E. Isaac Mostovicz, Janus Thinking Ltd, Jerusalem, Israel
Andrew Kakabadse, Cranfield School of Management, Cranfield University, Cranfield, UK
Nada K. Kakabadse, Northampton Business School, The University of Northampton, Northampton, UK
Purpose – This paper aims to examine how to further embed CSR thinking and practice into corporations, particularly in emerging markets, by reviewing and drawing similarities between key issues faced by all senior managers, namely ethics, leadership, personal responsibility and trust.
Design/methodology/approach – This paper presents a conceptual exploration of global CSR practices using social psychology and overlays this concept with strategic and institutional theory in order to encourage new ways of thinking about CSR adoption, especially in emerging markets.
Findings – The paper reveals the importance of shareholder needs on global corporate decision making and applies alternative conceptual models to help businesses to devise better CSR practices and individuals to align their actions to their own values.
Originality/value – This paper strongly argues for blending different theoretical foundations from the management and organization literature in order to draw comparisons between current global CSR practice and the potential for its further adoption in emerging markets.
Corporate responsibility; Ethics; Leadership; Bedding down CSR; Practice; Mindset; Emerging markets.
Emerald Group Publishing Limited
On 20 April 2010 an explosion on the Gulf of Mexico Deepwater Horizon oil rig exposed the US to an historic ecological disaster. Taking more than three months to contain (Guardian, 2011), the US government initially estimated spillage at 5,000 barrels per day; however, a Democrat Representative in Congress, Edward Markey, estimated these levels at around 100,000 barrels per day.
US administrators and lawmakers did not stay silent. Following a hearing by the US Congress, President Obama expressed his anger and frustration, calling the behavior of the three companies involved – BP, Transocean and Halliburton – a “ridiculous spectacle” and then calling for a “top-to-bottom” review of the Minerals Management Service, the federal agency that oversees offshore drilling and was accused of having a “cosy relationship” with oil companies (Reuters, 2010).
According to President Obama, the “cosy relationship” manifested itself because regulators were relying on companies' promises about the safety and security of their drilling activities and he vowed to make these mechanisms more accountable.
This episode illustrates the limits of CSR programs currently undertaken by global businesses. The logical rules and regulations which business and government leaders created did not work to exemplify the broadly shared social values that US society deemed to be important. Representing our deeply held values and the metaphorical expressions of our beliefs, these accountability structures must change over time to continue to align with prevailing beliefs and core values. This global CSR failure also reflects the dynamic process that CSR programs must undergo over time.
Emerging markets can also learn a valuable lesson from this case study as they continue on their path of economic development. Their CSR programs should also reflect their own cultures' unique social norms and be dynamic enough to respond to unprecedented threats due to increased stakeholder scrutiny and constraints on environmental and other resources.
The Deepwater Horizon oil spill disaster calls into question whether any voluntary arrangement made by corporations in the developed or developing worlds are, in fact, viable in the long term. The specific CSR issues addressed in this case study, such as corruption, transparency, health and safety, environmental impact, resource depletion or ecological degradation, apply to other CSR contexts and, at first glance, might be considered an example par excellence of poor CSR.
But it also serves to illustrate the constant improvement every company should make in building awareness of its capabilities (and limitations) as well as embedding these understandings into its CSR practice. While it is a natural tendency to want to place blame on those responsible for such a disaster, such an activity can only indirectly benefit those who pursue it since the disaster itself cannot actually reversed. The lack of responsibility which actors assumed after the explosion also illustrates the potential losses involved in doing so, from losing one's job to losing a company's license to operate or paying the full clean-up costs or other penalties.
Exploring this case study provides important theoretical lessons for companies in emerging markets and elsewhere to consider. For instance, can increased regulation prevent corrupt or unaccountable corporate practices? Are voluntary systems of accountability fundamentally flawed and fuelled only by corporate disdain for regulation? And to what extent should markets be allowed to dictate the course of play vis-à-vis the more arm's length yet expensive bureaucracy created by government regulation?
This paper claims that it is impossible to clearly understand the Deepwater Horizon oil spill or the solutions proposed without paying attention to the psychological aspects which underlie CSR activity globally or in either the developed or developing world. Corporate responsibility cannot be practiced if various personal attributes do not exist in the individuals within the company. These consist of the four pillars of leadership, ethics, personal responsibility and trust, all of which are dynamic in nature. Incorporating these personal qualities can help improve the planning and practice of CSR programs as well.
Understanding the inherent similarities between CSR activities of any kind may help bridge the gap in emerging markets' relative lack of concern for adopting CSR programs (Jain, 2006).
The goals of this article are two-fold. The first is to highlight the rich and relevant body of literature related to social psychology that sheds light on how psychological forces can lead to inadequate, ineffectual or misguided CSR solutions. The second is to use this review to create a framework that helps to overcome these psychological problems inherited from the corporate world.
Corporate responsibility is an oxymoron since corporate structures inherently pose risks to individuals' ability to remain consistent with own personal value set and purpose. Instead, it may actually present a model which is the antithesis of responsibility and which is manifested in a number of ways.
