on Bakhtin’s notion of polyphony as well as the ‘communicative constitution of organizations’ perspective, we suggest reconsidering diversity as the plurality of ‘voices’ which can be understood as the range of individual (...) opinions and societal discourses that get expressed and can find resonance in organizational settings. We contribute to the literature on diversity management by moving away from a focus on individual-bound and inalterable criteria of diversity and toward a reconceptualization of diversity management as dynamic processes of voice articulation and mediation. (shrink)

I propose a theory aimed at advancing scholarly research in social entrepreneurship. By highlighting the key trade-off between value creation and value capture and explaining when situations of simultaneous market and government failure may arise, I suggest that social entrepreneurship is the pursuit of sustainable solutions to neglected problems with positive externalities. I further discuss the situations in which problems with externalities are likely to be neglected and derive the central goal and logic of action of social entrepreneurs, in contrast (...) to commercial entrepreneurs. Overall, this article provides a conceptual framework that allows understanding the growing phenomena of social entrepreneurship and its role in the functioning of modern society. (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)

Responsible leadership is rare. It is not that most leaders are irresponsible, but responsibility in leadership is frequently defined so that an important connotation of responsible leadership is ignored. This article equates responsible leadership with virtuousness. Using this connotation implies that responsible leadership is based on three assumptions—eudaemonism, inherent value, and amplification. Secondarily, this connotation produces two important outcomes—a fixed point for coping with change, and benefits for constituencies who may never be affected otherwise. The meaning and advantages of responsible (...) leadership as virtuous leadership are discussed. (shrink)

A values-centered leadership model comprised of leader stakeholder and economic values, follower values congruence, and responsible leadership outcomes was tested using data from 122 organizational leaders and 458 of their direct reports. Alleviating same-source bias concerns in leadership survey research, follower ratings of leadership style and follower ratings of values congruence and responsible leadership outcomes were collected from separate sources via the split-sample methodology. Results of structural equation modeling analyses demonstrated that leader stakeholder values predicted transformational leadership, whereas leader economic (...) values were associated with transactional leadership. Follower values congruence was strongly associated with transformational leadership, unrelated to transactional leadership, and partially mediated the relationships between transformational leadership and both follower organizational citizenship behaviors and follower beliefs in the stakeholder view of corporate social responsibility. Implications for responsible leadership and transformational leadership theory, practice, and future research are discussed. (shrink)

The Sustainable Development Goal of the United Nations related to reduced inequalities calls for greater economic inclusion of the poor. Yet, how business leaders grant economic opportunities and development to the poor is significantly under-researched. Extending burgeoning responsible leadership theory that promotes paradox-savvy leadership for building inclusive ventures through various actors, this study introduces new concepts of inclusive leadership that foster the economic inclusion of the poor from Amartya Sen’s capability approach perspective. By studying how leaders include the poor in (...) social businesses, we provide a fresh perspective of inclusive leadership as a personalized empowering cycle of economic–social–economic inclusion to close the gaps between the rich and poor in business and society. This perspective provides new territories of diversity and inclusion research for reduced inequality. (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)

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)

Current literature on ethical leadership and unethical leadership reflects a Western-based private sector perspective, pointing toward a compliance-oriented understanding of ethical and unethical leadership. As today’s executives increasingly have to ethically lead across different cultures and sectors, it becomes vitally important to develop a more holistic picture how ethical and unethical leadership is perceived in the Western and Eastern cultural cluster and the private and the public/social sector. Addressing this issue, the present study aims to identify cross-cultural and cross-sectoral commonalities (...) and differences in international executives’ perceptions of ethical and unethical leadership. Findings from in-depth interviews (N = 36) with executives from Western and Eastern cultures working in the private or the public/social sector reveal collectively held perceptions of ethical leadership (including leader honesty, integrity, concern for responsibility/sustainability, and people orientation) and of unethical leadership (referring to leader dishonesty, corruption, egocentrism, and manipulation). Results indicate limited support for a compliance-oriented perspective on ethical and unethical leadership but yield a much greater trend toward a value-oriented perspective. Concrete practice examples illustrate these different perspectives. Cultural and sectoral particularities of executive perceptions of ethical and unethical leadership are discussed. (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.

