IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v151y2018i4d10.1007_s10551-017-3568-5.html
   My bibliography  Save this article

Ethical Leadership, Organic Organizational Cultures and Corporate Social Responsibility: An Empirical Study in Social Enterprises

Author

Listed:
  • Palvi Pasricha

    (Indian Institute of Technology (IIT))

  • Bindu Singh

    (Indian Institute of Technology (IIT))

  • Pratibha Verma

    (Indian Institute of Technology (IIT))

Abstract

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility (CSR), empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the interaction between ethical leadership and CSR and, in addition, investigates organic organizational cultures (clan culture and adhocracy culture) as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior.

Suggested Citation

  • Palvi Pasricha & Bindu Singh & Pratibha Verma, 2018. "Ethical Leadership, Organic Organizational Cultures and Corporate Social Responsibility: An Empirical Study in Social Enterprises," Journal of Business Ethics, Springer, vol. 151(4), pages 941-958, September.
    • Handle: RePEc:kap:jbuset:v:151:y:2018:i:4:d:10.1007_s10551-017-3568-5
    DOI: 10.1007/s10551-017-3568-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-017-3568-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-017-3568-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    2. MariaLaura Di Domenico & Helen Haugh & Paul Tracey, 2010. "Social Bricolage: Theorizing Social Value Creation in Social Enterprises," Entrepreneurship Theory and Practice, , vol. 34(4), pages 681-703, July.
    3. James Avey & Michael Palanski & Fred Walumbwa, 2011. "When Leadership Goes Unnoticed: The Moderating Role of Follower Self-Esteem on the Relationship Between Ethical Leadership and Follower Behavior," Journal of Business Ethics, Springer, vol. 98(4), pages 573-582, February.
    4. Kevin Groves & Michael LaRocca, 2011. "An Empirical Study of Leader Ethical Values, Transformational and Transactional Leadership, and Follower Attitudes Toward Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 103(4), pages 511-528, November.
    5. Chris Low, 2006. "A framework for the governance of social enterprise," International Journal of Social Economics, Emerald Group Publishing, vol. 33(5/6), pages 376-385, May.
    6. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    7. Mats Alvesson & Lars Lindkvist, 1993. "Transaction Costs, Clans And Corporate Culture," Journal of Management Studies, Wiley Blackwell, vol. 30(3), pages 427-452, May.
    8. Tu Yidong & Lu Xinxin, 2013. "How Ethical Leadership Influence Employees’ Innovative Work Behavior: A Perspective of Intrinsic Motivation," Journal of Business Ethics, Springer, vol. 116(2), pages 441-455, August.
    9. Christian Resick & Gillian Martin & Mary Keating & Marcus Dickson & Ho Kwan & Chunyan Peng, 2011. "What Ethical Leadership Means to Me: Asian, American, and European Perspectives," Journal of Business Ethics, Springer, vol. 101(3), pages 435-457, July.
    10. Brown, Michael E. & Trevino, Linda K. & Harrison, David A., 2005. "Ethical leadership: A social learning perspective for construct development and testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 117-134, July.
    11. Yan Zhu & Li-Yun Sun & Alicia Leung, 2014. "Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 925-947, December.
    12. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    13. David A Waldman & Mary Sully de Luque & Nathan Washburn & Robert J House & Bolanle Adetoun & Angel Barrasa & Mariya Bobina & Muzaffer Bodur & Yi-Jung Chen & Sukhendu Debbarma & Peter Dorfman & Rosemar, 2006. "Cultural and leadership predictors of corporate social responsibility values of top management: a GLOBE study of 15 countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 823-837, November.
