Journal of Business Ethics

, Volume 34, Issue 3–4, pp 331–343 | Cite as

The Challenge of Leadership Accountability for Integrity Capacity as a Strategic Asset

  • Joseph A. Petrick
  • John F. Quinn
Article

Abstract

The authors identify the challenge of holding contemporary business leaders accountable for enhancing the intangible strategic asset of integrity capacity in organizations. After defining integrity capacity and framing it as part of a strategic resource model of sustainable global competitive advantage, the stakeholder costs of integrity capacity neglect are delineated. To address this neglect issue, the authors focus on the cultivation of judgment integrity to handle behavioral, moral and hypothesized economic complexities as key dimensions of integrity capacity. Finally, the authors recommend two leadership practices to build competence in business leaders to enhance integrity capacity as an organizational strategic asset.

accountability capacity integrity leadership 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Barney, J.: 1995, ‘Looking Inside for Competitive Advantage’, Academy of Management Executive 9, 49–61.Google Scholar
  2. Belasen, A.: 2000, Leading the Learning Organization (State University of New York, Albany, NY).Google Scholar
  3. Betz, J.: 1998, ‘Business Ethics and Politics’, Business Ethics Quarterly 8(4), 693–702.Google Scholar
  4. Brunsson, N.: 1989, The Organization of Hypocrisy: Talk, Decisions and Actions in Organizations (John Wiley, New York).Google Scholar
  5. Buller, P. and G. McEvoy: 1999, ‘Creating and Sustaining Ethical Capability in the Multi-National Corporation’, Journal of World Business 14, 56–70.Google Scholar
  6. Buller, P., J. Kohls and K. Anderson: 1997, ‘A Model for Addressing Cross-Cultural Ethical Conflicts’, Business and Society 36(2), 169–193.Google Scholar
  7. Cameron, K. and R. Quinn: 1999, Diagnosing and Changing Organizational Culture (Addison-Wesley, Reading, MA).Google Scholar
  8. Carter, S.: 1996, Integrity (Harper Perennial, New York).Google Scholar
  9. Ciulla, J.: 1995, ‘Leadership Ethics: Mapping the Territory’, Business Ethics Quarterly 5(1), 5–28.Google Scholar
  10. Collins, D. and C. Montgomery: 1995, ‘Competing on Resources: Strategy in the 1990s’, Harvard Business Review 73 (July–August), 118–128.Google Scholar
  11. Constanza, R.: 1992, Ecological Economics: The Science and Management of Sustainability (Columbia University Press, New York).Google Scholar
  12. Danley, J.: 1998, ‘Beyond Managerialism: After the Death of the Corporate Statesperson’, Business Ethics Quarterly 1(2), 21–30.Google Scholar
  13. Dennison, D., R. Hooijberg and R. Quinn: 1995, ‘Paradox and Performance: Toward a Theory of Behavioral Complexity in Management Leadership’, Organizational Science 6, 524–540.Google Scholar
  14. Dienhart, J.: 1999, Business, Institutions, and Ethics (Oxford University Press, New York).Google Scholar
  15. Driscoll, D. and M. Hoffman: 1999, Ethics Matters: How to Implement Values-Driven Management (Center for Business Ethics, Waltham, MA).Google Scholar
  16. Dukerich, J., M. Nichols, D. Elm and D. Vollrath: 1990, ‘Moral Reasoning in Groups: Leaders Make a Difference’, Human Relations 43(5), 473–493.Google Scholar
  17. Dunphy, D., J. Benveniste, A. Griffiths and P. Sutton (eds.): 2000, Sustainability: The Corporate Challenge of the 21st Century (Allen and Unwin, Sydney).Google Scholar
  18. Dunphy, D. and A. Griffiths: 1998, The Sustainable Corporation (Allen and Unwin, Sydney).Google Scholar
  19. Finkelstein, S. and D. Hambrick: 1996, Strategic Leadership: Top Executives and Their Effects on Organizations (West Publishing, St. Paul, MN).Google Scholar
  20. Fombrun, C.: 1996, Reputation: Realizing Value from the Corporate Image (Harvard Business School Press, Boston, MA).Google Scholar
  21. Grant, R.: 1996, ‘Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration’, Organization Science 7, 375–387.Google Scholar
  22. Hall, R.: 1993, ‘A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage’, Strategic Management Journal 14, 607–618.Google Scholar
  23. Hambrick, D., M. Geletkanycz and J. Frederickson: 1993, ‘Top Executive Commitment to the Status Quo: Some Tests of its Determinants’, Strategic Management Journal 14, 401–418.Google Scholar
  24. Hambrick, D. and R. D'Aveni: 1992, ‘Top Team Deterioration as Part of the Downward Spiral of Large Corporate Bankruptcies’, Management Science 38(10), 1445–1466.Google Scholar