Diffusion of responsibility
Diffusion of responsibility (Darley and Latané, 1968) occurs in groups that do not clearly assign accountability to their members for individual actions. For instance, members may shed responsibility completely under the premise that “we were only following orders”. Made famous by the excuses often presented by Nazi war criminals, people argue that they were obeying an authoritative figure even if they had to act against their conscience and values (Milgram, 1963, 1974). Failure to assign responsibility for broad outcomes leads to a moral myopia and a chain of banal, benign decisions and, in turn, potentially to dreadful evil (Arendt, 1994; Staub, 1992).
Another example of the diffusion of responsibility is social loafing (Ringelmann, 1913), whereby people work less hard in groups because the social pressure is diffused and individual input is less easily identifiable. Latané et al. (1979) propose three possible reasons for social loafing: attribution and equity (where people start to invest less due to perceptions that others are not investing as much as they are), submaximal goal setting (when people believe that only a sub-optimal standard is expected by the group) and lessened contingency between input and outcome (whereby people feel that they can hide in the crowd unnoticed).
A final example of diffusion of responsibility is the bystander effect (Darley and Latané, 1968), which suggests that as the number of bystanders increases, it becomes less likely that any individual would offer help in times of need. The phenomenon emanates from an individual fear that their intervention might be considered intrusive, unhelpful, unnecessary or contrary to the social expectation of the group (Bickman, 1972; Darley and Latané, 1968). This social Other demonstrations of fear can result from fear of loss of relationships or of privacy, in other words of unspecified “bad consequences” or retaliation (Rowe et al., 2009). Moreover, some studies (Shaw et al., 1994) show that people actively are motivated to avoid empathy so as to avoid having to help (Staub, 1985).
The Deepwater Horizon catastrophe illustrates this diffusion of responsibility. Nobody wanted the leak to continue emptying oil into the Gulf of Mexico, yet nobody knew how to fix it. It took several months before BP managed to shut down the well at tremendous cost, perhaps because neither BP managers nor President Obama assumed responsibility in the first instance despite being looked upon to lead the containment efforts.
Another related issue, moral hypocrisy (Batson et al., 1997; Batson and Thompson, 2001; Batson et al., 2002; Batson, 2008) occurs when someone cites moral arguments without being willing to invest in the consequences of those arguments.
The literature into social psychology recommends ways for improving our moral integrity. These include raising awareness amongst individuals of how they can help, thereby turning bystanders into active participants by creating greater feelings of social responsibility (Staub, 1992). However, the right skills must be taught and the proper knowledge must be provided so that the bystander can better relate to his own set of values instead of relying on others for moral assessment.
During the Deepwater Horizon oil spill, President Obama risked moral hypocrisy when criticizing the cosy relationship existing between BP and the government agency. Since BP worked closely over the years with the government agency, both groups developed empathy toward each other, a normal human behavior according to Batson et al. (1995). Obama's effort to break the development of such close relations is simply a call for dehumanizing these institutional structures of trust.
The four pillars: leadership, ethics, trust and personal responsibility
While leadership, ethics, trust and personal responsibility are widely discussed in the literature, they are usually viewed as well-defined, static qualities rather than ideals to be pursued over time. The approach of this paper is rather to argue that these qualities are dynamic (Mostovicz and Kakabadse, 2009) and aspirational.
Generally, people follow one of two worldviews in moving closer to these ideals (Mostovicz et al., 2009b; Mostovicz and Kakabadse, 2009, 2010). While the first group seeks control (certainty) and look to affiliate with their society of choice (Pyszczynski et al., 1997; Pyszczynski et al., 2004), the second group is individually motivated (Deci and Ryan, 2000) and find their life meaning through the search for challenge and differentiating themselves from others (contrast). These two worldviews are opposed and thus prevent people from embodying them simultaneously since this would require feeling others' proximity and distance at the same time.
In our personal pursuit of the four pillars of corporate responsibility, choice-making can thus seem paradoxical since it is not about distinguishing between good and bad options but rather about determining a preference between two equally valid options (Kouzes and Posner, 2003) based on a higher principle or value (Rawls, 1999). Since this choice is personal, Mostovicz et al. (2009a) argue that leadership is not a hierarchical position but rather an emotional ability to follow one's perceived life purpose. This is defined by Palmer (1966, p. 114) as “the fundamental cognitive orientation of an individual or society encompassing natural philosophy, fundamental existential and normative postulates or themes, values, emotions, and ethics.”
Worldviews (Weltanschauung) are not psychological constructs but rather self-constructions based on life history and past experience as well as social context. They are premised on constructive sociology (Berger and Luckman, 1966) and, of course, have psychological determinants, but they are not to be compared with psychological types or traits.
Three of these qualities – leadership, trust and personal responsibility – can be understood differently depending on one's worldview (Mostovicz et al., 2009b; Mostovicz and Kakabadse, 2009, 2010). For the fourth pillar, we follow Lévinas (2003, 2004) who defines ethics as taking responsibility for the other. Each of these pillars can be explored in detail to explore the relevance of this worldview concept to corporate governance.
