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Doing Well by Doing Good? Analyzing the Relationship Between CEO Ethical Leadership and Firm Performance
Abstract
Business ethics and firm economic performance have traditionally often been regarded as mutually exclusive ends. We challenge this “either-or” belief and analyze when and how ethical firm leadership and firm performance may harmonize well. In extension of earlier research on ethical leadership and performance at the individual and team level, we study the context-dependency of the organization level relationship between CEO ethical leadership and firm performance. We propose a moderated mediation model of the link between CEO ethical leadership and firm performance, identifying mediating (organizational ethical culture) and moderating (organizational ethics program) variables unique to the organization-level of analysis. CEO ethical leadership is argued to work through organizational ethical culture which promotes firm performance under the condition that there is a strong corporate ethics program in place. Results from a multisource cross-sectional study, in which we surveyed 145 participants from 32 organizations and validated organizational performance ratings by objective performance data, showed support for our conceptual model.
... Ethical leadership offers one potentially valuable lens for examining leadership during a crisis as it is important for managing crisis (Yeo & Jeon, 2021) and influences both personal and firm outcomes (Chughtai et al., 2015;Eisenbeiss et al., 2015). Ethical leadership involves demonstrating normatively appropriate conduct "… through personal actions and interpersonal relationships…" (Brown et al., 2005 p. 120). ...
... Third, although interest surrounding the role of ethical leadership by executives is high, research has focused on managers or first-line supervisors. The limited work on ethical leadership at the top of organizations has been more focused on specific cases (e.g., Donaldson & Gini, 1996) or reported very small sample sizes (Eisenbeiss et al., 2015) with a need for research with a longitudinal design, larger sample sizes, and focus on true top management (Eisenbeiss et al., 2015;King et al., 2023;Trevino et al., 2003). ...
... Third, although interest surrounding the role of ethical leadership by executives is high, research has focused on managers or first-line supervisors. The limited work on ethical leadership at the top of organizations has been more focused on specific cases (e.g., Donaldson & Gini, 1996) or reported very small sample sizes (Eisenbeiss et al., 2015) with a need for research with a longitudinal design, larger sample sizes, and focus on true top management (Eisenbeiss et al., 2015;King et al., 2023;Trevino et al., 2003). ...
Amid the challenges posed by COVID-19, this research focuses on the role of ethical leadership in shaping perceptions of crisis leaders’ effectiveness, personal well-being, and business-related outcomes. In this two-sample study, we contrast political leadership at the highest level examining the ethical leadership of a distal executive (President Biden) and a proximal executive (CEO leadership) – advancing literature about why top management ethical leadership matters, the importance of moral and duty-based views, and distal or proximal leadership. This research expands our understanding of ethical leadership and prompts rethinking leadership roles, echoing the urgency to prioritize ethical leadership given its profound impact.
... According to Eisenbeiss et al. (2015), there exists a perception in some businesses that ethical firm leadership and firm performance are considered mutually exclusive. Drawing on the upper echelon theory, which suggests that organizational outcomes mirror CEO values, characteristics, and leadership behaviors (Bellingham, 2003), the authors propose that the influence of CEO ethical leadership is mediated by organizational ethical culture and moderated by corporate ethics programs within companies. ...
... Drawing on the upper echelon theory, which suggests that organizational outcomes mirror CEO values, characteristics, and leadership behaviors (Bellingham, 2003), the authors propose that the influence of CEO ethical leadership is mediated by organizational ethical culture and moderated by corporate ethics programs within companies. Eisenbeiss et al. (2015) conceptualize ethical leadership as a higher-level construct with sub-components, as outlined in Table 3. ...
... Source: Eisenbeiss et al. (2015) including "concern for morality and fairness" (De Hoogh and Den Hartog, 2008), "morality" (Zheng et al., 2011), "integrity" (Eisenbeiss et al., 2015), and "fairness" (Kalshoven et al., 2011). This component incorporates Spangenberg and Theron's (2005) emphasis on trust and role modeling in ethical leadership. ...
... In addition to the ethical environment, previous studies have shown that ethical leadership plays an important role in improving employee performance [8], [9], and [10]. The ethics of a leader determines the fate of a company. ...
... Therefore, ethical leadership can have a positive impact on employee performance [9]. Ethical leadership is humanoriented leadership, so that the rights and obligations of employees are very concerned in their management, this can trigger better employee performance [10]. ...
... Prior studies have examined the topic of employee ethics in a broad sense [8], [9], and [10]. There is still a lack of research that specifically examines the role of ethics in work ethics and ethical leadership and in relation to OCB. [11], [12]. ...
Ethics is critical issue at work environment. Several previous studies depicted that with ethical leadership, a harmonious work environment can be formed and it leads to better performance. This study aims to analyze the relationship between ethical leadership on work ethic, OCB (Organization Citizenship Behaviour) and employee performance in the Marketing Department of Higher Education in West Java. The population in this study were employees in the Marketing Department of Higher Education in West Java Indonesia. This research is categorized as a quantitative study with primary data obtained through questionnaires distributed to 180 employees of the Marketing Department of Higher Education in West Java. The analysis in this study used the Structural Equation Modeling (SEM) method with SmartPLS software. The results of the analysis in this study state that ethical leadership influence positively on work ethic, on OCB, and on performance in the Marketing Department of Higher Education in West Java. This study also confirms the significant influence of work ethic and OCB on the teaching performance of the employees. From the results of the research, higher education managers can develop ethical leadership so that an ethical work environment expands, OCB practices increase, and the performance of Marketing Department employees improves.
... So far, only a few studies focus on the link between CEO ethical leadership organization-level green and nongreen outcomes. For example, Eisenbeiss et al. (2015) examined the relationship between CEO ethical leadership and firm performance through a mediating mechanism of organizational ethical culture. The study conducted by investigated how CEO ethical leadership as a moderator strengthens the association between green human resource management (GHRM) practices and firm EP via top management green commitment. ...
... CEO ethical leadership can be defined as the display of normatively appropriate behavior in both personal and interpersonal contexts, the active promotion of socially responsible behaviors at all organizational levels, and encouraging a moral ethos through communication and ethical decision-making (Brown, Lawrence, & Robinson, 2005;Brown, Treviño, & Harrison, 2005). Integrity, fairness, and responsibility are the main characteristics of higher-order CEO ethical leadership construct that influence organizations' value systems, formal policies, and preferences for sustainable EP (Eisenbeiss et al., 2015;. The integrity element of ethical leadership includes the expectations for congruence between the organization's professed principles and policies. ...
... The integrity element of ethical leadership includes the expectations for congruence between the organization's professed principles and policies. The CEO ethical leadership's responsibility element emphasizes the organization's long-term relationships with its stakeholders, including the larger community (Eisenbeiss et al., 2015), which relies on an optimal natural environment for its growth and development and its citizens' quality of life. Ethical leadership plays a crucial role in developing ethical guidelines for organizations and in integrating moral principles into decision-making (Minkes et al., 1999). ...
In the aftermath of global warming, companies face huge pressure to minimize waste, reduce carbon emissions, and generally become more responsible in their operations. Against this backdrop, researchers argue that top management can significantly shape a firm's environmental performance (EP). This research aims to investigate the impact of CEO ethical leadership style on Saudi firms' EP in the presence of green human resource management (GHRM) practices as a mediator and stakeholder pressure as a moderator. We utilize the resource‐based view and stakeholder theory to develop hypotheses on these relationships. Multisourced data were collected from 272 small and medium‐sized manufacturing enterprises (SMEs) in Saudi Arabia. Our findings revealed that CEO ethical leadership positively influences firm EP via GHRM practices. The results also indicated that stakeholder pressure moderates the direct relationship between CEO ethical leadership and GHRM practices. Moreover, the stakeholder pressure moderates the indirect effect of CEO ethical leadership on firms' EP via GHRM. This study suggests that stakeholder pressure and GHRM practices are important mechanisms between CEO ethical leadership and firms' EP. Our research highlights essential theoretical and empirical contributions and provides insights for HR practitioners when and why SMEs engage in environment‐friendly practices.
... Furthermore, recent studies have identified the influence of leadership on firm environmental performance, such as responsible leadership (Rehman et al., 2021), green transformational leadership (Riva et al., 2021;Singh et al., 2020), ethical leadership (Ren et al., 2021), and women leadership (Glass et al., 2016). While studies have demonstrated a positive association between ethical leadership and green and non-green outcomes at the individual and team levels (Eisenbeiss et al., 2015;Huang and Paterson, 2017;Martin et al., 2022;Naeem et al., 2019;Rasheed et al., 2023), research on firm-level green outcomes remains limited. A recent review by Saha et al. (2020a) highlighted the need for further investigation into how ethical leadership influences firm-level environmental outcomes. ...
... Given that a firm's environmental performance is a source of competitive advantage (Ren and Jackson, 2020), we argue that top leadership of SMEs (Eisenbeiss et al., 2015), develop green IT capital (GITC) (Chuang and Huang, 2015), to create and support environmentally friendly technological capabilities necessary for green technology innovation (GTI) (Sahoo et al., 2023), to achieve environmental performance (Sahoo et al., 2023;Singh et al., 2020). Thus, our study seeks to answer two key research questions: (a) how does CEO ethical leadership develop SMEs' GITC for GTI and environmental performance? ...
... Hence, a high level of TO can strengthen the influence of CEO ethical leadership on GITC. We propose that ethical leaders who inspire their followers to consider new viewpoints and challenge outdated concepts will transform processes and ensure increased communication and coordination among business units to fulfill environmental demands (Eisenbeiss et al., 2015). In other words, if a company has high TO, it may be easier for the followers to apply innovative technological methods to accomplish tasks (Capon and Glazer, 1987), all of which will contribute to the development of GITC. ...
