Week 5 Terms

Leader's Values and Ethics

  1. Norms
  2. Values
  3. Right and wrong
  4. Organizational culture
  5. Political correctness
  6. Attitudes
  7. Ethics
  8. Ethical behavior
  9. Workplace deviance
  10. Social consensus
  11. Whistle blowing
  12. Social responsibility
  13. Shareholder model
  14. Stakeholder model
  15. Stakeholders
  16. Primary stakeholders
  17. Secondary stakeholder
  18. Economic responsibility
  19. Legal responsibility
  20. Ethical responsibility
  21. Reactive strategy
  22. Defensive strategy
  23. Accomodative strategy
  24. Proactive strategy
  25. Terminal Values
  26. Instrumental values
  27. Approaches to Social responsibility: Utilitarian
  28. Approaches to Social responsibility: Moral rights
  29. Approaches to Social responsibility: Justice
  30. Approaches to Social responsibility: Practical


“Arnold & Hartman (2005) delineate three specific types of norms from which individuals, groups, organizations, programs or systems can deviate: strategic norms (e.g.: industry level best practices), legal norms (mandated by government) or ethical norms (such as basic human rights). Positive or negative deviance is then measured as a significant departure from the baseline of how, on aggregate, other firms within the same context are behaving. This is not dissimilar to the definition of institutions or “rules, norms, and beliefs that describe reality for the organization, explaining what is and what is not, what can be acted upon and what cannot” (Hoffman, 1999: 351) which are often categorized by their regulatory, normative or cognitive pressures on the organization (Scott, 1995)” ( Mazutis, 2008).

Mazutis, D. (2008). What is corporate deviance? Exploring negative and positive deviant firm behavior. Academy of Management Proceedings. P 1-6. Retrieved on September 9, 2008 from http://www.liberty.edu:2048/login?url=http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/detail?vid=4&hid=109&sid=ddb5d9ba-1109-45b0-be98-751571a4c843%40sessionmgr107&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=bth&AN=33725196


Though not referenced directly in the Brown and Trevino (2006a) ethical leadership model, research and theory on charismatic and transformational leadership indicate that personal value differences are a key determinate behind a leader’s motivation to pursue self-interests. In fact, personal values in general have been cited and/or found in past research to be important predictors of ethical behavior (e.g., Finegan, 1994; Fritzche, 1995; Schmidt and Posner, 1982). However the exact role values play in the ethical decision-making process is still unclear, as little research has explored their effect using an establish theory of the structure and content of personal value systems. (Illies and Reiter-Palmon, 2008).

Illies, J. & Reiter-Palmon, R. (2008). Responding Destructively in leadership situations: The role of personal values and problem construction. Journal of Business Ethics. 82 (1). P 251-272. Retrieved on September 9, 2008 from http://www.liberty.edu:2048/login?url=http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=5&hid=116&sid=5205f8a7-e4cd-422f-919b-5c06ba8a6cb6%40sessionmgr108

Right and wrong

“Character also means putting the greater good of the organization and society ahead of self-interest. It’s about worrying about “what is right” rather than “who is right”. Good judgment requires good values…Great leaders dissolve many of the impediments that stand in their way, through regular, ruthless self-scrutiny. Their built-in moral compass vigilantly and constantly evaluates their motives and monitors for right and wrong” (Tichy & Bennis, 2008).

Tichy, N. & Bennis, W. (2008). Wise leaders. Leadership Excellence. 25(1). P 3-4. Retrieved on September 9, 2008 from http://www.liberty.edu:2048/login?url=http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdf?vid=12&hid=109&sid=ddb5d9ba-1109-45b0-be98-751571a4c843%40sessionmgr107

Organizational culture

"Entrepreneurship mostly is related with the beginning of organization. In growing organization entrepreneurship expands its meaning – there we can talk about corporate entrepreneurship. It reveals itself through new business creation in the active organization, through renewal, change and development of current organizations, through breaking and changing of established rules inside or outside organization, so organization becomes more flexible, adaptive and competitive, also improving effectiveness of organization activity." (Duobiene, 2008, p. 90)

