Strategic Human Resource Management as Ethical Stewardship

The research about strategic human resource management (SHRM) has suggested that human resource professionals (HRPs) have the opportunity to play a greater role in contributing to organizational success if they are effective in developing systems and policies aligned with the organization??s values, goals, and mission. We suggest that HRPs need to raise the standard of their performance and that the competitive demands of the modern economic environment create implicit ethical duties that HRPs owe to their organizations. We define ethical stewardship as a model of governance that honors obligations due to the many stakeholders and that maximizes long-term organizational wealth creation. We propose that if HRPs adopt an ethical stewardship framework and the qualities of transformative leaders, they will be more aware of their ethical duties to their organizations and more effective in helping their organizations to create increased wealth, achieve desired organizational outcomes, and establish work environments that are more satisfying to employees.     

Moral Recovery and Ethical Leadership

Journal of Business Ethics - Research on ethical leadership generally falls into two categories: one celebrates individual leaders and their ‘authentic’ personalities and virtuous...     

CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior

In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs?? self-rated ethical leadership was positively associated with employees?? aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein.     

Promoting Stewardship Behavior in Organizations: A Leadership Model

This article explores the relational and motivational leadership behaviors that may promote stewardship in organizations. I conceptualize stewardship as an outcome of leadership behaviors that promote a sense of personal responsibility in followers for the long-term wellbeing of the organization and society. Building upon the themes presented in the stewardship literature, such as identification and intrinsic motivation, and drawing from other research streams to include factors such as interpersonal and institutional trust and moral courage, I posit that leaders foster stewardship in their followers through various relational, motivational, and contextually supportive leadership behaviors.     

Ethical Leadership: Examiningthe Relationships with Full Range Leadership Model,Employee Outcomes,and Organizational Culture

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.     

Characterizing Ethical Cases: A Cross-Cultural Investigation of Individual Differences, Organisational Climate, and Leadership on Ethical Decision-Making

The primary purpose of this study was to explore the unique impact of individual differences (e.g. gender, managerial experience), social culture, ethical leadership, and ethical climate on the manner in which individuals analyse and interpret an organisational scenario. Furthermore, we sought to explore whether the manner in which a scenario is initially interpreted by respondents (i.e. as a legal issue, ethical issue, and/or ethical dilemma) influenced subsequent recognition of the relevant stakeholders involved and the identification of intra- and extra-organisational variables significant to the scenario depicted. Data for this study were anonymously collected from professional samples in Russia (Moscow region) and in New Zealand. Findings show a strong effect of social culture (i.e. working in New Zealand or working in Russia) on the manner in which respondents characterised the scenario, on the experience of ethical climate and ethical leadership in their organisations, and on the ability to identify intra- and extra-organisational variables responsible for the situation presented in the scenario, above and beyond other individual and contextual factors.     

Systemic Leadership and the Emergence of Ethical Responsiveness

The author of this paper argues that the responsibility to nurture and encourage a relationally responsive ethical attitude among the members of an organizational system is shared by all who participate in it. In the dynamic environment of a complex adaptive organizational system where it is impossible to anticipate and legislate for every potential circumstantial contingency, creating and sustaining relationships of trust has to be a systemic capacity of the entire organization. Leadership is socially constructed, as the need for it arises within the complex interactions between individuals and groups within organizations, and can therefore not be described as a set of traits or behaviors possessed by only certain individuals who occupy positions of authority. If the sharing of this kind of relational responsiveness to the everyday realities of organizational life is to be properly understood, it is important to consider it in its concrete institutional manifestations. The last section of this paper therefore explores how an organization, in which leadership is understood in relational terms and is shared by all, looks and functions.     

Organizational Leadership, Ethics and the Challenges of Marketing Fair and Ethical Trade

This article critically evaluates current developments in marketing fair trade labelled products and “no sweat” manufactured goods, and argues that both the fair trade and ethical trade movements increasingly rely on strategies for bottom-up change, converting consumers “one cup at a time”. This individualistic approach, which we call “shopping for a better world”, must, we argue, be augmented by more collectivist approaches to affect transformative change. Specifically, we look at the concept of mission-driven organizations pursuing leadership roles in developing affinity relationships to promote fair and ethical trade and developing ethical spaces. Increasingly, a range of organizations are restructuring their operations, so that their mission is reflected in ethical practices throughout their operations, including product sourcing and product sales. First, ethical purchasing policies operated by non-profits and public agencies represent markets through which fair/ethical products reach end consumers. The efforts discussed to create ethical spaces through direct democracy and electoral mandate build on a broad-based affinity with the principles of fair and ethical trade. Second, we explore the potential for “mission-driven” non-profit organizations, such as zoos and aquaria for merging their mission of conservation education with their marketing activities through the operation of their shops and cafés. Interesting initiatives to link the conservation message to food choices is being undertaken by a number of zoos and aquaria, while there is scope for increased linkages in the giftware sold in their shops.     

