The question of whether ethical individuals have a disadvantage in becoming leaders is an important one that has not been adequately discussed in the business ethics/leadership literature. In this paper, drawing on Plato’s middle dialogues and particularly on the Republic, I develop a Platonic framework of the constraints that might hinder the emergence of what the dialogues term ‘philosopher kings’. Subsequently, I use this framework to elucidate the emergence of ethical leaders in todays’ organizations and conclude with a discussion of (...) this paper’s implications for the ethical leadership literature. (shrink)

Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations. Foreign host market corruption is disaggregated into (...) two components—private and public corruption. We employ an uncertainty-based perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary’s organizational structure [wholly-owned subsidiary or a joint venture with a local partner]. We expect that each type of corruption fosters a different type of uncertainty which predominates in shaping the MNC’s choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome. (shrink)

We examine how corporate bribery is impacted by cultural distance between multinational enterprises home and host countries, and organizational distance to core values between MNE entry modes and MNE headquarters. Tension between external and internal legitimacy helps to explain why cultural and organizational distances will affect MNE bribery. The empirical analysis used data from cross-border transactions by MNEs that were sanctioned by US regulatory officials between 1978 and 2011. We find statistical support for all hypotheses capturing main and moderating effects (...) and suggest that MNEs may be seriously risking their legitimacies from transactions in corruption-prone host countries. (shrink)

We examine whether anti-corruption intensity strengthens tax enforcement effectiveness in China. Using hand-collected anti-corruption data and aggregate tax enforcement data, which include the probability of tax audits and tax deficiencies, for a sample of 11,687 firm-year observations from 2012 to 2017, we find that anti-corruption intensity increases the deterrence role and the enforcement role of tax audits. We also identify the fear effect as a possible channel through which anti-corruption intensity affects tax enforcement effectiveness. Overall, the results indicate that anti-corruption (...) intensity can improve a revenue agency’s effectiveness. (shrink)