At the start of the 21st century, Corporate Social Responsibility (CSR) seems to have great potential for innovating business practices with a positive impact on People, Planet and Profit. In this article the differences between the management systems approach of the nineties, and Corporate Social Responsibility are analysed.An analysis is structured around three business principles that are relevant for CSR and management systems: (1) doing things right the first time, (2) doing the right things, and (3) continuous improvement and innovation. (...) Basically CSR is focussing on the second principle, and management systems focus on the first. However, CSR is very likely to build on the management systems as well.From a CSR point of view, the existing generation of management systems with their focus on rational control (= doing things right) can only be of limited use in the development of CSR. However, the preventive rationalities of management systems are important. Values and the principle doing the right things is extremely relevant for CSR. This goes far beyond the present generation of ISO type management systems; opportunities stem from building on TQM approaches like the EFQM Business Excellence model. Continuous improvement and innovation is a permanent challenge underlying the two other business principles, and requires both individual and organisational learning processes. In the present generation of management systems, continuous improvement mainly addresses rational prevention, barely the value aspects of business.For the further development and implementation of CSR, each of the three business management principles are vital. There is a need for a new generation of management systems that addresses the values at stake in strategic decision-making, both at company level and in the behaviour of individuals, while the rationalities of prevention and anticipation are still relevant. In both directions more emphasis for continuous learning and innovation will be needed.CSR is likely to trigger the development of management systems in the directions mentioned. This will support companies to be credible and transparent in improving the performance with respect to people, planet and profit. (shrink)

Over the last decade, the increased use of work teams within organizations has been one of the most influential and far-reaching trends to shape the business world. At the same time, corporations have continued to struggle with increased unethical employee behavior. Very little research has been conducted that specifically examines the developmental aspects of employee ethical decision-making in a team environment. This study examines the impact of a team leader’s perceived integrity on his or her subordinates’ behavior. The results, which (...) came from a survey of 245 MBA students functioning for 2 years in a work team environment, indicate an interaction between leader integrity and team member ethical intentions. (shrink)

Substantial research examines the follower consequences of leader alignment of words and deeds, but no research has quantitatively reviewed these effects. This study examines extant research on behavioral integrity and contrasts it with two other constructs that focus on alignment: moral integrity and psychological contract breaches. We compare effect sizes between the three constructs, and find that BI has stronger effects on trust, in-role task performance and citizenship behavior than moral integrity and stronger effects on commitment and OCB than psychological (...) contract breach. These stronger attitudinal consequences run counter to our initial expectations, but they provide evidence of important conceptual distinctions and mechanisms that we articulate. BI theory suggests that BI’s greater performance impact is due to the notion that BI affects communication clarity in addition to attitudes. Results of meta-analytic structural equation modeling are consistent with this proposed dual path of BI’s impact. We highlight avenues for future research on BI and discuss how our findings inform the broader research on leader alignment. (shrink)

The western-based leadership and ethics literatures were reviewed to identify the key characteristics that conceptually define what it means to be an ethical leader. Data from the Global Leadership and Organizational Effectiveness (GLOBE) project were then used to analyze the degree to which four aspects of ethical leadership – Character/Integrity, Altruism, Collective Motivation, and Encouragement – were endorsed as important for effective leadership across cultures. First, using multi-group confirmatory factor analyses measurement equivalence of the ethical leadership scales was found, which (...) provides indication that the four dimensions have similar meaning across cultures. Then, using analysis of variance (ANOVA) tests each of the four dimensions were found to be universally endorsed as important for effective leadership. However, cultures also varied significantly in the degree of endorsement for each dimension. In the increasingly global business environment, these findings have implications for organizations implementing ethics programs across cultures and preparing leaders for expatriate assignments. (shrink)

We examined the relationship between leader behavioral integrity and leader behavioral courage using data from two studies. Results from Study 1, an online experiment, indicated that behavioral manifestations of leader behavioral integrity and situational adversity both have direct main effects on behavioral manifestations of leader courage. Results from Study 2, a multisource field study with practicing executives, indicated that leader behavioral courage fully mediates the effects of leader behavioral integrity on leader performance and leader executive image. Implications of these findings (...) and future directions are discussed. (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)

An advertising firm''s ethical culture (as defined by the firm''s managerial and peer ethical behaviors) may affect the employees'' comfort levels and ethical behaviors. In this research, scenarios were used to describe advertising firms with various ethical cultures. Respondents'' perceived comfort levels in working for the firms described in the scenarios and the respondents'' behavioral intentions when faced with various advertising situations were assessed. Results of the study indicate that peer ethical behavior exerts a strong influence on the comfort or (...) discomfort level and the ethical behavioral intentions of potential advertising employees. Further, the strong influence exerted by peers seems to transcend the ethical behavior of the manager and carry over to the attitude toward the entire corporate advertising environment. This study provides insights for firms and researchers interested in assessing the impact of an advertising firm''s ethical culture on potential employees. (shrink)