Drawing upon the resource-based perspective, we develop and test a serial mediation model of CEO ethical leadership and environmental performance. Specifically, we propose that ethical leadership enhance environmental performance and this link is explained by green IT capital and green technology innovation, with a particular focus on the moderating role of firm technological orientation. The hypothesized relationships were tested in structural equation modeling with survey data from 303 Saudi small and medium-sized enterprises (SMEs). The results illustrate that the indirect effect of CEO ethical leadership on environmental performance is serially mediated by green IT capital and green technology innovation. The results also show that firm technological orientation moderates the relationship between CEO ethical leadership and green IT capital. This study offers practical insights and suggests that SMEs leadership focus on the creation and implementation of green infrastructure for successful implementation of green practices that can contribute to improved environmental performance.
... In contrast to the results from the co-citation analysis, the effects presented here are more specific; for example, Schwepker and Good (2017) highlighted reduced job stress, unethical intentions, and improved work-group socialization through ethical decision-making. Furthermore, EL helps reduce job stress (Jensen, Cole, and Rubin 2019) and workplace bullying (Ahmad 2018), increases the ability to cope with conflicts (Babalola et al. 2018), and promotes extra effort, help, and mindfulness (Eisenbeiss, Van Knippenberg, and Fahrbach 2015). ...
... As for individual effects, extra effort, helping, and mindfulness (Eisenbeiss, Van Knippenberg, and Fahrbach 2015), reduced job stress (Jensen, Cole, and Rubin 2019), and the ability to deal with conflict situations (Babalola et al. 2018) have been highlighted. ...
Bibliometric science mappings, such as co‐citation analysis and bibliographic couplings, can be used as systematic literature reviews pre‐structured though citation‐related clusters, which can help better understand the inner logic of a research field. We conduct these two science mappings on the field of ethical leadership and integrate the primary results in a research framework that presents a comprehensive overview of the theoretical foundations, antecedents, and effects of ethical leadership, showcasing voice behavior as a current focal research theme. We use our findings to discuss the research, its practical and particularly methodological implications, and to propose future research opportunities.
... Organizational effectiveness and strategic planning have been the focus of research into ethical leadership. Eisenbeiss et al., (2015) reported that leaders' backgrounds, values, and personalities influence strategic decisions and the effectiveness of an organization. Work productivity and employee initiative to better the organization both increase under ethical leadership. ...
... Ethical leadership enhances organizational effectiveness. According to Eisenbeiss et al. (2015) and Riggio (2010), ethical leaders have a responsible, fair, honest, and people-centered disposition. Similar studies by Feng et al. (2019) and Thapa (2019) show that ethical leadership may encourage better services and increase organizational performance (Piccolo et al., 2010). ...
It is impossible to overstate the role that ethical leadership plays in driving higher education institutions (HEIs) success in light of the rapid pace of change in the sector. This study analyzes the revolutionary potential of ethical leadership in higher education institutions and demonstrates its huge impact. We delve into faculty members' perceptions and descriptions of their own institutions' achievements and failures to examine the link between ethical leadership and organizational performance in HEIs. A quantitative cross-sectional survey was employed. The participants of the study were teaching faculty of higher educational Institutions of District Dera Ismail Khan Khyber Pakhtunkhwa Pakistan. Through surveys, 210 faculty members from HEIs provided the data for this study, which was then analyzed using SPSS-26. This study investigates how much ethical leadership practices have an impact on organizational performance in the setting of higher education. The findings shed important light on how faculty members view ethical leadership and its bearing on organizational success. The study's findings add to the existing body of information on ethical leadership in HEIs and have implications for leaders and administrators in developing a culture of ethical leadership to improve organizational performance.
... Corporate governance and its effect on ethical lapses. Corporate Governance and Sustainability Review, 7(4),[8][9][10][11][12][13][14][15][16][17] ...
... Leaders who have created a strong ethical culture and corporate ethics program can enhance the firm's financial performance (Eisenbeiss et al., 2015). However, leaders also need the support of a board of directors (Schwartz et al., 2005). ...
There is much research that examines the connection between different elements of corporate governance to specific firm outcomes (Brahmana et al., 2021; Fakhfakh & Jarboui, 2022), including ethical outcomes (Veldman et al., 2023). However, little is written about how to prevent ethical lapses from ever happening. Using the framework of agency theory, this study examined the effect of the board of directors’ power and the chief executive officer’s (CEO’s) power on the firm’s ethical behaviors. We sought to find out if strong governance, whether CEO or Board, could play a role in stopping ethical lapses before they happen. To evaluate this relationship, two indices were used. The board power index included board size, non-duality, lead director, board composition, and ownership. The CEO power index included tenure, ownership, and board member nominations. The sample consisted of 102 large, public United States (U.S.) firms. Logistic regression was utilized to determine if board power or CEO power could influence ethical firm behaviors. The findings indicated that strong boards were associated with more ethical firms. CEO power did not seem to have the same relationship. These findings are important to help firms structure boards to increase vigilance and reduce the likelihood of ethical lapses.
... While many popular leadership theories contain ethical elements (e.g., transformational, authentic, and servant), Brown et al.'s (2005) theory of ethical leadership arguably sets the standard as the theory most focused on the ethical behavior of individual leaders. Ethical leaders are considered to be attractive and credible role models as they demonstrate integrity, set and maintain high ethical standards, engender trust and justice (Brown et al., 2005), and foster an ethical climate (Eisenbeiss et al., 2015). As most of the aspects of ethical leadership are focused on characteristics and consistent behavior of the individual leader, we might assume-as most theorizing seems to do-that the leader more or less acts morally, regardless of context. ...
... Second, a reputation as an ethical leader is also built on being perceived as a moral manager through specific behaviors that encourage ethical practices in organizations such as discussing ethics and disciplining ethical violations (Brown & Treviño, 2006). Together, ethical leaders are considered to be attractive and credible role models as they demonstrate integrity, set and maintain high ethical standards, and engender trust and justice (Brown et al., 2005) and foster an ethical climate (Eisenbeiss et al., 2015). ...
Despite its theoretical grounding in the personal moral characteristics of leaders, most research on Brown et al.’s (2005) ethical leadership construct has tended to ignore the personal life (friends/family) aspects of leaders. In this study, we consider ethical leadership behavior in both work and non-work (i.e., with friends and family) domains at both the intra-individual (domain) and individual (leader as a whole person) levels of analysis. We examine our research questions with a sample of 104 leaders and their 1,458 raters in executive MBA programs in the United States and Ireland. Our findings demonstrate that ethical leadership operates at the individual level of analysis in both work and non-work contexts, with the implication that researchers should consider both the mean and variation of ethical leadership. Our findings also indicate strong within-domain and limited cross-domain effects of ethical leadership and ethical leadership variation on cognitive trust, affective trust, and abusive supervision.
... Furthermore, their behavior would promote ethical courage, honor, and integrity among followers. A CEO with high integrity is likely to stick to steadfast values and beliefs, hence recognizing ethical implications during decision-making processes, carefully weighing these factors, and prioritizing ethical considerations in business decisions for success, [72]. Through this approach, the company could implement tangible corporate social responsibility (CSR) strategies. ...
... Given the limited existing research on chief executive officer (CEO) integrity, there is a need for an enhanced scale to measure its influence. Previous studies, such as, [72], [71], have utilized surveys of employees to gauge CEO integrity. These studies have indicated that CEOs often perform their duties to enhance their organization. ...
This study examines the impact of corporate governance and corporate reputation on firm performance and corporate social responsibility disclosure. For this purpose, we use a moderating-mediation approach, utilizing data from 4255 observations across 732 enterprises from 2009 to 2021. The research findings reveal that corporate social responsibility disclosure significantly influences corporate reputation, particularly in enhancing business performance. The findings also demonstrate a moderate association between corporate governance, corporate social responsibility, and corporate reputation. Moreover, the investigation highlights the critical role of corporate reputation, ownership concentration, and CEO integrity in promoting corporate social responsibility disclosure and improving business performance. Finally, the paper discusses the practical and theoretical contributions of the research.
... That is, empirical research has yet to explore this pattern of influence from ethical leaders, through employees, and ultimately to customers. Accordingly, failing to incorporate the critical roles of both employees and customers may obfuscate the link between ethical leadership and customer purchase behaviors and result in mistaken assumptions about the role of ethical leadership in producing financial outcomes (e.g., Detert et al., 2007;Eisenbeiss et al., 2015). ...
... Scholars familiar with the dynamics of various trickle processes (e.g., down, out, up) likewise observe that "effects driven by social learning mechanisms... are likely to occur slowly over time, as learning from others... takes time, experience, and exposure" (Wo et al., 2019(Wo et al., , p. 2280. This may explain why some research examining financial outcomes concurrently or as soon as 2 months after assessing ethical leadership has found mixed results (Detert et al., 2007;Eisenbeiss et al., 2015; see also Mitchell & James, 2001). Thus, the financial consequences of ethical leaders' actions might be better understood if research accounted for the critical time element for ethical leadership to yield loyal customers and future returns. ...
Extending ethical leadership theory and research beyond the walls of the organization, we propose a spillover model wherein ethical leaders impact customer loyalty (i.e., repeat purchase amount) by first establishing trusting relations with employees, who in turn emulate their leaders’ ethical behavior. In Study 1, we examined how this initial trust (i.e., trust primacy) facilitates new employees’ moral imprinting in a controlled experiment. In Study 2, with a field design, we tested our model among new employees and their respective customers over a 6-month timespan. Results indicate that perceptions of ethical leadership operate through trust primacy to affect customer repeat purchase, with accelerated growth over time. We conclude by considering theoretical and practical implications as they relate to ethical leadership and trust primacy, as well as marketing and salesforce management.
