ABSTRACT:The purpose of this article is to review literature that is relevant to the social scientific study of ethics and leadership, as well as outline areas for future study. We first discuss ethical leadership and then draw from emerging research on “dark side” organizational behavior to widen the boundaries of the review to includeunethical leadership. Next, three emerging trends within the organizational behavior literature are proposed for a leadership and ethics research agenda: 1) emotions, 2) fit/congruence, and 3) identity/identification. We (...) believe each shows promise in extending current thinking. The review closes with discussion of important issues that are relevant to the advancement of research on leadership and ethics. (shrink)

Management theory and practice are facing unprecedented challenges. The lack of sustainability, the increasing inequity, and the continuous decline in societal trust pose a threat to ‘business as usual’. Capitalism is at a crossroad and scholars, practitioners, and policy makers are called to rethink business strategy in light of major external changes. In the following, we review an alternative view of human beings that is based on a renewed Darwinian theory developed by Lawrence and Nohria. We label this alternative view (...) ‘humanistic’ and draw distinctions to current ‘economistic’ conceptions. We then develop the consequences that this humanistic view has for business organizations, examining business strategy, governance structures, leadership forms, and organizational culture. Afterward, we outline the influences of humanism on management in the past and the present, and suggest options for humanism to shape the future of management. In this manner, we will contribute to the discussion of alternative management paradigms that help solve the current crises. (shrink)

The anthropologist Marcel Mauss, in his famous exploration of the gift in "primitive" and archaic societies, showed that the essential aspect of the exchange of presents involved the establishment of a social tie that bound the parties together above and beyond any material value of the objects exchanged. He argued that these intangible mutual "debts" constituted the social fabric. Godbout and Caillé show that, contrary to the modern assumption that societies function on the basis of market exchange and the pursuit (...) of self-interest, the gift still constitutes the foundation of our social fabric. The authors describe the gift not as an object but as a social connection, perhaps the most important social connection because it creates a sense of obligation to respond in kind. They examine the gift in a broad range of cases such as blood and organ donation; volunteer work; the bonds between friends, couples, and family; Santa Claus; the interaction between performers and their audience; and the relation of the artist to society. Written in an engaging manner, The World of the Gift will appeal to anyone who is interested in how the world really operates. (shrink)

Business ethics and firm economic performance have traditionally often been regarded as mutually exclusive ends. We challenge this “either-or” belief and analyze when and how ethical firm leadership and firm performance may harmonize well. In extension of earlier research on ethical leadership and performance at the individual and team level, we study the context–dependency of the organization level relationship between CEO ethical leadership and firm performance. We propose a moderated mediation model of the link between CEO ethical leadership and firm (...) performance, identifying mediating and moderating variables unique to the organization-level of analysis. CEO ethical leadership is argued to work through organizational ethical culture which promotes firm performance under the condition that there is a strong corporate ethics program in place. Results from a multisource cross-sectional study, in which we surveyed 145 participants from 32 organizations and validated organizational performance ratings by objective performance data, showed support for our conceptual model. (shrink)

The logic of gift and gratuitousness in business activity raised by the encyclical Caritas in Veritate stresses a deeper critical evaluation of the category of relation. The logic of gift in business includes two aspects. The first is considering the logic of gift as a new conceptual lens in order to view business relationship beyond contractual logic. In this view, it is crucial to see the circulation of goods as instrumental for the development of relationships. The second aspect is to (...) qualify the relationships established through the gift, and to think about the motivation in gift-giving, which has an ethical content. We give because we have received, and through gift-giving we develop relationships that have a high ‘bonding value’. Analysing the logic of gift in business management may permit us to gain an understanding of the ambiguity of gift-giving in organizations. Looking at the relationships between organizations and employees, and organizations and customers, we can discover why the logic of gift is often misunderstood or abused in its application, and how it should be applied to be more consistent with the message of Caritas in Veritate. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also philosophical grounds that support (...) the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

ABSTRACT:Giving without the expectation of reward is difficult to understand in organizational contexts. In opposition to a logic based on self-interest or a sense of duty, a “logic of gift” has been proposed as a way to understand the phenomenon of free, unconditional giving. However, the rationale behind, and effects of, this logic have been under-explored. This paper responds by first clarifying the three logics of action—the logic of exchange, the logic of duty, and the logic of gift—and then explains (...) how their balanced integration promises to enhance organizational life and outcomes. Having explicated the unique character and contributions of the logic of gift, the paper further suggests practical implications for management. Encouraging the logic of gift fosters more humane relationships within organizations and to enable individuals to be generous in ways that inspire trust and promote creativity. (shrink)

