Leadership: Trustworthiness and Ethical Stewardship

Leadership: Trustworthiness and Ethical Stewardship

Problem Statement

The problem to be investigated is the leadership challenge to ensure organizations are efficient, effective and financially solvent, but more importantly, leaders earn the trust and respect of their employees and other stakeholders.

Introduction

Leaders must possess and demonstrate trustworthy and ethical behaviors in order to perform effectively in a more socially responsible and global business environment (Jennings, 2012). The ability for leaders to earn trust is in part based upon if they are perceived as having a primary motivation is their commitment to the organization (Collins, 2001). The dynamics between leadership, perceptions of trustworthiness, and ethical stewardship are key in building successful present-day organizations (Donaldson & Dunfree, 1999).

Corporate social responsibility is a valid source of intangible competitive advantage indicators (Melo & Galan, 2011). It is not used to its full potential because it has a less impact on financial indicators (Melo & Galan, 2011, p. 423). This statement is presently true according to this writer’s opinion, but it is changing. The change is occurring because old economic models do not contain all the variables needed to truly measure the economic impact of corporate social responsibility know as CSR (Paine, 2002) and because successful models of leadership are also changing (Kanter, 2009). However, this is not a universally agreed upon concept.

Analysis

There are noted economists, business leaders and those in academia who do not agree.

Discussion among some economists that posits the only responsibility business has is to make a profit. Milton Friedman who lived through the 20th century...

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...rieved from http:/www.nationalaffairs.com/doclib/20080208_1981632whatisbusinessthicspeterfdrucker.pdf

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Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness

Jennings, M. (2012). Business ethics Case studies and selected readings (7th ed.). Mason, OH: South-Western Cengage Learning.

Kanter, R. M. (2009). World class: thriving locally in the global economy. New York: Simon & Schuster.

Melo, T., & Galan, J. I. (2011). Effects of corporate social responsibility on brand value. Journal of Brand Management, 18(6). doi:10.1057/bm.2010.54

Paine, L. S. (2002). Value shift: Why company must merge social and financial imperatives to achieve superior performance. New York: McGraw-Hill.