    14. Robert Padgett & Jose Galan, 2010. "The Effect of R&D Intensity on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 93(3), pages 407-418, May.
    15. Nelarine Cornelius & Mathew Todres & Shaheena Janjuha-Jivraj & Adrian Woods & James Wallace, 2008. "Corporate Social Responsibility and the Social Enterprise," Journal of Business Ethics, Springer, vol. 81(2), pages 355-370, August.
    16. Long-Zeng Wu & Ho Kwan & Frederick Yim & Randy Chiu & Xiaogang He, 2015. "CEO Ethical Leadership and Corporate Social Responsibility: A Moderated Mediation Model," Journal of Business Ethics, Springer, vol. 130(4), pages 819-831, September.
    17. Thomas Maak & Nicola M. Pless, 2006. "Responsible Leadership in a Stakeholder Society – A Relational Perspective," Journal of Business Ethics, Springer, vol. 66(1), pages 99-115, June.
    18. Akanksha Bedi & Can M. Alpaslan & Sandy Green, 2016. "A Meta-analytic Review of Ethical Leadership Outcomes and Moderators," Journal of Business Ethics, Springer, vol. 139(3), pages 517-536, December.
    19. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2013. "Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance," Journal of Business Ethics, Springer, vol. 115(2), pages 383-402, June.
    20. David A. Waldman & Donald S. Siegel & Mansour Javidan, 2006. "Components of CEO Transformational Leadership and Corporate Social Responsibility," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1703-1725, December.
    21. Elizabeth Chell & Katerina Nicolopoulou & Mine Karataş-Özkan, 2010. "Social entrepreneurship and enterprise: International and innovation perspectives," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(6), pages 485-493, October.
    22. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    23. Shamas-ur-Rehman Toor & George Ofori, 2009. "Ethical Leadership: Examining the Relationships with Full Range Leadership Model, Employee Outcomes, and Organizational Culture," Journal of Business Ethics, Springer, vol. 90(4), pages 533-547, December.
    24. Tamsin Angus-Leppan & Louise Metcalf & Sue Benn, 2010. "Leadership Styles and CSR Practice: An Examination of Sensemaking, Institutional Drivers and CSR Leadership," Journal of Business Ethics, Springer, vol. 93(2), pages 189-213, May.
    25. David Pastoriza & Miguel Ariño & Joan Ricart, 2008. "Ethical Managerial Behaviour as an Antecedent of Organizational Social Capital," Journal of Business Ethics, Springer, vol. 78(3), pages 329-341, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Sanaullah Shah & Cisheng Wu & Zia Ullah, 2021. "The Inter-Relationship between CSR, Inclusive Leadership and Employee Creativity: A Case of the Banking Sector," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    2. Junli Wang & Wendong Lv, 2023. "Research on the Impact of Green Innovation Network Embeddedness on Corporate Environmental Responsibility," IJERPH, MDPI, vol. 20(4), pages 1-28, February.
    3. Xuemei Xie & Yonghui Wu, 2022. "Doing Well and Doing Good: How Responsible Entrepreneurship Shapes Female Entrepreneurial Success," Journal of Business Ethics, Springer, vol. 178(3), pages 803-828, July.
    4. Charles H. Schwepker & Sean R. Valentine & Robert A. Giacalone & Mark Promislo, 2021. "Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being," Journal of Business Ethics, Springer, vol. 174(1), pages 143-159, November.
    5. Radka MacGregor Pelikánová & Robert Kenyon MacGregor & Martin Èernek, 2021. "New trends in codes of ethics: Czech business ethics preferences by the dawn of COVID-19," Oeconomia Copernicana, Institute of Economic Research, vol. 12(4), pages 973-1009, December.
    6. Yuyuan Chang & Wen He & Jianling Wang, 2021. "Government Initiated Corporate Social Responsibility Activities: Evidence from a Poverty Alleviation Campaign in China," Journal of Business Ethics, Springer, vol. 173(4), pages 661-685, November.
