A growing body of research suggests that follower perceptions of ethical leadership are associated with beneficial follower outcomes. However, some empirical researchers have found contradictory results. In this study, we use social learning and social exchange theories to test the relationship between ethical leadership and follower work outcomes. Our results suggest that ethical leadership is related positively to numerous follower outcomes such as perceptions of leader interactional fairness and follower ethical behavior. Furthermore, we explore how ethical leadership relates to and (...) is different from other leadership styles such as transformational and transactional leadership. Results suggest that ethical leadership is positively associated with transformational leadership and the contingent reward dimension of transactional leadership. With respect to the moderators, our results show mixed evidence for publication bias. Finally, geographical locations of study samples moderated some of the relationships between ethical leadership and follower outcomes, and employee samples from public sector organizations showed stronger mean corrected correlations for ethical leadership–follower outcome relationships. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that applying (...) the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)

Developing trust in a company is a significant part of building the company-consumer relationship. Previous studies have sought to identify the positive consequences of trust such as loyalty and repurchase, but the question of what builds trust remains largely unanswered. To answer the question, we developed a model that depicts the relationships among transparency, social responsibility, trust, attitude, word-of-mouth (WOM) intention, and purchase intention. An online survey was conducted with a US nationwide sample of 303 consumers, and the data were (...) analyzed using the structural equation modeling method. The results indicated that consumers’ perceptions of a corporation’s efforts to be transparent in the production and labor conditions and to be socially responsible by giving back to the local community directly affected these consumers’ trust and attitudes toward the corporation, and indirectly affected their intentions to purchase from and spread positive WOM about the corporation. Theoretical and practical implications are discussed. (shrink)

A new research area linked to ethics, virtues, and morality is servant leadership. Scholars are currently seeking publication outlets as critics debate whether this new leadership theory is significantly distinct, viable, and valuable for organizational success. The aim of this study was to identify empirical studies that explored servant leadership theory by engaging a sample population in order to assess and synthesize the mechanisms, outcomes, and impacts of servant leadership. Thus, we sought to provide an evidence-informed answer to how does (...) servant leadership work, and how can we apply it? We conducted a systematic literature review (SLR), a methodology adopted from the medical sciences to synthesize research in a systematic, transparent, and reproducible manner. A disciplined screening process resulted in a final sample population of 39 appropriate studies. The synthesis of these empirical studies revealed: (a) there is no consensus on the definition of servant leadership; (b) servant leadership theory is being investigated across a variety of contexts, cultures, and themes; (c) researchers are using multiple measures to explore servant leadership; and (d) servant leadership is a viable leadership theory that helps organizations and improves the well-being of followers. This study contributes to the development of servant leadership theory and practice. In addition, this study contributes to the methodology for conducting SLRs in the field of management, highlighting an effective method for mapping out thematically, and viewing holistically, new research topics. We conclude by offering suggestions for future research. (shrink)

Organizational citizenship behavior (OCB) has been widely recognized as a contributor to improving organizational performance and wealth creation. The purpose of this article is to briefly summarize the motives of many employees who exercise OCB and to identify the ethical duties owed by organizational leaders to the highly committed employees with whom they work. After reviewing the nature of OCB and the psychological contracts made with highly committed employees, we then use Hosmer’s framework of ten ethical perspectives to identify how (...) OCB is viewed from each of those ethical viewpoints. We offer six propositions about OCB that relate to building employee commitment and trust. (shrink)

ABSTRACT:In a series of reports the United Nations Special Representative on the issue of Human Rights and Transnational Corporations has emphasized a tripartite framework regarding business and human rights that includes the state “duty to protect,” the TNC “responsibility to respect,” and “appropriate remedies” for human rights violations. This article examines the recent history of UN initiatives regarding business and human rights and places the tripartite framework in historical context. Three approaches to human rights are distinguished: moral, political, and legal. (...) It is argued that the tripartite framework’s grounding of the responsibility of TNCs to respect human rights is properly understood as moral and not merely as a political or legal duty. A moral account of the duty of TNCs to respect basic human rights is defended and contrasted with a merely strategic approach. The main conclusion of the article is that only a moral account of the basic human rights duties of TNCs provides a sufficiently deep justification of “the corporate responsibility to respect human rights” feature of the tripartite framework. (shrink)

Just Business provides the first comprehensive, reasoned framework for resolving questions of business ethics and corporate governance. Innovative, accessible, and global in scope, its powerful Ethical Decision Model can be used to manage the ethical problems of business as they arise in all their complexity and variety. Just Business combines business realism with philosophical rigor, and demonstrates that it is not necessary to emasculate or to adulterate business for business to be ethical. The book benefits from Elaine Sternberg's extensive experience (...) as an academic philosopher, an international investment banker, and head of successful businesses. She is now Principal of a London-headquartered consultancy firm, and Research Fellow in Philosophy at the University of Leeds. (shrink)

Humanistic management is a people-oriented management that seeks profits for human ends. It contrasts with other types of management that are essentially oriented toward profits, with people seen as mere resources to serve this goal. This article reviews the historical development of humanistic management and the ever-increasing body of literature on the concept as well as the different meanings that scholars attribute to it. It then explores what form a genuine humanism might have by presenting seven propositions labeled as: 1) (...) wholeness, 2) comprehensive knowledge, 3) human dignity, 4) development, 5) common good, 6) transcendence, and 7) stewardship-sustainability. Next, it looks at four characteristics of a humanistic ethos for managing business: the view of the individual and human work, the role of the individual in the society and in interacting with nature, the business firm, and the purpose of business in society. Finally, it presents some insights for the practice of humanistic management. (shrink)