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)

This paper argues for an Aristotelian account of good leader as ethical and effective by outlining the ethical motivation and the constraints that moral luck imposes on effectiveness. This account of a good leader, which is grounded on practical wisdom, is assessed against the contemporary leadership debate by addressing the tension between the ethical and the effective and by contrasting the Aristotelian virtuous leader against the dominant contemporary types of leadership. My Aristotelian proposal of a virtuous leader relies on an (...) isomorphic relation between the ethical and political domains by proposing that as virtue is to vices rooted in calculation and desires, so the virtuous leader is to the calculative bureaucrat and the emotionally obsessed tyrant. (shrink)

The initiative to ensure oil-palm smallholders around the world participate in sustainable certification is increasing. Different efforts were strategised including increasing awareness and providing financial support. Despite that, the number of smallholders’ participation in sustainable certification is relatively low. This study embarked on the objective to identify the role of social structure, namely social interaction ties in affecting smallholders’ participative behaviours. Moreover, this study is also looking on the mediating impact of deliberative communication and responsible leadership in explaining the relationship (...) between the two previously stated constructs. Using a quantitative research design, this study collected data from 440 smallholders as its respondents. Samples were randomly selected, and questionnaires were distributed to obtain their responses. Data collected were then analysed using PLS-SEM to test the developed hypothesis. Accordingly, the findings indicate that social interaction ties have a significant impact on smallholders’ decisions to participate in sustainable certification. Furthermore, both deliberative communication and responsible leadership were proven to be significant mediators. This study provides insights on how smallholders’ participation in sustainable certification can be improved by tapping on the social structure elements as well as adopting deliberative communication and responsible leadership as a method to communicate and lead with the smallholders. This shall expand literature related to organisation psychology in rural areas and sustainability. (shrink)

Whilst the academic literature on leadership has identified authenticity as an important leadership attribute, few studies have examined how authentic leadership is evaluated in naturally occurring discourse. This article explores how authentic leadership was characterised and evaluated in the discourse of the British press during the 2015 Labour Party leadership election—won, against the odds, by veteran left-winger Jeremy Corbyn. Using membership categorisation analysis, we show that the media discourse about authentic leadership was both ambiguous and ambivalent. In their representation of (...) authentic leadership, we found that a discourse of ‘ethical’ leadership was played out in tension with a discourse of ‘effective’ leadership. We propose that this complex and contradictory discursive landscape is also relevant in business contexts where ‘ethical’ leaders are subjected to praise for their virtues but also criticism for their ineffectiveness. Future research could usefully study how ‘ethical’ leaders in different settings can be subject to competing evaluations when their ethical values are discursively contrasted to expectations concerning what it takes to be an ‘effective’ leader. (shrink)

Recently, the increasing interest in responsible leadership (RL) has produced a research field rich in theoretical and conceptual potential, with diverse research foci, theoretical foundations, and methodological approaches. While these developments have demarcated the field from other leadership-oriented disciplines, they have equally courted fragmentation and ambiguity in terms of the field’s positioning within the greater body of leadership studies. To map the theoretical, methodological, and empirical state of the art of the RL field, we outline recent developments and delineate important (...) research gaps and directions for future theory development and empirical research. We emphasize the transition of RL research from micro-level perspectives with normative roots to research spanning multiple levels of analysis, vis-à-vis both antecedents and outcomes. We discuss the implications of our mapping, highlighting the necessity of not only conceptualizing RL across multiple levels of analysis, but also to actively focus on interactions among RL antecedents and outcomes across these levels. Through these, we aim to contribute to the field by strengthening its conceptual foundations and anchoring it more clearly within leadership studies overall. (shrink)

Business leaders are increasingly responsible for the societal and environmental impacts of their actions. Yet conceptual views on responsible leadership differ in their definitions and theoretical foundations. This study attempts to reconcile these diverse views and uncover the phenomenon from a business leader’s point of view. Based on rational egoism theory, this article proposes a formal mathematical model of responsible leadership that considers different types of incentives for stakeholder engagement. The analyses reveal that monetary and instrumental incentives are neither sufficient (...) nor necessary for business leaders to consider societal and environmental stakeholder needs. Non-monetary and non-instrumental incentives, such as leaders’ values and authenticity, as well as their planning horizons, counterbalance pure monetary and instrumental orientations. The model in this article complements the growing body of research on responsible leadership by reconciling its various conceptual views and providing a foundation for future theory development and testing. (shrink)

This paper analyzes perceptions of responsible leadership in eight Asia-based firms during the first year of the COVID-19 pandemic. The focal firms were a mixture of multinational corporations (MNCs), large-sized enterprises, and small and medium enterprises (SMEs). In all eight focal firms, we found that the responsible decision-making of leaders during the pandemic was perceived to be guided by five main moral principles. These comprised equity-based justice for employees, meeting employees’ basic needs, ethics of care for employees, concern for non-employee (...) stakeholders, and interactional justice for employees. We developed a conceptual map of how these principles related to aspects of four ethics-oriented leadership theories. Our analysis also identified four types of responsible leadership policies and practices. These comprised prioritizing the health and safety of stakeholders, flexible work arrangements, meeting employees’ and customers’ special needs, and financial and psychological support for employees. (shrink)