Leadership is the ability to choose freely without being influenced by external social forces, whilst simultaneously maintaining full awareness of one's inherent subconscious motivations (Mostovicz and Kakabadse, 2009).
Acting authentically requires us to be conscious of our deeply held values, and to make choices not based entirely on simple financial reward. Leadership is a process (Hunt, 2004, quoted in Antonakis, 2006, p. 6) or a set of qualities to be developed over time (Goleman, 1998). Recently, formally popular theories in social science have been criticized for being static (Ashforth et al., 2008), or less relevant with time (Pascale, 1990; Kalogeras, 2005). Consequently, social science, in general, and the leadership literature (Baker, 2007), in particular, are lacking in dynamic theories.
Leadership is not a philosophy, and a leader's values should be clearly manifested in their behavior and practices as informed by his worldview. These extend from more tangible tactics or actions (Amir and Ariely, 2007) through to strategic and practical decisions (Kouzes and Posner, 2003) and finally to the embodiment of true purpose. Along this process, leaders tap into different motivations, from principles such as logic and measurability through to emotions and interpretation (Porter, 1996) and culminating in psychology and metaphysics (Mostovicz and Kakabadse, 2009).
Leaders looking to align their CSR choice-making with their own value sets must continually refine their process of purpose-seeking, which Lévinas (1994) defines as the path for which he would be ready to die if it could not be pursued. This total commitment implies an intrinsic commitment whereby leaders seek “either my way or nothing.”
Hence, our challenge is to fit our behavior with our values and not the other way around. However, in no way does it imply extrinsically that what is not “my way” is wrong. This total commitment is not easy and requires a leader to remain motivated, which implies flux and to seek it or even provoke it in order to find it (Nonaka and Takeuchi, 1995).
In the socio-economic literature, trust is embedded in logic (Coleman, 1998; Deutch, 1962). Coleman (1998) defines trust as being based on four principles. First, trust allows for actions that otherwise would not be possible; second, if the trustee is trustworthy, the trustor will be better off (Exworthy and Robinson, 2001); third, trust involves a voluntary transfer of assets without an explicit reciprocal commitment of the trustee; and fourth, a time lag exists between the act of entrusting and the result of that behavior. Hence, for Coleman (1998), trust is a logical action that involves calculated risk.
For instance, Sako (2008) examines trust from an economic perspective and puts the two extremes along this multi-dimensional spectrum the arm's length contractual relation (ACR) and the obligation contractual relation (OCR) (Marchington and Vincent, 2004). ACR is characterized by a specific, discreet economic transaction, where duties of both parties are laid out explicitly and rules are clearly defined and legally binding. On the other hand, OCR cultivates a level of mutual trust (Marchington and Vincent, 2004) extending beyond explicit contracts. The ACR and OCR polarities are distinct along two dimensions – the interdependence of the parties and the time span of the relationship. Both of these traits are greater in OCR and more limited in ACR (Markovits, 2008; Sako, 2008; Shiffrin, 2008).
However, CSR policies based anywhere along this economic spectrum remain limited in scope to since they are used only as a means to achieve better financial results and would likely be abandoned if they were deemed too risky, insufficiently profitable or unachievable.
A different approach to trust is provided by Wasserman (2006) who wrote in the aftermath of the 1929 economic crisis on the ensuing loss of trust that people developed for markets. Wasserman (2006) argued that it was, in fact, this lack of trust which exaggerated the effects on poverty due to creditors' fear of lending.
In other words, we only trust those who are committed and who undertake full responsibility for their actions (Bucholz, 1987; Gray et al., 1996). Trust, therefore, is the ability not only to seek shared benefit but also to face failure and to put the blame squarely on one's shoulders if a problem arises. Only when assuming full responsibility for a failure can a person commit to devising a solution. Hence, for Wasserman (2006), trust is not extrinsic, logical or social but intrinsic, emotional and individual. The risk therefore is not to the trustor since he is seeking to benefit from this risk undertaking; rather, it is to the trustee who is fully responsible for his eventual failure despite engaging in this risk altruistically and voluntarily (Wasserman, 2006) without expectation of reciprocity. Thus, trust results from the trustee's choice.
Even a value such as responsibility is dependent on an obligation to someone or something. As it relates to CSR, the word “responsibility” is intended to reflect the needs of the organisation's stakeholders, yet is based on an awareness that the glass is half-empty (i.e. that one's goal has not yet been accomplished).
Yet those with different worldviews also have different ideas about what this true goal is. According to Kaplan (1990), one relates to truth either as an objective or as a principle. For those in the former group, the goal is to unite with that truth, and they tend to look back in order to draw lessons for the future (Mostovicz et al., 2009a). Assuming responsibility thus entails demonstrating an honest balance-taking. For the latter group, the goal is to create a set of challenges or guidelines to live up to (Mostovicz et al., 2009b). Thus, for them, it entails committing to face future challenges in a structured way based on careful examination of the set of rules that they have formed.
Being fully ethical can only be aspirational since every person will at least sometimes act automatically or hide behind social rules and customs (Mostovicz and Kakabadse, 2008). Thus, we cannot expect people who are imperfectly aware of their actions to act ethically in every situation.
