Leadership which lacks ethical conduct can be dangerous, destructive, and even toxic. Ethical leadership, though well discussed in the literature, has been tested empirically as a construct in very few studies. An empirical investigation of ethical leadership in Singapore's construction industry is reported. It is found that ethical leadership is positively and significantly associated with transformational leadership, transformational culture of organization, contingent reward dimension of transactional leadership, leader effectiveness, employee willingness to put in extra effort, and employee satisfaction with the (...) leader. However, it is also found that ethical leadership bears no correlations with transactional leadership. Also, it is negatively correlated with laissez-faire leadership and transactional culture of the organization. The findings also reveal that ethical leadership plays a mediating role in the relationship between employee outcomes and organizational culture. Practical implications of these findings are discussed. Directions for future research are also suggested. (shrink)

Prior research suggests that corporate credibility is associated with firm financial performance in developed countries. This article examines whether corporate credibility is related to firm performance using Economic Observer's rating of corporate credibility in China, the largest emerging market in the world. Based on a four-stage valuation model, we find that more reputable and credible firms outperform those with low ratings by almost 20% in 3-year stock returns and have better 3-year net profit margins, return on equity, and sales growth. (...) This study is the first to directly examine the relationship between corporate credibility and firm performance in emerging markets such as China, and our results confirm that firms with high credibility exhibit better financial and market performance at least in the following 3 years. (shrink)

In China, guanxi is the basis on which Chinese exchange a lifetime of favors, resources, and business leverage. Guanxi is considered a unique construct and a product of Confucian values and the contemporary political and socioeconomic system in Chinese society. With its cultural embeddings guanxi , as the social norm of conduct, functions as complex adaptive systems that expand and interconnect to become well-knit social networks; meanwhile the functions of well-fixing and self-reinforcement of the guanxi networks ( chuens ) are (...) synergetically activated internally, externally, and interactively, which shows their extreme flexibility of adaptation. Taking as a case study an outside direct investment (ODI) Taiwanese firm in China, we address and conduct a survey to examine the effect of guanxi on management. Results of the research suggest that guanxi is not limited to interpersonal links; it is also the switch that activates social networks and that reconciles interpersonal and internetwork mismatches to influence management efficacy. (shrink)

Research on work values shows that respectful leadership is highly desired by employees. On the applied side, however, the extant research does not offer many insights as to which concrete leadership behaviors are perceived by employees as indications of respectful leadership. Thus, to offer such insights, we collected and content analyzed employees’ narrations of encounters with respectful leadership ( N 1 = 426). The coding process resulted in 19 categories of respectful leadership spanning 149 leadership behaviors. Furthermore, to also harness (...) this comprehensive repertoire for quantitative organizational research, we undertook two more studies ( N 2a = 228; N 2b = 412) to empirically derive a feasible item-based measurement of respectful leadership and assess its psychometric qualities. In these studies, we additionally investigated the relationships between respectful leadership as assessed with this new measurement and employees’ vertical and contextual followership as assessed via subordinates’ identification with their leaders, their appraisal respect for their leaders, their feeling of self-determination, and their job satisfaction. (shrink)

Despite the increasingly multinational nature of the workplace, there have been few studies of the convergence and divergence in beliefs about ethics-based leadership across cultures. This study examines the meaning of ethical and unethical leadership held by managers in six societies with the goal of identifying areas of convergence and divergence across cultures. More specifically, qualitative research methods were used to identify the attributes and behaviors that managers from the People’s Republic of China (the PRC), Hong Kong, the Republic of (...) China (Taiwan), the United States (the U.S.), Ireland, and Germany attribute to ethical and unethical leaders. Across societies, six ethical leadership themes and six unethical leadership themes emerged from a thematic analysis of the open-ended responses. Dominant themes for ethical and unethical leadership for each society are identified and examined within the context of the core cultural values and practices of that society. Implications for theory, research, and management practice are discussed. (shrink)

Research on work values shows that respectful leadership is highly desired by employees. On the applied side, however, the extant research does not offer many insights as to which concrete leadership behaviors are perceived by employees as indications of respectful leadership. Thus, to offer such insights, we collected and content analyzed employees’ narrations of encounters with respectful leadership (N1 = 426). The coding process resulted in 19 categories of respectful leadership spanning 149 leadership behaviors. Furthermore, to also harness this comprehensive (...) repertoire for quantitative organizational research, we undertook two more studies (N2a = 228; N2b = 412) to empirically derive a feasible item-based measurement of respectful leadership and assess its psychometric qualities. In these studies, we additionally investigated the relationships between respectful leadership as assessed with this new measurement and employees’ vertical and contextual followership as assessed via subordinates’ identification with their leaders, their appraisal respect for their leaders, their feeling of self-determination, and their job satisfaction. (shrink)

This study examines a moderated/mediated model of ethical leadership on follower job satisfaction and affective organizational commitment. We proposed that managers have the potential to be agents of virtue or vice within organizations. Specifically, through ethical leadership behavior we argued that managers can virtuously influence perceptions of ethical climate, which in turn will positively impact organizational members’ flourishing as measured by job satisfaction and affective commitment to the organization. We also hypothesized that perceptions of interactional justice would moderate the ethical (...) leadership-to-climate relationship. Our results indicate that ethical leadership has both a direct and indirect influence on follower job satisfaction and affective commitment. The indirect effect of ethical leadership involves shaping perceptions of ethical climate, which in turn, engender greater job satisfaction and affective organizational commitment. Furthermore, when interactional justice is perceived to be high, this strengthens the ethical leadership-to-climate relationship. (shrink)