... In addition, a CEO with a high degree of integrity will likely hold firmly held-beliefs. Consequently, they would be more apt to filter and recognize ethical components within a decision-making situation, carefully appraise such characteristics, and give precedence to ethical concerns when making decisions for business success [48]. As a result of these initiatives, a corporation began to practice actual CSR. ...
... There is scant literature on CEO integrity, and thus there is a need to develop further a measurement scale for assessing the impact of CEO integrity. However, Eisenbeiss et al. [48] and Palanski and Yammarino [47] previously attempted to measure CEO integrity using a survey of employee assessment of CEOs. As revealed, CEOs generally perform their role for the betterment of their company. ...
This aim of this research is to examine the role of Corporate Governance and Corporate Reputation (CR) in the disclosure of Corporate Social Responsibility (CSRD) and firm performance. A moderating – mediation model addresses this research objective based on 3588 observations from 833 firms from 31 countries between 2005 and 2011. Significant effect of CSRD on CR was observed, especially contributing to firm performance. The results verified a moderate effect of “corporate governance” on “CSRD” and CR. The study also demonstrated how CEO integrity, ownership concentration, and CR contribute to fostering CSRD and firm performance. This paper also discusses about the theoretical contributions and practical implications of the study.
... It also promotes ethical behavior and knowledge-sharing behavior among followers, reduces workplace deviance, and enhances employee well-being (Bedi et al., 2016;Le et al., 2023;Lin et al., 2016;Rasheed et al., 2024). At the organizational level, ethical leadership contributes to improved firm performance, enhanced corporate social responsibility, and stronger stakeholder relationships (Eisenbeiss & Brodbeck, 2014;Eisenbeiss et al.,2015;Kalra et al., 2023). ...
The current research investigates the complex interplay between artificial intelligence (AI)-induced job insecurity, psychological contract breach (PCB), pro-environmental behavior at work (PEBW), and ethical leadership in the context of organizational sustainability. As AI technologies increasingly permeate the workplace, understanding their impact on employee attitudes and behaviors becomes crucial for maintaining organizational effectiveness and environmental responsibility. Drawing on several theories, we developed and tested a moderated mediation model using a three-wave time-lagged design with 391 employees from various South Korean corporations. Our findings reveal that AI-induced job insecurity does not directly affect PEBW, but rather operates through the mediating mechanism of PCB. Specifically, AI-induced job insecurity positively influences PCB, which in turn negatively affects PEBW. Moreover, ethical leadership emerges as a significant moderator, mitigating the positive association between AI-induced job insecurity and PCB. This study uniquely contributes to the literature by integrating AI-induced job insecurity into the organizational sustainability framework, offering novel insights into how technological advancements influence employee pro-environmental behaviors. Our findings extend the understanding of the Context-Attitudes-Behavior framework in the digital age, bridging the gap between technological disruption literature and environmental sustainability research. These results provide practical implications for organizations striving to balance technological innovation with employee well-being and environmental responsibility, offering strategies for maintaining pro-environmental behaviors amidst AI-induced uncertainties. This paper contributes to the growing literature on AI at work and offers insights for organizations navigating the challenges of technological advancement while promoting environmental sustainability.
... 6 Upper-echelon theory suggests that those in the top echelons have personal characteristics that shape corporate behaviour (Hambrick and Mason 1984). Prior research indicates support for this view, finding associations between characteristics of those in the top echelons (e.g., narcissism, overconfidence, religiosity and gender) and numerous corporate outcomes; corporate governance, financial performance, accounting conservatism and ethical behaviour of firms through CSR engagement, and misconduct (Eisenbeiss et al. 2015 At the board level, research finds associations between board diversity dimensions (e.g., gender diversity, ethnic diversity, independence) and corporate outcomes such as CSR performance (Rao and Tilt 2016;Nerantzidis et al. 2022) and financial performance (Bernile et al. 2018). Board diversity takes various forms, including demographic characteristics such as gender and culture, and career-related aspects such as skills and experience (Gray and Nowland 2018;Weerasinghe et al. 2023). ...
The involvement of corporate CEOs/directors in not‐for‐profit (NFP) leadership is significant for corporate and NFP sectors. We refer to this activity as ‘benevolence’. These benevolent leaders bring synergistic effects to each leadership position. Although research has examined various characteristics of NFPs and corporate leaders independently, the impact of this combination of serving NFPs and listed firms is worth examining, given current debates on the form and function of stakeholder capitalism. We provide preliminary exploration of NFP leadership positions of CEOs/directors, from 2010 to 2019. Data were hand‐collected from CEO/director biographies in annual reports. NFP roles were verified through public sources (e.g., Australian Charities and Not‐For‐Profit Commission). We identify meaningful patterns in NFP leadership positions held by the those in the top echelons. In evaluating whether benevolent leaders influence corporate ethical outcomes, we find a significant positive association. Our findings establish the foundation for future inquiries on the influence of benevolent leaders on many corporate outcomes.
... Last but not least, this study examines the effects of ethical leadership on employees' work outcome, but the effects of team and organisational ethical leadership on employees' work outcomes should also be noticed. Recently, some scholars gradually turn their research theme from individual to team leadership (Walumbwa and Schaubroeck, 2009;Eisenbeiss et al., 2015), and point out that more research on team and organisational leadership is needed in organisational behaviour field. Thus, future research should pay more attention on the outcome variables at team and organisation level. ...
... Psychological caring and exercises teach the mind to pay attention to both what is going on inside and what is going on around it so that a person can gain deep basic knowledge and facts (Bhattarai et al., 2020;Gunaratana, 2001). Many things, like how well a company does business and how ethically it does business, are connected to how its leaders make decisions (Dahal, 2020;Eisenbeiss et al., 2015). These problems are worse in the world after COVID-19, and top managers need to think ethically and lead with integrity more than ever (Eichenauer et al., 2022;Ghimire et al., 2021). ...
Psychologically strong human resources are essential for winning competitive advantages. This study examined the relationship between mindfulness practices and strategic decision-making among ethical leaders in human resource management. A positivist, quantitative method is used to assess the influence of techniques such as mindful breathing, mindful technology usage, 3-minute breathing space, mental gym, and daily journaling on strategic decisions (vision formulation, plan design, and execution). Purposive sampling was used to acquire data from 235 Human Resource managers and assistants using a standardized questionnaire. Correlation coefficients reveal strong beneficial links between mindful
activities and strategic choices. Regression analysis shows a significant influence of mindful breathing, 3-minute breathing space, and daily writing, suggesting that frequent participation corresponds with more influence on strategic decision-making. Also, there is no significant influence of mindful technology usage, mental gyms, or apps on strategic decisions. This study adds important knowledge to the relationship between mindfulness practices, especially mindful breathing, 3-minute breathing space, and daily journaling, and ethical leaders' ability to make smart and strategic decisions in human resource management. This study suggests that organizations can use techno-supported tools in the workplace to implement mindfulness practices; also, in culture management, organizations should promote mental gym activities.
... Agile leadership, a less studied but promising area, is based on principles that can bring significant benefits. These principles include the ability to handle changing market dynamics, viewing the organization as an adaptive system, and fostering a problem-solving approach [8]. Job stress, which encompasses all threats affecting employees, reflects the mismatch of demands and resources at the workplace, leading to negative outcomes [9]. ...
Employee performance is crucial to the success of organizations, particularly in the entrepreneurial sector. Various factors, such as abusive supervision, job stress, turnover intention, and agile leadership, play a significant role in determining performance outcomes. This study aims to evaluate how perceived organizational support moderates the effects of these factors on employee performance in public firms in the UAE. Data were gathered from a valid sample of 211 respondents. The analysis employed measurement and structural model assessments using Smart PLS version 4.0. The results validated the internal consistency reliability, convergent validity, and discriminant validity of the latent constructs. Structural equation modeling indicated significant effects of agile leadership, abusive supervision, and job stress on employee performance. Furthermore, perceived organizational support was found to significantly moderate the relationships between agile leadership and employee performance, abusive supervision and employee performance, and job stress and employee performance. Based on these findings, several policy recommendations were made for public sector firms in the UAE, particularly highlighting the importance of supportive leadership practices in enhancing employee performance within the entrepreneurial sector.
... Establishing transparency, responsibility, and professionalism as core values fosters stakeholder alignment with the company's ethical framework (Wang & Chen, 2018). This requires translating values into concrete systems, through laws, regulations, or company charters, guiding ethical behaviour at all levels (Eisenbeiss et al., 2015). ...
This study examines the relationship between business ethics and corporate governance principles in small and medium-sized enterprises (SMEs) in the KwaZulu Natal region of South Africa. It aims to understand how ethical behavior and practices within SMEs can promote good corporate governance, using the framework of shareholder theory. The study employs a quantitative research design, collecting data from a sample of 217 active SMEs through a close-ended questionnaire. The data is analysed using statistical methods, including chi-square tests, Spearman ranked correlation coefficient, and regression analysis. The results indicate a significant positive correlation between business ethics and corporate governance in SMEs, emphasizing the importance of ethical conduct in maximising shareholder value while considering broader ethical implications. Based on the findings, several recommendations are provided. SMEs should prioritise the development of robust ethical frameworks, promote a culture of integrity and accountability, and invest in ethical leadership development. Collaboration and knowledge-sharing among SMEs can facilitate the adoption of ethical practices. Policymakers and regulatory bodies should recognise the significance of business ethics and corporate governance in SMEs and provide support and incentives for their implementation.