This inability has led some researchers to realize that we can only strive toward a true ethical position by gaining better insight into the origin of our ethical behaviors dynamically over time (Csikszentmihalyi, 1990). Scholars who view ethics as a process rather than an end (e.g. Caldwell et al., 2008; Flynn, 2008; Hernandez, 2008; Liedtka, 2008; Verbos et al., 2007) pay attention to deep personal virtues, which generally relate to flourishing, vital, meaningful life purposes and their embodiment (Cameron, 2003; Knights and O'Leary, 2006; Manz et al., 2006; Weiner, 1993). Following scholars who argue for the need to develop authentic leadership (Luthans and Avolio, 2003; Gardner et al., 2005; Yammarino et al., 2008), Liedtka (2008), for example, calls for a search for authenticity by looking internally (Hardt, 1993; Hernandez, 2008) rather than externally as logical, economics-driven theories of ethics advocate. Those with different worldviews also perceive authenticity in different ways (Mostovicz and Kakabadse, 2009), either as truthfulness or as genuineness.
Lévinas (1994) addresses this question by replacing the concept of authenticity with the idea of responsibility to the “other” as the ultimate ethical value since the former has a dual and contrasting meaning whereas the latter relates to the paradoxical, unattainable ideal truth. As such, ethics is something that is out of our direct control. Some look to find similarities with people (Mostovicz and Kakabadse, 2010) and thereby seek to erase the other or unite with it, and thus to become more responsible. Others, however, seek to differentiate themselves from people (Mostovicz and Kakabadse, 2010) and aim to preserve the other while risking the proximity needed for true responsibility. Both approaches imply a paradoxical undertaking since man cannot perceive clearly what ethics implies, yet we can build humility and begin to understand how to construct a more humanistic system for governing each other by pursuing our own worldview.
The discussion above describes the dynamics inherent in any social setting and are applicable to companies' efforts to develop their CSR positions. It is paramount to realize that senior managers, as individuals within companies, commit to developing these views dynamically and consistent with their individual worldview.
CSR programs today do not reflect the approaches usually discussed in the relevant literature. These differences can be summarized in three dimensions: personal vs. social, emotional vs logical and paying for one's beliefs vs receiving benefit from these beliefs.
This paper calls for CSR policies to grow out of personal commitment and dedication. Modern research into social psychology warns us that if we fail to admit guilt, we commit moral hypocrisy (Batson et al., 1997; Batson and Thompson, 2001; Batson et al., 2002; Batson, 2008). A proper approach to CSR should stand on four personal pillars that require people to commit to their beliefs and be consistent with their worldviews while allowing others the same ability. This should precede engaging others in our activities (Brown, 1998).
Commitment to one particular worldview should not imply that this worldview is an ultimate, transcendent truth for describing reality. Rather, this could lead to disrespectfulness, collectivism or even fanaticism (see also Frankl, 1986, p. xxvi, for a similar idea; McGregor et al., 1998). However, Jewish scholars (Baruchovitch, 1992) observe that fanaticism cannot go hand-in-hand with altruism, which is defined as the “motivational state with the ultimate goal of increasing another person's welfare” (Batson et al., 1995, p. 1042). Hence, while one should be critical of oneself, he should at the same time empathize with the other's needs, defined as the “other-oriented emotional response congruent with the perceived welfare of another person (if the other is in need, empathy includes feeling sympathetic, soft-hearted, compassionate, tender, and the like)” (Batson et al., 1995, p. 1042).
Similarly, case studies such as the Deepwater Horizon oil spill disaster should serve as an example to companies in emerging markets that even the biggest global companies still fulfill their CSR objectives imperfectly. Any organizational structure can pose risks to our personal values and to our sense of personal responsibility in our work. The acid test in any organization is ultimately what the people working within it are ready to sacrifice.
Unfortunately, instead of sacrificing financial success for ethical values, corporations are built to sacrifice their human assets for a questionable quick profit. If corporate goals are structured profit maximization and based on passionless and emotionless logic and rationality, then all human values disappear, enslaving the people within the corporation to the goal of the organization as a whole. They are measured only along skills, performance, knowledge, abilities and competencies (Ashkanasy and Daus, 2002). Financial rewards, in turn, seem to interfere with or to “crowd out” (Frey, 1998) intrinsic motivation (Deci et al., 1999; Gneezy and Rustichini, 2000), that is based on morals and values (Frey, 1998) and can become addictive (Souvorov, 2003).
Diffusion of responsibility in its various forms and the fear that a corporation's practice removes any authentic self-expression is the antithesis of any true CSR practice. CSR is thus not an ultimate solution for corporate ethical practices in that these policies are not built to anticipate and solve eventual problems. Disasters will eventually occur and we will always face cases where we realize only post-hoc that we acted irresponsibly. However, by finding the courage to continue identifying our failures or limitations offers the chance to stay attuned to problems earlier.
CSR is based on the premise that natural capital is limited, and companies need to radically increase resource productivity (i.e. minimize their usage and maximize their utility). The CSR promise is that the adaptation of responsible strategies for natural resource preservation can also significantly benefit a firm's bottom line and can support future CSR and environmental projects (Porritt, 2005). Nevertheless, we should not forget that our ultimate natural resource is our human capital, a resource that disappears over time. Time wasted is time lost never to return.
