This study examines the impact of top management team media exposure on corporate social responsibility and the moderating effect of TMT characteristics based on the upper echelons theory and stakeholder theory. Based on the observations of 5,352 firms between 2010 and 2019, multiple regression analysis is conducted to empirically test whether TMT media exposure can promote CSR. TMT media exposure is further divided into paper media and online media to reveal the impact of different types of TMT media exposure (...) on CSR. Some robustness tests are also conducted to strengthen the regression results. The results found that a high level of TMT media exposure promotes social responsibility. In addition, the TMT power and political connections negatively moderate the relationship between TMT media exposure and CSR. The main contribution of this study is to develop a TMT media exposure model to assess the impact of TMT media exposure on CSR, providing a theoretical contribution to the existing literature and enriching the research in the CSR context from the perspective of the TMT characteristic moderating role. (shrink)

ABSTRACT:Despite extensive research on organizational virtue, our understanding about factors that promote virtue within organizations remains unclear. Drawing on upper echelon theory, we examine the relationship between five top management team characteristics and organizational virtue orientation —the integrated set of values and beliefs that support ethical traits and virtuous behaviors of an organization. Specifically, we utilize prospectuses of initial public offering firms and 10-K post-IPO filings to explore how TMT composition with respect to member age, tenure, education, functional background, (...) and gender influences OVO. Additionally, we examine the moderating effects of organizational size, and argue that the more expansive structures and processes associated with larger organizations diminish the main relationships. Our findings, using two sources of data, are consistent, but somewhat mixed in their support for our hypotheses. Overall, TMT characteristics do appear to influence OVO, but in more complex and counterintuitive ways than initially expected. (shrink)

In this study, we examine how top management teams' foreign experience affects firms' green innovation performance and what role environmental regulation plays in their association. Using a large data set on firms' green patents and foreign work or education experience of top management teams from China, we find robust evidence that firms whose top management team members have foreign experience achieve significantly more green patents, and this positive relationship is more pronounced for firms subject to (...) strong environmental regulation. Our findings indicate that via enhancing firms' green innovation performance, top management teams' foreign experience has a positive corporate governance effect on advancing sustainable social development, and environmental regulation is helpful to promote this effect. (shrink)

This paper examines how behavioral integration of top management teams may contribute to our understanding of how stakeholder initiatives become a part of a firm’s strategy. Multiple case design was used by conducting a series of interviews with the executive teams at three firms in the U.S. telecommunications industry.

This paper examines how behavioral integration of top management teams may contribute to our understanding of how stakeholder initiatives become a part of a firm’s strategy. Multiple case design was used by conducting a series of interviews with the executive teams at three firms in the U.S. telecommunications industry.

This research investigates how top management team national diversity (TMTND) and corporate social responsibility (CSR) institutional uncertainty affect strategic CSR focus in foreign-owned subsidiaries. The paper develops a theoretical framework based on institutional theory and upper echelon perspectives to test a sample of MNE subsidiaries. Survey data were collected from subsidiaries in Thailand and Taiwan. Non-symmetric analysis suggests that while TMTND plays an important role in establishing a CSR focus, it is not conducive in itself to high-performance outcomes. Performance (...) is measured by market share, sales growth, and profitability for each subsidiary. The results also show that there are notable differences between the subsidiaries located in Thailand and Taiwan as to what extent CSR strategic focus and top management team national diversity are relevant for high-performance outcomes. The study demonstrates that the links between CSR, TMTND, and subsidiary performance are much more complex than previously assumed. (shrink)

Patent strategy is increasingly recognized as a vital contributor in promoting core competitiveness of an enterprise. A top management team has been indicated as one of the key factors driving changes in patent strategy. Based on upper echelons theory, this study examines how TMT characteristics, including, team diversity, emotional intelligence, and safety climate, influence enterprise patent strategic change and, hence, the business outcome. The data from 930 top managers in 228 enterprises showed that the changes in patent strategies are (...) significantly influenced by the characteristics of top managers. These aforementioned internal TMT factors have diverse effects on the speed and scope of the enterprise patent strategic change, which in turn affects firm performance in a positive and negative way, respectively. (shrink)