... Menurut Brown et al. (2005), kepemimpinan etis mengacu pada nilai-nilai dan tindakan pribadi pemimpin yang sesuai dengan norma-norma etika yang berlaku dalam masyarakat dan organisasi. Kepemimpinan etis dan implikasinya terhadap capaian organisasi sebelumnya telah banyak diteliti di negara-negara Barat, misalnya Martin, Emich, McClean, and Woodruff (2021), Eisenbeiss, van Knippenberg, and Fahrbach (2015), D. Wang, Feng, and Lawton (2017). Shin, Sung, Choi, and Kim (2015) menemukan bahwa kepemimpinan etis mampu meningkatkan kinerja organisasi dengan mempromosikan iklim keadilan etis dan keadilan prosedural pada semua level organisasi. ...
PT. Ningsri Sukses Abadi merupakan salah satu perusahaan penggilingan batu yang beroperasi di Jawa Tengah. Pengelolaan perusahaan ini sepenuhnya di bawah manajemen keluarga, yang memiliki beberapa keterbatasan, seperti pemimpin perusahaan cenderung bekerja kurang efektif dan tidak terlalu peduli pada target capaian di masa depan. Selain itu, sistem kepemimpinan di perusahaan ini juga masih lemah, dimana pemimpin lebih menekankan unsur transaksional dibanding etis pada semua karyawan dalam menyelesaikan pekerjaan mereka. Hal ini seringkali menimbulkan perilaku non-etis dari karyawan, seperti kemangkiran dan pencurian dalam organisasi. Lebih lanjut, PT. Ningsri Sukses Abadi perlu membangun system manajemen pengetahuan yang efektif untuk mengembangkan organisasi agar lebih efektif dan fleksibel terhadap tuntutan pasar. Oleh sebab itu, tujuan pengabdian ini adalah untuk melatih dan memberikan pencerahan kepada pihak manajemen PT. Ningsri Sukses Abadi tentang kepemimpinan etis dan manajemen pengetahuan serta realisasinya dalam perusahaan. Kegiatan pelatihan ini dilaksanakan di PT. Ningsri Sukses Abadi pada 29 Maret 2022. Hasil pelatihan menyimpulkan bahwa kepemimpinan etis di PT Ningsri Sukses Abadi sudah diterapkan dengan baik. Berbeda dengan manajemen pengetahuan, yang masih membutuhkan proses internalisasi dan implementasi. Realisasi manajemen pengetahuan di PT Ningsri Sukses Abadi dapat berjalan dengan baik ketika ada kolaborasi dan dukungan yang kuat dari seluruh pihak, khususnya top management.Kata kunci : manajemen, kepemimpinan, organisasi, etis
... Furthermore, the case studies demonstrate that leadership commitment to CSR is crucial for driving successful outcomes. However, it is essential to consider that such commitment might not be universal across all companies or industries (Eisenbeiss et al., 2015). Changes in leadership or the lack of intrinsic motivation to pursue CSR goals may lead to less successful outcomes or even the abandonment of these initiatives altogether. ...
This paper explores the relationship between organizational behavior, leadership styles, organizational culture, and corporate social responsibility (CSR) outcomes by synthesizing relevant academic literature and real-world case studies. The growing emphasis on CSR in the business environment has led to a greater understanding of the intricate connections between an organization’s internal processes and its capacity to deliver effective CSR initiatives. The primary objectives of this study are to identify key indicators of successful CSR initiatives, examine the role of leadership styles in driving CSR performance, and analyze the impact of organizational culture on CSR outcomes. The findings reveal that employee engagement, ethical organizational culture, and committed leadership significantly influence CSR performance, while the case studies demonstrate how organizations with strong cultures of social responsibility can achieve successful CSR initiatives and create lasting positive impacts on society and the environment. This study explores the relationships between organizational behavior, leadership, culture, and CSR performance (Aguinis & Glavas, 2012; McWilliams & Siegel, 2001), providing insights and recommendations for enhancing CSR initiatives and their societal impact. The research method applied involved a comprehensive literature review, analyzing and synthesizing academic publications and real-world case studies to explore the relationships between organizational behavior, leadership styles, culture, and CSR outcomes. By providing valuable insights and recommendations, this paper aims to guide organizations in enhancing their CSR performance and contributing to a sustainable future for all stakeholders.
... 2187). While focusing on the relationship between CEO ethical leadership and performance, Eisenbeiss, Knippenberg and Fahrbach's (2015) study sheds light on the importance of top-down ethical behavior in setting the tone for organizational responsiveness and adaptability. On the other hand, a study by Zoghbi-Manrique de Lara and Ruiz-Palomino (2019) delves into servant leadership. ...
This study aims to investigate whether organizational change capability (OCC) enables firms’ ambidexterity (explorative innovativeness and exploitative responsiveness) and results in above-average performance. Besides testing whether ambidexterity is possible, the study also investigates how it can be achieved by testing the role of mediators in the relationship between OCC and a firm’s performance. The study surveyed suppliers of a large Croatian firm from the construction industry. A total of 160 usable surveys were collected and data analysis was conducted using partial least squares structural equation modeling. Our study confirms the positive effect of OCC on a firm’s responsiveness and innovativeness, while also demonstrating that OCC has a positive impact on a firm’s performance. In addition, the results empirically show for the first time that OCC and innovativeness have a positive impact on a firm’s responsiveness. This study contributes to the understanding of the OCC construct by linking it to ambidexterity and investigating the role of mediators in the relationship between OCC and a firm’s performance.
... Internalized morale: This dimension is the leaders' ability to self-regulate their behavior according to their values and principles, without being influenced by group or social pressures. In the academic literature on authentic leadership, this dimension is extremely valuable, giving meaning to the remaining three dimensions, as it is the axiological basis of authentic leadership and ethical leadership (Ferrell & Ferrell, 2011;Langvardt, 2012;McCann & Holt, 2013;Skubinn & Herzog, 2014;Eisenbeiss, van Knippenberg, & Fahrbach, 2014). ...
Given the economic and social reality that MSMEs are experiencing in the post-pandemic world, it is necessary to have a new style of leaders who can solve new organizational problems, for which a new leadership model was generated that integrates previous theories. Three independent leadership theories were mixed to develop a multidimensional model that could facilitate a better leadership assessment aiming to analyze the most important characteristics that employees seek in a leader. Data from 384 MSMEs employees was collected to analyze 31 combined items from three instruments to assess transformational, authentic, and learning leadership. This data was analyzed for validity using exploratory and confirmatory factor analyzes, resulting in a new model that could help researchers to collect reliable data that could be analyzed using the lens of this new model that receives the name of "action leadership". This new multidimensional model will facilitate the development of better working environments in MSMEs, guiding the efforts of their leaders to be able to fulfil the needs of their employees and their expectations about how their leaders solve the challenges. Keywords: Action Leadership; Transformational leadership; MSME´s JEL codes: M10, M12
... (4) Formulation of Strategic Recommendations: Predicated upon derived insights, it is anticipated that actionable strategies and guidelines will be proffered to aid organizations in optimally attracting and retaining stellar talent from the contemporary workforce, whilst championing sustainable paradigms [24,25]. ...
... The emerging ethical leadership, as a novel approach in the leadership perspective, by giving priority to ethics in organization has provided the ground for building and promotion of individual and organizational effectiveness. Eisenbeiss, et al., (2015) argue that more light needs to be shed on the effects of ethical leadership as practiced by organisational managers. Previous work in this area shows that ethical behaviours can occur at various organisational levels and are linked with outcomes at the individual, team, and organization-levels. ...
... In line with business and social relevance, CSR remains the dominant area of research in finance, accounting, and management. Scholars have always been interested in investigating the factors that drive the CSR strategy in the organization (Chen & Xie, 2022;Eisenbeiss, van Knippenberg, & Fahrbach, 2015;Huang, Sim, & Zhao, 2020). ...
... Furthermore, ethical leaders can be effective by demonstrating affective commitment (Hassan et al., 2013). As well as reinforcing employees' personal emotional incentives, ethical leadership can promote positive work behaviors among employees and corporation performance as a whole (Eisenbeiss et al., 2015;Li & Bao, 2020). These increases in individual and organizational performance will reward employees accordingly. ...
Scholars have gradually turned their attention to ethical leadership within the developing discussion of leaders’ influence on employee pro-environmental behavior. However, few have regarded ethical leadership as an antecedent of employee pro-environmental behavior. Based on social and role identity theories, we investigated the mechanism by which ethical leadership affects employee pro-environmental behavior through employee environmental self-identity. We also explored the moderating role of behavioral integrity in the process of employee environmental self-identity being rendered into pro-environmental behavior. We gathered data from 284 subordinate–supervisor dyads across China’s various regions and industries and utilized a regression analysis and bootstrapping test to evaluate our hypotheses, all of which were supported by the results. We found that employee environmental self-identity played a partial mediating role in the relationship between ethical leadership and employee pro-environmental behavior. When employees perceived that their leaders had a high (low) level of behavioral integrity, employee environmental self-identity was more (less) effectively transformed into pro-environmental behavior. Furthermore, the indirect effect of ethical leadership on employee pro-environmental behavior is higher (lower) through environmental self-identity at the same time. In response to calls to advance research on pro-environmental behavior and ethical leadership, our research reveals potential antecedents to employee pro-environmental behavior.
... The analysis of hypothesis H5 indicated that there is a significant relationship between CEO people-centred leadership skills and organisational performance. The CEO's task-focused behaviours are directly linked to firm performance (Eisenbeiss et al., 2015;Wang et al., 2011). Using only secondary data, this mixed-methods study investigates the relationship between CEO transformative leadership and business performance. ...
