Journal of Business Ethics

, Volume 46, Issue 1, pp 31–44 | Cite as

The Role of Integrity as a Mediator in Strategic Leadership: A Recipe for Reputational Capital

  • Skip Worden
Article

Abstract

In the context of a crisis of confidence in executive leadership in corporate America, this paper examines the role of integrity as a mediator within strategic leadership and its impact on credibility in reputational capital. A tension can occur within strategic leadership between the elements of strategic planning and leadership vision. This tension can destroy the credibility of reputational capital unless strategic leadership is managed effectively. Integrity can be used as the glue providing for credible leadership vision amid a strategic perspective oriented to competitive pressures, thereby enabling strategic leadership to contribute to a sustainable competitive advantage. A strategic leadership audit is presented as a tool by which strategic leadership and reputational capital can be managed.

credibility ethics integrity leadership reputation strategic leadership vision 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Atwater, L., R. Penn and L. Rucker: 1991, 'Personal Qualities of Charismatic Leaders', Leadership & Organization Development Journal 12(2), 7–10.Google Scholar
  2. Badaracco, J. L. and R. R. Ellsworth: 1989, Leadership and the Quest for Integrity (Harvard Business School Press, Boston).Google Scholar
  3. Barney, J.: 1991, 'Firm Resources and Sustained Competitive Advantage', Journal of Management 17, 99–120.Google Scholar
  4. Barry, B. and C. V. Stevens: 1998, 'Objections to an Objectivist Approach to Integrity', Academy of Management Review 23(1), 162–169.Google Scholar
  5. Bass, B. M.: 1985, Leadership and Performance Beyond Expectations (Free Press, NY).Google Scholar
  6. Bass, B. M.: 1990, Bass and Stogdill's Handbook of Leadership: Theory, Research and Managerial Applications (Free Press, NY).Google Scholar
  7. Bass, B. M. and P. Steidlmeier: 1999, 'Ethics, Character, and Authentic Transformational Leadership Behavior', Leadership Quarterly 10(2), 181–218.Google Scholar
  8. Beatty, R. P. and J. R. Ritter: 1986, 'Investment Banking, Reputation, and Underpricing of Initial Public Offerings', Journal of Financial Economics 15, 213–232.Google Scholar
  9. Becker, T.: 1998, 'Integrity in Organizations: Beyond Honesty and Conscientiousness', Academy of Management Review 23(1), 154–161.Google Scholar
  10. Bennis, W.: 1990, Why Leaders Can't Lead: The Unconscious Conspiracy Continues (Jossey–Bass, San Francisco).Google Scholar
  11. Bennis, W. and B. Nanus: 1985, Leaders: The Strategies for Taking Charge (Harper & Row, NY).Google Scholar
  12. Berger, P.: 1967, The Sacred Canopy: Elements of a Sociological Theory of Religion (Doubleday, Garden City, NY).Google Scholar
  13. Bews, N. F. and G. J. Rossouw: 2002, 'A Role for Business Ethics in Facilitating Trustworthiness', Journal of Business Ethics 39(4), 377–390. Brunsson, N.: 1989, The Organization of Hypcrisy: Talk, Decisions, and Actions in Organizations (John Wiley, NY).Google Scholar
  14. Butler, J. K. and R. S. Cantrell: 1984, 'A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates', Psychological Reports 55, 19–28.Google Scholar
  15. Caldwell, C., S. J. Bischoff and R. Karri: 2002, 'The Four Umpires: A Paradigm for Ethical Leadership', Journal of Business Ethics 36, 153–163.Google Scholar
  16. Cannella Jr., A. A. and M. J. Monroe: 1997, 'Contrasting Perspectives on Strategic Leaders: Toward a More Realistic View of Top Managers', Journal of Management 23, 213–237.Google Scholar
  17. Caves, R. E. and M. E. Porter: 1977, 'From Entry Barriers to Mobility Barriers', Quarterly Journal of Economics 91, 421–434.Google Scholar
  18. Ciulla, J.: 1995, 'Leadership Ethics: Mapping the Territory', Business Ethics Quarterly 5(1), 5–28.Google Scholar
  19. Collins, J. C. and J. I. Porras: 1994, Built to Last (Harper Collins, NY).Google Scholar