Corporate social responsibility (CSR) disclosure is becoming increasingly important in practice, yet knowledge about the antecedents of such CSR initiatives is limited. Drawing on faultline theories, we expect that the compositional attributes of top management teams, such as the level of heterogeneity, influence their decisions about CSR disclosure and reporting. Data and a sample from Chinese publicly traded companies are used to examine our hypotheses. Our results demonstrate that a top management team's faultline strength is negatively related (...) to CSR disclosure decisions and CSR report quality. We contribute to the literature about CSR disclosure by offering specific insights, through a micro-level analysis, about how to compose and structure top management teams to advance CSR in emerging economies such as China. Practical implications for managers and policymakers are also discussed. (shrink)

A top management team has been identified as one of the key factors driving changes in tax planning strategy. Based on upper echelons theory, this study investigates whether configurations of TMT characteristics influence enterprise tax planning strategy by using the fuzzy-set qualitative comparative analysis. Using a panel data of China public companies, we found three configurations conducive to aggressive tax planning and two combinations conducive to low tax planning. Specifically, the level of education, tenure, age, career experience, and size (...) of the top management team affect a firm’s propensity to engage in tax planning. Further, the results show that top management teams are not alike and highlight the differences in how these characteristics combine to impact tax planning. (shrink)

In this study, we examine the influence of senior leadership on firms’ corporate social responsibility. We integrate upper echelons research that has investigated either the influence of the CEO or the top management team on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members (...) who have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile. (shrink)

The creative thinking and ability of top management team members is important in coping with rapid changes in the external environment and improving the competitive advantage of an organization. This research focuses on the CEO–TMT interface to explain how CEOs influence TMT characteristics, which in turn affects TMT outcomes. Based on social learning theory, this study examines the associations among CEO ethical leadership, TMT cohesion and TMT creativity in a Chinese context using a total of 91 top management (...) teams. To verify the reliability and validity of the constructs, a series of confirmatory factor analyses (CFAs) were run. The results showed that the hypothesized model captured distinct constructs and fits the data well. Multistep regression method was used to test hypotheses. The results indicated that (a) CEO ethical leadership has a positive effect on TMT creativity; (b) TMT cohesion plays a mediating role in the relationship between CEO ethical leadership and TMT creativity; and (c) power distance plays a moderating role in the relationship between CEO ethical leadership and TMT creativity. The greater the power distance, the weaker the positive relationship between CEO ethical leadership and TMT creativity. This study demonstrates the value of CEO ethical leadership and advocates the importance of establishing team cohesion and building a psychologically safe environment to motivate top managers within an organization to share information and knowledge to improve creativity. (shrink)

This study tests the effects of top management team member collectivistic values and TMT dissatisfaction with the financial situation on the environmental ethics of TMT members. We also examine the moderating effect of collectivistic values on the relationship between financial dissatisfaction and environmental ethics. Analyses of multi-level and source data show that financial dissatisfaction of the TMT negatively affects TMT members’ environmental ethics. However, TMT members’ individual collectivism can increase TMT members’ environmental ethics. Analyses also show that TMT members’ (...) collectivism moderates the relationship between financial dissatisfaction and environmental ethics across individual and team levels. (shrink)

In this study, we examine the influence of senior leadership on firms’ corporate social responsibility. We integrate upper echelons research that has investigated either the influence of the CEO or the top management team on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members (...) who have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile. (shrink)

Ethical debate exists on the effect of gender diversity of the top management teams on organizations. This study aims to contribute to this debate by analyzing the effects of gender diversity of TMTs on the relationship between knowledge combination capability and organizations’ innovative performance. We use a sample of 205 small- and medium-sized enterprises belonging to the sector of Spanish technology-based firms. Our results indicate that gender diversity positively moderates the relationship between knowledge combination capability and innovation performance. (...) Implications for theory and practice are discussed—among them, ways to contribute to more equal gender distribution and to the benefits of gender diversity in top management positions. (shrink)

For the period 2015–2019 and based on a Spanish sample of 145 listed companies, this paper provides insights into how narcissistic chief executive officers (CEOs) influence the proportion of women in top management teams (TMTs). As a further analysis and in line with social psychology and upper echelons theories, we study whether the power and gender of a CEO and the female proportion in the firm's board moderate the relationship. Our results reveal that narcissistic CEOs are less likely (...) to support women in TMTs, confirming that CEO personality traits influence team structure. Further results suggest that this aversion increases as the CEO's power grows and is a woman, and when female proportion in board decreases. The results have an impact on the gender equality goal, demonstrating that the behavior of women toward promoting gender equality in TMTs depends both on the specific position of women in the firm's hierarchy and on their personal psychological attributes. We find that women directors support social identity values and that narcissistic female CEOs act like queen bees. (shrink)