    7. Qian Zhang & Yun Liu, 2019. "Employees’ Environmental Protection and Charitable Donation and Ethical Leadership: An Empirical Study," IJERPH, MDPI, vol. 16(13), pages 1-19, June.
    8. Yuwei Deng & Jacob Cherian & Naveed Ahmad & Miklas Scholz & Sarminah Samad, 2022. "Conceptualizing the Role of Target-Specific Environmental Transformational Leadership between Corporate Social Responsibility and Pro-Environmental Behaviors of Hospital Employees," IJERPH, MDPI, vol. 19(6), pages 1-15, March.
    9. Qiang Wu & Jacob Cherian & Sarminah Samad & Ubaldo Comite & Huajie Hu & Stefan B. Gunnlaugsson & Judit Oláh & Muhammad Safdar Sial, 2021. "The Role of CSR and Ethical Leadership to Shape Employees’ Pro-Environmental Behavior in the Era of Industry 4.0. A Case of the Banking Sector," Sustainability, MDPI, vol. 13(17), pages 1-20, August.
    10. Seokwon Chang & Mugoan Jeong, 2021. "Does Leadership Matter in Performance of Social Enterprises in South Korea?," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    11. Mustafa Changar & Tarik Atan, 2021. "The Role of Transformational and Transactional Leadership Approaches on Environmental and Ethical Aspects of CSR," Sustainability, MDPI, vol. 13(3), pages 1-23, January.
    12. Xinyue Zhang & Dian Li & Xintong Guo, 2022. "Antecedents of Responsible Leadership: Proactive and Passive Responsible Leadership Behavior," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    13. Lee, Jung Young & McFadden, Kathleen L. & Lee, Min Kyung & Gowen, Charles R., 2021. "U.S. hospital culture profiles for better performance in patient safety, patient satisfaction, Six Sigma, and lean implementation," International Journal of Production Economics, Elsevier, vol. 234(C).
    14. Li Xu & Suleiman Jamal Mohammad & Nishad Nawaz & Sarminah Samad & Naveed Ahmad & Ubaldo Comite, 2022. "The Role of CSR for De-Carbonization of Hospitality Sector through Employees: A Leadership Perspective," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    15. Pasricha, Palvi & Nivedhitha, K.S. & Raghuvanshi, Juhi, 2023. "The perceived CSR-innovative behavior conundrum: Towards unlocking the socio-emotional black box," Journal of Business Research, Elsevier, vol. 161(C).
    16. (Ian) Lee, In Hyeock & Kim, Sung Min & Green, Seth, 2021. "Social enterprises and market performance: The moderating roles of innovativeness, sectoral alignment, and geographic localization," Journal of Business Research, Elsevier, vol. 132(C), pages 491-506.
    17. Zhu, Bing & Nguyen, Mai & Sarm Siri, Nang & Malik, Ashish, 2022. "Towards a transformative model of circular economy for SMEs," Journal of Business Research, Elsevier, vol. 144(C), pages 545-555.
    18. Cheffi, Walid & Kaleem Zahir-ul-Hassan, Muhammad & Omer Farooq, Muhammad & Baqrain, Abdelrahman & Mohamed Habib Mansour, Mourad, 2023. "Ethical leadership, management control systems and circular economy in SMEs in an emerging economy, the UAE," Journal of Business Research, Elsevier, vol. 156(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Min-Seong Kim & Brijesh Thapa, 2018. "Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    2. Muel Kaptein, 2019. "The Moral Entrepreneur: A New Component of Ethical Leadership," Journal of Business Ethics, Springer, vol. 156(4), pages 1135-1150, June.
    3. Bhaskar, Ratikant & Li, Peigong & Bansal, Shashank & Kumar, Satish, 2023. "A new insight on CEO characteristics and corporate social responsibility (CSR): A meta-analytical review," International Review of Financial Analysis, Elsevier, vol. 89(C).
    4. Qian Zhang & Yun Liu, 2019. "Employees’ Environmental Protection and Charitable Donation and Ethical Leadership: An Empirical Study," IJERPH, MDPI, vol. 16(13), pages 1-19, June.