The paper considers two main cases of how the creative arts can inform a greater appreciation of human dignity. The first case explores a form of theater, Commedia dell’Arte that has deep roots in Italian culture. The second recounts a set of theater exercises done with very minimal direction or self-direction in executive education and MBA courses at the Darden School, University of Virginia, in the United States. In both cases we highlight how the creative arts can be important for (...) promoting human dignity in organizations, and how they can lead to a more authentic conversation about values, ethics, and meaning. (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)

Organizations and their leaders are challenged to assume a responsible behavior given the increase of corporate scandals and the deterioration of employee commitment. However, relatively few studies have investigated the impact of responsible leadership on employee commitment and the effect of corporate social responsibility in this relationship. Using the social identity theory this article examined the mediating effect of CSR practices in the relationship between RL and affective organizational commitment. Data collection was done through a paper survey completed by 309 (...) full-time Colombian employees. Structural equation modeling was used to analyze the data. The results showed that CSR fully mediated the influence of RL on AOC. Thus, RL is an effective mechanism to develop CSR practices that in turn increase the levels of AOC of employees. (shrink)

The worldwide problem of corruption is one that requires greater knowledge about responsible leadership. Based on the literature on responsible leadership, developmental psychology, and moral development, the purpose of our study is to understand the constructions of the motivational drivers behind the behaviors of a responsible leader. Using biographical and narrative methodologies, we analyzed the individual motivational drivers of Carlos Cavelier, a recognized responsible leaders who grew up and works in Colombia, a social/economic context characterized by institutional fragility and corruption. (...) Our findings suggest that the coherence between the immediate environments of development of the future leader, configured optimal environments in which the leader developed the moral conscience that guides his behavior as a responsible leader. Our study points out the need not to take the development of responsible leaders for granted, and presents propositions that allow for a deeper understanding of the micro‐foundations of responsible leadership, highlighting the importance of the contexts in which leaders are raised and in which they develop. Thus, our study has the potential to be heuristic and generative of future studies. (shrink)

This study explores the role and potential of benevolent leadership in creating virtuous and compassionate organizations. A number of small and medium enterprises in Turkey, also called “The Anatolian Tigers”, have been experimenting with new ways of incorporating care and compassion at work. The study uses narrative inquiry to explore how benevolent leadership enhances collective performance and wellbeing in Anatolian Tigers. The paper reviews and integrates four streams of research associated with creating common good in organizations: Spirituality, morality, positivity, and (...) community, and links each of these elements to creating virtuous and compassionate organizations through narrative inquiry. The paper proposes that benevolent leadership can contribute to the long-term health and sustainability of organizations through its four elements: spiritual depth, ethical sensitivity, positive engagement, and community responsiveness. (shrink)

This article uses the life stories approach to leadership and leadership development. Using exploratory, qualitative data from a Forbes Global 2000 and FTSE 100 company, we discuss the role of the turning point as an important antecedent of leadership in corporate social responsibility. We argue that TPs are causally efficacious, linking them to the development of life narratives concerned with an evolving sense of personal identity. Using both a multi-disciplinary perspective and a multi-level focus on CSR leadership, we identify four (...) narrative cases. We propose that they helped to re-define individuals’ sense of self and in some extreme cases completely transformed their self-identity as leaders of CSR. Hence, we also distinguish the momentous turning point that created a seismic shift in personality, through re-evaluation of the individuals’ personal values. We argue that whilst TPs are developmental experiences that can produce responsible leadership, the MTP changes the individuals’ personal priorities in life to produce responsible leadership that perhaps did not exist previously. Thus, we appropriate Maslow’s metaphorical phrase ‘A falling of the veils’ from his discussion of peak and desolation experiences that produce personal growth. Using a multi-disciplinary literature from social theory moral psychology Personality, identity and character: explorations in moral psychology, Cambridge University Press, New York, 2009) and social psychology Prosocial motives, emotions, and behaviour: the better angels of our nature, American Psychological Association, Washington, 2010), we present a theoretical model that illustrates the psychological process of the TP, thus contributing to the growing literature on the microfoundations of CSR. (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)

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)

There is growing interest in the positive organizational literature in the complex interplay between the positive and negative facets of organizations, individuals, and situations. The concept of courage provides fertile ground to study this interplay, since it is generally understood to be a positive quality that is manifested in challenging situations. The empirical study presented here looks at courage in a strategic decision-making context and takes an interpretive perspective; it focuses on the cognitive structures and subjective understandings of managers and (...) administrators involved in merger projects as a way to understand the dynamics surrounding managerial courage. Our study makes several contributions: it shows that managers consider courage to have a moral dimension, e.g., to be a positive and ethical response to a risky or difficult situation in which there is an interplay between organizational and personal interests; it identifies two kinds of managerial moral courage; it proposes a conceptual model with which to understand how evaluations of what is courageous and what is not are made; and finally, it offers four schemas developed from the data that add to our understanding of moral courage in management. (shrink)