Abstract:Total Quality Management (TQM) has been the object of extensive discussion within the popular literature and is increasingly of interest among management scholars. Recent scholarship has focused on the theoretical foundations of TQM, particularly what makes it work, why so many firms have had problems implementing it, and under what circumstances it may create a sustainable advantage for individual firms. This paper extends the work in theory development regarding TQM and offers an empirically testable theoretical model of its function. The (...) central claim of the paper is that embedded within TQM there are a set of moral values (“value dynamics”) that must be developed and maintained if it is to work, and that seeing them as moral values has significant theoretical and practical implications. That is, how TQM is understood and “enacted” (Weick 1979) by managers plays a significant role in determining its success. The discussion is linked to the ethics literature, normative implications of the model are explored, and directions for future research are outlined. (shrink)

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher (...) integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions. (shrink)

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as ‚business ethics’ and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model (...) consists of three principal components (i.e. expectations, perceptions and evaluations) that are interconnected by five sub-components (i.e. society expects; organizational values, norms and beliefs; outcomes; society evaluates; and reconnection). The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics. (shrink)

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as 'business ethics' and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model (...) consists of three principal components that are interconnected by five sub-components. The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics. (shrink)

This paper presents a comparative analysis of three American and three European corporate failures. The first part of the analysis is based on a theoretical framework including six areas of ethical climate; tone at the top; bubble economy and market pressure; fraudulent financial reporting; accountability, control, auditing, and governance; and management compensation. The second and third parts consider the analysis of these cases from fraud perspective and in terms of firm-specific characteristics and environmental context. The research analyses shed light on (...) the fact that, despite major differences between Europe and U.S. in terms of political institutions, laws and regulations as well as managerial practices, there are significant similarities between six groups. The analysis also demonstrates that, the ethical dilemma has been coupled with ineffective boards, inefficient corporate governance and control mechanisms, distorted incentive schemes, accounting irregularities, failure of auditors, dominant CEOs, dysfunctional management behavior and the lack of a sound ethical tone at the top. Significant similarities were also observed in the analysis from the fraud triangle perspective. However, there are several major differences between the six corporate failure cases particularly with regard to ownership structure, coverage in media, and legal, regulatory and governance frameworks. This research study may have several academic and practical contributions, particularly because of multidisciplinary, international features, and comparative analyses used in the paper. (shrink)

Abstract:This paper reports a phenomenological sub-study of a larger project investigating the way Hong Kong Chinese staff tackled their own ethical dilemmas at work. A special analysis was conducted of eight dilemma cases arising from a request by a boss or superior authority to do something regarded as ethically wrong. In reports of most such cases, staff expressed feelings of contractual or interpersonally based obligation to obey. They sought to save face and preserve harmony in their relationship with authority by (...) choosing between “little potato” obedience, token obedience, and undercover disobedience. Only where no such obligation existed was face in relation to authority unimportant, and open disobedience chosen. In Kohlbergian terms, ethical reasoning at the conventional stages (three and four) predominated in dilemmas of obedience. Findings imply that if corruption were to originate at the top, codes of conduct recently introduced into Hong Kong may be of limited effect in stalling it. (shrink)

Morality is a critical factor in leadership that its absence could turn an otherwise powerful leadership model (i.e. transformational leadership) into a disastrous outcome. The importance of morality for leaders is self-evident in light of the far-reaching effects of leaders' actions or inaction on other people. Such proposition necessitates the discourse in the objectivity of universal moral principles as the legitimate basis of a sound understanding of moral leadership. Examining transformational leadership from a moral-laden perspective, this paper argues that morality (...) is a necessary component of leadership and that deontological moral reasoning provides a sufficient ground for morally attractive leadership theories. (shrink)