Ethics has been identified as a significant issue among those in leadership positions. The purpose of this research was to assess the ethics and integrity of leaders in today's manufacturing environment as perceived by their employees. This study included a total of 10 manufacturing companies in the United States. A total of 59 surveys were used to calculate data for this study. A demographic survey and the Perceived Leader Integrity Scale (PLIS) were used to collect data from respondents. The research (...) addressed the following question: To what degree are leaders in the manufacturing industry considered "low ethical," "moderate ethical," and "high ethical" on the PLIS? It was determined through descriptive data analysis that the majority of supervisors in this study, as rated by their employees were highly ethical. Male and female employees equally rated their supervisors as highly ethical. Employees in the age category (18-25) rated their supervisors higher ethically than other age groups in the study. However, considering ethnicity categories, African-Americans scored their supervisors lower ethically than the European-American category. The education level of the employees did not provide any significant findings in rating their supervisors. (shrink)

This paper examines beliefs about four aspects of ethical leadership – Character/Integrity, Altruism, Collective Motivation and Encouragement – in Germany and the United States using data from Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) and a supplemental analysis. Within the context of a push toward convergence driven by the demands of globalization and the pull toward divergence underpinned by different cultural values and philosophies in the two countries, we focus on two questions: Do middle managers from the United States (...) and Germany differ in their beliefs about ethical leadership? And, do individuals from these two countries attribute different characteristics to ethical leaders? Results provide evidence that while German and US middle managers, on average, differed in the degree of endorsement for each aspect, they each endorsed Character/Integrity, Collective Motivation and Encouragement as important for effective leadership and had a more neutral view of the importance of Altruism . The findings are reviewed within the social-cultural context of each country. (shrink)

This paper examines beliefs about four aspects of ethical leadership –Character/Integrity, Altruism, Collective Motivation and Encouragement– in Germany and the United States using data from Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) and a supplemental analysis. Within the context of a push toward convergence driven by the demands of globalization and the pull toward divergence underpinned by different cultural values and philosophies in the two countries, we focus on two questions: Do middle managers from the United States and Germany (...) differ in their beliefs about ethical leadership? And, do individuals from these two countries attribute different characteristics to ethical leaders? Results provide evidence that while German and US middle managers, on average, differed in the degree of endorsement for each aspect, they each endorsed Character/Integrity, Collective Motivation and Encouragement as important for effective leadership and had a more neutral view of the importance of Altruism. The findings are reviewed within the social-cultural context of each country. (shrink)

This article examines whether and to what extent Confucianism as a resilient Chinese cultural tradition can be used as a sound basis of business practice and management model for Chinese corporations in the twenty-first century. Using the core elements of Confucianism, the article constructs a notion of a Confucian Firm with its concepts of the moral person ( Junzi ), core human morality ( ren, yi, li ) and relationships ( guanxi ), as well as benign social structure (harmony), articulated (...) in corporate and organizational terms. The basic character of the Confucian Firm is described, and its philosophical and cultural foundation is critically assessed with respect to its moral legitimacy and relevant to today’s China. China’s recent Corporate Social Responsibility (CSR) development is a high profile response to global business ethics concerns. Efforts have been made to emulate and develop good business practice fashioned in CSR norms and visions. The so-called “human-based” and “virtue-based” business practices rooted in local cultural heritage have been touted as a Chinese response to this problem. This investigation is particularly relevant in the context of the increasingly prominence of the Chinese corporations (China Inc.) in the wake of the rise of China as a global power. How relevant is Confucianism to the building of a modern Chinese corporation that is willing and able to practice reasonable norms of business ethics? The findings of this discussion, which include the organizational implications of the Confucian familial collectivism, have implications for other Chinese communities (Taiwan, Hong Kong, and Singapore) where Confucian tradition is endorsed and practiced. (shrink)

Guanxi, or social networks common in Confucian cultures, has long been recognized as one of the major factors for success when doing business in China. However, insider networks in business are certainly not confined to Asian cultures, nor is the attendant possibility for corruption. This study obtained original data to investigate current Taiwanese perceptions of (1) how guanxi is established and cultivated; (2) how guanxi actually is practiced now and people’s acceptance of it; and (3) the effects of guanxi on (...) business operations, employment/promotion, and social justice and fairness. The researchers also hope to (4) verify some arguments made by pioneering researchers. The authors speculate on how these attitudes may affect behavior in business transactions in hopes of making readers more aware of differing cultural values that may create unexpected ethical dilemmas. They suggest that professional ethical codes should provide guidance on the practice of guanxi in a Confucian society and that special emphasis or training in interpreting those codes may be required. (shrink)

If managerial leadership means deciding responsibly in a complex situation, the ethical dimension of leadership — besides its analytical and instrumental aspects — has to be clarified. I present and discuss several essential aspects of managerial ethical leadership: (a) some major presuppositions (the concepts of leadership and responsibility), (b) three normative-ethical tasks of the activity of leadership (perceiving, interpreting and creating reality — being responsible for the effect of one's decisions on the human beings concerned — being responsible for the (...) implementation of corporate goals) and (c) some claims on the leader as a subject responsible for his or her own activities. I shall conclude by adding some reflections on the limits of managerial ethical leadership. (shrink)