We keep on looking at our society's half-empty glass trying to describe what this glass is missing, yet we should instead look at the half-full glass, at the existing human capital we have, and try to do the most with it. CSR is a call for being critical of ourselves and empathizing with others in society.
The case of emerging markets
Emerging markets with their rapid growth and industrialization present two challenges (Jain, 2006) to the prevailing CSR approach taken by global companies (such as BP) today. First, these markets present potential opportunities for rapid economic growth, yet they are also more risky and less concerned with CSR (Jain, 2006). Thus, practices in emerging markets might lead to excessive environmental damage and even unethical and wrong practices (Chang, 2003). Second, the lack of enforceable rules and regulations in these markets may attract foreign capital that either does not require CSR best practices.
Moreover, these emerging markets are often not interested in western-style economic approaches, whose underlying social values are not consistent with their own. In general, more political conservatism is growing rather than shrinking, and more Russians today support the concept of “a strong leader” over “democracy” than they did ten years ago because of the evident corruption, inequity, and decline in average living standards. China and Brazil, which fared better during the 2008 crisis go their own way and refuse to emulate western economic models even though they are operating within global systems of free trade and finance established by the west. Consequently, more state control becomes the norm (Foroohar and Margolis, 2010).
We therefore, can recommend only an approach captured by the Biblical statement “we are verily guilty” (Genesis, 42, 21). The western corporations, in spite of claiming that they have put in place one CSR policy or another, remain fundamentally flawed since they are not explicit about what they are willing to sacrifice for proper CSR practice but rather only by what value they can deliver to shareholders. Thus, global CSR practices should serve only to inform emerging market businesses about approaches to CSR rather than end points. Further, these CSR practices must strive to reflect the social values of the society where they are implemented. The west has managed to enforce some CSR practices but has largely failed to put into practice or benefit from the research being conducted in this field. If we are in doubt of this view, the emerging economies can be examined in order to illustrate how irrelevant current research into CSR is to these countries.
As these countries continue to build wealth, they have an opportunity to scrutinize the academic literature in order to build CSR programs that reflect their unique values. They can also learn and benefit from the mistakes being made by today's biggest global businesses, including BP. After all, each should keep saying “we are verily guilty” (Genesis, 42, 21).
Amir, O., Ariely, D. (2007), "Decisions by rules: the case of unwillingness to pay for beneficial delays", Journal of Marketing Research (JMR), Vol. 44 No.1, pp.142-52.
Antonakis, J. (2006), "Leadership: what is it and how is it implicated in strategic change?", available at: www.hec.unil.ch/jantonakis/Antonakis%20IJMC.pdf (accessed 17 February 2009), .
Arendt, H. (1994), Eichmann in Jerusalem: A Report on the Banality of Evil, Penguin Books, New York, NY, .
Ashforth, B.E., Gioia, D.A., Robinson, S.L., Trevino, L.K. (2008), "Re-viewing organisational corruption", Academy of Management Review, Vol. 33 No.3, pp.670-84.
Ashkanasy, N.M., Daus, C.S. (2002), "Emotion in the workplace: the new challenge for managers", The Academy of Management Executive, Vol. 16 No.1, pp.76-86.
Baker, S.D. (2007), "Followership: the theoretical foundation of a contemporary construct", Journal of Leadership and Organizational Studies, Vol. 14 No.1, pp.50-60.
Baruchovitch, S.Z. (1992), Torah Ohr (in Hebrew), 16th ed., Kehot, Brooklyn, NY, .
Batson, C.D. (2008), "Moral masquerades: experimental exploration of the nature of moral motivation", Phenomenology and the Cognitive Sciences, Vol. 7 No.1, pp.51-66.
Batson, C.D., Thompson, E.R. (2001), "Why don't moral people act morally? Motivational considerations", Current Directions in Psychological Science, Vol. 10 No.2, pp.54-7.
Batson, C.D., Thompson, E.R., Chen, H. (2002), "Moral hypocrisy: addressing some alternatives", Journal of Personality and Social Psychology, Vol. 83 No.2, pp.330-9.
Batson, C.D., Kobrynowicz, D., Dinnerstein, J.L., Kampf, H.C., Wilson, A.D. (1997), "In a very different voice: unmasking moral hypocrisy", Journal of Personality and Social Psychology, Vol. 72 No.6, pp.1335-48.
Batson, C.D., Batson, J.G., Todd, R.M., Brummett, B.H., Shaw, L.L., Aldeguer, C.M.R. (1995), "Empathy and the collective good: caring for one of the others in a social dilemma", Journal of Personality and Social Psychology, Vol. 68 No.4, pp.619-31.
Berger, P.L., Luckman, T. (1966), The Social Construction of Reality: A Treatise in the Sociology of Knowledge, Doubleday, Garden City, NY, .
Bickman, L. (1972), "Social influence and diffusion of responsibility in an emergency", Journal of Experimental Social Psychology, Vol. 8 No.5, pp.438-45.