This article introduces a new scale to measure executive servant leadership, situating the need for this scale within the context of ethical leadership and its impacts on followers, organizations and the greater society. The literature on servant leadership is reviewed and servant leadership is compared to other concepts that share dimensions of ethical leadership (e.g., transformational, authentic, and spiritual leadership). Next, the Executive Servant Leadership Scale (ESLS) is introduced, and its contributions and limitations discussed. We conclude with an agenda for (...) future research, describing ways the measure can be used to test hypotheses about organizational moral climate, ethical organizational culture, corporate responsibility, and institutional theory. (shrink)

Persistent and pervasive rudeness and lack of respect are unfortunately common in workplaces today. The deleterious effects of this incivility at work may be even worse than previously demonstrated, impacting not only employee victims but also trickling down to those who employees contact. However, we propose that leaders who prioritize their followers’ needs above their own, also known as servant leaders, may be a critical preventative mechanism to reduce group-level incivility through promoting a virtuous climate. Applying social learning theory and (...) social information processing theory, we argue that servant leaders role model virtuous character that contributes to a virtuous climate that influences group members to reduce incivility and, in turn, treat others well. We utilize the healthcare setting to support this hypothesized process across multi-source measures of incivility from coworkers and team supervisors and three indicators of quality of patient care. Specific findings and implications for managers in healthcare settings and beyond are discussed. (shrink)

AbstractIn the wake of organizational scandals associated with corporate America servant as well as transformational leadership are seen as approaches capable of engendering a type of morality—on the part of leaders and followers—based on shared values, universal moral principles and an orientation towards a pro-social behavior serving the common good. However, recent critiques have highlighted the tendency in the relevant literature to overlook the systemic context within which leadership and followership are situated. Given this oversight this paper re-visits a classic (...) piece of ethnography on corporate America: Robert Jackal’s Moral Mazes. Employing concepts from critical realism fused with insights from studies on management and bureaucracy we analyse the key themes from the book pertaining to the nature of the leader–follower dynamic in shareholder capitalism. The analysis highlights the role of bureaucracy and corporate ideology as key elements shaping leader–follower relationships, encouraging a type of morality associated with guarding self-interest whilst undermining relationality. The influence of the structural and cultural context in which leader–follower relations unfold draws attention to morality as relationally contingent as opposed to an ideal state. (shrink)

We focus on moral climates through case studies of three state owned enterprises (SOEs) in a South China City. In Company A, a shipbuilding company, the general manager persuaded the supervisory bureau to allow him to replace the old top management team with managers chosen on merit, and who supported his desire for reforms. He exercised transformational leadership, established internal rule of law, cultivated a spirited moral climate, and achieved turnaround. At Company B, a financial services conglomerate, the general manager (...) exploited strong political connections, enfeebled the governance structures, and with two subsidiary barons proceeded to milk company resources. That, and a large contingent of sleeping incumbents (idle protégés), bred a moral climate overrun by corruption, dereliction of duty and hubris. Bankruptcy was not averted. Hotel X, a subsidiary of company B, was a partial machine bureaucracy; its moral climate characterised by punishment avoidance and lack of spirit. A headquarters power bloc and the sleeping incumbents whom they protected prevented a law abiding, equity sensitive general manager from improving performance, and he lost heart. From these cases, we build a model of the relationship between moral leadership, institutional superstructure, internal governance and control systems, enterprise moral atmosphere, and performance. (shrink)

Ethics is central to leadership because of the impact leaders have on establishing organizational values and engaging followers to accomplish mutual goals. The ethical concerns of leaders may influence ethical decision-making of their followers. This paper attempts to investigate the relationship between leaders and followers on moral judgment, and make a comparison between China and Taiwan on the leader–follower moral judgment relationship. Data were collected through a questionnaire survey on purchasing professionals in China and Taiwan. The development of moral judgment (...) was measured using the defining issues test. Research findings indicate that followers exhibit higher level of moral judgment while their leaders have higher level of moral judgment. A positive moral judgment relationship exists between leaders and followers. The comparative study between China and Taiwan reveals that Chinese purchasing professionals are more easily influenced by their workplace leaders than their Taiwanese counterparts. Power distance would strengthen the leader–follower moral judgment relationship. The present research makes contributions toward the ethics literature by providing empirical insight into the relationship between leader moral judgment and follower moral judgment. This paper also suggests implications and opportunities for future research. (shrink)

This article extends the knowledge on whistleblowing by studying the impact of two individual antecedents and two situational factors (ethical leadership...