Duobiene, J. (2008). The role of organizational culture in sustaining corporate entrepreneurship. Economics & Management. 90. Retrieved September 11, 2008, from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=32562918&site=bsi-live

Political correctness

“Political Correctness: This involves anything from a doctrinaire denial of biological influences on human behaviour to laments about the fashionably oppressed workers or consumers. Organizational behavior writers and teachers seems particularly eager to jump on any politically correct bandwagon, like diversity, espousing the accepted view or following lay enthusiasms like emotional intelligence. Fashion and managerial acceptance, not veridicality, seem the important criteria for researching and writing about a topic, which is not how science should or does proceed. Often fairly “thin” ideas like management-by-walking-about are picked up and dropped by fickle consultants and researchers more eager to please managers and fit in with the zeitgeist than “do science”.” (Furnham, 2004, p. 432)

Furnham, A. (2004). The future (and past) or work psychology and organizational behavior: a personal view. Management Revue. 15(4). 420-436. Retrieved September 11, 2008, from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=15071597&site=bsi-live


“Attitudes reflect how people feel about something. For example, an individual who claims to dislike discrimination at work is expressing her/his attitude about this matter. Because attitudes can seem like objective truths they may also be highly resistant to change, but it is important to remember that they are human constructions, produced by people. Converting a belief into an attitude requires some value laden element, a sense of what a person considers desirable, good, and worthwhile. This suggests that attitudes hold a moral dimension as well. They serve as general guides to people’s behavior with respect to the object of the attitude, giving rise to a consistently favorable or unfavorable response pattern.” (Lamsa, Vehkapera, Puttonen & Pesonen, 2008, p. 48)

Lamsa, A., Vehkapera, M., Puttonen, T. & Pesonen, H. (2008). Effect of business education on women and men students’ attitudes on corporate responsibility in society. Journal of Business Ethics. 82(1) Retrieved September 9, 2008, from, http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=33543173&site=bsi-live


“Principle ethics focuses on obligations and on behavior, whereas virtue ethics focuses on the ideals to which an individual might aspire, and on individual character. Principles might govern compliance with a racial quota, whereas virtue ethics would emphasize striving toward the higher goal of a multicultural organization.” (Talley, 1997, p. 51)

Talley, F. J., (1997). Ethics in management. New Directions for Student Services (77), 45-66. Retrieved September 11, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=9708242954&site=ehost-live&scope=site

Ethical behavior

“Moral and ethical systems attempt to provide answers to how and why human beings ought to behave toward one another. Many such systems have been developed during the course of human history. The justification for claiming that such systems are binding on human conduct has come from two different sources: by an appeal to authority or by an appeal to reason. However, I feel that neither appeal is sufficient to either justify or explain human ethical behavior and that no ethical or moral system can be simultaneously complete, consistent, and universalized.” (Hall, 1986, p. 18)

Hall, L. K. B., (1986). The irrational basis of ethics. Humanist 46(4), 18-33. Retrieved September 11, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=10123963&site=ehost-live&scope=site

Workplace deviance

“Workplace deviance can occur individually in isolation and also in groups, but group pilfering usually results in greater losses to the company/employer than individuals working in isolation. The form (individual vs. group) and prevalence of workplace deviance depends on cultural and occupational characteristics.” (Alarid, 2005, p. 628)

Alarid, L. F., (2005). Turning a profit or just passing the time? A gender comparison of prisoner jobs and workplace deviance in the sub-Rosa economy. Deviant Behavior 26(6), 621-641. Retrieved September 11, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=18622095&site=ehost-live&scope=site

Social consensus

“In undeveloped countries, the economic benefits of purchasing pirated products may explain the popularity of the practice. However, in developing countries that have growing per capita incomes (e.g., Taiwan) the lack of social consensus against piracy may be a better explanation for the extent of this problem. Thus, a public education campaign designed to build a social consensus is required to make any anti-piracy strategy a success” (Wang, 2005, p. 236).