I present a review of the top management teams (TMTs) of the largest public corporations in the U.S. and Scandinavia (one thousand in total) to identify corporations that have a TMT position with “corporate social responsibility” (CSR) or a “CSR synonym” like sustainability or citizenship explicitly included in the position title. Through this I present three key findings. First, I establish that a number of CSR TMT positions exist and I list all identified corporations and associated position titles. (...) Second, I show that Scandinavian corporations are significantly more likely than U.S. corporations to have such CSR TMT positions. This finding serves as evidence that the U.S. may have been surpassed by a subset of Europe, i.e., Scandinavia, in at least one relevant measure of explicit CSR, whereby this study may serve witness to a noteworthy juncture post Matten and Moon’s (Academy of Management Review, 33(2):404–424, 2008) “Implicit & Explicit CSR” article. And third, I show that corporations with a CSR TMT position are three times more likely to be included in the Dow Jones Sustainability Index (DJSI) than corporations with none. A range of further research opportunities stemming from these findings include exploring whether explicit attention to CSR by the corporation is indicative of a longer term trend that has to do with attention to responsible business and whether a move away from the expression ‘CSR’ toward the expression ‘sustainability’ is underway and what this may entail. (shrink)

This study examines firms that have experienced an industrial and/or environ-mental crisis and proposes that top management team (TMT) characteristics will affect a firm's ability to minimize the severity of these crisis events. Specifically, heterogeneity in the TMT will exhibit a curvilinear (U-shaped) relationship with the severity of firm crises. Our results suggest that a moderate level of age and tenure heterogeneity are positively related to a firm's ability to successfully minimize the severity of crises. Variance in educational backgrounds (...) was unrelated to crisis severity. Functional background heterogeneity exhibited a curvilinear relationship with crisis severity but was not U-shaped as hypothesized. (shrink)

This study examines firms that have experienced an industrial and/or environ-mental crisis and proposes that top management team (TMT) characteristics will affect a firm's ability to minimize the severity of these crisis events. Specifically, heterogeneity in the TMT will exhibit a curvilinear (U-shaped) relationship with the severity of firm crises. Our results suggest that a moderate level of age and tenure heterogeneity are positively related to a firm's ability to successfully minimize the severity of crises. Variance in educational backgrounds (...) was unrelated to crisis severity. Functional background heterogeneity exhibited a curvilinear relationship with crisis severity but was not U-shaped as hypothesized. (shrink)

The study aims to analyze the impact of top management support for strategic planning on crisis management in UNRWA-Gaza Strip field in Palestine. Several descriptive analytical methods were used for this purpose, and a survey as a tool for data collection. Community size was (881), and the study sample was stratified random (268). The overall findings of the current study show that top management provides needed HR for strategic planning but with no financial support. Also there are (...) shortcomings in the way that organization manages the crises before and after they occur. A crisis management is only practicing during the crisis. The study suggest that top management must provide the financial support for strategic planning, periodic meetings to prepare how to deal with potential crisis in the future, establishing a specialized team and provide them with all sources needed. (shrink)

Although charismatic leadership theorists have long argued that leader–follower value congruence plays a central role in the development of charismatic relationships, few studies have tested this proposition. Using data from two studies involving a total of 329 CEOs and 1807 members of their top management teams, we tested the hypothesis that value congruence between leaders and their followers is empirically linked to follower perceptions of the charisma of their leader. Consistent with a relational perspective on charismatic leadership, strong (...) support was found for the hypothesis that perceived value congruence between leaders (CEOs) and their followers (members of their top management teams) is positively related to follower perceptions of the degree of charisma possessed by the leader. Conversely, only limited support was found for the hypothesis that actual value congruence is linked to perceptions of charismatic leadership. Implications of these findings for research and practice are discussed. (shrink)

