Melissa S. Baucus and Philip L. Cochran
Investigate how leaders of illegal organizations build and maintain positive reputations and how the deaths of these firms impact groups of external stakeholders.
Abstract
Purpose
Investigate how leaders of illegal organizations build and maintain positive reputations and how the deaths of these firms impact groups of external stakeholders.
Methodology/approach
We conduct a forensic analysis of nine firms in eight different countries by leaders who appeared to be highly successful corporate citizens but who turned out to be operating illegal Ponzi ventures.
Findings
These illegal firms built positive reputations by engaging in activities that enhanced perceptions of their firms’ perceived quality, gaining certifications and approvals from influential external individuals/organizations, engaging in philanthropic activities, and affiliating with high-status actors. Death of these nine firms had profoundly impacted external stakeholders resulting in investor devastation, a toxic environment of mistrust, damage to reputations of anyone affiliated with these illegal firms, and a major earthshake to the philanthropic community.
Research limitations/implications
Extends Rindova et al.’s (2005) research on how leaders use signals of quality and prominence to build reputations in the context of illegal organizations. Philanthropic activities are added as a reputation-building mechanism used by illegal organizations. The results draw attention to the need to examine how the death of illegal organizations affects a variety of external stakeholders, both individuals and organizations.
Practical implications
Leaders of illegal firms can be quite successful in building positive reputations and this success exacerbates the negative consequences that occur when the firms collapse.
Originality/value
Provides a qualitative study of reputation building and the extensive impact on stakeholders of the dissolution of illegal ventures.
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William I. Norton Jr, Monique L. Ueltschy Murfield and Melissa S. Baucus
The purpose of this paper is to develop a theoretical framework to explain how leaders emerge in teams that lack a hierarchical structure. This framework emphasizes the perceptual…
Abstract
Purpose
The purpose of this paper is to develop a theoretical framework to explain how leaders emerge in teams that lack a hierarchical structure. This framework emphasizes the perceptual processes through which team members determine whether or not an individual fits with the task, the group, and the situational context.
Design/methodology/approach
This paper builds on prior leadership research to develop a theoretical framework of emergent leadership, a testable model, and research propositions.
Findings
The authors suggest that team members’ perceptions of leadership fit depend on the potential leader's domain competence, fluid intelligence, willingness to serve, credibility, and goal attainment. A conceptual framework is developed to suggest these attributes combine to create perceptions of leadership fit that must correspond to the degree of stress in the situational context, which varies according to task criticality and time compression. The framework suggests that an individual perceived by team members to exhibit characteristics that fit with the situation will likely emerge as the leader.
Research limitations/implications
This paper focusses on emergent leadership, but does not address which path to leadership may be best. Future research may also address group dynamics (i.e. cohesion or group potency) and the implications for leader emergence.
Originality/value
This research contributes to the discipline by suggesting a potential path of leader emergence in multiple contexts of situational stress and leader behaviors.
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Qiang Lin and Brian H. Kleiner
Looks at various forms of employee termination and the differing interpretations involved in law. Gives the steps in wrongful discharge, legal developments and organizational…
Abstract
Looks at various forms of employee termination and the differing interpretations involved in law. Gives the steps in wrongful discharge, legal developments and organizational developments, plus the possible impacts on small business. Concludes that when employees complain about a problem on reasonable grounds, management should always try to rectify the problem – and not the complainant!
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Sara Rodriguez Gomez, María Victoria Lopez Perez, Raquel Garde Sánchez and Lázaro Rodríguez Ariza
Society in general demands ethical behaviour in the business world. The research aim of the paper is to analyse whether higher education institutions of business contribute to…
Abstract
Purpose
Society in general demands ethical behaviour in the business world. The research aim of the paper is to analyse whether higher education institutions of business contribute to ethical decision-making in students through a specific training approach based on practical methodologies that take into account students' personal characteristics, which may affect ethical decision-making. The acquisition of knowledge should be more effective when it is based on personal characteristics.
Design/methodology/approach
Case method, discussion and self-learning methodology were used, and at the end of the term, the students were evaluated and asked to complete a 48 closed-question questionnaire. A linear regression model is performed to analyse to what extent the results are associated to the variables proposed.
Findings
The results show that knowledge is an explanatory variable, but personal characteristics such as gender or empathy reinforce the learning. Gender difference affects the ethical decisions made and empathy, showing that training based on emotions is effective. Besides, the results show that students integrate family influence in their training process.
Research limitations/implications
In this paper, the authors have selected empathy, gender and instruction. They have taken into account the incidence of age and family education. In addition, other contextual factors can have an incidence on training and the model could be improved.
Practical implications
The results show that it is necessary to take into account the students' personal characteristics and select an appropriate training methodology to teach ethics and obtain success.
Social implications
The students graduating from these courses will be future managers and entrepreneurs and will make decisions in which ethical questions must be taken into account, hence the need for training in this respect.
Originality/value
The teaching of business ethics in business faculties is not an easy subject. It is necessary to select the approach of ethic and an effective methodology to achieve the learning objective. This learning methodology must take into account students' characteristics to be effective. The business students are future managers and entrepreneurs who will make decisions in which ethical questions must be considered, hence the need for training in this respect.
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Corey Fox, Phillip Davis and Melissa Baucus
The purpose of the present research is to explore the relationships between corporate social responsibility (CSR), authentic leadership and business model flexibility during times…
Abstract
Purpose
The purpose of the present research is to explore the relationships between corporate social responsibility (CSR), authentic leadership and business model flexibility during times of unprecedented crises.
Design/methodology/approach
The research approach in this study is conceptual. After a brief review of the literature associated with CSR, authentic leadership and business models, the authors introduce a model describing the interaction of authentic leadership and business model flexibility on CSR heterogeneity.
Findings
This research explains how firms that are led by authentic leaders and that have flexible business models will be more engaged with their stakeholders than firms with less authentic leaders or more rigid business models during unprecedented crises.
Practical implications
Prescriptions for practitioners are suggested for improving authentic leadership as well as making adaptations to the firm's business model. Regarding authentic leadership, firms can screen potential new hires and existing employees for authentic leadership qualities. Firms can also rely upon existing interventions shown to assist in authentic leadership development for current leaders. At the business model level, firms can focus on core resources and their application in related product and service markets.
Originality/value
Firms engaged in CSR activities benefit more from those activities when leaders are authentic. However, in times of unprecedented crises, business model flexibility may also dictate the extent to which firms can satisfy their stakeholders. The authors introduce a conceptual model that takes the elements of authentic leadership and business model flexibility into account to explain CSR heterogeneity.