Business With a Conscience
eBook - ePub

Business With a Conscience

A Research Companion

  1. 488 pages
  2. English
  3. ePUB (mobile friendly)
  4. Available on iOS & Android
eBook - ePub

Business With a Conscience

A Research Companion

About this book

Practicing business with a conscience leaves no sector untouched. It trickles into how we treat our employees; approach our work in general; address stakeholders; engage in accounting, financial, and production management practices; implement and manage information technology; communicate on a direct and indirect basis; and market what we stand for. Business has encountered an interesting evolution in the first two decades of the twenty-first century, with social media as a catalyst aiding greater understanding and improvement regarding the critical value of soft skills, workplace diversity, change readiness, moral responsibility, sustainable awareness, and a general socially responsible mindset. This amalgamate spirit of business as we envision it in both the near and far future has found its way in all segments of business education, research, and practice.

Adhering to the global trend of increased responsibility and evoking a constructive change in the narrative of business, this Research Companion serves as a critical reference work for business scholars and practitioners in various settings. It brings together contributing scholars from multiple business areas, from a variety of cultures and locations of the world, in order to achieve the compilation of a reference work that will find an expansive appeal. Including insights from the broad business spectrum ranging from internal managerial practices to strategic applications, including international sensitivity, this volume highlights the urgency for increased awareness in business decision-making on all fronts.

It will be of great value to researchers, academics, practitioners, and students in the fields of corporate social responsibility, business ethics, leadership, organizational studies, and entrepreneurship.

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Information

Publisher
Routledge
Year
2021
Print ISBN
9780367688820
eBook ISBN
9781000482942

Part I

Leadership and Organizational Behavior With a Conscience

1 Conscious Leadership

Considering Internal and External Stakeholders

Joan Marques
DOI: 10.4324/9781003139461-2

Introduction

The surprising events that marked the end of the second decade in the twenty-first century have given rise to the collective awareness that our future will not resemble our past experiences by any stretch of the imagination. A global pandemic changed the performance landscape from a multi-century trend of traveling to and from work to a predominantly static mode of operating, alerting organizations that what they thought to be impossible or undesirable had become an overnight requirement, which opened myriad new workforce structuring possibilities. The blatant expressions of racially fueled inequalities instigated a rapid increase in awareness about long-standing and solidly maintained structures to benefit some groups and keep others at a disadvantage. The already mounting call for gender equality and the increased demand for transparency and conscious diversity implementations completed the insight that we are on the cusp of a major reinvention of practically everything we thought we stood for.
Although many successful movements have been initiated at operational and tactical levels in organizations, there is one factor that has remained constant: change and inclusion are far more successful and more rapidly implemented when leaders are spearheading or strongly advocating them. In this chapter, we will review the phenomenon of leadership from various present-day appealing angles.

Leading in a Consciously Alert Setting

As indicated before, today’s leaders are expected to perform in different— more inclusive—ways than their predecessors. Let us briefly consider some specific organization-related aspects that lie at the foundation of the changed views:
  • There have been critical shifts in societal values, originated by changes in the work landscape, leading to a greater employee awareness and a subsequent greater need for involvement as a satisfaction tool (Higgs, 2003). Breeze and Pamala (2020) underline that today’s workforces expect greater involvement from managers and business owners than just doing the right thing. Leaders should therefore regularly consider the bigger picture of their performance, increase their tolerance levels for diverse environments, remain focused on their core principles rather than just following every new trend, surround themselves with people who have complementary skills, and expand their horizons (Marques, 2010a).
  • Shifts in investor focus: in contrast to the obsession with revenues and shareholder returns in the twentieth century, investors are now more interested in the quality and depth of an organization’s leader (Higgs, 2003). Corporate reputation has emerged into a discipline of its own, against the backdrop of the numerous ethical scandals and the growing mistrust in leaders’ moral standards during the initial years of this century (Resnick, 2004). Dupont and Karpoff’s (2020) Trust Triangle provides a useful framework to conceptualize the relationships between trust, corporate accountability, legal liability, reputation, and culture.
  • Ability to lead organizational change: More than 70% of organizations have problems adhering to change (Higgs, 2003). Yet, today’s leaders have dramatically been likened to “generals leading troops across a rugged, unmapped, quake-prone battlefield, against many different armies in a struggle to the death that never ends” ( Developing Agile Leaders, 2010, p. 12). Therefore, rather than being leery and inhibited toward change, they have to thrive on it. Unlearning is one of the first steps in making all of this possible. Outdated or potentially harmful routines can best be disarmed through unlearning. This has to happen at every level of an organization and begins with the individual. It is critical that unlearning practices are undertaken first individually and then taken across the organization ( Unlearning to Succeed, 2019).
  • The influence of excessive stress on employees: With the elevated demands on organizational performance, the understanding has increased that employees will perform better and be more committed if they have a leader they trust and have a good relationship with (Higgs, 2003). Workforce members are impacted when stress accumulates. Given the many turns in the contemporary performance landscape, stress accumulations are a real factor to consider. Leaders could support their employees by responding to stressful situations with openness, support, and compassion.