Green human resource management (GHRM) seeks to reorient human resource strategy and practices to an organization's environmental sustainability goals. A small body of research has so far shown that GHRM is positively related to organizational sustainability, yet the results are somewhat variable. This calls into question regarding the boundary conditions of this relationship. In this study, the moderating role of top management team (TMT) support has been examined as senior managers have a key role to play in ensuring (...) that GHRM is valued, widely recognized, and implemented as intended. Based on the existing literature, a model has been developed and then tested with partial least square structural equation modeling, with feedback from 372 human resource managers across several organizations. The results show a positive relationship between GHRM and sustainability, and the results also show that the TMT support strengthens this relationship. Importantly, the study reveals a positive and significant relationship between sustainability and organizational performance. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are reviewed for (...) business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

This field study investigated the relationship between strategic human resource management, internal environmental concern, organizational citizenship behavior for the environment, and environmental performance. The originality of the present research was to link human resource management and environmental management in the Chinese context. Data consisted of 151 matched questionnaires from top management team members, chief executive officers, and frontline workers. The main results indicate that organizational citizenship behavior for the environment fully mediates the relationship between strategic human (...) resource management and environmental performance, and that internal environmental concern moderates the effect of strategic human resource management on organizational citizenship behavior for the environment. (shrink)

In order to make strategic decisions and improve their firm’s performance, top management teams must have information on the competitive context in general, and the firm’s competitors in particular. During the decision-making process, top managers can have access to “privileged information”—i.e., information of a confidential and potentially strategic nature that could ultimately confer a decisional advantage over competing parties. However, obtaining and using privileged information in a business context is often illegal—and if not, is usually deemed unethical or (...) “against the rules.” Using a quasi-experimental design, this study explores the reasons why an individual might engage in such unethical behavior. We assess the extent to which managers use privileged information with respect to perceived team cohesion and peers’ ethicality. More specifically, our results show that the use of privileged information is predicted by the decision-maker’s perceptions of their team cohesion and their peers’ ethicality. Moreover, we find that team performance, as a group-level nonself-reported factor, moderates the relationship between cohesion and the use of privileged information. The relationship between cohesion, ethical behavior, and team performance is also discussed. We draw on these findings to make some practical suggestions on how to incorporate practices that could better prevent the unethical use of privileged information in strategic decision-making processes. (shrink)

Among the many approaches to leadership, servant leaders stand out for the emphasis they place on the importance of service to their followers, the organization, and the broader community. We develop and test a multilevel mediation model, in which the relationship between servant leadership and team performance is sequentially transmitted through individual-level organizational citizenship behavior (OCB) and team-based internal social capital. Multilevel structural equation modeling was applied to a sample of 343 teams, reflecting 835 respondents from various departments at (...) 171 hotels in Spain; both top-down (between team leaders and individual employees) and bottom-up relationships (individual employee behavior and team outcomes) were assessed. As anticipated, individual-level OCB and group-level internal social capital fully mediated the positive effect of servant leadership on team performance. Our findings illustrate that servant leadership in the team-based business enterprise context can foster virtuous individual-level OCB to help build task-focused community, in which leaders, followers, and teams can flourish for the common good. Thus, managers should know that serving their team members first and foremost is a positive for the flourishing of all involved. As such, policymakers should pursue communication and training initiatives to encourage the practice of servant leadership. (shrink)

Upper echelons theory posits that organisational performance reflects the personal values and cognitive frames of the top management team and, crucially, that greater heterogeneity in individual backgrounds of senior executives leads to better outcomes. However, often missing from this research is a more developed account of how this relationship between the characteristics of TMTs and performance is also mediated by internal conditions within organisations. In this paper we begin to address this deficiency focusing on the mediating impact of employee (...) satisfaction and the styles and practices of line managers. Looking at the empirical case of English National Health Services acute care hospital trusts, we use a multiple mediation model to analyse the relationship between board heterogeneity, performance and these two organisational factors. A variance-based structural equation modelling approach is applied to a sample of 102 boards of directors. First, the results lend support to the UE hypothesis that there is a positive impact of board heterogeneity and hospital-level performance. Second, the analysis shows that the relationship heterogeneity–performance is positively influenced by: the styles and practices of line managers; the levels of staff satisfaction; and by their mutually reinforcing roles. (shrink)

