Responsible Leadership in Global Business: A New Approach to Leadership and Its Multi-Level Outcomes

The article advances an understanding of responsible leadership in global business and offers an agenda for future research in this field. Our conceptualization of responsible leadership draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. We discuss the concept in relation to existing research in leadership. Further, we propose a new model of responsible leadership that shows how such an understanding of leadership can address the challenges of globalization. We thereby propose positive outcomes of responsible leadership across levels of analysis. The model offers research opportunities for responsible leadership in global business.     

A crisis of leadership: towards an anti-sovereign ethics of organisation

A common reaction to crises experienced within or brought about by business is to identify a corollary ‘crisis of leadership’ and to call for better (stronger, more thoughtful or, indeed, more ethical and responsible) leaders. This paper supports the idea that there is a crisis of leadership – but interprets it quite differently. Specifically, I argue that the most ethically debilitating crisis is the fact that we look to leadership to solve organisational ethical ills. There is, I argue, a pressing need to conceptualise a business ethics that is not constrained by the straitjacket of official hierarchy – a need to denaturalise ‘leadership’ as the normal or rightful locus of ethical regulation and renewal in business organisation. To this end, I explore a Levinasian ethico-politics of responsibility and proximity as the basis of an alternative, anti-sovereign, ethics of organisation.     

Responsible Leadership in a Stakeholder Society – A Relational Perspective

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following Bass and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society.     

Staking Cosmopolitan Claims: How Firms and NGOs Talk About Supply Chain Responsibility

Non-governmental organizations (NGOs) increasingly hold firms responsible for harm caused in their supply chains. In this paper, we explore how firms and NGOs talk about cosmopolitan claims regarding supply chain responsibility (SCR). We investigate the language used by Apple and a group of Chinese NGOs as well as Adidas and the international NGO Greenpeace about the firms’ environmental responsibilities in their supply chains. We apply electronic text analytic methods to firm and NGO reports totaling over 155,000 words. We identify different conceptualizations of cosmopolitanism in this discourse: a legalistic approach to cosmopolitanism for Apple and a group of Chinese NGOs and a moralistic approach for Adidas and Greenpeace. We argue that these differences connect to the roles that the firms are expected and perhaps willing to take in SCR: legalistic discourse connects to a governmental function of rule development and enforcement; in contrast, moralistic discourse connects to a citizenship function that focuses on doing good to the global community. We discuss implications for companies’ non-market strategies and future research.     

Predicting effectiveness in global leadership activities

Given the importance of effective global leadership, both academics and practitioners alike have become increasingly interested in ways to develop successful global business leaders. This study of over two hundred global leaders found that high contact cross-cultural leadership development experiences and the leaders’ personality characteristics were predictors of effectiveness in global leadership activities. Testing hypotheses based on social learning theory and the contact hypothesis, extroversion is found to moderate the relationship between high contact cross-cultural leadership development experiences and effectiveness on global leadership activities: Highly extroverted leaders with a greater number of high contact cross-cultural leadership development experiences are the most effective on global leadership activities.     

Reconciling Different Views on Responsible Leadership: A Rationality-Based Approach

Business leaders are increasingly responsible for the societal and environmental impacts of their actions. Yet conceptual views on responsible leadership differ in their definitions and theoretical foundations. This study attempts to reconcile these diverse views and uncover the phenomenon from a business leader’s point of view. Based on rational egoism theory, this article proposes a formal mathematical model of responsible leadership that considers different types of incentives for stakeholder engagement. The analyses reveal that monetary and instrumental incentives are neither sufficient nor necessary for business leaders to consider societal and environmental stakeholder needs. Non-monetary and non-instrumental incentives, such as leaders’ values and authenticity, as well as their planning horizons, counterbalance pure monetary and instrumental orientations. The model in this article complements the growing body of research on responsible leadership by reconciling its various conceptual views and providing a foundation for future theory development and testing.     

Leading global teams

Global teams that are characterized by national, cultural and linguistic heterogeneity and operate in a globally dispersed virtual environment are becoming an established form of organizing work in multinational organizations. As global team leadership research is rather limited, we review the literature on leading multicultural and virtual teams in a global context, focusing on leadership competencies, styles, strategies and modes. We also examine the emergent concepts of biculturalism, global mindset and cultural intelligence with respect to team leaders. Our aim is to add to our knowledge of leading global teams, highlight recent trends and suggest directions for future research. Three themes for global team leadership emerged: leaders as boundary spanners, bridge makers and blenders; people-oriented leadership; and leveraging diversity. We discuss implications for research and practice.     