What Ethical Leadership Means to Me: Asian,American, and European Perspectives

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.     

The Effects of Ethical Leadership and Ethical Climate on Employee Ethical Behavior in the International Port Context

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation (TIPC) in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical behavior. The theoretical and practical implications of the research findings are discussed.     

Work Engagement and Machiavellianism in the Ethical Leadership Process

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.     

A Meta-analytic Review of Ethical Leadership Outcomes and Moderators

We develop and use an integrated individual-level model to explain the driving forces behind digital piracy (DP) practice in two nations. The proposed model combines the Norm Activation model and Unified Theory of Acceptance and Use of Technology models. This study also explores the effect of culture on intention (INT) to practice DP in two nations: US (individualistic) and India (collectivistic). A survey instrument was used to collect data from 231 US and 331 Indian participants. Use of the integrated model proves to be a powerful and a viable approach to understanding DP across cultures. In each nation, all 10 path coefficients on the research model are statistically significant thereby establishing the fact that personal norm, together with other factors, influences INT to engage in DP, which in turn, may influence the actual practice. The results reveal a support for cross-cultural generalizability and applicability of the proposed model. Culture clearly plays a strong moderating role in two out of the three paths tested. The implications of the findings are discussed.     

A Multilevel Trust-based Model of Ethical Public Leadership

I develop and test a multilevel trust-based model of ethical public leadership, which links ethical leadership, trust and leadership outcomes both within and across organizational levels. I examine how both ethical leadership and trust relate to employee well-being and satisfaction, group organizational citizenship behaviour and perceived organizational performance. The findings, based on data collected from an online quantitative survey conducted in three local councils of the north east of England, provide evidence in support of positive relationships between ethical leadership and employees’ trust in leaders at multiple levels. This trust is in turn shown to influence employees’ attitudes, behaviours and cognitions.     

The Masculinisation of Ethical Leadership Dis/embodiment

Using a worldwide sample, we examine whether corporate social responsibility (CSR) performance has an impact on the value of cash holdings. We find that investors assign a higher value to cash held by firms that have a high CSR rating. This result is consistent with the idea that CSR policies are a means for managers to act in the shareholders’ interests by mitigating conflicts with stakeholders. Finally, we reveal that CSR performance has a positive impact on the value of cash holdings only for firms which operate in countries where shareholders are well protected from expropriation by managers and in countries where the institutional quality is high.     

Business Leadership: Three Levels of Ethical Analysis

Research on the normative aspect of leadership is still a relatively new enterprise within the mainstream of leadership studies. In the past, most academic inquiry into leadership was grounded in a social scientific paradigm that largely ignored the ethical substance of leadership. However, perhaps because of a number of public and infamous cases of failure in business leadership, in recent years there has been renewed interest in the ethical side of leadership in business. This paper argues that ethical issues of leadership actually arise at number of different levels, and that it is important to distinguish between various diverse kinds of ethical issues that arise in the study of leadership. The three levels identified are the level of the individual morality of leaders, the level of the means of their leadership, and the level of the leadership mission itself. We argue that only by fully understanding all of the different levels of ethical analysis pertinent to business leadership, and the distinctive kind of issues that arise at each level, can we fully integrate normative studies of leadership into the field of leadership studies. As such, this paper offers a model that incorporates three different levels of ethical analysis that can be used to study normative issues in leadership studies. Such a model can be used to better understand and integrate ethical issues into research, teaching, and training in leadership.     

Leadership and Change: The Case for Greater Ethical Clarity

This article addresses the relationship between the ethics underpinning leadership and change. It examines the developments in leadership and change over the last three decades and their ethical implications. It adopts a consequentialist perspective on ethics and uses this to explore different approaches to leadership and change. In particular, the article focuses on individual (egoistic) consequentialism and utilitarian consequentialism. The article argues that all leadership styles and all approaches to change are rooted in a set of values, some of which are more likely to lead to ethical outcomes than others. It also argues that all stakeholders in an organisation have a role to play in ensuring ethical outcomes. It concludes that in order to achieve sustainable and beneficial change, those who promote and adopt particular approaches to leadership and change must provide greater ethical clarity about the approaches they are championing.