Strategic leadership and corporate sustainability have recently come together in conspicuously explicit fashion through the emergence of top management team positions with dedicated corporate sustainability responsibilities. These TMT positions, commonly referred to as “Chief Sustainability Officers,” have found their way into the upper echelons of many of the world’s largest corporations alongside more traditional TMT positions including the CEO and CFO. We explore this phenomenon and consider the following two questions: Why are corporate sustainability positions being installed to the (...) TMT?What effects do corporate sustainability TMT positions have at their organizations? We consider these questions through strategic leadership and neoinstitutional theoretical frameworks. Through the latter, we also engage with Weberian considerations of bureaucracy. We find that the reasons why corporate sustainability TMT positions are installed can be in response to a crisis at the corporation for which its legitimacy is challenged. We also find the corporate sustainability TMT position can be installed proactively in an effort to realize external opportunities that may have otherwise gone unrealized without concerted attention and coordination afforded by a strategic level position. Regarding effects, we determine the position can relate to the establishment of bureaucratic structures dedicated to corporate sustainability within the corporation through which formalized processes and key performance indicators to drive corporate sustainability performances are established. In the face of our finding that many corporate sustainability TMT positions are being removed despite having only relatively recently been introduced to their respective TMTs, we find that the successful implementation of bureaucratic machinery can help considerations to sustainability extend beyond the tenure of a corporate sustainability position within the TMT. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 are reviewed for (...) business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

Background: Nurse managers have the burden of experiencing frequent ethical issues related to both their managerial and nursing care duties, according to previous international studies. However, no such study was published in Malaysia. The purpose of this study was to explore nurse managers' experience with ethical issues in six government hospitals in Malaysia including learning about the way they dealt with the issues. Methods: A cross-sectional study was conducted in August-September, 2010 involving 417 (69.2%) of total 603 nurse managers in (...) the six Malaysian government hospitals. Data were collected using three-part self-administered questionnaire. Part I was regarding participants' demographics. Part II was about the frequency and areas of management where ethical issues were experienced, and scoring of the importance of 11 pre-identified ethical issues. Part III asked how they dealt with ethical issues in general; ways to deal with the 11 pre-identified ethical issues, and perceived stress level. Data were analyzed using descriptive statistics, cross-tabulations and Pearson's Chi-square. Results: A total of 397 (95.2%) participants experienced ethical issues and 47.2% experienced them on weekly to daily basis. Experiencing ethical issues were not associated with areas of practice. Top area of management where ethical issues were encountered was "staff management", but "patient care" related ethical issues were rated as most important. Majority would "discuss with other nurses" in dealing generally with the issues. For pre-identified ethical issues regarding "patient care", "discuss with doctors" was preferred. Only 18.1% referred issues to "ethics committees" and 53.0% to the code of ethics. Conclusions: Nurse managers, regardless of their areas of practice, frequently experienced ethical issues. For dealing with these, team-approach needs to be emphasized. Proper understanding of the code of ethics is needed to provide basis for reasoning. (shrink)

As implied by executive job demands theory, intensified job demands of a firm’s top executives limit their cognitive capacity and centralize the locus of decision-making, which may undermine corporate sustainability performance. The current study tests this effect, along with the impact of two contextual factors, to reveal that the negative influence of executive job demands is weaker if firms feature greater functional diversity and average tenure in their top management teams. In an extension of upper echelon theory, this (...) study also outlines the influence of task challenges that confront strategic leaders on corporate sustainability performance. (shrink)

Background Nurse managers have the burden of experiencing frequent ethical issues related to both their managerial and nursing care duties, according to previous international studies. However, no such study was published in Malaysia. The purpose of this study was to explore nurse managers' experience with ethical issues in six government hospitals in Malaysia including learning about the way they dealt with the issues. Methods A cross-sectional study was conducted in August-September, 2010 involving 417 of total 603 nurse managers in the (...) six Malaysian government hospitals. Data were collected using three-part self-administered questionnaire. Part I was regarding participants' demographics. Part II was about the frequency and areas of management where ethical issues were experienced, and scoring of the importance of 11 pre-identified ethical issues. Part III asked how they dealt with ethical issues in general; ways to deal with the 11 pre-identified ethical issues, and perceived stress level. Data were analyzed using descriptive statistics, cross-tabulations and Pearson's Chi-square. Results A total of 397 participants experienced ethical issues and 47.2% experienced them on weekly to daily basis. Experiencing ethical issues were not associated with areas of practice. Top area of management where ethical issues were encountered was "staff management", but "patient care" related ethical issues were rated as most important. Majority would "discuss with other nurses" in dealing generally with the issues. For pre-identified ethical issues regarding "patient care", "discuss with doctors" was preferred. Only 18.1% referred issues to "ethics committees" and 53.0% to the code of ethics. Conclusions Nurse managers, regardless of their areas of practice, frequently experienced ethical issues. For dealing with these, team-approach needs to be emphasized. Proper understanding of the code of ethics is needed to provide basis for reasoning. (shrink)