Variance investigation has been identified as an effective mechanism to reduce budgetary slack at the ex ante budgeting stage. This paper focuses on two further research questions: the extent to which two different accountability-oriented control aspects of VI affect budgetary slack and the extent of the moderating effect of moral development on the relationship between these two accountability-oriented control aspects and budgetary slack. Our experimental results show that both external investigation and self-reporting can reduce the propensity of creating slack at (...) the ex ante budgeting stage. More specifically, the effect of external investigation on reducing the propensity of creating budgetary slack is greater than that of self-reporting. This study further reveals that moral development moderates the effect of external investigation on budgetary slack. When comparing subordinates with low moral development with those with high moral development, our results show that the effect of external investigation on budgetary slack is stronger among the former group than the latter group. This study does not find any moderating effect of moral development on the relationship between self-reporting and budgetary slack. Our study sheds some new light on varying effects of two accountability-oriented control aspects of VI on budgetary slack, which are also moderated by different levels of subordinates’ moral development. These results may be considered in the design and implementation of management control systems. (shrink)

Reciprocity is a fundamental aspect of social life, and a phenomenon studied from a wide variety of philosophical, theological, and social scientific perspectives. In this study, we use social exchange theory to investigate why employees help other employees. We hypothesize, based on the norm of reciprocity (Gouldner, 1960), that a significant cause of an employee''s helping behavior is how much organizational citizenship behavior (OCB) the employee has received from coworkers. To provide evidence of the discriminant validity of OCB received as (...) an antecedent of helping behavior, we also assess its effects on another form of extra-role behavior, voice, as well as in-role performance. We found, in a sample of 157 employee-supervisor dyads, that OCB received was related to helping behavior after controlling for several antecedents of helping behavior identified in past research, and was less related to voice and in-role behavior, as hypothesized. Implications for theory and practice are presented. (shrink)

With the dramatic collapse of bureaucratic dictatorial socialism, Business Ethicists need an antithesis to capitalism to enrich our reformist writings. Reliance on self-regulation and requesting that business executives behave in a socially responsible manner are necessary, but not sufficient, conditions for creating a "good society." The purpose of this article is to introduce readers to the works of two new age theologians – Neale Donald Walsch and Reverend Sun Myung Moon – who offer an alternative vision and paradigm for understanding (...) business and society relationships. They provide unique insights about economics, organizational structures and policies, and individual attitudes and behaviors necessary for creating an ethical society. Pertinent economic and organizational concepts emanating from their writings include mission statements and codes of ethics; meaningful and joyful work; autonomy and self-management; workplace diversity; parentism and participatory management; stakeholder governance boards; democratic social capitalismwith upper and lower income limits; and the principle ofvisibility. Work should support family units and individualgrowth and development, not supersede or destroy them. (shrink)

Organizational citizenship behavior (OCB) has been widely recognized as a contributor to improving organizational performance and wealth creation. The purpose of this article is to briefly summarize the motives of many employees who exercise OCB and to identify the ethical duties owed by organizational leaders to the highly committed employees with whom they work. After reviewing the nature of OCB and the psychological contracts made with highly committed employees, we then use Hosmer’s framework of ten ethical perspectives to identify how (...) OCB is viewed from each of those ethical viewpoints. We offer six propositions about OCB that relate to building employee commitment and trust. (shrink)