  25. Hart, S. and R. Quinn: 1993, ‘Roles Executives Play: CEOs, Behavioral Complexity, and Firm Performance’, Human Relations 46(3), 115–142.Google Scholar
  26. Hawkins, P., A. Lovins, L. Lovins and L. Hunter: 1999, Natural Capitalism: Creating the Next Industrial Revolution (Little, Brown and Company, Boston).Google Scholar
  27. Herremans, I. M., P. Akathaporn and M. McInnes: 1993, ‘An Investigation of Corporate Social Responsibility Reputation and Economic Performance’, Accounting, Organizations and Society 18, 587–604.Google Scholar
  28. Hitt, M., D. Ireland and R. Hoskisson: 2001, Strategic Management: Competitiveness and Globalization, 4th Ed. (South-Western Publishing, Cincinnati, OH).Google Scholar
  29. Hoojiberg, R. and R. Quinn: 1992, ‘Behavioral Complexity and the Development of Effective Managers’, in R. Kullips and J. Hunt (eds.), Strategic Leadership: A Multiorganizational Level Perspective (Quorum, Westport, CT), pp. 44–61.Google Scholar
  30. Karliner, J.: 1997, The Corporate Planet: Ecology and Politics in the Age of Globalization (Sierra Club Books, San Francisco).Google Scholar
  31. Korten, D.: 1996, When Corporations Rule the World (Berrett-Koehler, San Francisco).Google Scholar
  32. Korten, D.: 1999, The Post Corporate World: Life After Capitalism (Berrett-Koehler, San Francisco).Google Scholar
  33. LeClair, D., O. Ferrell and J. Fraedrich: 1998, Integrity Management (University of Tampa Press, Tampa, FL).Google Scholar
  34. Lehman, G.: 1999, ‘Disclosing New Worlds: A Role for Social and Environmental Accounting and Auditing’, Accounting, Organizations and Society 24, 217–241.Google Scholar
  35. Litz, R. A.: 1996, ‘A Resource-based View of the Socially Responsible Firm: Stakeholder Awareness, Ethical Awareness, and Issue Responsiveness as Strategic Assets’, Journal of Business Ethics 15, 1355–1363.Google Scholar
  36. Mathews, M.: 1997, ‘Twenty-Five Years of Social and Environmental Accounting Research’, Accounting, Auditing & Accountability Journal 10(4), 481-531.Google Scholar
  37. Mokhiber, R. and R. Weissman: 1999, Corporate Predators: The Hunt for Mega-Profits and Attack on Democracy (Common Courage Press, Monroe, MA).Google Scholar
  38. Monks, R.: 1991, Power and Accountability (HarperCollins, New York).Google Scholar
  39. Munro, R. and J. Mouritsen: 1996, Accountability (Thompson Business Press, Cincinnati).Google Scholar
  40. O'Leary-Kelly, A., R. Griffen and D. Glew: 1996, ‘Organization-Motivated Aggression: A Research Framework’, Academy of Management Review 21(1), 225–253.Google Scholar
  41. Paine, L.: 1997, Leadership, Ethics, and Organizational Integrity (Irwin, Chicago).Google Scholar
  42. Paine, L.: 1994, ‘Managing for Organizational Integrity’, Harvard Business Review (March–April), 106–117.Google Scholar
  43. Petrick, J.: 1998, ‘Building Organizational Integrity and Quality with the Four P's: Perspectives, Paradigms, Processes, and Principles’, in M. Schminke (ed.), Managerial Ethics: Moral Management of People and Processes (Lawrence Erlbaum Publishers, Mahwah, NJ), pp. 115–132.Google Scholar
  44. Petrick, J.: 1999, ‘Business Leadership Judgment Integrity and Sustainable Competitive Advantage in the Global Digital Economy’, Global Business and Economics Review 1, 17–30.Google Scholar
  45. Petrick, J.: 2000, ‘Global Human Resource Management Competence and Judgment Integrity Capacity: Towards a Human Centered Organization’, Business & Professional Ethics Journal 19(3), 117-138.Google Scholar
  46. Petrick, J. and J. Quinn: 1997, Management Ethics: Integrity at Work (Sage Publications, Thousand Oaks, CA).Google Scholar
  47. Petrick, J. and J. Quinn: 2000, ‘The Integrity Capacity Construct and Moral Progress in Business’, Journal of Business Ethics 23, 3–18.Google Scholar
  48. Petrick, J. and R. Scherer: 2000, ‘Global Leadership, Capacity for Judgment Integrity, and Acculturized Organizational Knowledge’, Performance Improvement Quarterly 8(3), 34–49.Google Scholar
  49. Petrick, J., R. Scherer, J. Brodzinski, J. Quinn and F. Ainina: 1999, ‘Global Leadership Skills and Reputational Capital: Intangible Resources for Sustainable Competitive Advantage in the 21st Century’, Academy of Management Executive 13(1), 58–69.Google Scholar
  50. Piasecki, B., K. Fletcher and F. Mendelson: 1999, Environmental Management and Business Strategy (Wiley, New York).Google Scholar