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business (...) is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory. (shrink)

The need for ethical leadership in navigating today’s complex, global and competitive organisations has been established. While research has confirmed the importance of ethical leaders in promoting positive organisational and employee outcomes, scant research has examined the antecedents of ethical leadership. Furthermore, there has been a call for further examination of leadership models, particularly indigenous leadership models. Responding to these issues, this study suggests Māori leaders’ values add insights into enhancing ethical leadership. Three studies confirm the role of Māori values (...) and ethical leadership. Study one, based on kaupapa Māori research methods, is an exploratory 22-interview study of Māori leaders and identifies five values, as common to successful indigenous leaders. In study two, 249 employees rate their leaders on these five dimensions in relation to their ethical leadership and exchange relationships. Structural equation modelling shows strong support for the distinct nature of the five values and their positive influence on ethical leadership perceptions and quality exchange relationships. Study three, on 122 employees, reinforces the findings of study two—and demonstrates that LMX predicts job outcomes both indirectly and directly, with humility and collectivism also directly predicting outcomes. Our findings suggest that indigenous leaders’ values enhance perceptions and outcomes of ethical leadership for employees. (shrink)

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in (...) the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice. (shrink)

Quality is commonly applied to products and processes, but we can also define human quality in dealing with people. This requires first establishing what treatment is appropriate to the human condition. Through an inquiry into the characteristics that define the human being and what ethical requirements constitute a good treatment, we define “Human Quality Treatment” as dealing with persons in a way appropriate to the human condition, which entails acting with respect for their human dignity and rights, caring for their (...) problems and legitimate interests, and fostering their personal development. With this in mind, we can distinguish between five different levels or degrees of HQT in organizations which can be characterized by the following terms: maltreatment, indifference, justice, care, and development. (shrink)

This conceptual paper analyses the arguments which have been made in favour of a transition towards humanistic management. In order to reconcile economic as well as moral arguments an integrative model of humanistic management is presented. This model outlines prospective lines of empirical research especially in the area where business conduct is profitable but not humanistic.

ABSTRACT:This article proposes a theory of the firm based on the common good. It clarifies the meaning of the term “common good” tracing its historical development. Next, an analogous sense applicable to the firm is derived from its original context in political theory. Put simply, the common good of the firm is the production of goods and services needed for flourishing, in which different members participate through work. This is linked to the political common good through subsidiarity. Lastly, implications and (...) challenges arising from the positing of work as the common good of the firm are explored. (shrink)

Drawing on conceptual works by Murphy (1999) and Solomon (1999), we develop a virtue ethics scale. Other ethics scales, which are grounded in deontological and teleological principles, may be used to classify people according to their beliefs about (1) the criteria they use to make ethical decisions, or (2) the ethicality of those decisions. We suggest augmenting these scales with our virtue ethics scale, which may be used to classify people according to their beliefs about the virtuous qualities of businesspeople.

According to the origin of the word "humanism" and the concept of humanitas where the former comes from, management could be called humanistic when its outlook emphasizes common human needs and is oriented to the development of human virtue, in all its forms, to its fullest extent. A first approach to humanistic management, although quite incomplete, was developed mainly in the middle of the 20th century. It was centered on human motivations. A second approach to humanistic management sprang up in (...) the 80's and centered on organizational culture. This implied a wider approach to the human condition while taking into account the influence of culture on behaviors and decisionmaking, but it is incomplete, too. There is a third approach to humanistic management, which is still emerging, that considers a business enterprise as a real community of persons. That means promoting unity and favoring the acquisition of human virtues. This humanistic management approach is a real challenge in order to achieve a higher moral quality in management, human virtues among people and more efficient organizations. (shrink)

A conflict within the community of those investigating business ethics is whether decision makers are motivated by an ethics of justice or an ethics of caring. The proposition put forward in this paper is that ethical orientations are strongly related to cultural backgrounds. Specifically, Hofstede's cultural stereotyping using his masculine-feminine dimension may well match a culture's reliance on justice or caring when decisions are made. A study of college graduates from six countries showed that Hofstede's dimension was remarkably accurate in (...) predicating a justice or caring orientation for decision makers from five of the six countries. (shrink)

This article seeks to contribute to a vision for leadership in business based on a recovery of virtue. The vision for leadership articulated here draws principally on the writings of the classical philosopher Aristotle and of the contemporary philosopher Josef Pieper. Without discounting the ever-increasing complexity of modern business, this essay will attempt to reconstruct Aristotle’s emphasis on virtue and moral character, and argues for the philosopher’s relevance to modern management and corporate leadership. The paper concludes that the message of (...) virtue is a message of hope and attempts to find plain language to articulate its value to those engaged in business or concerned with the formulation of government policy. (shrink)

Extreme narcissistic organizations are unable to behave ethically because they lack a moral identity. While such organizations are not necessarily unethical intentionally, they become self-obsessed and use a sense of entitlement, self-aggrandizement, denial, and rationalizations to justify anything they do. Extreme narcissistic organizations might develop formal ethics programs, but such programs will have little effect on behavior.