Brown, T. (1998), "‘Corporate soul’: meaning behind the buzzwords", Harvard Management Update, Vol. 3 No.10, pp.10-11.
Bucholz, R.A. (1987), "The business/government/society relationship in management thought", in Paul, K. (Eds),Business Environment and Business Ethics: The Social, Moral, and Political Dimensions of Management, Ballinger, Pensacola, FL, pp.19-37.
Caldwell, C., Hayes, L.A., Bernal, P., Karri, R. (2008), "Ethical stewardship – implications for leadership and trust", Journal of Business Ethics, Vol. 78 No.1/2, pp.153-64.
Cameron, K.S. (2003), "Organizational virtuousness and performance", in Cameron, K.S., Dutton, J.E., Quinn, R.E. (Eds),Positive Organizational Scholarship: Foundation of a New Discipline, Berrett-Koehler, San Francisco, CA, .
Chang, H. (2003), Kicking Away the Ladder: Development Strategy in Historical Perspective, Anthem Press, London, .
Coleman, J.S. (1998), Foundations of Social Theory, Belknap Press of Harvard University Press, Cambridge, MA, .
Csikszentmihalyi, M. (1990), Flux: The Psychology of Optimal Experience, HarperCollins, New York, NY, .
Darley, J.M., Latané, B. (1968), "Bystander intervention in emergencies: diffusion of responsibility", Journal of Personality and Social Psychology, Vol. 8 No.4, pp.377-83.
Deci, E.L., Ryan, R.M. (2000), "The ‘what’ and ‘why’ of goal pursuit: human needs and self-determination of behavior", Psychological Inquiry, Vol. 11 No.4, pp.227-68.
Deci, E.L., Koestner, R., Ryan, R.M. (1999), "A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation", Psychological Bulletin, Vol. 125 No.6, pp.627-68.
Deutch, M. (1962), "Cooperation and trust: some theoretical notes", in Jones, M.R. (Eds),Nebraska Symposium on Motivation, University of Nebraska Press, Lincoln, NE, pp.275-319.
Exworthy, M., Robinson, R. (2001), "Two at the top: relations between chairs and chief executives in the NHS", Health Service Management Research, Vol. 14 No.2, pp.82-91.
Flynn, G. (2008), "The virtuous manager: a vision for leadership in business", Journal of Business Ethics, Vol. 78 No.3, pp.359-72.
Foroohar, R., Margolis, M. (2010), "The other middle class", Newsweek, Vol. 155 No.11, .
Frankl, V.E. (1986), The Doctor and the Soul, Vintage Books, New York, NY, .
Frey, B.S. (1998), Not Just for the Money: An Economic Theory of Personal Motivation, Beacon Press, Boston, MA, .
Gardner, W.L., Avolio, B.J., Luthans, F., May, D.R., Walumbwa, F. (2005), "‘Can you see the real me?’ A self-based model of authentic leader and follower development", Leadership Quarterly, Vol. 16 No.3, pp.343-72.
Gneezy, U., Rustichini, A. (2000), "Pay enough or don't pay at all", The Quarterly Journal of Economics, Vol. 115 No.3, pp.791-810.
Goleman, D. (1998), "The emotional intelligence of leaders", Leader to Leader, Vol. 10 No.Fall, pp.20-6.
Gray, R.H., Owen, D.L., Adams, C.A. (1996), Accounting and Accountability: Changes and Challenges in Corporate Social and Environmental Reporting, Prentice Hall, London, .
Guardian (2011), "BP expected to resume drilling in Gulf of Mexico after deal with US regulators", Guardian, 3 April, available at; www.guardian.co.uk/business/2011/apr/03/deepwater-horizon-bp-restarts-gulf-of-mexico-oil-exploration (accessed 3 April 2011), .
Hardt, H. (1993), "Authenticity, communication and critical theory", Critical Studies in Mass Communication, Vol. 10 No.1, pp.49-69.
Hernandez, M. (2008), "Promoting stewardship behavior in organizations: a leadership model", Journal of Business Ethics, Vol. 80 No.1, pp.121-8.
Hunt, J.G. (2004), "What is leadership?", in Antonakis, J., Cianciolo, A.T., Sternberg, R.J. (Eds),The Nature of Leadership, Sage, Thousand Oaks, CA, pp.19-48.
Jain, S.C. (2006), Emerging Economies and the Transformation of International Business, Edward Elgar Publishing, Cheltenham, .
Kalogeras, C. (2005), "The invalid constant dividend growth model", Proceedings of the Annual Conference of the Association for Global Business, pp.104-7.
Kaplan, A. (1990), Encounters, Maznaim Publishing Company, New York, NY, .
Knights, D., O'Leary, M. (2006), "Leadership, ethics and responsibility to the other", Journal of Business Ethics, Vol. 67 No.2, pp.125-37.
Kouzes, J., Posner, B. (2003), The Leadership Challenge, 3rd ed., Wiley, San Francisco, CA, .
Latané, B., Williams, K., Harkins, S. (1979), "Many hands make light the work: the causes and consequences of social loafing", Journal of Personality and Social Psychology, Vol. 37 No.6, pp.822-32.