Wang, C. (2005). Factors that influence the piracy of DVD/VCD motion pictures. Journal of American Academy of Business, Cambridge, 6(1), 231-237. Retrieved September 9, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=15637488&site=ehost-live

Whistle blowing

“Ironically, perhaps, the whistleblowing effectiveness tip stressed repeatedly by many experts is to avoid using the word whistleblowing. The main reason people don't blow the whistle is that they fear retribution. Finding a softer way to describe the activity, and making people aware that whistleblowing isn't only about exposing fraud, can encourage people to come forward” (Baker, 2008, p. 40).

Baker, N. (2008). See no evil, hear no evil, speak no evil. Internal Auditor, 65(2), 38-43. Retrieved September 10, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=31639590&site=ehost-live

Social responsibility

“CSR is seen as an effective mechanism to raise social welfare, especially where regulation has failed or in those countries where either there is an absence of rules or public authorities are unable to enforce them (for further information see Blowfield 2005; De la Cuesta and Valor 2004; Jenkins 2005).
It is accepted in the literature that companies will not act responsibly out of benevolence, but because it pays. Although CSR may be justified using economic and moral arguments (Michael 2003), the economic justification, the so-called business case, is frequently used to defend CSR, especially in the political realm (De la Cuesta and Valor 2004; European Commission 2002, 2006)” (Valor, 2008, p. 315).

Valor, C. (2008). Can consumers buy responsibly? Analysis and solutions for market failures. Journal of Consumer Policy, 31(3), 315-326. Retrieved September 10, 2008 from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=33405518&site=ehost-live

Shareholder model

"We compare stakeholder and shareholder value models of management accountability to gain insights into the broader economic and societal consequences of the current financial reporting model.” (Barsky, 1999, pg. 583)

Barsky, Noah P. 1999. Shareholder and stakeholder value in corporate downsizing. Pg. 583-604. Retrieved September 8, 2008 from http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=869769 and article url: www.emeraldinsight.com/10.1108/09513579910298480

Stakeholder model

"We compare stakeholder and shareholder value models of management accountability to gain insights into the broader economic and societal consequences of the current financial reporting model.” (Barsky, 1999, pg. 583)

Barsky, Noah P. 1999. Shareholder and stakeholder value in corporate downsizing. Pg. 583-604. Retrieved September 8, 2008 from http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=869769 and article url: www.emeraldinsight.com/10.1108/09513579910298480


“Explains why children are generally regarded as consumers and stakeholders: their increased spending power, ability to make consumer choices, influence over family purchasing decisions, and media and brand awareness.” (Horgan, 2005, pg. 72)

Horgan, Sheena. 2005. Kids as stakeholders in business. Pgs. 72-81. Retrieved September 8, 2008 from http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=1558621 and article url: www.emeraldinsight.com/10.1108/17473610510701340

Primary stakeholders

"…investing in external primary stakeholders does not necessarily guarantee financial success. Here, investments may be more transactional in nature – ones that a competitor can copy relatively easily. Additionally, investments in external primary stakeholders might come at the expense of internal primary stakeholders thereby creating a cost to the firm that is detrimental to bottom line results." (Galbreath, 2006, p. 1117)

Galbreath, J. (2006). Does primary stakeholder management positively affect the bottom line?: Some evidence from Australia. Management Decision 44(8), 1106-1121. Retrieved September 11, 2008, from www.emeraldinsight.com/10.1108/00251740610690649

Secondary stakeholder

"Secondary stakeholders have the ability to influence primary stakeholders to take action against non-accepted behaviour or cause unacceptable damage to the organisation. The secondary stakeholders may include non-government organisations, media, fair-trade bodies, environmental pressure groups and other individuals or organisations that, in one way or another, if their wants and expectations are too heavily violated, may be able to influence primary stake-holders to such an extent that they would withdraw the necessary means." (Johansson, 2008, p. 35)

Johansson, P. (2008). Implementing stakeholder management: a case study at a micro-enterprise. Measuring Business Excellence 12(3), 33-41. Retrieved September 11, 2008, from www.emeraldinsight.com/10.110/13683040810900386

Economic responsibility

“This new social contract postulated that social progress should weigh equally in the balance with economic progress. The idea that corporations as organizations have “social responsibility” and obligations tying them to a wider society became popular in the 1950s, and continued through the 1960s and 1970s, when US businesses rapidly gained in size and power (Davis, 1983). Several groups were responsible for this heightened social consciousness, including the feminist movement and those advocating for the mentally and physically challenged, for native people, and for minorities.” (Lantos, 2001, p. 599)