  51. Pojman, L.: 2000, Global Environmental Ethics (Mayfield Publishing, Mountain View, CA).Google Scholar
  52. Quinn, R., G. Spreitzer and S. Hunt: 1992, ‘Integrating the Extremes: Crucial Skills for Managerial Effectiveness’, in S. Srivastva and Associates (eds.), Stability and Organizational Continuity: Managing the Variables of Stability and Change (Jossey-Bass, San Francisco), pp. 92–109.Google Scholar
  53. Romer, P.: 1999, ‘Two Strategies for Economic Development: Using Ideas and Producing Ideas’, Proceedings of the World Conference on Development Economics (World Bank, NY), pp. 112–132.Google Scholar
  54. Scott, M. and H. Rothman: 1994, Companies with a Conscience: Intimate Portraits of Twelve Firms that Make a Difference (Citadel Press, New York).Google Scholar
  55. Sejersted, F.: 1996, ‘Managers and Consultants as Manipulators’, Business Ethics Quarterly 6(1), 64–79.Google Scholar
  56. Sethi, S. and L. Sama: 1998, ‘Ethical Behavior as a Strategic Choice by Large Corporations: The Interactive Effect of Marketplace Competition, Industry Structure and Firm Resources’, Business Ethics Quarterly 8(1), 85–104.Google Scholar
  57. Solomon, R.: 1992, Ethics and Excellence: Cooperation and Integrity in Business (Oxford University Press, New York).Google Scholar
  58. Srivastva, S. and Associates: 1988, Executive Integrity: The Search for High Human Values in Organizational Life (Jossey Bass, San Francisco).Google Scholar
  59. Sveiby, K.: 1997, The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets (Berrett-Koehler, San Francisco).Google Scholar
  60. Taub, R.: 1988, Community Capitalism (Harvard Business School Press, Boston).Google Scholar
  61. Teece, D., G. Pisano and A. Shuen: 1997, ‘Dynamic Capabilities and Strategic Management’, Strategic Management Journal 18, 509–533.Google Scholar
  62. Trevino, L., K. Butterfield and D. McCabe: 1998, ‘The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors’, Business Ethics Quarterly 8(3), 447–476.Google Scholar
  63. Trevino, L., G. Weaver and M. Brown: 2000, ‘It's Lovely at the Top: Comparing Senior Managers' and Employees' Perceptions of Organizational Ethics’, Proceedings of the Annual Meeting of the Academy of Management (Toronto, August).Google Scholar
  64. Useem, M.: 1996, Investor Capitalism (Basic Books, New York).Google Scholar
  65. Vietor, R.: 1996, Contrived Competition: Regulation and Deregulation in America (Harvard University Press, Cambridge, MA).Google Scholar
  66. Waddock, S. and S. Graves: 1997, ‘The Corporate Social Performance-Financial Performance Link’, Strategic Management Journal 18, 303–319.Google Scholar
  67. Weaver, G., L. Trevino and P. Cochran: 1999a, ‘Corporate Ethics Programs as Control Systems: Influences of Executive Commitment and Environmental Factors’, Academy of Management Journal 42(1), 41–57.Google Scholar
  68. Weaver, G., L. Trevino and P. Cochran: 1999b, ‘Corporate Ethics Practices in the Mid-1990's: An Empirical Study of the Fortune 1000’, Journal of Business Ethics 18, 283–294.Google Scholar
  69. Weaver, G., L. Trevino and P. Cochran: 1999c, ‘Integrated and Decoupled Corporate Social Performance: Management Commitments, External Pressures, and Corporate Ethics Practices’, Academy of Management Journal 42, 539–552.Google Scholar
  70. Weber, J.: 1995, ‘Influences upon Organizational Ethical Climates: A Multi-Departmental Analysis of a Single Firm’, Organization Science 6(5), 509–523.Google Scholar
  71. Wenz, P.: 2000, Environmental Ethics Today (Oxford University Press, New York).Google Scholar
  72. White, J.: 1998, Terrorism: An Introduction (West, Minneapolis, MN).Google Scholar
  73. Yergin, D. and J. Stanislaw: 1998, The Commanding Heights: The Battle Between Government and the Marketplace That is Remaking the Modern World (Simon and Schuster, New York).Google Scholar
  74. Zadek, S., P. Pruzan, and R. Evans: (eds.): 1997, Building Corporate Accountability: Emerging Practices in Social and Ethical Accounting, Auditing and Reporting (Earthscan, London).Google Scholar
  75. Zadek, S.: 1998, ‘Balancing Performance, Ethics, and Accountability’, Journal of Business Ethics 17, 1421–1441.Google Scholar

Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Joseph A. Petrick
    • 1
  • John F. Quinn
    • 2
  1. 1.Department of Management, Raj Soin College of BusinessWright State UniversityDaytonU.S.A
  2. 2.Department of Philosophy, College of Arts and SciencesUniversity of DaytonDaytonU.S.A

Personalised recommendations