Lévinas, E. (1994), Nine Talmudic Readings, Indiana University Press, Bloomington, IN, .
Lévinas, E. (2003), Humanism of the Other, University of Illinois Press, Champaign, IL, .
Lévinas, E. (2004), New Talmudic Readings, Shoken, Jerusalem, .
Liedtka, J. (2008), "Strategy making and the search for authenticity", Journal of Business Ethics, Vol. 80 No.2, pp.237-48.
Luthans, F., Avolio, B.J. (2003), "Authentic leadership development", in Cameron, K.S., Dutton, J.E., Quinn, R.E. (Eds),Positive Organisational Scholarship: Foundations of the New Discipline, Berrett-Koehler, San Francisco, CA, pp.241-58.
McGregor, H., Leiberman, J., Greenberg, J., Solomon, S., Arndt, J., Simon, L., Pyszczynski, T. (1998), "Terror management and aggression: evidence that mortality salience promotes aggression against worldview threatening individuals", Journal of Personality and Social Psychology, Vol. 74 pp.590-605.
Manz, C.C., Cameron, K.S., Marx, K.P., Manz, K.P. (2006), "A special issue: values and virtues in organizations", Journal of Management Spirituality and Religion, Vol. 3 No.1/2, pp.1-12.
Marchington, M., Vincent, S. (2004), "Analysing the influence of institutional, organizational and interpersonal forces in shaping inter-organizational relations", Journal of Management Studies, Vol. 41 No.6, pp.1029-56.
Markovits, D. (2008), A Modern Legal Ethics: Adversary Advocacy in a Democratic Age, Princeton University Press, Princeton, NJ, .
Milgram, S. (1963), "Behavioral study of obedience", The Journal of Abnormal and Social Psychology, Vol. 67 No.4, pp.371-8.
Milgram, S. (1974), Obedience to Authority: An Experimental View, HarperCollins, New York, NY, .
Mostovicz, E.I., Kakabadse, N.K. (2008), "Debunking the relationship marketing myth: towards a purposeful relationship-building model?", paper presented at 5th International Conference for Consumer Behaviour and Retailing Research (CIRCLE), School of Business University of Nicosia, Nicosia, Cyprus, 26-29 March, .
Mostovicz, E.I., Kakabadse, N.K. (2009), "Dynamic model of organisational leadership", Leadership & Organization Development Journal, Vol. 30 No.6, pp.563-76.
Mostovicz, E.I., Kakabadse, N.K. (2010), "Self- or rule-based governance: analysis of choice-making behaviour", Corporate Governance: The international journal of business in society, Vol. 10 No.4, pp.541-57.
Mostovicz, E.I., Kakabadse, N.K., Kakabadse, A.P. (2009a), "Is leading through strategic change necessary?", Proceedings of the 5th European Conference on Management Leadership and Governance (ECMLG), Hellenic American University and the Atexcelixi Conference Centre, Athens, Greece, pp.117-24.
Mostovicz, E.I., Kakabadse, N.K., Kakabadse, A.P. (2009b), "The role of leadership in driving ethical outcomes", Corporate Governance: International Journal of Business in Society, Vol. 4 No.9, pp.448-60.
Nonaka, I., Takeuchi, H. (1995), The Knowledge-Creating Company, Oxford University Press, Oxford, .
Palmer, G.B. (1996), Theory of Cultural Linguistics, University of Texas Press, Austin, TX, .
Pascale, R.T. (1990), Managing on the Edge: Companies that Use Conflict to Stay Ahead, Simon & Schuster, New York, NY, .
Porritt, D. (2005), "The reputational failure of financial success: the ‘bottom line backlash’ effect", Corporate Reputation Review, Vol. 8 No.3, pp.198-213.
Porter, M.E. (1996), "What is strategy?", Harvard Business Review, Vol. 74 No.6, pp.61-78.
Pyszczynski, T., Greenberg, J., Solomon, S. (1997), "Why do we need what we need? A terror management perspective on the roots of human social motivation", Psychological Inquiry, Vol. 8 No.1, pp.1-20.
Pyszczynski, T., Greenberg, J., Solomon, S., Ardnt, J., Schimel, J. (2004), "Why do people need self-esteem? A theoretical and empirical review", Psychological Bulletin, Vol. 130 No.3, pp.435-68.
Rawls, J. (1999), A Theory of Justice, Belknap Press, Cambridge, MA, .
Reuters (2010), "Obama slams oil companies for spill blame game", available at: www.reuters.com/article/idUSTRE6430AR20100514 (accessed 16 May 2010), .
Ringelmann, M. (1913), "Recherches sur les Moteurs Animés: Travail de l'Homme", Annales de l'Institut National Agronomique, Vol. 12 pp.1-40.
Rowe, M., Wilox, L., Gadlin, H. (2009), "Dealing with – or reporting – ‘unacceptable’ behavior", Journal of the International Ombudsman Association, Vol. 2 No.1, .
Sako, M. (2008), Price, Quality and Trust: Inter-Firm Relations in Britain and Japan, Cambridge University Press, Cambridge, .