Lantos, G. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing 18(7), 595-632. Retrieved September 11, 2008, from www.emeraldinsight.com/10.1108/07363760110410281

Legal responsibility

"Economics affirms that market efficiency depends on competitiveness. Anti-competitive behavior is discouraged: if not for the sake of undermining efficiency, it is out of fear of prosecution for violations of anti-trust law.The legal battle which resulted in a court ruling ordering the breakup of Microsoft into two seperate companies was based on that very principle. The breakup into two companies, one selling the Windows operating system and one selling the Windows applications system, aims at creating a more competitive climate by increasing Microsoft's vulnerability." (Butts, El Shazly, p.9, 2002)

Butts, Ryan J., El Shazly, Mona R., In quest of profits: legal and ethical implications facing Microsoft, International Journal of Social Economics, Vol. 29, Issue 5, p.9, 2002, retrieved September 12, 2008 from http://www.emeraldinsight.com.ezproxy.liberty.edu:2048/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0060290501.pdf

Ethical responsibility

"The moment that corporations and their managers define and accept responsibilities and obligations to primary stakeholders, and recognize their claims and legitimacy, they have entered the domain of moral principles and ethical performance, whether they know it or not." (Clarkson, p. 21, 1995)

Clarkson, Max B.E., A stakeholder framework for analyzing and evaluating corporate social performance, Academy of Management Review, vol. 20, p.21, 1995, retrieved September 12, 2008 from http://www.gsb.tt/academic/uploads/A_stakeholder_framework_for_analysing_and_evaluating_CSP.pdf

Reactive strategy

"Reactive approach relies largely on imitating the success of leading companies and their products in markets (Chin and Pun, 200). A firm waits until its competitors successfully introduce their products, and attempts to imitate them or develops similar products with modifications accordingly."

Pun, Kit Fai, An emperical investigation of strategy determinants and choices in manufacturing enterprises, Journal of Manufacturing Technology Management, Vol. 16, Issue 3, pp. 282-283, 2005, retrieved September 13, 2008 from http://www.emeraldinsight.com.ezproxy.liberty.edu:2048/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/0680160303.html

Defensive strategy

This study examined the strategy-environment-performance paradigm in a centrally planned economy (People's Republic of China) in transition to a more market-driven economy. Based on a survey of top Chinese managers in the electronics industry, it was found that during this course of transformation, firms exhibited distinctive strategies despite a long tradition of central planning, and these strategies were significantly related to perceived environmental uncertainty. Specifically, manager’s perceptions of increased environmental uncertainty were found to be negatively related to proactive strategies and positively related to defensive strategies. Defensive strategies were also linked to higher performance. (Tan & Litsschert, 2006, pg. 1-20)

Tan, J. & Litsschert, R. (2006). Environment-strategy relationship and its performance implications: An empirical study of the chinese electronics industry. Strategic Management Journal. 15(1), 1-20. Retrieved September 11, 2008, from http://www3.interscience.wiley.com/journal/113455493/abstract

Accomodative strategy

Collaboration, accommodation, and compromise strategies produce relatively better outcomes for both family and business. A competitive strategy results in relatively negative outcomes for both business and family. High levels of collaboration contribute to positive outcomes for both family and business, and high levels of compromise and accommodation contribute to positive family outcomes. Based on a comparison of means, this paper identifies conflict management profiles for achieving positive outcomes for both business and family. (Sorenson, (2004, pg. 325-340).

