Sunday, June 24, 2012

Goverance and Ethics- Practitioner- Leadership Centrality and Corporate Social Ir-Responsibility (CSIR): The Potential Ameliorating Effects of Self and Shared Leadership on CSIR


Pearce, Craig, and Charles Manz. "Leadership Centrality And Corporate Social Ir-Responsibility (CSIR): The Potential Ameliorating Effects Of Self And Shared Leadership On CSIR." Journal Of Business Ethics 102.4 (2011): 563-579. Business Source Complete. Web. 23 June 2012.

The unethical behavioral of executives has negative effects on employees, shareholders, and other stakeholders of the company. The unethical behavior of top executives, from companies such as Enron and Worldcom, has highlighted the topic of corporate social responsibility. These executives overstated the earnings of their companies in order to receive higher compensations. They were acting in their own self-interest and there were no checks and balances. This article examines the two types of leadership, from Pearce’s 1997 study, that should use to prevent corporate social irresponsibility by executives



The article suggests that a combination of both strong self-leadership and shared-leadership are required to keep executives from committing irresponsible behavior. Self-leadership and shared-leadership are alternatives to the more common centralized leadership. Self-leadership is managing oneself, being both a leader and follower. Self-leadership helps reduce centralized leadership. In shared-leadership the leadership is decentralized and shared among the different leaders. Shared-leadership helps create checks and balances. The authors believe that using these two forms of leadership creates a balance of power.



The authors believe that you must have both strong self-leadership and shared-leadership. Having a strong form of either leadership and a weak form of the other will not reduce corporate social irresponsibility. A strong self-leadership and a weak shared-leadership can lead to individual corporate social irresponsibility. A weak self-leadership and strong shared-leadership can create group think among the executives.


1 comment:

  1. The recommendation made by the authors could very well help promote CSR but at the same time, be antagonistic to the operations of the firm. We know how leadership styles can greatly affect the performance of a company. So what safeguards do the authors recommend to make sure that these leadership styles will serve both CSR and the management of the firm?

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