Two academics argue that the current push for corporations to focus on nebulous stakeholder value rather than traditional shareholder value only provides cover for underperforming managers.
New research based on an exceptional database of unfaithful individuals reveal that people who are unfaithful to their spouses are more likely to engage in professional misbehaviour, supporting the contention that personal and professional misconduct are linked.
In considering Atlanta for its second headquarters, Amazon raised an issue that could impact other companies considering new locations: would socially liberal Amazon influence its community, or would the company itself be changed by its new conservative surroundings?
The new Creating Shared Value (CSV) mandate that calls for business to focus on both making profits and helping society is criticized as naïve wishful thinking. The interface of business and society is not always win-win. An international team of academics answers the critics with a CSV+ framework that covers all situations — even the win-lose or lose-win ones.
Does Corporate Social Responsibility (CSR) benefit society? A new study based on exhaustive data reveals that while private company CSR commitments do benefit society, public company do not perform as well.
More CEOs are speaking out on social issues unrelated to their business. A new study shows that this activism can galvanize public opinion – and doesn’t hurt sales.
Opponents of quantitative risk management models believe these models are counterproductive: they inhibit companies from taking calculated chances without preventing major mistakes (see the 2008 economic crisis). A new study of seven successful companies shows that when complemented by rigorous qualitative risk management practices and expanded roles for risk managers, quantitative models enhance rather than inhibit a company’s innovation and initiative.
New executives must immediately understand and evaluate a company’s culture before launching any significant change initiatives. They must ask themselves: Is this the right culture for the future? And given the current values, norms and beliefs of the company, how can I best implement change and build the foundation for sustainable success?
Most people live by a set of moral rules that guides their decision-making. For example: killing is never justified. What happens, however, if the death of one person could save the lives of many? Should the rule be ignored in this case? Many people would say yes — the consequences change the situation. A new study, however, shows that in the workplace, these ‘consequentialists’ will be less trusted than those who live by immutable moral rules.
Although perhaps a drastic move from the perspective of many businesspeople, the Norwegian government’s bold adoption of a 40% quota for women on boards, and its short 2-year implementation phase, had no significant impact — either negative or positive — on short- or long-term corporate performance.
Through the use of four archetypes, a team of researchers describes the impact of different corporate governance systems on company decisions involving human resources. The team also argues that a corporate sustainability mental frame can overcome the inherent contradictions and challenges in each archetype.
Can having a daughter impact the decisions of a CEO? The answer is yes, according to new research that compared corporate social responsibility scores of companies whose CEOs had daughters to companies whose CEOs were childless — or only had sons.
Shoppers bringing their own bags help reduce the adverse environmental impact of plastic bags. New research shows, however, that the environment is not the only winner. Environmentally conscious shoppers are inspired to buy more expensive organic products, and reward themselves with unplanned indulgent purchases — a boon to grocery stores.
Some companies are unequivocally supportive of controversial political causes that are not even related to their industries — gay marriage, for example. Is corporate political advocacy, which goes beyond the responsible practices and community involvement of corporate social responsibility (CSR), appropriate in a business setting?
Adopting a calculative mindset to every problem — approaching every issue, either qualitative or quantitative, in a numerical frame of mind — can lead to dishonest or immoral decisions, according to new research.
Values-based leadership can drive the performance of organizations, and managing those values is the key to unlocking increased performance. Richard Barrett’s model maps values for individuals, groups, organizations and nations. It can identify the gaps between observed and desired values and the negative values that create dysfunction, and can be used to show where change needs to occur to create higher performance.
An in-depth study of ordinary people over an extended period of time reveals how easy it is for ‘good’ people, starting with an initial small, self-justified deception, to quickly justify bigger and bigger indiscretions, thus falling down the ‘slippery slope’ to major unethical behaviour.
For organizational values to have an impact they must be turned into practices. Effective values practices are not stamped in place by top-down management pronouncements but rather emerge from precipitating events that draw concerned people together who seek preventive solutions. These solutions are eventually, after a period of contention and rework, manifested in concrete practices.
The transition from a product-based company to a platform-based company will have a major impact on your organizational identity: how organizational members conceive of who you are. Understand the fundamental shift and broaden that identity while staying true to your values.
A culture of integrity adds value to the firm. Research shows that the more employees perceive top managers as trustworthy and ethical, the better the financial performance of the firm and the more attractive the firm to potential employees.
For stakeholders, such as employees and customers, the trustworthiness of a company is based on competence and character attributes. New research shows that whether competence or character is more important to establishing trust depends on the personal conservative or liberal values of the stakeholders. This research helps companies develop targeted trust-building strategies.
Proponents of Corporate Social Responsibility (CSR) insist that companies will “do well by doing good.” Researchers from Northwestern University’s Kellogg School of Management, however, argue that the truth is more complicated. Their research confirms a positive association between current CSR expenditures and the future financial performance of the company. However, it is the signal that CSR spending sends to the market that explains this positive correlation — not the return on investment in CSR.
In assessing leaders at any level in an organization, three questions are asked:
Do they have the competencies to be a leader?
Do they have the commitment to be a leader?
Do they have the character to be a good leader?
This Idea focuses on leadership character because it is the most difficult to define, measure, assess and develop. Its aim is to define those dimensions of leadership character that are most important in today’s business environment and suggest how character can be developed.
This Idea will help you understand how responsible leadership (RL) can enhance your personal reputation, your company’s reputation, and help strengthen those bonds with the society you serve. Furthermore, we will explore how to regard RL as a central feature of how you do business.
How can leaders create the right corporate culture to confront the myriad levels of complexity in today’s turbulent business environment?
The emerging concept of ‘coaching by values’ (CBV) provides a flexible framework to help them reengineer their organization’s corporate culture and create positive outcomes for all stakeholders.
A diverse team can achieve great things. But diversity can sometimes lead to conflict too. The effects of team diversity on team outcomes vary considerably from study to study. This Idea digs deeper, investigating the effects of ‘values diversity’ on team effectiveness – and how leaders can play a significant controlling role in the relationship between values diversity and conflict within a team.
Using Marks & Spencer as an example, there are certain practices other organizations can similarly apply to improve focus on corporate responsibility and sustainability. The UK retailer has made a number of successful moves towards embedding social and environmental awareness and practices into its everyday strategic vision. In this Idea, these are analyzed and discussed, offering companies tips they can similarly apply.
Fast growing businesses are susceptible to failures. To sustain the enterprise executives must know how to manage the aftermath of an organizational failure. Specifically, the authors point to mindset shifts that can improve leadership in volatile environments. These include: collaborating with critics, making sure everyone is on the same page, and above all remaining grounded in a strong set of personal values.
Have you ever worked for a bit of a self-obsessed boss? You weren’t imagining it; corporate narcissism is an actual and not unusual phenomenon. It can even eventually diminish firm performance and is therefore something to look out for. Now, research suggests that the size of a CEO’s signature may give a clue as to how big their ego is.
At what point do employees realize, if at all, that they are making an inappropriate decision? And what interventions are available to help ensure they make the right ones? When employees fail to act with a strong sense of integrity, there are conscious and unconscious factors at play. Leaders should be aware of these in order to create and sustain a corporate culture where doing the right thing becomes second nature.