This paper examines the identity of Asian swamp buffalo (Bubalus bubalis) from different value orientations. Buffalo were introduced into Northern (Top End) Australia in the early nineteenth century. A team of transdisciplinary researchers, including an ethicist, has been engaged in field research on feral buffalo in Arnhem Land over the past three years. Using historical documents, literature review, field observations, interviews with key informants, and interaction with the Indigenous land owners, an understanding of the diverse views on the scientific, cultural, (...) and economic significance of buffalo was obtained. While the diverse stakeholders in buffalo exploitation and management have historically delivered divergent value orientations on the nature of the human–buffalo relationship, we argue that over time there is the possibility of values and ethical convergence. Such convergence is possible via transdisciplinary and transcultural agreement on the value stances that constitute the construction of the being or identity of buffalo in the face of the overwhelming need to manage population density and gross numbers. (shrink)

Despite the prevailing discourses on the importance of top management ethical leadership, related theoretical and empirical developments are lacking. Drawing on institutional theory, we propose that top management ethical leadership contributes to organizational outcomes by promoting firm-level ethical and procedural justice climates. This theoretical framework was empirically tested using multi-source data obtained from 4,468 employees of 147 Korean companies from various industries. The firm-level analysis shows that top management ethical leadership significantly predicts ethical climate, which then results (...) in procedural justice climate that fully mediates the effects of top management ethical leadership on two organizational outcomes, namely, firm-level organizational citizenship behavior and firm financial performance. The present study provides a plausible theoretical account and empirical validation of a mechanism through which top management ethical leadership enhances organizational performance. (shrink)

Being able to effectively respond in the event a crisis is relevant to an organization''s survival. Whether or not an organization is prepared for a potential crisis depends upon senior officials, and other personnel operating within the company. Corporations with established crisis management teams are able to communicate and effectively respond in the event of a crisis. The purpose of this paper is to suggest effective crisis management depends upon several team-related factors that may influence an organization''s (...) response and its ethical responsibility. First, the term crisis is defined, followed by an overview of the differences between crisis communication and crisis management. Second, a review of relevant literature regarding teams and effectiveness is examined. Third, several propositions regarding team effectiveness and crisis management are provided. Finally, ethical concerns in regards to the crisis team and the corporation are reviewed. (shrink)

This paper examines the identity of Asian swamp buffalo (Bubalus bubalis) from different value orientations. Buffalo were introduced into Northern (Top End) Australia in the early nineteenth century. A team of transdisciplinary researchers, including an ethicist, has been engaged in field research on feral buffalo in Arnhem Land over the past three years. Using historical documents, literature review, field observations, interviews with key informants, and interaction with the Indigenous land owners, an understanding of the diverse views on the scientific, cultural, (...) and economic significance of buffalo was obtained. While the diverse stakeholders in buffalo exploitation and management have historically delivered divergent value orientations on the nature of the human–buffalo relationship, we argue that over time there is the possibility of values and ethical convergence. Such convergence is possible via transdisciplinary and transcultural agreement on the value stances that constitute the construction of the being or identity of buffalo in the face of the overwhelming need to manage population density and gross numbers. (shrink)

Being able to effectively respond in the event a crisis is relevant to an organization's survival. Whether or not an organization is prepared for a potential crisis depends upon senior officials, and other personnel operating within the company. Corporations with established crisis management teams are able to communicate and effectively respond in the event of a crisis. The purpose of this paper is to suggest effective crisis management depends upon several team-related factors that may influence an organization's (...) response and its ethical responsibility. First, the term crisis is defined, followed by an overview of the differences between crisis communication and crisis management. Second, a review of relevant literature regarding teams and effectiveness is examined. Third, several propositions regarding team effectiveness and crisis management are provided. Finally, ethical concerns in regards to the crisis team and the corporation are reviewed. (shrink)

