Impact of Ethical Leadership on Organizational Performance and Mediating Role of Corporate Social Responsibility: Evidence from Banking Sector of Pakistan.
Author(s)
Azlan Naseer Butt , Syed Muhammad Maaz, , Dr. Iftikhar A Butt ,
Download Full PDF Pages: 25-37 | Views: 379 | Downloads: 103 | DOI: 10.5281/zenodo.3464785
Abstract
This paper aims to investigate the relationship between ethical leadership and Organizational performance, mean while studying the mediating role of corporate social responsibility between this relationship. Using survey data from public and private banking sector of Pakistan, we found that Ethical leadership positively affects the corporate social responsibility which in turn positively influences the organizational performance. Besides this, we found a partial mediating role of corporate social responsibility on the relationship between ethical leadership and organizational performance.
Keywords
Ethical Leadership, Organizational Performance, Corporate Social Responsibility
References
- Ackerman, R. W. (1973). How companies respond to social demands. Harvard Business Review, 51(4), 88-98.
- Ahmed, P. K., & Machold, S. (2004). The quality and ethics connection: toward virtuous organizations. Total Quality Management & Business Excellence,15(4), 527-545.
- Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment and organizational performance. African Journal of Business Management, 4(12), 2796- 2801
- Aslan, Ş., & Şendoğdu, A. (2012). The mediating role of corporate social responsibility in ethical leader's effect on corporate ethical values and behavior. Procedia-Social and Behavioral Sciences, 58, 693-702.
- Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice-Hall.
- Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595-616.
- Conrad, A. M. (2013). Ethical leadership in Kazakhstan: An exploratory study. The Journal of Values-Based Leadership, 6(1), 2.
- Davis, K. and Blomstrom, R.L. (1975). Business and Society: Environment and Responsibility. New York: McGraw-Hill.
- Davis, K.: 1960, „Can Business Afford to Ignore Social Responsibilities?‟, California Management Review 2(3), 70–76.
- Dinc, M. S., & Aydemir, M. (2014). The Effects of Ethical Climate and Ethical Leadership on Employee Attitudes: Bosnian Case.
- Ferrell, O. C., Maignan, I., & Loe, T. W. (1999). A Corporate Ethics+ Citizenship= Competitive Advantage. Successful Business Through Successful Ethics Programs Proceedings.
- Fiedler, F. E. (1996). Research on leadership selection and training: One view of the future. Administrative science quarterly, 241-250.
- Friedman, M. 1970. The social responsibility of business is to increase its profits. New York Times Magazine, September 13: 32–33, 122–126.
- Gavrea, C., Ilies, L., & Stegerean, R. (2011). Determinants of organizational performance: the case of Romania. Management & Marketing, 6(2), 285.
- Grayson, D., & Hodges, A. (2004). Corporate social opportunity. Seven Steps to Make Corporate Social Responsibility Work for your Business, 3-15.
- Hennessey Jr, J. T. (1998). " Reinventing" government: Does leadership make the difference?. Public Administration Review, 522-532.
- Hoogh, A. H. B., & Hartog, D. N. D. 2008. Ethical and despotic leadership, relationships with leader's social responsibility, top management team effectiveness and subordinates' optimism: A multi-method study. The Leadership Quarterly, 19: 297 311.
- Jones TM. 1980. Corporate social responsibility revisited, redefined. California Management Review 22(2): 59– 67
- Kanungo, R. N., & Mendonca, M. (1996). Ethical dimensions of leadership (Vol. 3). Sage.
- Kim, K. H., Kim, M., & Qian, C. (2015). Effects of Corporate Social Responsibility on Corporate Financial Performance A Competitive-Action Perspective. Journal of Management, 0149206315602530.
- Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of marketing, 70(4), 1-18.
- McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification?. Strategic management journal, 21(5), 603-609.
- Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of business research, 36(1), 15-23.
- Ponnu, C. H., & Tennakoon, G. (2009). The association between ethical leadership and employee outcomes-the Malaysian case.
- Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard Business Review, 11.
- Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of marketing Research, 38(2), 225-243.
- Spangenberg, H., & Theron, C. C. (2005). Promoting ethical follower behaviour through leadership of ethics: The development of the ethical leadership inventory (ELI). S. Afr. J. Bus. Manage, 36(2), 1-18.
- Steyrer, J., Schiffinger, M. and Lang, R. (2008), Organizational commitment-a missing link between leadership behavior and organizational performance?, Scandinavian Journal of Management, (24), pp.364-374.
- Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 101-125.
- Waldman, D. A., Ramirez, G. G., House, R. J., & Puranam, P. (2001). Does leadership matter? CEO leadership attributes and profitability under conditions of perceived environmental uncertainty. Academy of management journal, 44(1), 134- 143.