Behavioral integrity (BI) is the alignment pattern between an actor’s words and deeds as perceived by another person. Employees’ perception that their leader’s actions and words are consistent leads to desirable workplace outcomes. Although BI is a powerful concept, the role of leader referents, the relationship between perceived BI of different referents, and the process by which BI affects outcomes are unclear. Our purpose is to elaborate upon this process and clarify the role of different leader referents in determining various (...) outcomes. To understand the impact of referents, we explicitly compared the BIs of two leader referents: senior management and supervisor. In contrast to previous research findings where supervisory BI was found to have a stronger relationship with outcomes than senior management, we find that both referents are important. However, their impact varies based upon the outcome studied. Only senior management BI predicted organizational commitment, while senior management BI, supervisory BI and supervisory trust predicted organizational cynicism. Only trust in supervisor, and not supervisory BI, impacted organizational citizenship behaviors. When senior management is the referent, trust and not BI might play an important role for outcomes that require extensive employee investments, such as organizational commitment. In contrast, when the outcome measured does not require employee investments, BI might have a direct impact on the outcome. We also uncovered that trust in supervisor substantially influences the trust employees have in their senior management. (shrink)

Most research on ethical leadership to date investigates the consequences of ethical leadership rather than its antecedents. Here, we aim to contribute to this field by studying leader personality as a potential antecedent of ethical leader behavior. In two multisource studies, we investigated the relationships between personality traits and ethical leader behavior. Leader personality was measured through self-ratings using the five-factor personality framework. Two subordinates rated their leaders' ethical behavior. Study 1 used a unidimensional Ethical Leadership Scale (ELS). In study (...) 2 we used this scale as well as an instrument distinguishing three different ethical leader behaviors, namely, fairness, role clarification, and power sharing. Further, in study 2 we controlled for the influence of the relationship between leader and followers (LMX). As expected, conscientiousness and agreeableness were most consistently related to ethical leadership. In study 1, after controlling for the other personality traits, conscientiousness related positively with ethical leadership. In study 2, after controlling for other traits and LMX, conscientiousness related positively with ethical leadership and the behavior role clarification, and agreeableness with power sharing and fairness. Also, emotional stability related positively with ethical leadership and role clarification after controlling for LMX. As expected, openness to experience and extraversion were unrelated to ethical leader behaviors. (shrink)

Leaders who express an ethical identity are proposed to affect followers’ attitudes and work behaviors. In two multi-source studies, we first test a model suggesting that work engagement acts as a mediator in the relationships between ethical leadership and employee initiative (a form of organizational citizenship behavior) as well as counterproductive work behavior. Next, we focus on whether ethical leadership always forms an authentic expression of an ethical identity, thus in the second study, we add leader Machiavellianism to the model. (...) For Machiavellian leaders, the publicly expressed identity of ethical leadership is inconsistent with the privately held unethical Machiavellian norms. Literature on surface acting suggests people can at least to some extent pick up on such inauthentic displays, making the effects less strong. We thus argue that the positive effects of ethical leader behavior are likely to be suppressed when leaders are highly Machiavellian. Support for this moderated mediation model was found: The effects of ethical leader behavior on engagement are less strong when ethical leaders are high as opposed to low on Machiavellianism. (shrink)

Ethical leadership has become a thriving research field. However, on reviewing previous research, we argue that several fundamental questions remain unclear and need further investigation. Ethical leaders are defined as behaving ‘normatively appropriate[ly]’ :117–134, 2005), but it remains unclear what this entails. What specific behaviours does an ethical leader show? To date, ethical leadership has focused primarily on leader behaviour towards employees. Which stakeholders apart from employees are important to the ethical leader, and what kind of ethical behaviour does the (...) ethical leader show towards them? What are further antecedents and consequences of ethical leadership? We addressed these questions by qualitatively analysing interviews with 17, mostly Swiss, executive ethical leaders. The results indicate that executive ethical leaders care not only about employees but also about other stakeholders, such as customers, suppliers, owners of companies, the natural environment and society. Additionally, this study identified a broad range of executive ethical leaders’ behaviours towards these stakeholders, and, therefore, may function as a useful resource for future quantitative studies. Furthermore, we identified several antecedents of executive ethical leadership, for example ethical role models, business strategy and owner’s values, and consequences such as effects on other stakeholders than employees. Finally, our results shed more light on the processes of ethical guidance of employees. Managerial implications and avenues for further research are discussed. (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)

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)

Leaders who express an ethical identity are proposed to affect followers’ attitudes and work behaviors. In two multi-source studies, we first test a model suggesting that work engagement acts as a mediator in the relationships between ethical leadership and employee initiative (a form of organizational citizenship behavior) as well as counterproductive work behavior. Next, we focus on whether ethical leadership always forms an authentic expression of an ethical identity, thus in the second study, we add leader Machiavellianism to the model. (...) For Machiavellian leaders, the publicly expressed identity of ethical leadership is inconsistent with the privately held unethical Machiavellian norms. Literature on surface acting suggests people can at least to some extent pick up on such inauthentic displays, making the effects less strong. We thus argue that the positive effects of ethical leader behavior are likely to be suppressed when leaders are highly Machiavellian. Support for this moderated mediation model was found: The effects of ethical leader behavior on engagement are less strong when ethical leaders are high as opposed to low on Machiavellianism. (shrink)

Because no previous literature discusses the determinants of green product development performance, this study develops an original framework to fill the research gap. This study explores the influences of green dynamic capabilities and green transformational leadership on green product development performance and investigates the mediation role of green creativity. The results demonstrate that green dynamic capabilities and green transformational leadership positively influence green creativity and green product development performance. Besides, this study indicates that the positive relationships between green product development (...) performance and their two antecedents—green dynamic capabilities and green transformational leadership—are partially mediated by green creativity. It means that green dynamic capabilities and green transformational leadership can not only directly affect green product development performance positively but also indirectly affect it positively via green creativity. Hence, companies have to increase their green dynamic capabilities, green transformational leadership, and green creativity to enhance their green product development performance. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)