Socrates op de markt, Filosofie in bedrijf was first published in the Netherlands in 1997 and reprinted in 1999.1 It was translated into German and published in Germany in late 2000. The book covers the need today for Socratic dialogue, its methods, its uses and related concepts. These include elenchus (the refutation of what one thought one knew); maieutics (Socratic midwifery making latent knowledge conscious); the relationship of knowledge to feeling, virtue and the formation of personality; and the distinction between (...) three types of knowledge: scientific (episteme), professional (techne) and practical wisdom (phronesis). Our extracts — the first in English — set out Kessels’ arguments for using Socratic dialogue today, his account of its unique role in organisational learning, and a case history: a dialogue with a top management team in which elenchus plays a signal part as they seek to define a policy for handling redundancies. (shrink)

Ecological psychology regards culture as a response to the demands of the environment. As rice farming in history has significantly influenced the formation of human cultural consciousness, we investigate how the rice culture of a chairperson’s birthplace affects a firm’s CSR activities. Our main finding reveals a positive and significant correlation between a chairperson’s rice culture and CSR activities. Further analysis demonstrates that this positive relationship is particularly pronounced in private firms and family firms. We also examine the incremental effect (...) of individual management heterogeneity and find that the positive relationship is strengthened when the chairperson has a shorter tenure or higher level of education. Additionally, more developed regions help enhance this positive relationship. To address the endogeneity concerns, we adopt an instrumental variable approach and exogenous event analysis based on chairperson turnover. The results are robust to a set of additional tests. Overall, our findings document the benefits of a chairperson’s rice culture in developing countries like China and reveal how this benefit is priced into CSR performance. (shrink)

Codes of ethics and conduct typically demand the highest standard of ethical behaviour from every single employee. This implies a democratic or lobbyist understanding of ethics in business. The contrasting view would argue that business ethics is an elitist undertaking that can only be instigated from the top, by managing directors or owner managers. This article looks at three types of ethical businesses, three types of approaches to ethical problem‐solving, and three possible incentives for ethical business to see which of (...) the above is more convincing. It will be argued that the impulse for value‐driven business has to come from the top. Only top management and owner managers have the opportunity to foster major change in business practice. (shrink)

This paper explores the potential for systematic scrutiny of the language of top management to reveal signals of possible deceptive conduct. The language used in letters signed by Ramalinga Raju, Chair of the Indian multi-national company Satyam, are analysed using a multi-method quantitative approach. We explore the language in Raju’s annual report letters from 2002–2003 to 2007–2008; and in his letter of January 7, 2009 in which he confessed to deceptive conduct. We analyse the frequency of personal pronouns, the (...) tone of positivity or negativity, the frequency of words of extreme emotion and aspects of the characteristics of language use indicated by the DICTION 5.0 text analysis master variable, CERTAINTY. The text of Raju’s letters appears to have been influenced by his self-confessed deceptive behaviour. Raju’s word choice changed noticeably in his five annual report letters prior to the collapse of Satyam as the scale and impact of his financial misstatements increased. The methods presented should be considered for adoption by auditors and regulators—as a way of assessing whether signals emerging from language use warrant closer (including audit) scrutiny of a firm’s financial reporting and governance. They should also be considered for use by monitors of entity risk, such as credit rating agencies and financial analysts. (shrink)

Concepts that include the participation and empowerment of workers are becoming increasingly important nowadays. In many of these concepts, the formal responsibility is delegated to teams. Does this imply that the normative responsibility for the actions of teams is also delegated? In this article we will reflect on the difference between holding a person accountable and bearing responsibility. A framework is elaborated in order to analyse the accountability and responsibility of teams. In this framework, the emergence of (...) a collective mind, and the organisational factors that influence the extent to which teams have the possibility of acting in a responsible way play an important role. It shows that teams can bear responsibilities that could never be carried by a group of individuals. The framework is used to analyse two sample cases with self-managing teams in production facilities. The authors discuss the implications for the theory and practice of self-managing teams and the allocation of responsibility between individuals, teams and the organisation. (shrink)

Based on a field study, this paper explores the differential role that perceived top management trustworthiness has on female and male employees’ negative emotions and turnover intentions in organizations. A theoretical model is established that explicates a negative indirect effect of perceived top management trustworthiness on employee turnover intentions through employee negative emotions. The results reveal that there is a negative relationship between perceived top management trustworthiness and employee negative emotions and resulting turnover intentions and that this (...) effect is stronger for female employees than for male employees. These results demonstrate the pivotal role played by top management trustworthiness, provide an explanation for the turnover gender gap, and highlight the subjectivity in reactions to trustworthiness perceptions. The implications for organizations are discussed in line with the need for top management to positively influence employees and particularly women, to retain them in their workforce. (shrink)

