Journal of Business Ethics 125 (2):1-12 (2014)
AbstractBusiness leaders are increasingly responsible for the societal and environmental impacts of their actions. Yet conceptual views on responsible leadership differ in their definitions and theoretical foundations. This study attempts to reconcile these diverse views and uncover the phenomenon from a business leader’s point of view. Based on rational egoism theory, this article proposes a formal mathematical model of responsible leadership that considers different types of incentives for stakeholder engagement. The analyses reveal that monetary and instrumental incentives are neither sufficient nor necessary for business leaders to consider societal and environmental stakeholder needs. Non-monetary and non-instrumental incentives, such as leaders’ values and authenticity, as well as their planning horizons, counterbalance pure monetary and instrumental orientations. The model in this article complements the growing body of research on responsible leadership by reconciling its various conceptual views and providing a foundation for future theory development and testing
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Citations of this work
The Normative Justification of Integrative Stakeholder Engagement: A Habermasian View on Responsible Leadership.Moritz Patzer, Christian Voegtlin & Andreas Georg Scherer - 2018 - Business Ethics Quarterly 28 (3):325-354.
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Multinational Enterprise Strategies for Addressing Sustainability: The Need for Consolidation.Roger Leonard Burritt, Katherine Leanne Christ, Hussain Gulzar Rammal & Stefan Schaltegger - 2020 - Journal of Business Ethics 164 (2):389-410.
Stakeholder Engagement: Past, Present, and Future.Daniel Laude, Anna Heikkinen, Heta Leinonen, Sybille Sachs & Johanna Kujala - 2022 - Business and Society 61 (5):1136-1196.
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