Identity Talk of Aspirational Ethical Leaders

This study investigates how business leaders dynamically narrate their aspirational ethical leadership identities. In doing so, it furthers understanding of ethical leadership as a process situated in time and place. The analysis focuses on the discursive strategies used to narrate identity and ethics by ethnic Chinese business leaders in Indonesia after their conversion to Pentecostal–charismatic Christianity. By exploring the use of metaphor, our study shows how these business leaders discursively deconstruct their ‘old’ identities and construct their ‘new’ aspirational identities as ethical leaders. This leads to the following contributions. First, we show that ethical leadership is constructed in identity talk as the business leaders actively narrate aspirational identities. Second, the identity narratives of the business leaders suggest that ethical leadership is a context-bound and situated claim vis-à-vis unethical practice. Third, we propose a conceptual template, identifying processes of realisation and inspiration followed by significant shifts in understanding, for the study of aspirational ethical leadership.     

Insurance Sales Agents and the Internet: The Relationship Between Opinion Leadership,Subjective Knowledge,and Internet Attitudes

The Internet offers a number of opportunities and threats for insurance sales agents. On the one hand, the Internet provides opportunities to communicate with and reach customers. However, it also introduces the risk of losing business to insurance providers or competitors. These opportunities and threats create a need to understand the characteristics that may affect the views of insurance agents regarding the Internet and its impact on their business. This paper compares insurance sales agents' scores on an opinion leadership scale (Flynn, Goldsmith, and Eastman 1996) and subjective knowledge scale (Flynn and Goldsmith 1999) with their attitudes toward the Internet. The results suggest that those insurance sales agents with a higher level of subjective knowledge about the Internet are more likely to be opinion leaders about the Internet. Both opinion leaders and those with higher levels of subjective knowledge have a more positive attitude about the Internet, but only the relationship with opinion leadership is significant. In addition, those insurance sales agents who are younger (than the approximate mean age of 46 years old) are more likely to be opinion leaders and have a higher level of subjective knowledge of the Internet. The results suggest that perceived knowledge and the willingness to discuss the Internet with others impact one's attitude of it, and that the younger insurance agents will play a leading role in how the Internet will be used.     

A cosmopolitan return to nature: how combining aesthetization and moralization processes expresses distinction in food consumption

This article investigates how foodies' adoption of New Nordic Food enables them to combine aesthetic and moral cosmopolitanism ideals. It demonstrates that consumers integrate aesthetic and moral cosmopolitan discourses through two complementary processes: the re-aesthetization of nature and the re-moralization of the exotic. These processes combine in a cosmopolitan interest for one of the last unexplored foreign contexts: nature. The findings of this article contribute to existing research by showing that moral cosmopolitanism reflects a more individualized and less engaged form of consumption than ethical consumption. They illustrate how urban consumers perform distinction in contexts where nature is the most exotic unexplored context, highlighting further the reterritorialization of global cosmopolitan consumption, where food trends can only be consumed authentically in their context of origin. Finally, this article shows how moral cosmopolitanism can support consumers who acknowledge the need for ethical consumption yet struggle with its adoption.     

The Power of One to Make a Difference: How Informal and Formal CEO Power Affect Environmental Sustainability

This study empirically investigated the impact of ethical leadership on employee burnout, deviant behavior and task performance through two psychological mechanisms: (1) developing higher levels of employee trust in leaders and (2) demonstrating lower levels of surface acting toward their leaders. Our theoretical model was tested using data collected from employees of a pharmaceutical retail chain company. Analyses of multisource time-lagged data from 45 team leaders and 247 employees showed that employees’ trust in leaders and surface acting significantly mediated the relationships between ethical leadership and employee burnout, deviant behavior and task performance. We discuss the theoretical and practical implications of our findings for understanding how ethical leaders influence employees’ attitudes and behavior.     

Responsible Leadership,Stakeholder Engagement,and the Emergence of Social Capital

I argue in this article that responsible leadership (Maak and Pless, 2006) contributes to building social capital and ultimately to both a sustainable business and the common good. I show, first, that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader–follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness. Business leaders have to deal with moral complexity resulting from a multitude of stakeholder claims and have to build enduring and mutually beneficial relationships with all relevant stakeholders. I contend, second, that in doing so leaders bundle the energy of␣different constituencies and enable social capital building. Social capital can be understood as actual or potential resources inherent to more or less institutionalized relationships of mutual recognition (Bourdieu 1980). By drawing on network analysis I suggest, third, that responsible leaders weave durable relational structures and ultimately networks of relationships which are rich in ties to otherwise unconnected individuals or groups. Against this background I argue, fourth, that responsible leadership may result in the creation of value networks (Lord and Brown, 2001) of multiple stakeholders, which enhance social capital and thereby contribute to both a sustainable business and the common good.