We examine whether sex discrimination contributes to the underrepresentation of female executives in large corporations. China’s strong cultural preference for sons has made newborn boys greatly outnumber newborn girls. Using the male-to-female sex ratio at birth as the proxy for discrimination against women, we find that firms headquartered in more discriminatory areas hire fewer female executives. Even conditional on a woman reaching an executive position, she faces a higher likelihood of dismissal and receives lower compensation than her male counterparts. Overall, (...) our findings suggest that sex discrimination plays an important role in preventing women from climbing the corporate ladder. (shrink)

Firms in controversial industries such as tobacco, alcohol, gambling, weapon, and nuclear power suffer organizational legitimacy problems. These firms, therefore, adopt various strategies to acquire legitimacy. Drawing on institutional theory, we conceptualize the top management team gender diversity as a legitimacy-seeking strategy and examines how a firm’s belonging to a controversial sector affects TMT gender diversity. Based on a cross-country sample of 1542 firms operating in controversial industries from 34 countries and control sample with another set of 1542 similar-sized (...) firms from non-controversial industries, the empirical evidence shows that belonging to a controversial industry exerts a positive impact on TMT gender diversity. The effect of industry belonging on TMT gender diversity is positively moderated by institutional gender parity and a low level of corruption. It indicates that institutional factors act as emancipative forces that foster women's empowerment. Taken together, our results for moderating variables highlight the role of institutional characteristics in supporting women empowerment initiatives. (shrink)

Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote an (...) organizational ethical culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership. (shrink)

Recent years have seen a significant increase in stakeholder pressure on firms to be not only economically sustainable but also from an environmental and social perspective. Besides operational changes in practices and products companies have reacted toward this increased pressure from a strategic perspective through structural changes of their top management team. A recent addition to the TMT has been the appointment of the chief officer of corporate social responsibility. In this paper, we take a behavioral perspective and investigate (...) how the employment of a chief officer of CSR to the TMT impact on firm performance. Specifically, we explore how certain characteristics of the newly appointed chief executive of CSR impact on a firm’s financial performance. We collected secondary, longitudinal data of listed companies in the United States. Results indicate that appointing a chief executive of CSR does under certain conditions and characteristics result in financial performance benefits. Furthermore, the greatest financial performance benefits can be achieved if the appointee is female and has a CSR functional background. (shrink)

What drives Chinese MNEs’ global CSR integration and local CSR responsiveness? Drawing on institutional theory, we argue that both antecedents reflecting globally isomorphic patterns of adaptation and antecedents mirroring the distinct characteristics of China’s institutional context are relevant. We support our argument using fuzzy-set qualitative comparative analysis on a sample of 29 of China’s globally most influential companies. We find that state influence and global CSR associations affect global CSR integration, whereas presence in the West and internationalization through mergers and (...) acquisitions predict local CSR responsiveness. Our study thus suggests that home-country characteristics are an important co-determinant of the CSR approaches of emerging-market MNEs. We further find that multicultural experience in top management teams is associated with both global CSR integration and local CSR responsiveness, supporting notions of transnational CSR. (shrink)

Ecological innovation is an inevitable trend for firms to enhance competitiveness and sustainably operate in the context of green economy. The previous literature has rarely discussed the influence of ambidextrous learning on the eco-innovation performance of startups and ignored the moderating effect of top management’s environmental awareness from the perspective of microscopic psychology. We have conducted a questionnaire survey on 212 firms established within 4 years in the Pearl River Delta of China, using the structure mode and the PROCESS (...) by Hayes (2013) to analyze the influence of ambidextrous learning, such as exploratory learning and exploitative learning, by startups on eco-innovation performance and verify the moderating effect of top management’s environmental awareness. The results show that: exploratory learning and exploitative learning have a positive and significant influence on eco-innovation performance, indicating that the organizational learning of startups is conducive to improving eco-innovation performance; under the moderating effect of top management’s environmental awareness, the influence of exploratory learning and exploitative learning on eco-innovation performance may differ. The results also show that in the process of organizing ambidextrous learning, startups should help raise the environmental awareness of top management to improve the eco-innovation performance, thus providing guidance for startups to carry out eco-innovation activities and for local governments to make decisions on green economy. (shrink)