Sorenson, R. (2004). Conflict management strategies used by successful family businesses. Family Business Review. 12(4), 325-340. Retrieved September 11, 2008, from http://www3.interscience.wiley.com/journal/119079942/abstract

Proactive strategy

This field study explores the nature of entrepreneurial strategy making (ESM) and its relationship with strategy, environment and performance. In the first phase, we assess the independence of entrepreneurially oriented strategy-making processes through factor analysis. The second phase, using moderated hierarchical regression analysis, investigates the relative predictive power of two approaches for exploring the ESM-performance relationship: contingency and configuration. Findings from a sample of 32 firms competing in a wide variety of industries indicate that configurational approaches that align ESM, strategy, and environment have greater predictive power than contingency approaches. However, not all high performing configurations are consistent with normative theory. Thus, alternate theories linking entrepreneurial strategy making to competitive advantage should be developed and tested. (Dess, Lumpkin & Covin, 1998, pg. 677-695)

Dess, G., Lumpkin, G. & Covin, J. (1998). Entrepreneurial strategy making and firm performance: tests of contingency and configurational models. Strategic management journal. 18(9) , 677-695. Retrieved September 11, 2008, from http://www3.interscience.wiley.com/journal/7959/abstract

Terminal Values

Terminal values - It was found that the four most important terminal values were: freedom, true friendship, happiness, and a comfortable life, while the four least important were: mature love, national security, an exciting life, and salvation.(Lau & Wong, 1992, p. 3)

Lau, S. & Wong, A. (1992). Value and sex-role orientation of chinese adolescents. International Journal of Psychology 27(1), 3-18. Retreived September 09, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=5775896&site=ehost-live

Instrumental values

Instrumental values - The four most important instrumental values included: capable, cheerful, broadminded, and intellectual, while the four least important included: logical, imaginative, clean, and obedient.(Lau & Wong, 1992, p. 3)

Lau, S. & Wong, A. (1992). Value and sex-role orientation of chinese adolescents. International Journal of Psychology 27(1), 3-18. Retreived September 09, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=5775896&site=ehost-live

Approaches to Social responsibility: Utilitarian

Approaches to social responsibility: Utilitarian - The widely shared beliefs that in utilitarianism and consequentialism (a) the good has priority over the right and (b) the right is derived from the good, are both false. The most plausible components of utilitarianism that are used to present it as an intuitively compelling moral theory - welfarism, consequentialism and maximization - do not in fact support utilitarianism because they do not establish that the best state of affairs is the one with the highest sum total of the non-moral good. These components cannot determine which state of affairs is the best and therefore leave it entirely open whether one should opt for distribution-insensitive utilitarianism or a distribution-sensitive welfarist consequentialism.(Schroth, 2008, p.123)

Schroth, J. (2008). Distributive justice and welfarism in utilitarianism. Inquiry 51(2), 123-146. Retreived September 09, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=31643799&site=ehost-live

Approaches to Social responsibility: Moral rights

“By contrast, many people, philosophers and non-philosophers alike, hold that there are moral rights, that is, specific rights which exist as part of the moral nature of things. These rights are held to exist, that is, persons are held to have these rights, independently of anyone's choosing that this he so.” (Ozar, 1985, p. 279)

Ozar, D. (1985). Do corporations have moral rights. Journal of Business Ethics 4(4), 277-281. Retrieved September 13, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=5403911&site=ehost-live&scope=site

Approaches to Social responsibility: Justice

“The methodological assumption of the rational human being thus turns out to be a carefully covered-up normative claim: everybody ought to behave strictly according to their own self-interest; policy makers ought to create conditions where this claim can be fulfilled best; they ought to free the market from all the constraints that possibly hinder its superior mechanism of coordinating the individual interests – hence, the claim for more, not less market and in order to maximize welfare and for the economic benefits to trickle down even to the poorest of our society.” (Wettstein, 2008, p. 252)

Wettstein, F. (2008). Let’s talk rights: Messages for the just corporation–transforming the economy through the language of rights. Journal of Business Ethics 78(1/2), 247-263. Retrieved September 13, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=28541402&site=ehost-live&scope=site

Approaches to Social responsibility: Practical

“Like the individual moral agent, it is through responsibility that the corporation is able to discover its true aim and meaning. Its identity is given in the One for the Other, in the way it responds to the call of others with whom it has relations.” (Soares, 2008, p. 549)

Soares, C. (2008). Corporate Legal responsibility: A Levinasian perspective. Journal of Business Ethics 81(3), 545-553. Retrieved September 13, 2008, from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=33281548&site=ehost-live&scope=site

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