Dark times for cosmopolitanism? An ethical framework to address private agri-food governance and planetary stewardship

The scholarly tradition of cosmopolitanism (illustrated by the old saying, “I am a citizen of the world”) offers important insights into the examination of agri-food multinational corporations (MNCs) as powerful global actors. Acknowledging that agriculture is the business sector with the highest planetary environmental impact, in this paper, we advance existing discussions around cosmopolitanism and the normative implications of considering agri-food MNCs as political actors. Relying on an integrative literature review, we propose a tripartite ethical framework that gives a new momentum to the ideals and tenets of cosmopolitanism. This novel lens offers an integrated, seamless ethical approach and revolves around three dimensions: culture, morality, and governance. The first dimension examines key agri-food cultural and social-ecological issues, the second acknowledges interdependence and causality as central to understanding MNCs’ ethical responsibilities, and the third outlines several governance parameters around legitimacy, planetary reach and efficiency. Hence, our integrative framework resituates the planetary geographical imagination of cosmopolitanism within the biophysical parameters outlined by the planetary boundaries concept, advancing key issues on private agri-food environmental governance and planetary stewardship.     

Ethical turnarounds and transformational leadership: A global imperative for corporate social responsibility

A company's social responsibility grounded in appropriate ethical values. Accountability for this foundation lies with the corporate leadership, which is responsible for establishing organizational values and culture. When a breach occurs in this leadership process, or when a transition‐economy organization is entering the global arena, an ethical turnaround is generally needed. We created this term to describe the leadership process needed to regain, or initially establish, corporate credibility and legitimacy in the eyes of stakeholders. These leadership requirements go beyond those needed in a strategic turnaround since they must help resuscitate an organization's cusses transformational leadership during ethical turnarounds in developed economies (focusing on Tyco) and in transition economies (focusing on Troika Dialog in Russia). We conclude with implications for business leaders in both economic settings. © 2008 Wiley Periodicals, Inc.     

Social Entrepreneurship: The Role of Institutions

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.     

Competing in the global marketplace: The case of India and China

As the world economy becomes increasingly integrated and globalized, U.S. companies face unprecedented opportunity, as well as challenge. In the global marketplace, China has made great strides in economic and commercial developments. The business community observes that China is becoming a manufacturing base for the world in providing quality products at low prices. As more business people turn their attention to China's progress, however, they are missing out on an important part of the equation: its neighboring country, India, which may deserve more attention than it has received. In this article, we attempt to present an argument that India could be a viable alternative in competition with other countries on the world stage. In spite of its problems, the Indian government and people are determined to increase Indian contribution to the world economy. As such, India may serve as its next frontier.     

Cultural Diversity and Universal Ethics in a Global World

Cultural diversity and globalization bring about a tension between universal ethics and local values and norms. Simultaneously, the current globalization and the existence of an increasingly interconnected world seem to require a common ground to promote dialog, peace, and a more humane world. This article is the introduction to a special issue of the Journal of Business Ethics regarding these problems. We highlight five topics, which intertwine the eight papers of this issue. The first is whether moral diversity in different cultures is a plausible argument for moral relativism. The second focuses on the possibility of finding shared values and virtues worldwide. The third topic deals with convectional universalistic ethical theories in a global world and the problems they present. Fourth, we consider the traditional natural moral law approach in the context of a global world. The last topic is about human rights, as a practical proposal for introducing universal standards in business.     

The Challenge of Leadership Accountability for Integrity Capacity as a Strategic Asset

The authors identify the challenge of holding contemporary business leaders accountable for enhancing the intangible strategic asset of integrity capacity in organizations. After defining integrity capacity and framing it as part of a strategic resource model of sustainable global competitive advantage, the stakeholder costs of integrity capacity neglect are delineated. To address this neglect issue, the authors focus on the cultivation of judgment integrity to handle behavioral, moral and hypothesized economic complexities as key dimensions of integrity capacity. Finally, the authors recommend two leadership practices to build competence in business leaders to enhance integrity capacity as an organizational strategic asset.     

Social Entrepreneurship: The Role of Institutions

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.