Corporate governance is becoming more widely recognized as a critical factor in determining an organization's overall performance. The King Code I-IV was created to provide a corporate governance framework for South African corporations that is easy to understand and follow. The fourth industrial revolution forces change and flexibility, necessitating innovation in order to compete in a fast-changing environment. The purpose of the research was to look at the basic endemic corporate governance practices that make Ithala Development Finance Corporation (IDFC) efficient and come up with a conceptual and legislative framework for them. Microsoft Forms were used to collect the information. The study used a pragmatic mixed methods approach. The descriptive statistics were calculated using the Statistical Package for the Social Sciences (SPSS) version 27. All study components were subjected to exploratory factor analysis (EFA), and research hypotheses were tested using Structural Equation Modelling (SEM) in SmartPLS version 3. The findings of the study confirmed a relationship between board independence and organisational performance. The findings on board diversity were inconclusive. The relationship between board committees and organisational performance was not supported. The relationship between board oversight responsibility and organisational performance was positively confirmed. Finally, the relationship between a CEO's people-centred leadership skills and organisational performance was positively confirmed and supported. The study is limited to IDFC and cannot be generalised. The findings of this study will add to growing existing knowledge that will aid in the understanding of corporate governance's impact on organisational performance. This research will also assist business leaders in implementing King IV and corporate governance as a driver of organisational performance and the fourth industrial revolution. This thesis's theoretical framework, conceptual framework, and results are likely to entice researchers to do further study into identifying the parts of corporate governance that are critical for strong organisational performance. It should also encourage practitioners, executives of state-owned enterprises, and researchers of strategy, business leadership, and corporate governance to participate more deeply in discussions about the fourth industrial revolution and organisational performance. The findings should find significance to public officials and government leaders, given their considerable interest in long-term company success.
... According to research by Eisenbeiss, van Knippenberg, and Fahrbach (2015) as well as Wu, Kwan, Yim, Chiu, and He (2015), a CEO's ethical leadership is linked to better firm performance and increased corporate social responsibility. This suggests that ethical leadership at the corporate level has positive effects on both the economy and society. ...
... The moral reasoning or ethical approach of an individual (in this research of the CEO) is conceived here in accordance with Weber (2010) as the ways the CEO defines their position or decision criteria to justify a morally preferable action in front of a situation or dilemma with ethical implications, depending on their stage of moral development. Eisenbeiss et al. (2015) evidenced the improvement of the firm's performance and profitability through ethical leadership. Leaders conveying ethical values show better ability to make the right decisions (Christensen and Kohls, 2003) and the moral tone at the top is a key factor in leadership contribution to business success . ...
Purpose
The main purpose of this paper is to assess the patterns in the public discourse of successful chief executive officers (CEOs) in terms of performance, with the CEO's strengths and aspects to improve.
Design/methodology/approach
This paper aligns with the literature that appraises CEO public discourse and relevance. From the literature review, the strategic levers in CEO discourse toward high performance are identified. The CEO letters in the period 2017–2019 of the top 25 best performing CEOs (BPCs) according to Harvard Business Review ranking 2019 are qualitatively examined through a multiple close reading analytical technique and multiple correspondence analysis (MCA) is applied to assess the patterns.
Findings
The paper delivers a three-dimensional model representing how the identified strategic levers are articulated by BPCs in the BPC's discourse following diverse patterns. This paper points out BPC's strengths, among them a high level of moral reasoning compared to previous studies and improvable areas such as the extended absence of autocritique at the firm and personal level or the lack of leverage on the need for agility and proactive adaption.
Practical implications
This paper contributes further CEO awareness of the strategic role of the discourse and offers clues to enhance CEO awareness, as well as criteria for boards of directors to appraise CEO discourse.
Originality/value
Adopting a novel approach, this paper addresses the strategic levers triggered by CEOs in their letters from a managerial implication perspective, providing relevant theoretical insight on how they are articulated.
... Under external supervision and pressure, CEOs will be motivated to take greater environmental responsibility, disclose environmental information, and increase investment in green innovation (Godos-Díez et al., 2020). Meanwhile, from an ethical leadership perspective, CEOs with high visibility typically have strong ethical values and place ethics at the heart of corporate management decisions (Eisenbeiss et al., 2015). Hence, CEOs are more likely to proactively focus on EID and green innovation in their business operations to maintain their reputation and reflect their ethical values. ...
This study investigates the effect of corporate environmental information disclosure (EID) on green innovation in China's heavily polluting industries during 2009–2020 and the moderating effect of Chief Executive Officer (CEO) visibility. The results show that: (1) corporate EID increases green innovation, and CEO visibility strengthens the positive impact of corporate EID on green innovation. (2) The green innovation fostered by EID comes from the leverage effect, not from the crowding‐out effect at the expense of other existing innovations; EID stimulates green innovation by alleviating financing constraints and increasing R&D expenditures. (3) Corporate EID has a greater impact on substantive green innovation than on strategic green innovation, and hard EID makes a more significant contribution to green innovation than soft EID does. (4) State‐owned, large, and established enterprises benefit more from the promotion effect of EID on green innovation as well as the positive moderating effect of CEO visibility.
We study the impact of a boycott on one of the largest Korean dairy producers, triggered by the exposure of the firm’s unethical management practices, on sales of its own and others. We find empirical evidence that the boycott had substantial and long-lasting consequences. First, consumer utility from the boycotted products decreased significantly, reflecting consumers’ strong willingness to take part in collective action. Second, our discrete choice demand model, which addresses both price endogeneity and product substitution, estimates that sales of the boycotted firm decreased by almost 8% or, equivalently, by 8.1 million liters during the 12-month postboycott period. Third, the boycotted firm’s sales and revenue decreases would have been more severe had the firm not cut prices after the boycott outbreak. Our findings emphasize top-level managers’ role in fostering an ethical organizational culture within the firm and taking proper and timely countermeasures to curb losses incurred by a boycott.
This paper was accepted by Eric Anderson, marketing.
Funding: This work was supported by the Asian Studies Center of Michigan State University [Dr. Delia Koo Faculty Endowment Award] and Sogang University [New Faculty Research Funding Grant 202310031.01].
Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2021.01062 .
Corruption is a major concern that impacts organizations at international, national, and local levels. This chapter delves into the components of corruption, investigates factors that can leave organizations vulnerable to corruption, provides notable examples of corruption, and suggests mitigating factors, ethical leadership and ethical culture, that can reduce and/or prevent corruption from taking place. Framing corruption as an ethical dilemma allows organizational risk factors and economic pressures to be examined and highlighting corruption as a real and pressing threat adds to the morality and social responsibility literatures.
This paper explores the emerging leadership dynamics in the ever-evolving digital era, with a particular focus on the role of the millennial generation. Digital transformation has fundamentally changed the business and organizational landscape, giving rise to challenges and opportunities that tomorrow's leaders must face. The millennial generation, coming of age amidst the technological revolution, occupies a unique position in this context. They have high technology savvy, different values, and unique expectations for leadership. This paper will explore how millennials can face challenges such as adapting to rapid technological change, navigating evolving work cultures, and fulfilling their expectations for meaning in work. On the other hand, this paper will also discuss the opportunities available to the millennial generation in utilizing technology and their values to lead teams and organizations effectively. Through an in-depth understanding of these changes, this paper aims to provide guidance for the millennial generation who want to succeed in leadership roles in the digital era that continues to transform.
This study contributes to the field of sustainable supply chain management by shedding light on the relationship between overdependence on supply chain partners, exploitation, and the willingness of business-to-business partner firms to focus on sustainability performance. This study further investigates how ethical culture moderates this relationship. Drawing on the resource dependency theory, the study involves developing a model and validating it using multivariate analysis among 120 dyads. The findings reveal that a business-to-business firm’s overdependence on its supply chain partners can lead to it being exploited, which in turn negatively impacts its willingness to prioritize sustainability within the supply chain. Moreover, the study demonstrates that the stronger the firm’s ethical culture, the weaker the effect of overdependence on exploitation, while at a lower level of the firm’s ethical culture, the effect of overdependence on exploitation is stronger. The utilization of resource dependency theory unveils the potential downsides of overreliance on business-to-business supply chain partners and its consequences within the supply chain.
Purpose
The study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human capital and social capital on the relationship between ethical leadership and the innovative performance of employees.
Design/methodology/approach
The study collected primary data from 386 managerial-level employees of information technology (IT) companies in the northern region of India. Structural equation modelling (SEM) was used to analyse the data and derive the direct and indirect effects.
Findings
The findings indicate a significant positive impact of ethical leadership on the innovative performance of employees. Further, it was found that ethical leadership has both direct and indirect effects on the innovative performance of employees, where the indirect effect was mediated through intellectual capital (IC). The research confirms that IC and ethical leadership are crucial resources for fostering a knowledge-driven culture and innovative performance amongst employees.
Originality/value
The research has made a novel attempt to explore the interplay between ethical leadership, IC and innovative performance in the Indian context. Further, the study provides actionable strategies for business leaders to optimise business processes and encourage innovative practices amongst employees in the company.
This Chapter provides an overview of the role of charismatic leadership in corporate eco-innovation. In our pursuit of elucidating the concept of eco-innovation, we explore how charismatic leadership can catalyse corporate strategies in the realm of sustainability and contribute to establishing a robust framework for eco-innovation. The exploration is rooted in a theoretical discourse. It aims to illuminate the theoretical linkage between charismatic leadership attributes and their hypothesized impact on fostering sustainability-oriented initiatives within organizational structures, as well as elucidating the potential pathways through which charismatic leadership might facilitate and encourage eco-innovation strategies. Through systematically exploring this subject, we aim to provide a more insightful and professionally grounded perspective on the intersection of charismatic leadership, sustainability, and eco-innovation.