Shaw, L.L., Batson, C.D., Todd, R.M. (1994), "Empathy avoidance: forestalling feeling for another in order to escape the motivational consequences", Journal of Personality and Social Psychology, Vol. 67 No.5, pp.879-87.
Shiffrin, S.V. (2008), "Promising, intimate relationships, and conventionalism", Philosophical Review, Vol. 117 No.4, pp.481-524.
Souvorov, A. (2003), "April-last update", Addiction to Rewards, available at: www.cemfi.es/research/conferences/ewm/Anton/addict_new6.pdf (accessed 24 December 2009), .
Staub, E. (1985), "The psychology of perpetrators and bystanders", Political Psychology, Vol. 6 No.1, pp.61-85.
Staub, E. (1992), The Roots of Evil: The Origins of Genocide and Other Group Violence, Cambridge University Press, Cambridge, .
Verbos, A.K., Gerard, J.A., Forshey, P.R., Harding, C.S., Miller, J.S. (2007), "The positive ethical organization: enacting a living code of ethics and ethical organizational identity", Journal of Business Ethics, Vol. 76 No.1, pp.17-33.
Wasserman, E.B. (2006), Kovetz Ma'Amarim Ve'Igrot (Hebrew for an Anthology of Articles and Letters), 2nd ed., Ohr Elchanan-Ohel Torah Institute, Jerusalem, .
Weiner, N.O. (1993), The Harmony of the Soul: Mental Health and Moral Virtue Reconsidered, SUNY Press, Albany, NY, .
Yammarino, F.J., Dionne, S.D., Schriesheim, C.A., Dansereau, F. (2008), "Authentic leadership and positive organizational behavior: a meso, multi-level perspective", Leadership Quarterly, Vol. 19 No.6, pp.693-707.
Batson, C.D., Klein, T.R., Highberger, L., Shaw, L.L. (1995), "Immorality from empathy-induced altruism: when compassion and justice conflict", Journal of Personality and Social Psychology, Vol. 68 No.6, pp.1042-54.
Mostovicz, E.I., Kakabadse, N.K. (2010), "Between trust and CSR: the role of leadership", in Idowu, S.O., Louche, C. (Eds),Theory and Practice in Corporate Social Responsibility, Springer, London, pp.159-78.
Mostovicz, E.I., Kakabadse, N., Kakabadse, A.P. (2008), "Janusian mapping: a mechanism of interpretation", Systematic Practice and Action Research, Vol. 21 No.3, pp.211-25.
About the authors
E. Isaac Mostovicz is a consulting academic. He applies his research insights into human logic in practical business situations, such as coaching business leaders and offering training to support organizational change. He is also actively involved in the diamond industry, devising and executing creative marketing programs in the USA and Asia. He received his PhD from the University of Northampton, and publishes regularly on the role of choice in decision making, with a focus on ethics and behavior. He is particularly interested in understanding the mechanism that humans use to choose between two, equally good options. He has applied this to fields as diverse as leadership, corporate social responsibility (CSR), corporate governance, business ethics and more. E. Isaac Mostovicz is the corresponding author and can be contacted at: email@example.com
Andrew Kakabadse has consulted and lectured in the UK, Europe, the SA, SE Asia, China, Japan, Russia, Georgia, the Gulf States and Australia. He is currently embarked on a major £2 million global study of boardroom effectiveness and governance practice, with the participation of a number of governments including British Ministers of State. His top team database covers 17 nations and many thousands of private and public sector organizations. The study of the strategic skills of top teams has now extended into Japan, China, Hong Kong and the USA. He has held positions on the boards of a number of companies and has also been adviser to a Channel 4 business series in the UK. His current areas of interest focus on leadership, governance, boardroom performance, change management, performance improvement for top executives and top executive teams, social and public administration and organizational behavior. In addition to his consulting role, he is also Professor of International Management Development at Cranfield University's School of Management, co-editor of the Journal of Management Development and Corporate Governance: The international journal of business in society, and editorial board member of the Journal of Managerial Psychology and the Leadership & Organization Development Journal. He holds a number of international Visiting Professorships and Fellowships, and he has published 30 books, over 190 articles and 18 monographs.
Nada K. Kakabadse has undertaken consulting work for a number of international organizations in Scandinavia and Europe, as well as in the Middle East and North Africa, and for several UK Government departments and the Canadian Federal Government. Her clients in the private sector have included Alliance & Leicester, Citigroup, Microsoft, Motorola, and Vodafone Australia. She works most often in the following areas: corporate governance, CSR, leadership, boardroom effectiveness, government and public sector, ICT effects on individuals/organizations and society, policy design, and strategic sourcing. In her academic role, she is Professor in Management and Business Research at the University of Northampton's Business School. She is also Visiting Professor at Macquarie University (Sydney, Australia) and at the Ulster University Business School (N. Ireland). She is co-editor of Corporate Governance: The international journal of business in society and Journal of Management Development. She has co-authored 12 books, and she has contributed 60 chapters to international volumes as well having published over 100 scholarly articles. She earned her PhD in Management at the University of Western Sydney – Nepean (Australia).