    5. Junghyun (Jessie) Lee & Jeewon Cho & Yoonjung Baek & Rajnandini Pillai & Se Hyung Oh, 2019. "Does ethical leadership predict follower outcomes above and beyond the full-range leadership model and authentic leadership?: An organizational commitment perspective," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 821-847, September.
    6. Christof Miska & Mark E. Mendenhall, 2018. "Responsible Leadership: A Mapping of Extant Research and Future Directions," Journal of Business Ethics, Springer, vol. 148(1), pages 117-134, March.
    7. Raiswa Saha & Shashi & Roberto Cerchione & Rajwinder Singh & Richa Dahiya, 2020. "Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 409-429, March.
    8. Charles H. Schwepker & Sean R. Valentine & Robert A. Giacalone & Mark Promislo, 2021. "Good Barrels Yield Healthy Apples: Organizational Ethics as a Mechanism for Mitigating Work-Related Stress and Promoting Employee Well-Being," Journal of Business Ethics, Springer, vol. 174(1), pages 143-159, November.
    9. Kalra, Ashish & Briggs, Elten & Schrock, Wyatt, 2023. "Exploring the synergistic role of ethical leadership and sales control systems on salesperson social media use and sales performance," Journal of Business Research, Elsevier, vol. 154(C).
    10. Ayşe Cingöz & A. Asuman Akdoğan, 2019. "A Study on Determining the Relationships Among Corporate Social Responsibility, Organizational Citizenship Behavior and Ethical Leadership," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-19, June.
    11. Tajneen Affnaan Saleh & Abdullah Sarwar & Md. Amirul Islam & Muhammad Mohiuddin & Zhan Su, 2022. "Effects of Leader Conscientiousness and Ethical Leadership on Employee Turnover Intention: The Mediating Role of Individual Ethical Climate and Emotional Exhaustion," IJERPH, MDPI, vol. 19(15), pages 1-17, July.
    12. Kelsy Hejjas & Graham Miller & Caroline Scarles, 2019. "“It’s Like Hating Puppies!” Employee Disengagement and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 157(2), pages 319-337, June.
    13. Akanksha Bedi & Can M. Alpaslan & Sandy Green, 2016. "A Meta-analytic Review of Ethical Leadership Outcomes and Moderators," Journal of Business Ethics, Springer, vol. 139(3), pages 517-536, December.
    14. Shuili Du & Valérie Swaen & Adam Lindgreen & Sankar Sen, 2013. "The Roles of Leadership Styles in Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 114(1), pages 155-169, April.
    15. David Pastoriza & Miguel Ariño, 2013. "Does the Ethical Leadership of Supervisors Generate Internal Social Capital?," Journal of Business Ethics, Springer, vol. 118(1), pages 1-12, November.
    16. Long-Zeng Wu & Ho Kwan & Frederick Yim & Randy Chiu & Xiaogang He, 2015. "CEO Ethical Leadership and Corporate Social Responsibility: A Moderated Mediation Model," Journal of Business Ethics, Springer, vol. 130(4), pages 819-831, September.
    17. An-Chih Wang & Jack Ting-Ju Chiang & Wan-Ju Chou & Bor-Shiuan Cheng, 2017. "One definition, different manifestations: Investigating ethical leadership in the Chinese context," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 505-535, September.
    18. Yidong Tu & Xinxin Lu & Yue Yu, 2017. "Supervisors’ Ethical Leadership and Employee Job Satisfaction: A Social Cognitive Perspective," Journal of Happiness Studies, Springer, vol. 18(1), pages 229-245, February.
    19. Seda KIZIL & Atılhan NAKTİYOK, 2019. "Bu araştırmanın temel amacı, yöneticilerin göstermiş olduğu stratejik liderlik davranışlarının çalışanlarda oluşan kurumsal itibar algısı üzerindeki etkisinde kurumsal sosyal sorumluluğun (KSS) rolünü," Istanbul Business Research, Istanbul University Business School, vol. 48(1), pages 64-83, May.
    20. Yan Ling & Michelle Hammond & Li-Qun Wei, 2022. "Ethical leadership and ambidexterity in young firms: examining the CEO-TMT Interface," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 25-48, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:151:y:2018:i:4:d:10.1007_s10551-017-3568-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.