This research explores the impact of university leadership on employee behavior, with the mediating role of university culture. Using a quantitative research approach, this study collected the data from 938 participants. Collected data were analyzed with SPSS 25 and AMOS 24 software. The findings showed a positive relationship between university leadership and university culture, and university culture negatively impact on employee turnover behavior. Furthermore, university leadership indirectly influences employee commitment and turnover behavior through mediating role of university culture. From the discoveries of this research, the authors propose theoretical and managerial implications to fostering a robust university culture. The ultimate goal is to decrease employee turnover behavior, providing valuable insights for university leadership to create a more sustainable work environment. This study contributes to the existing literature by offering a comprehensive model that integrates university leadership, university culture, and employee behavior. The managerial contribution not only focusing on university leadership but also cultivating a culture that contribute to a sustainable university.
Purpose
This study investigates the benefits of ethical leadership behaviors for leaders themselves and the underlying mechanisms and boundary conditions of this effect.
Design/methodology/approach
Using a multi-time and multi-source survey design, data was collected from both leaders and subordinates across three waves.
Findings
Ethical leadership behavior was found to be positively associated with the leader’s moral pride, resulting in the leader’s higher in-role performance and perceived manager effectiveness. The effect of ethical leadership behavior was moderated by core self-evaluation (CSE), such that low-CSE leaders benefit more from these behaviors.
Practical implications
Organizations should encourage ethical leadership behaviors and educate leaders to develop moral pride from conducting these behaviors. Leaders with low CSEs can enhance their in-role performance and overall effectiveness by taking pride in their ethical leadership behaviors.
Originality/value
The field of study on ethical leadership has predominantly focused on the positive outcomes for recipients, yet it is imperative to examine the self-benefits for leaders as well. This study drew upon affective events theory to posit that ethical leadership behaviors generate moral pride in leaders, leading to improved work-related attitudes and performance outcomes.
The study examined the relationship between ethical leadership and organizational citizenship, with organizational justice as a moderator. In addition, we investigate how the impact of ethical leadership varies based on the extent to which organizational justice is the prevalent norm within an institution. We examine our proposed model in higher education institutions in northern Jordan and analyze the data using structural equation modeling. The data was gathered from 254 academic staff members employed by private universities. The data set revealed that ethical leadership significantly impacted organizational citizenship behavior in higher education institutions. However, as a moderating variable, organizational justice does not moderate the association between ethical leadership and organizational citizenship behavior (OCB) in Jordanian higher education institutions. Through the moderating role of organizational justice, the authors investigate the effect of ethical leadership on organizational citizenship behavior. This study’s findings contribute to the existing body of knowledge by providing evidence from a non-western country, such as Jordan. Based on the findings, the study’s theoretical and practical implications, as well as its limitations and recommendations for future research, are discussed.
Este artículo presenta los resultados de una investigación que buscó explicar la forma en que los líderes éticos pueden influir en el desarrollo y sostenimiento de la cultura organizacional ética. Los resultados mostraron que esta influencia puede ser explicada asociando el comportamiento característico de los líderes éticos con la implementación de los mecanismos primarios de incorporación, con un enfoque ético, siendo este un enfoque poco explorado y con una aplicación limitada en el contexto de la ética organizacional. Dichos resultados se obtuvieron mediante el diseño de un modelo que representa cómo los mecanismos primarios apoyan la existencia de un conjunto de características que posibilitan la existencia de una cultura organizacional ética. Dicho modelo fue contrastado con la realidad mediante un estudio de caso en el Instituto para Niños Ciegos y Sordos del Valle del Cauca, Colombia. Se concluye que existe una variedad de comportamientos, decisiones, intereses, actitudes y formas de pensar y reaccionar, características de un líder ético, a través de las cuales estos pueden transmitir mensajes hacia la cultura organizacional, capaces de influir sobre el comportamiento ético de sus colaboradores.
Corporate social responsibility (CSR) orientation and its communication are becoming more essential for organizations. The influence of the CSR orientation of CEOs on the online reputation of the firm has received little research attention. The objective of this study is to examine the impact of CSR related messages posted by CEOs on Twitter, helpful in building social capital, which in turn impacts online reputation of the firm by analysing the themes of the tweets posted by CEOs on social media platforms such as Twitter. Using a sample of 1,99,748 tweets of Fortune and Forbes CEOs, themes of the tweets were identified with the help of topic modeling, and content analysis was performed using a five-point Likert scale to investigate the influences of CEOs’ orientation towards four dimensions of CSR—economic, legal, ethical and discretionary on online reputation of the firm. The findings highlight the importance of leading CEOs’ inclination towards CSR on online reputation of the firm. The findings revealed that CEOs’ orientation towards economic, legal, ethical and discretionary dimensions of CSR on social media significantly impacts online reputation of the firm. This study emphasises on critical aspects of CSR discussions on social media platform and provides several practical recommendations to firms and CEOs.KeywordsCSRTwitterSocial mediaSocial network sitesSocial media analytics
Various historical events and attitudes have demonstrated that ethical leaders might intentionally or unintentionally make unethical decisions. History suggests that ethical leaders relying on strong technology alone could make unforgivable mistakes, but their interaction can limit such mistakes. In this study, we suggest that the interaction between technology and ethical leadership is proposed as a key factor in precluding or minimising unethical decisions by providing checks and balances capable of reducing the potential for unethical acts. A conceptual model is offered, along with propositions to help guide future research and practice. The degree to which technology and ethical leadership interact represents one of the key factors in understanding the potential for ethical/unethical acts. This conceptual study does not contain empirical data. This study is the first attempt that proposes the need of technology-leadership interaction to minimise unethical acts. KeywordsTechnology/ethical leadershipunethical actsrulescode of ethics
Based on four interlocking empirical studies, this paper initially validates and refines the Corporate Ethical Virtues Model which formulates normative criteria for the ethical culture of organizations. The findings of an exploratory factor analysis provide support for the existence of eight unidimensional subscales: clarity, congruency of supervisors, congruency of management, feasibility, supportability, transparency, discussability, and sanctionability. The findings of a confirmatory factor analysis show that the overall fit of the model is quite high. Evidence of convergent and discriminant validity is also found. The resulting 58-item self-reporting questionnaire is a useful tool that can be used in future research and by managers in assessing the ethical culture of their organization.
Although the study of organizational justice has increased markedly in the past few years, little work has focused on the relationship between justice perceptions and extrarole behaviors. This study examined the relationship between perceptions of fairness and organizational citizenship behaviors in a sample drawn from two firms in the midwestern United States. A theoretical basis for a relationship between fairness and citizenship was drawn from equity theory and other theories of social exchange. Structural equation analysis with LISREL 7 found support for four hypotheses, including support for a relationship between perceptions of procedural justice and four of five citizenship dimensions. Conversely, perceptions of distributive justice failed to influence any dimension of citizenship. Implications for the relationship between procedural justice and citizenship are discussed.
The factor analysis literature includes a range of recommendations regarding the minimum sample size necessary to obtain factor solutions that are adequately stable and that correspond closely to population factors. A fundamental misconception about this issue is that the minimum sample size, or the minimum ratio of sample size to the number of variables, is invariant across studies. In fact, necessary sample size is dependent on several aspects of any given study, including the level of communality of the variables and the level of overdetermination of the factors. The authors present a theoretical and mathematical framework that provides a basis for understanding and predicting these effects. The hypothesized effects are verified by a sampling study using artificial data. Results demonstrate the lack of validity of common rules of thumb and provide a basis for establishing guidelines for sample size in factor analysis.
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.
Although interest in multilevel organizational theory, research, and methods has been on the rise in recent years, vigorous debates in the literature regarding appropriate ways to conceptualize and measure multilevel constructs, justify aggregation, and analyze multilevel models have contributed to confusion. New investigators interested in testing multilevel theory are intrigued, but wary. The goal of this article is to cut through the confusion, identifying the critical choices and issues a researcher may confront as he or she shifts from a single level to a multilevel perspective. The authors address four primary choices—construct and measurement issues, model specification, research design and sampling, and data analyses— describing critical steps in conceptualizing and conducting multilevel research.
This paper critically examines available theoretical models which have been derived from statistically established patterns of association between contextual and organizational variables. These models offer an interpretation of organizational structure as a product of primarily economic constraints which contextual variables are assumed to impose. It is argued that available models in fact attempt to explain organization at one remove by ignoring the essentially political process, whereby power-holders within organizations decide upon courses of strategic action. This `strategic choice' typically includes not only the establishment of structural forms but also the manipulation of environmental features and the choice of relevant performance standards. A theoretical re-orientation of this kind away from functional imperatives and towards a recognition of political action is developed and illustrated in the main body of the paper.
In 590 for-profit and nonprofit firms from the National Organizations Survey, we found positive associations between human resource management (HRM) practices, such as training and staffing selectivity, and perceptual firm performance measures. Results also suggest methodological issues for consideration in examinations of the relationship between HRM systems and firm performance.
Two alternative methods for parceling questionnaire items for use in confirmatory analyses are presented. The first method requires that parcels must (a) pass a minimum standard of reliability and (b) provide indications of unidimensionality to be retained for analysis. The second method requires that parcels be equally representative of the multiple aspects of a domain. The parcels may then serve as adequate indicators for the general construct. The latter method is consistent with the rationale underlying aggregation of measures, a procedure currently recommended for improving the psychometric properties of behavioral measures of personality. The two methods for parceling and a comparison are illustrated with an empirical example.