The Ever-Evolving Phenomenon of Leadership

As many definitions as there are about leadership, as many application guidelines are there as well. One of the popular ones in theory and practice toward a greater understanding and inclusion is Bolman and Deal’s (2008) four frames theory. Hill (2011) describes these four frames—structural, human resource, political, and symbolic—as “vantage points from which to analyze organizations” (p. 36). He refers to the structural frame as the one that clarifies roles and relies on hierarchies in the workplace; the human resource frame as the one that considers people and situations within the organization from the perspective of a formal leader; the political frame as an interaction-based one, focusing on the consequences of such dynamic interactions, with power, mediation, and agenda setting as critical factors; and the symbolic frame as the one that considers the cultural underpinnings of the organization and that understands the ambiguous and uncertain nature of human collaboration (pp. 36–37). The four frames provide a decent context to help analyze the complexity of leadership. However, the question to be considered is whether limiting ourselves to four static frames is still sufficient in today’s volatile world and its ever-changing organizational climates.

Growing Awareness Around Soft Leadership Skills

Soft skills have gradually but steadfastly risen to the top of leadership qualities. Goleman (2000) explains soft skills as pertaining to self-awareness, self-regulation, motivation, empathy, and social skill, whereas tough or hard skills pertain to intelligence, analytical/technical skills, determination, rigor, vision, and the like. Sethi (2018) warns that implementing soft skills demands continuous training and practice. He describes this effort as an ongoing and enduring activity which begins from one’s personal comfort zone, including his/her family and self-efforts, and should then be followed by initiatives taken within organizations.
Soft skills should be imparted at regular intervals and at different stages of one’s career. Soft skills are life skills which are needed at every juncture of one’s personal and professional life to be a better human being and to be a better performer.
The time when leaders had to be charismatic, swaying, convincing, die-hard, conniving, and only bottom-line-focused is behind us. Formal— whatever that meant—is out, and an “informal approach,” in which skills that are often still considered misplaced by those who were exposed to die-hard, unilateral leadership in the past century, has taken the front seat. Maccoby (2002) touches on one of the critical competencies in contemporary organizational performance—trust. He describes trust as a deceivingly gentle concept that can have tough consequences when neglected. Maccoby stresses that trust influences others’ perceptions of our product, leadership, knowledge, or partnership. One of the most common factors to damage trust is poor communication. Maccoby points out that there are still leaders who seem to think that communication happens sufficiently when they voice or write their orders. These individuals fail to consider the option of integrative communication, which turns employees off and negatively affects their perceptions of the leaders. Communication, especially in the current era in which diversity, equity, and inclusion are expected at every level of organizations, is no longer a one-way street. Dixon, Belnap, Albrecht, and Lee (2010) describe it as “a two-way process in which an exchange of thoughts, feelings, or ideas takes place” (p. 37).
Nonetheless, there are still organizations with leaders who have been exposed to obsolete theories and behavioral models and refuse to change. Unfortunately, even management educators in higher education institutions have been co-responsible in perpetuating this embarrassing trend. If we look deep enough, we find that there are many reasons why the shift to a more creative approach in leadership gets stagnated in some organizations till today. Some examples are: a) established structures in major corporations; b) reluctance from current managers to sacrifice power and prestige; c) fear that the new system will ultimately fail; d) lack of trust in the qualities and motivations of employees; and e) ignorance, caused by a lack of awareness or ill will regarding the need for transformation.

An Overview of Leadership Qualities

In our continuously changing performance and interactive climate, leaders will now, more than ever before, have to be critical and creative thinkers, because they are practically reinventing the entire concept of leadership in a different performance setting. The pace of performance, change, and problem-solving has picked up enormously and has even landed in a mind-boggling rapid way right at the commencement of the third decade in the twenty-first century. Instead of the proverbial “great man” or “great woman” traits, which were customary in the past century, this era calls for leadership as a process, consisting of collaboration and novel thinking to address problems with little or no familiar structure (Novelli & Taylor, 1993).
Today’s leaders work with their followers. They ensure compatibility between these followers’ values and the organization’s needs, as well as opportunities for followers’ growth. Contemporary leaders are aware that their strategies should include effective ways to produce cooperation, high efficiency, and participative roles to empower employees (Kennedy, 2010). Clarke and Mahadi (2017) are in strong support of the importance of mutuality with regard to recognition respect in leader–follower relationships. Their studies have found that, where leaders and followers are in agreement in their ...

Table of contents

  1. Cover
  2. Half Title Page
  3. Series Page
  4. Title Page
  5. Copyright Page
  6. Dedication Page
  7. Contents
  8. About the Editor
  9. About the Authors
  10. Part I Leadership and Organizational Behavior With a Conscience
  11. Part II Strategic and International Management With a Conscience
  12. Part III Corporate Social Responsibility and Social Entrepreneurship
  13. Index

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