  20. Coyne, K. P.: 1986, 'Sustainable Competitive Advantage–What It Is and What It Isn't', Business Horizons, pp. 54–61.Google Scholar
  21. Culbert, S., and J. T. McDonough: 1988, 'Organizational Alignments, Schisms, and Highintegrity Managerial Behavior', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 223–242.Google Scholar
  22. Davids, M.: 1995, 'Where Style Meets Substance', Journal of Business Strategy 16, 48–60.Google Scholar
  23. DePree, M.: 1989, Leadership is an Art (Doubleday, NY).Google Scholar
  24. Dienhart, J.: 1999, Business, Institutions and Ethics (Oxford University Press, Oxford).Google Scholar
  25. DiMaggio, P. J. and W. W. Powell: 1983, 'The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields', American Sociological Review 48, 147–160.Google Scholar
  26. Dowling, G. R.: 1986, 'Managing Your Corporate Images', Industrial Marketing Management 15, 109–115.Google Scholar
  27. Enderle, G.: 1987, 'Some Perspectives of Managerial Ethical Leadership', Journal of Business Ethics 6(8), 657–663.Google Scholar
  28. Finkelstein, S. and D. Hambrick: 1996, Strategic Leadership: Top Executives and their Effects on Organizations (West Publishing, St. Paul, MN).Google Scholar
  29. Fombrun, C.: 1996, Reputation: Realizing Value for the Corporate Image (Harvard Business School Press, Boston).Google Scholar
  30. Fombrun, C. and M. Shanley: 1990, 'What's in a Name? Reputation Building and Corporate Strategy', Academy of Management Journal 33(2), 233–258.Google Scholar
  31. Frederick, W. C.: 1998, 'Creatures, Corporations, Communities, Chaos, Complexity', Business & Society 37(4), 358–389.Google Scholar
  32. Hall, R.: 1993, 'A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage', Strategic Management Journal 14(8), 607–618.Google Scholar
  33. Hambrick, D. C. and P. Mason: 1984, 'Upper Echelons: The Organization as a Reflection of its Top Managers', Academy of Management Review 9, 193–206.Google Scholar
  34. Harrison, R.: 1988, 'Quality of Service: A New Frontier for Integrity in Organizations', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 45–67.Google Scholar
  35. Hitt, M. A., R. D. Ireland and R. E. Hoskisson: 1999, Strategic Management: Competitiveness and Globalization (South–Western Publishing, Cincinnati).Google Scholar
  36. Hitt, W. D.: 1990, Ethics and Leadership: Putting Theory into Practice (Battelle Press, Columbus, OH).Google Scholar
  37. Hosmer, L. T.: 1994, Moral Leadership in Business (Irwin, Burr Ridge, IL).Google Scholar
  38. Hosmer, L. T.: 1995, 'Trust: The Connecting Link Between Organizational Theory and Philosophical Ethics', Academy of Management Review 20, 379–403.Google Scholar
  39. Husted, B. W.: 1998, 'The Ethical Limits of Trust in Business Relations', Business Ethics Quarterly 8(2), 233–248.Google Scholar
  40. Ireland, R. D. and M. A. Hitt: 1999, 'Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership', Academy of Management Executive 13(1), 43–57.Google Scholar
  41. Kerr, S.: 1988, 'Integrity in Effective Leadership', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 122–139.Google Scholar
  42. Kirkpatrick, S. A. and E. A. Locke: 1991, 'Leadership: Do Traits Matter?', Academy of Management Executive 5, 48–60.Google Scholar
  43. Klein, B. and K. Leffler: 1981, 'The Role of Market Forces in Assuring Contractual Performance', Journal of Political Economy 89, 615–641.Google Scholar
  44. Kotter, J. P.: 1988, The Leadership Factor (The Free Press, NY).Google Scholar
  45. Kouzes, J. M. and B. Z. Posner: 1987, The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (Jossey–Bass, San Francisco).Google Scholar
  46. Kouzes, J. M. and B. Z. Posner: 1993, Credibility: How Leaders Gain and Lose It, Why People Demand It (Jossey–Bass, San Francico).Google Scholar
  47. Kramer, R. M.: 1996, 'Divergent Realities and Convergent Disappointments in the Hierarchic Relation: Trust and the Intuitive Auditor at Work', in R. M. Kramer and T. R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research (Sage, Thousand Oaks, CA), pp. 114–139.Google Scholar