Virtue-based research in business ethics has increased over the last two decades, but most of the research has focused on the actions of an individual person. In this article, we examine the associations among team-level virtues using data from two studies. Specifically, we investigate whether transparency (usually thought to be an organizational-or collective-level construct), behavioral integrity (usually thought to be an individuallevel construct), and trust (usually thought to be an individual-level construct) can be conceptualized and operate at the team level (...) of analysis and, if so, what their relationships are to team performance. Using Partial Least Squares (PLS) analysis, we found in both studies that team transparency was positively related to team behavioral integrity, which in turn was positively related to team trust. We also found evidence of a positive relationship between team trust and team performance. Implications of these findings for future teams and ethics research are discussed. (shrink)

The “gift exchange theory” articulated by Marcel Mauss, along with his core concept of a threefold obligation, is the dominant theoretical framework used to explain the majority of gift issues in marketing. This perspective assumes that some interest always lies behind gifts, such that a gift always implies a counterpart of receiving something in return. Despite the relevance of this approach in understanding the day-to-day consumer behavior, this paper presents empirical cases where the consumer is also able to give freely, (...) that is to say without implying a counterpart or even expecting it. To explain those empirical cases, we mobilize a key teaching of the Catholic Church: the “gratuitous gift” and then introduce the concept of the “need to give.” We show that gratuitousness is a relevant concept to understand most of gifts made by consumers, and we develop the normative aspect of gratuitous gift for ethical marketers. We also show that Catholic Social Teaching offers an appropriate anthropology to understand consumer behaviors motivated by this need for gratuitousness. To conclude, we propose further avenues of research. (shrink)

This study examines how authentic leadership influences team performance via the mediating mechanism of team reflexivity. Adopting a self-regulatory perspective, we propose that authentic leadership will predict the specific team regulatory process of reflexivity, which in turn will be associated with two outcomes of team performance, effectiveness and productivity. Using survey data from 53 teams in three organizations in the United Kingdom and Greece and controlling for collective trust, we found support for our stated hypotheses with the results indicating a (...) significant fully mediated relationship. As predicted the self-regulatory behaviors inherent in the process of authentic leadership served to collectively shape team behavior, manifesting in the process of team reflexivity, which, in turn, positively predicted team performance. We conclude with a discussion of how this study extends theoretical understanding of authentic leadership in relation to teamwork and delineate several practical implications for leaders and organizations. (shrink)

One major theme in Pope Benedict XVI’s encyclical Caritas in Veritate is the “Principle of Gratuitousness.” The point of this essay is to begin a reflection on what it actually means and its possible relevance. By comparing the “Principle of Gratuitousness” and its normative assumptions about “the logic of gift” with anthropological studies focused on the same phenomenon, I hope to show, not only the relevance of the encyclical’s normative vision but also where and how it needs further clarification. The (...) findings of empirical anthropology provide qualified support for the encyclical’s focus on generating and replenishing “social capital” in order to sustain both markets and politics in an effort to “civilize the economy.” In order to put the “Principle of Gratuitousness” into more effective practice, the encyclical highlights the creative role of “civil society” and calls for the creation social enterprises whose goals are broader and deeper than maximizing profits. Assessing the realism of Benedict’s proposal will require further research and reflection on innovative entrepreneurial ventures designed to address social problems on a commercial basis, for example, Muhammad Yunus’ concept of a “social business” and its development in a series of joint business ventures involving the Grameen Bank and related organizations. (shrink)

Benedict XVI in Caritas in Veritate advances a positive view of businesses that are hybrids between several traditional categories. He expects that the “logic of gift” that animates civil society infuses the market and the State with relations typical for it—reciprocity, gratuitousness, and solidarity. His theological rationale offers an answer to two questions that have largely remained open in the literature—why hybridization of business occurs and why it is desirable. A rational reconstruction of hybrid enterprise that goes beyond a simple (...) taxonomy of types benefits from the Pope’s call for an intrinsic integration of institutions and processes traditionally attributed to disparate spheres. The relational model of the Trinity defines the unity in diversity that accounts for the benefits of truly hybrid businesses, and the “logic of gift” serves as the agent of integration. (shrink)

Social relations are predominantly influenced by an exchange paradigm whereby the logic of reciprocity shapes behaviour. If the notion of exchange instrumentalism is common across different business disciplines, this does not deny attempts – such as through gift exchange theory – to present different conceptions of traditional exchange-based relations. Gift exchange theory appears promising as it seeks to establish more meaning and significance to the nature and context of exchange relations between human actors or parties. The underlying processes may be (...) different for gift exchange and more traditional economic-based exchanges, but the general outcome remains the same – the obligation of reciprocity between actors. In this article, we develop an alternative conception of social and business experience that transcends the dominant logic of exchange: the existential gift. Firmly embedded in the idea of giving for its own sake, the existential gift suggests that for some individuals the expectations of reciprocity are neither sought nor established. Generosity that is expressed in both tangible and intangible ways need not depend on the response of intended receivers or recipients to precipitate future acts of giving. Based on the logic of unconditionality, the existential gift provides human actors with greater freedom in their choices and relationships. It may well be that this freedom, in turn, creates a new ‘ethic of generosity’ whereby significant progress can be made towards developing more human models and practices in business. (shrink)