Senior executives are thought to provide the organization’s ethical ‘tone at the top’. We conducted an inductive interview-based study aimed at defining the perceived content domain of executive ethical leadership. We interviewed two types of key informants - corporate ethics officers and senior executives - about executive ethical leadership and then a contrasting category we labeled ‘ethically neutral’ leadership. Systematic analysis of the data identified multiple dimensions of ethical and ethically neutral leadership. The findings suggest that ethical leadership is more than traits such as integrity and more than values-based inspirational leadership. It includes an overlooked transactional component that involves using communication and the reward system to guide ethical behavior. Similarities and differences between ethics officers’ and senior executives’ perceptions also led to insights about the importance of vantage point and social salience in perceptions of executive ethical leadership. In order to be perceived as an ethical leader by those outside the executive suite, the executive must engage in socially salient behaviors that make the executive stand out as an ethical figure against an ethically neutral ground.
Faultline theory suggests that negative effects of team diversity are better understood by
considering the influence of different dimensions of diversity in conjunction, rather than for
each dimension separately. We develop and extend the social categorization analysis that
lies at the heart of faultline theory to identify a factor that attenuates the negative influence of
faultlines: the extent to which the team has shared objectives. The hypothesized moderating
role of shared objectives received support in a study of faultlines formed by differences in
gender, tenure, and functional background in 42 top management teams. The focus on top
management teams has the additional benefit of providing the first test of the relationship
between diversity faultlines and objective indicators of organizational performance. We
discuss how these findings, and the innovative way in which we operationalized faultlines,
extend faultline theory and research as well as offer guidelines to manage diversity faultlines.
Sustainability Leadership tests common assumptions about who counts as a leader and proposes that anyone who takes responsibility for understanding and acting on sustainability challenges qualifies as a ‘sustainability leader,’ whether or not they hold formal leadership positions. They lead ‘with’ rather than ‘over’ others in ways that account for the long-term viability of complex, interconnected living systems. Paradox, contradiction, and differing viewpoints are recognized as natural characteristics of healthy systems. Sustainability leaders recognize that the experience of change itself, and the dissonance it creates, fuels new thinking, discoveries, and innovations that can revitalize the health of organizations, communities, and the earth. Finding the balance among and between simultaneous and sometimes contradictory demands for economically, socially, and environmentally sustainable solutions is a compelling leadership opportunity ultimately grounded in a personal ethic that reaches beyond self-interest.
The present paper gives a review of empirical research on ethical leadership and shows that still little is known known about the contextual antecedents of ethical leadership. To address this important issue, a conceptual framework is developed that analyzes the embeddedness of organizational ethical leadership. This framework identifies manifest and latent contextual factors on three different levels of analysis – society, industry, and organization – which can affect the development and maintenance of ethical leadership. In particular, propositions are offered about how (1) societal characteristics, notably the implementation and the spirit of human rights in a society and societal cultural values of responsibility, justice, humanity, and transparency; (2) industry characteristics such as environmental complexity, the content of the organizational mandate, and the interests of stakeholder networks; and (3) intra-organizational characteristics, including the organizational ethical infrastructure and the ethical leadership behavior of a leader’s peer group, influence the development and maintenance of ethical leadership in organizations. This list of factors is not exhaustive, but illustrates how the three levels may impact ethical leadership. Implications for managerial practice and future research are discussed.
"This paper advocates a validational process utilizing a matrix of intercorrelations among tests representing at least two traits, each measured by at least two methods. Measures of the same trait should correlate higher with each other than they do with measures of different traits involving separate methods. Ideally, these validity values should also be higher than the correlations among different traits measure by the same method." Examples from the literature are described as well as problems in the application of the technique. 36 refs. (PsycINFO Database Record (c) 2010 APA, all rights reserved)
This study investigated 3 broad classes of individual-differences variables (job-search motives, competencies, and constraints) as predictors of job-search intensity among 292 unemployed job seekers. Also assessed was the relationship between job-search intensity and reemployment success in a longitudinal context. Results show significant relationships between the predictors employment commitment, financial hardship, job-search self-efficacy, and motivation control and the outcome job-search intensity. Support was not found for a relationship between perceived job-search constraints and job-search intensity. Motivation control was highlighted as the only lagged predictor of job-search intensity over time for those who were continuously unemployed. Job-search intensity predicted Time 2 reemployment status for the sample as a whole, but not reemployment quality for those who found jobs over the study's duration. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Presents methods for assessing agreement among the judgments made by a single group of judges on a single variable in regard to a single target. For example, the group of judges could be editorial consultants, members of an assessment center, or members of a team. The single target could be a manuscript, a lower level manager, or a team. The variable on which the target is judged could be overall publishability in the case of the manuscript, managerial potential for the lower level manager, or a team cooperativeness for the team. The methods presented are based on new procedures for estimating interrater reliability. For such situations, these procedures furnish more accurate and interpretable estimates of agreement than estimates provided by procedures commonly used to estimate agreement, consistency, or interrater reliability. The proposed methods include processes for controlling for the spurious influences of response biases (e.g., positive leniency and social desirability) on estimates of interrater reliability. (49 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Research has not adequately separated the factors responsible for prosocial behaviors intended to benefit specific individuals from those intended to benefit an organization. Antecedents of the behavior of 100 secretaries were examined as a function of the beneficiary of the behavior. The value of concern for others and empathy explained significant variance in prosocial behaviors directed only at specific individuals (prosocial individual behavior). Perceptions of reward equity and recognition explained significant variance in behaviors directed only at the organization (prosocial organizational behavior). With these effects removed, the relationship between job satisfaction and prosocial organizational behavior was no longer significant, whereas the relationship between job satisfaction and prosocial individual behavior remained significant. Results suggest that the psychological processes that underlie prosocial behavior are different depending on the beneficiary of the behavior. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Approaching ethical leadership from a characterological perspective, this study reports on the creation of the Leadership Virtues Questionnaire (LVQ). Defining an ethical leader as one who adheres to the four cardinal virtues of prudence, fortitude, temperance, and justice, as discussed in the ancient texts of Aristotle and St. Thomas Aquinas, we developed a rating instrument for assessing leader virtues. A series of studies with managers examined the psychometric properties and correlates of the LVQ. Factor analyses suggested that one factor best captured the construct, not inconsistent with philosophers' notions of the “unity” of the cardinal virtues. The LVQ was shown to be highly positively correlated with transformational leadership, authentic leadership, and another recently developed measure of ethical leadership, and there was evidence of discriminant validity. The LVQ, used with the virtues approach to ethical leadership, should prove to be a valuable tool for the assessment and development of leader virtues and ethics. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
A framework for understanding the etiology of organizational behavior is presented. The framework is based on theory and research from interactional psychology, vocational psychology, I/O psychology, and organizational theory. The framework proposes that organizations are functions of the kinds of people they contain and, further, that the people there are functions of an attraction-selection-attrition (ASA) cycle. The ASA cycle is proposed as an alternative model for understanding organizations and the causes of the structures, processes, and technology of organizations. First, the ASA framework is developed through a series of propositions. Then some implications of the model are outlined, including (1) the difficulty of bringing about change in organizations, (2) the utility of personality and interest measures for understanding organizational behavior, (3) the genesis of organizational climate and culture, (4) the importance of recruitment, and (5) the need for person-based theories of leadership and job attitudes. It is concluded that contemporary I/O psychology is overly dominated by situationist theories of the behavior of organizations and the people in them.
This analysis considers the impact of the top managers in an organization on the organization's outcomes, specifically strategic choices and performance levels. The focus is not on the chief executive alone, but rather on the entire top management team. Using a macro view, these organizational outcomes are perceived to be related to the values and cognitive bases of those high-power individuals in the organization. In developing the model, emphasis is on the background characteristics of the top managers as opposed to the psychological dimensions. A series of propositions that should be tested to support the upper echelons theory are presented. The topics of these propositions include age, functional track, other career experiences, education, socioeconomic roots, financial position, and group characteristics. The creation of this model is just the beginning of the work that is necessary to evaluate and understand the upper echelons theory. Further input is needed from areas such as the executive recruiting industry. Additionally, clinical and statistical studies are both necessary to fully develop this theory. (SRD)
This book integrates and assesses the vast and rapidly growing literature on strategic leadership, which is the study of top executives and their effects on organizations. The basic premise is that, in order to understand why organizations do the things they do, or perform the way they do, we need to comprehend deeply the people at the top-their experiences, abilities, values, social connections, aspirations, and other human features. The actions-or inactions-of a relatively small number of key people at the apex of an organization can dramatically affect organizational outcomes. The scope of strategic leadership includes individual executives, especially chief executive officers (CEOs), groups of executives (top management teams, or TMTs), and governing bodies (particularly boards of directors). Accordingly, the book addresses an array of topics regarding CEOs (e.g., values, personality, motives, demography, succession, and compensation); TMTs (including composition, processes, and dynamics); and boards of directors (why boards look and behave the way they do, and the consequences of board profiles and behaviors). The book synthesizes what is known about strategic leadership and indicates new research directions.
The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices. At the invitation of the editor, I recap the AMR article in which the theory was originally presented (Hambrick & Mason, 1984), discuss subsequent refinements of the theory, and lay out several promising avenues for future upper echelons research.
Our study asked why corporations introduce formal programs to manage ethics and why those programs display varying characteristics. We used control theory to delineate an ethics program's scope and its orientation toward compliance- and values-based control. Managerial choice theory suggests that environmental factors and management's ethical commitment will influence these dimensions. Environmental factors were the stronger influences on scope, but management commitment was the stronger determinant of control orientation. Research and policy implications are discussed.