  48. LeClair, D. T., O. C. Ferrell and J. P. Fraedrick: 1998, Integrity Management: A Guide to Managing Legal and Ethical Issues in the Workplace (University of Tampa Press, Tampa, FL).Google Scholar
  49. Levinson, H.: 1988, 'To Thine Own Self Be True: Coping with the Dilemmas of Integrity', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 268–289.Google Scholar
  50. Lowe, K. B., K. G. Kroeck and N. Sivasubramaniam: 1996, 'Effectiveness Coorelates of Transformational and Transactional Leadership: A Meta–analytic Review of the MLQ Literature', Leadership Quarterly 7(3), 385–425.Google Scholar
  51. Lundy, O. and A. Cowling: 1996, Strategic Human Resource Management (Routledge, London).Google Scholar
  52. Madsen, P.: 1990, 'Managing Ethics', Executive Excellence 7(12): 11–12.Google Scholar
  53. Mayer, R. C., J. H. Davis and F. D. Schoorman: 1995, 'An Integrative Model of Organizational Trust', Academy of Management Review 20(3), 709–734.Google Scholar
  54. Mayo, B.: 1978, 'Moral Integrity', in G. Vesey (ed.), Human Values (Humanities Press, Atlantic Highlands, NJ).Google Scholar
  55. McFall, L.: 1987, 'Integrity', Ethics 98(1), 5–20.Google Scholar
  56. Milgrom, P. and J. Roberts: 1986, 'Relying on the Information of Interested Parties', Rand Journal of Economics 17, 18–32.Google Scholar
  57. Mintzberg, H.: 1973, The Nature of Managerial Work (Prentice–Hall, Englewood Cliffs).Google Scholar
  58. Mishra, A. K.: 1996, 'Organizational Responses to Crisis, The Centrality of Trust', in R. M. Kramer and T. R. Tyler (eds.), Trust in Organizations: Frontiers of Theory and Research (Sage, Thousand Oaks, CA).Google Scholar
  59. Morgan, G.: 1986, Images of Organisation (Sage, Newbury Park, CA).Google Scholar
  60. Morgan, G.: 1989, 'Reliability and Validity of a Factor Analytically Derived Measure of Leadership Behavior and Characteristics', Educational and Psychological Measurement 49, 911–919.Google Scholar
  61. Morgan, R. B.: 1993, 'Self–and Co–worker Perceptions of Ethics and their Relationships to Leadership and Salary', Academy of Management Journal 36(1), 200–214.Google Scholar
  62. Nanus, B.: 1992, Visionary Leadership: Creating a Compelling Sense of Direction For Your Organization (Jossey–Bass, San Francisco).Google Scholar
  63. Paine, L. S.: 1997, Cases in Leadership, Ethics and Organizational Integrity: A Strategic Perspective (Irwin, Chicago).Google Scholar
  64. Parry, K. W.: 1998, 'The New Leader: A Synthesis of Leadership Research in Australia and New Zealand', Journal of Leadership Studies 5(5): 82–105.Google Scholar
  65. Parry, K. W. and S. B. Proctor–Thompson: 2002, 'Perceived Integrity of Transformational Leaders in Organizational Settings', Journal of Business Ethics 35(2), 75–96.Google Scholar
  66. Petrick, J. A. and J. F. Quinn: 2000, 'The Integrity Capacity Construct and Moral Progress in Business', Journal of Business Ethics 23(1), 3–18.Google Scholar
  67. Petrick, J. A. and J. F. Quinn: 2001, 'The Challenge of Leadership Accountability for Integrity Capacity as a Strategic Asset', Journal of Business Ethics 24(4), 331–343.Google Scholar
  68. Petrick, J. A., R. F. Scherer, J. D. Brodzinski, J. F. Quinn and M. F. Ainina: 1999, 'Global Leadership Skills and Reputational Capital: Intangible Resources For Sustainable Competitive Advantage', Academy of Management Executive 13(1), 58–69.Google Scholar
  69. Posner, B. Z. and W. H. Schmidt: 1984, 'Values and the American Manager: An Update', California Management Review 26(3), 202–216.Google Scholar
  70. Quinn, J. B., P. Anderson and S. Finkelstein: 1996, 'Leveraging Intellect', Academy of Management Executive 10, 7–27.Google Scholar
  71. Reese, J.: 1993, 'America's Most Admired Corporations', Fortune (Feb 8), p. 44.Google Scholar
  72. Rest, J.: 1986, Moral Development: Advances in Research and Theory (Praeger, NY).Google Scholar