Utilizing Rest's moral development and Victor and Cullen's ethical climate surveys, we examine differences in moral reasoning and ethical climate between board members in the for-profit and not-for-profit sectors. Six for-profit corporations and seven not-for-profit corporations, all with base operations in a major midwestern state, participated in the study. We find that profit and not-for-profit boards may not differ in moral reasoning, but do exhibit different types of ethical climates. We also find that for-profit board members may utilize higher stages (...) of reasoning a greater percentage of the time than not-for-profit directors. In contrast, the ethical climates of the two types of organizations are significantly different. For-profit companies had climates higher in egoism than did not-for-profit companies. In addition, not-for-profit firms reflected higher benevolence factors than for-profit firms. Not-forprofit organizations also had somewhat higher, but not significantly different, mean scores on the principle factor compared to the for-profit organizations. (shrink)

The objective of this paper is to explore how the various stages of consciousness development of top managers can influence, in practical terms, their abilities in and commitment to environmental leadership in different types of SMEs. A case study based on 63 interviews carried out in 15 industrial SMEs showed that the organizations that displayed the most environmental management practices were mostly run by managers at a post-conventional stage of consciousness development. Conversely, the SMEs that displayed less sustainable environmental management (...) practices were all run by managers at conventional stages of development. Drawing upon diverse examples of environmental leadership, this paper analyzes the reasons why the stages of post-conventional consciousness development of top managers seem to foster corporate greening in SMEs. The study also sheds light on the key values and abilities associated with both environmental leadership and the upper-stages of consciousness development, which include a broader and systemic perspective, long-range focus, integration of conflicting goals, collaboration with stakeholders, complexity management, collaborative learning, among others. (shrink)

Extant business research has not addressed the ethical treatment of individuals with psychiatric disabilities. This article will describe previous research on individuals with psychiatric disabilities drawn from rehabilitation, psychological, managerial, legal, as well as related business ethics writings before presenting a framework that illustrates the dynamics of (un)ethical behavior in relation to the employment of such individuals. Individuals with psychiatric disabilities often evoke negative reactions from those in their environment. Lastly, we provide recommendations for how employees and organizations can become (...) more proactive in providing individuals with such disabilities equal employment opportunities for both access and accommodation in the workplace. (shrink)

This paper explores the antecedents of intra-organizational social capital from a comprehensive perspective that integrates leadership as the main antecedent. To be precise, we propose that intra-organizational social capital is a direct consequence of an organizational ethical and community context to which leadership in the servant dimension plays a transcendental role. Indeed, since the seminal work of Greenleaf the servant leadership concept has been widespread among business academics and professionals for the value it brings to the organization not only in (...) ethical but also in excellence terms. Among the recent styles and theories on leadership up to date, servant leadership fits perfectly an organizational ethical context both at the organizational or group level, acting in addition as a main promoter of that context. Furthermore, servant leadership is linked to the cultivation of helpful, altruistic and servant attitudes among the employees which are useful elements in the generation of social capital inside the organization. A model then for understanding the causes of intra-organizational social capital with a focus on servant leadership is here elaborated from which conclusions and implications for Management will be delineated. (shrink)

Leadership, due to its power to influence, is one of the most important tools available to organisation in order to become competitive, and as such it is one of the recurring themes in social sciences. Today, new leadership strategies have emerged as new drivers of effectiveness in workplace relationships based on the leader–follower relationship. One of these leadership strategies is servant leadership, whose motto is ‘put and promote followers’ interests and needs first’, which makes this leadership style strongly linked to (...) exercising high ethics. As agapao love and service to others are important distinctive features of these leaders’ decisions and behaviours, the ethical influence relationship with their collaborators is thought to reach high levels. It is no surprise then that this ethical influence relationship makes followers to serve others and inculcates in followers values such as acceptance, tolerance, empathy, love, or forgiveness. More importantly, these leaders might make followers to grow in matureness, intelligence, creativity, and self-management, among other aspects. However, despite findings in recent literature of positive effects of servant leadership on valuable employee outcomes, research is still lacking on the results of this phenomenon on collective organisational variables and its influence in work groups. A case study analysis of a historic and emblematic hotel situated in a small Spanish city declared by UNESCO as a World Heritage Site provides evidence of the relationship between servant leadership and valuable work-group outcomes such as empowerment climate and group creativity. (shrink)