This study examined how top management team diversity variables and debate interacted to influence two measures of company financial performance. Further, it assessed the degree to which decision comprehensiveness mediated those interaction effects. Multi-informant data from the top management teams of 57 manufacturing companies revealed that more job-related types of diversity interacted with debate to influence financial performance, but a less job-related type (age diversity) did not. Decision comprehensiveness partially mediated those effects.
Top management team (TMT) heterogeneity—performance research using demographic indicators has contributed to strategic management by showing that top managers do indeed “matter” to firm outcomes. We argue, however, that limitations inherent in demographics-based TMT studies preclude their use in specifying how top managers influence their firms. This is an elemental problem because questions of how top managers can and should influence their firms are central to strategic management. Demographics-based TMT heterogeneity studies are limited by intrinsic trade-offs, which sacrifice: construct validity for measurement reliability; explanation for prediction; and prescription for description. We suggest “next steps” for improving the usefulness of future TMT studies (i.e., addressing the “how” question) by: (1) incorporating more substantive heterogeneity constructs, such as within-TMT power distributions, psychographic variances, and judgment differences; and (2) integrating qualitative research with the quantitative as a base for developing research questions that are more informed, salient, and interesting. We urge researchers to eschew demographic proxies, and instead direct their efforts toward more difficult, but potentially more rewarding, TMT issues.
This paper presents a meta-analysis of 31 published field studies of the size-performance relationship. The meta-analysis indicates that the relationship between subunit size and performance differs from the relationship between organizational size and performance. Specifically, subunit size and subunit performance are nonsignificantly or negatively related, depending on the operationalization used to measure subunit performance. These results appear to be modestly consistent with free-rider and process-loss models of group behavior. However, organizational size and organizational productivity, defined as performance measured in absolute (nonratio) terms, are positively related to each other in contrast to review findings to date. Additionally, organizational size and organizational efficiency, defined as performance measured in relative (output-input) terms, are shown to exhibit no positive relationship to each other, casting doubt on the existence of a positive net relationship between organizational size and economies of scale.
Charismatic business leaders are often heralded as corporate heroes by orchestrating turnarounds, launching new enterprises, engaging in organizational renewal or change, and obtaining extraordinary performance from individuals. The effectiveness of these leaders may be interpreted by executives as an unqualified recommendation for such leadership in their organizations. However the risks involved in charismatic leadership are at least as large as the promises. What is missing from current discussions about charisma is consideration of its darker side. In this article we focus on a paradox that emerges whenever one discusses leaders such as Robert Campeau, Max DePree, Lee lacocca, Ross Johnson, Ralph Larsen, and Michael Milken: why are some charismatic leaders destructive, while others are beneficial to followers, organizations, and even entire societies? Drawing on the results from an interview study as well as the popular management literature, we describe the qualities and values that differentiate ethical and unethical charismatic leaders. We also examine the impact ethical and unethical charismatic leaders have on followers and how organizations can develop ethical charismatic leaders.
We develop and test a model linking ethical leadership with unit ethical culture, both across and within organizational levels, examining how both leadership and culture relate to ethical cognitions and behaviors of lower-level followers. The data were collected from 2,572 U.S. Army soldiers representing three organizational levels deployed in combat. Findings provide limited support for simple trickle-down mechanisms of ethical leadership but broader support for a multilevel model that takes into account how leaders embed shared understandings through their influence on the ethical culture of units at various levels, which in turn influence followers' ethical cognitions and behavior. The influences of ethical leadership occur not only directly, among immediate followers within a unit, but also indirectly, across hierarchical levels, through the cascading of ethical culture and senior leaders' influences on subordinate leader behavior. We discuss scholarly and practical implications for understanding how leaders transmit ethical influence both down and across large organizations.
The purpose of this paper is (1) to identify critical issues in the current literature on ethical leadership — i.e., the conceptual vagueness of the construct itself and the focus on a Western-based perspective; and (2) to address these issues and recent calls for more collaboration between normative and empirical-descriptive inquiry of ethical phenomena by developing an interdisciplinary integrative approach to ethical leadership. Based on the analysis of similarities between Western and Eastern moral philosophy and ethics principles of the world religions, the present approach identifies four essential normative reference points of ethical leadership — the four central ethical orientations: (1) humane orientation, (2) justice orientation, (3) responsibility and sustainability orientation, and (4) moderation orientation. Research propositions on predictors and consequences of leader expressions of the four central orientations are offered. Real cases of ethical leadership choices, derived from in-depth interviews with international leaders, illustrate how the central orientations play out in managerial practice.
This study examines how CEO empowering leadership shapes top management team (TMT) behavioral integration and potency, thereby enhancing firm performance. Using a sample of 82 TMTs, structural equation modeling supports a mediation model in which CEO empowering leadership is positively related to TMT behavioral integration, and, in turn, it enhances TMT potency and firm performance. The effect of TMT potency on firm performance is stronger when the TMT members perceive high environmental uncertainty. We discuss both theoretical and practical implications of the paper for research on Upper Echelons Theory and TMTs.
The service profit chain is a simple conceptual framework linking employee satisfaction and loyalty, customer satisfaction and loyalty, and financial performance. Although widely used by practitioners, the service profit chain's series of hypothesized relationships between employee, customer, and financial outcomes has not been rigorously tested using data that span all components of the model. Panel data from the branches of a large regional bank are used to test individually each of the service profit chain's constituent hypotheses. The results generally support the model, but there are some exceptions. Further work is needed to refine and simplify several critical measures and to enhance the analysis to test the service profit chain as a complete system of related hypotheses.
Top management team (TMT) heterogeneity—performance research using demographic indicators has contributed to strategic management by showing that top managers do indeed “matter” to firm outcomes. We argue, however, that limitations inherent in demographics-based TMT studies preclude their use in specifying how top managers influence their firms. This is an elemental problem because questions of how top managers can and should influence their firms are central to strategic management. Demographics-based TMT heterogeneity studies are limited by intrinsic trade-offs, which sacrifice: construct validity for measurement reliability; explanation for prediction; and prescription for description. We suggest “next steps” for improving the usefulness of future TMT studies (i.e., addressing the “how” question) by: (1) incorporating more substantive heterogeneity constructs, such as within-TMT power distributions, psychographic variances, and judgment differences; and (2) integrating qualitative research with the quantitative as a base for developing research questions that are more informed, salient, and interesting. We urge researchers to eschew demographic proxies, and instead direct their efforts toward more difficult, but potentially more rewarding, TMT issues.
In this paper I argue that a greater understanding of the part of ethics in leadership will improve leadership studies. Debates over the definition of leadership are really debates over what researchers think constitutes good leadership. The ultimate question is not “What is leadership?” but “What is good leadership?” The word good is refers to both ethics and competence. Research into leadership ethics would explore the ethical issues of current leadership research, serve as a critical study of the field, analyze and expand normative theories of leadership, and develop new theories, research questions and ways of thinking about leadership.
This study investigated the potential existence and formation of subcultures in organizations, using an inductive research methodology to study the extent to which four different types of knowledge were shared by organization members. Fifty-two interviews were conducted in three different divisions of the same firm. These were content-analyzed and compared with data obtained from observations and written documents. A number of cultural subgroupings were found to exist in regard to two kinds of cultural knowledge, while an organization-wide cultural overlay was identified for a different kind of cultural knowledge. The implications for the concept of culture in organizational settings and future research on this topic are discussed.
This analysis considers the impact of the top managers in an organization on the organization's outcomes, specifically strategic choices and performance levels. The focus is not on the chief executive alone, but rather on the entire top management team. Using a macro view, these organizational outcomes are perceived to be related to the values and cognitive bases of those high-power individuals in the organization. In developing the model, emphasis is on the background characteristics of the top managers as opposed to the psychological dimensions. A series of propositions that should be tested to support the upper echelons theory are presented. The topics of these propositions include age, functional track, other career experiences, education, socioeconomic roots, financial position, and group characteristics. The creation of this model is just the beginning of the work that is necessary to evaluate and understand the upper echelons theory. Further input is needed from areas such as the executive recruiting industry. Additionally, clinical and statistical studies are both necessary to fully develop this theory. (SRD)
This study reviews recent research building on Hambrick and Mason’s [Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9: 193–206] upper echelons (UE) perspective with the aim of identifying challenges and opportunities for future UE-based organizations research. Our review highlights a number of central facets of the UE perspective: It is at once a theoretical framework predicting that organizations will be a reflection of their top management teams and a methodology that relies on executive demography as a measurement proxy for underlying individual and group cognitions and behaviors. In proposing new research directions, we challenge organizations researchers to (1) reconsider the universality of the top management team (TMT) construct, (2) carefully explore the practical and theoretical meaning of TMT demographic characteristics vis-à-vis the deeper constructs they are presumed to proxy, (3) integrate other determinants of managerial cognition and behavior into UE theorizing, and (4) revisit the roles of causality and intertemporal dynamics among the antecedents, consequences, and composition of top management teams.
This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture. We first examined issues of convergence and divergence between these constructs through factor analysis and correlational analysis. Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions of the ethical context. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude (organizational commitment) and behavior (observed unethical conduct) for respondents who work in organizations with and without ethics codes. Regression results indicated that an ethical culture-based dimension was more strongly associated with observed unethical conduct in code organizations while climate-based dimensions were more strongly associated with observed unethical conduct in non-code organizations. Ethical culture and ethical climate-based factors influenced organizational commitment similarly in both types of organizations. Normative implications of the study are discussed, as are implications for future theorizing, research and management practice.