  73. Rieke, M. L. and S. J. Guastello: 1995, 'Unresolved Issues in Honesty and Integrity Testing', American Psychologist 50, 458–459.Google Scholar
  74. Robbins, J. P.: 1997, Essentials of Organizational Behavior, 5th edition (Prentice–Hall, Upper Saddle River, NJ).Google Scholar
  75. Robert, M.: 1991, The Essence of Leadership Innovation and Decisiveness (Quroum Books, NY).Google Scholar
  76. Rowsell, K. and T. Berry: 1993, 'Leadership, Vision, Values and Systematic Wisdom', Leadership & Organization Development Journal 14(7), 18–22.Google Scholar
  77. Sejersted, F.: 1996, 'Managers and Consultants as Manipulators', Business Ethics Quarterly 6(1), 64–79.Google Scholar
  78. Shelton, K.: 1989, 'Counterfeit Leadership', Executive Excellence 6(7), 3–5.Google Scholar
  79. Shrivastava, P. and S. A. Nachman: 1989, 'Strategic Leadership Patterns', Strategic Management Journal 10, 51–66.Google Scholar
  80. Shrum, W. and R. Wuthnow: 1988, 'Reputational Status of Organizations in Technical Systems', American Journal of Sociology 93, 882–912.Google Scholar
  81. Simons, T. L.: 1999, 'Behavioral Integrity as a Critical Ingredient for Transformational Leadership', Journal of Organizational Change 12(2):, 89–104.Google Scholar
  82. Sims, R. R. and H. Brinkmann: 2002, 'Leaders as Moral Role Models: The Case of John Gutfreind at Solomon Brothers', Journal of Business Ethics 35(4), 327–339.Google Scholar
  83. Smircich, L. and G. Morgan: 1982, 'Leadership: The Management of Meaning', Journal of Applied Behavioral Science 18, 257–273.Google Scholar
  84. Solomon, Robert C.: 1999, A Better Way to Think About Business: How Personal Integrity Leads to Corporate Success (Oxford University Press, Oxford).Google Scholar
  85. Srivastra, S. and D. L. Cooperrider: 1988, 'Introduction: The Urgency For Executive Integrity', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (San Francisco, Jossey–Bass), pp. 1–28.Google Scholar
  86. Stigler, G. J.: 1962, 'Information In the Labor Market', Journal of Political Economy 70, 49–73.Google Scholar
  87. Teece, D. J., G. Pisano and A. Shuen: 1997, 'Dynamic Capabilities and Strategic Management', Strategic Management Journal 18(7), 509–533.Google Scholar
  88. Velasquez, M.: 1996, 'Why Ethics Matters: A Defense of Ethics in Business Organizations', Business Ethics Quarterly 6(2), 201–222.Google Scholar
  89. Waters, J. A.: 1988, 'Integrity Management: Learning and Implementing Ethical Principles in the Workplace', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 172–196.Google Scholar
  90. Watson, C. E.: 1991, Managing with Integrity: Insights from America's CEO's (Praeger, NY).Google Scholar
  91. Weber, J.: 1995, 'Influences upon Organizational Ethical Climates: A Multi–Departmental Analysis of a Single Firm', Organization Science 6(5), 509–523.Google Scholar
  92. Westley, F. and H. Mintzberg: 1989, 'Visionary Leadership and Strategic Management', Strategic Management Journal 10, 17–32.Google Scholar
  93. Wilson, R.: 1985, 'Reputations in Games and Markets', in A. E. Roth (ed.), Game–theoretic Models of Bargaining (Cambridge University Press, NY), pp. 27–62.Google Scholar
  94. Wolfe, D. M.: 1988, 'Is There Integrity in the Bottom Line: Managing Obstacles to Executive Integrity', in S. Srivastra (ed.), Executive Integrity: The Search for High Human Values in Organizational Life (Jossey–Bass, San Francisco), pp. 140–171.Google Scholar
  95. Worden, S.: 2003, 'Strategic Leadership as a Source of Competitive Advantage: A Qualified Dualistic Model', Midwestern Academy of Management Proceedings.Google Scholar
  96. Yukl, G. A. and D. D. Van Fleet: 1992, 'Theory and Research on Leadership in Organizations', in M. D. Dunnette and L. M. Hough (eds.), Handbook of Industrial and Organizational Psychology (2nd ed.), vol. 3 (Consulting Psychologists Press, Palo Alto, CA), pp. 147–197.Google Scholar

Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • Skip Worden
    • 1
  1. 1.DeKalbU.S.A.

Personalised recommendations