Several global crises such as climate change, the global financial breakdown and corporate corruption scandals have diminished the legitimacy of business. One possible answer to this situation is the concept of corporate responsibility (CR), a voluntary approach aiming at the integration of economic with social, ethical and environmental goals. Erik G. Hansen addresses this gap. Rooted in literature on CR and formal leadership systems he develops a conceptual "Responsible Leadership Systems" framework structuring leadership instruments and tools into seven interconnected key areas. The framework is applied in qualitative multi-case studies in seven of the largest German stock corporations. The results show that leading companies increasingly make CR part of their strategies, structures, management instruments and tools.
Author(s): Erik G. Hansen
Year: 2010
Language: English
Pages: 325
Cover......Page 1
Responsible Leadership Systems: An Empirical Analysis of Integrating Corporate Responsibility into Leadership Systems......Page 4
9783834923868......Page 5
Foreword......Page 8
Acknowledgements......Page 10
Brief Table of Contents......Page 12
Table of Contents......Page 14
Figures......Page 20
Tables......Page 24
Abbreviations......Page 28
1 Point of Departure......Page 30
2 Research Gap and Research Objective......Page 32
3 Outline of Thesis......Page 34
Part I. FOUNDATIONS OF CORPORATE RESPONSIBILITY......Page 36
4.1 Overview......Page 37
4.2 Corporate Social Responsibility......Page 38
4.2.1 Categories of Responsibilities......Page 39
4.2.2 Corporate Community Involvement......Page 41
4.3.1 The Stakeholder Model of the Firm......Page 45
4.3.2 Stakeholder Identity......Page 47
4.4 Sustainable Development and Corporate Sustainability......Page 49
4.5 Terminology Used in Present Work......Page 53
4.6 Issues of CR......Page 54
5.1.1 Barriers of CR......Page 57
5.1.2 Drivers for CR......Page 58
5.2 Moral Case and Business Case......Page 60
5.2.2 The Business Case......Page 61
5.2.3.1 Markets, Innovation, and Competitiveness......Page 62
5.2.3.2 Employee Satisfaction and Talent Attraction......Page 63
5.2.3.3 Pressure Groups and License to Operate......Page 64
5.2.3.5 Financial Performance......Page 65
5.2.3.6 Capital Markets......Page 67
5.2.4 Critique of the Business Case Perspective......Page 68
6 Organisational Learning for CR......Page 69
7 Summary of Part I......Page 72
Part II. TOWARDS A RESPONSIBLE LEADERSHIPSYSTEMS FRAMEWORK......Page 74
8.1 CR and Leadership......Page 75
8.2 Leadership Context as Enabler for CR......Page 78
8.3 The Generic Leadership Systems Framework......Page 81
9.1 Leadership as a Day-to-Day Interactive Process......Page 85
9.1.1.2 The Content of Values......Page 86
9.1.2.1 Business Level......Page 89
9.1.2.2 Meso and Macro Level......Page 91
9.1.3.1 Internal and External Communication......Page 94
9.1.4.1 Organisational Goal Setting......Page 99
9.1.4.2 Individual Goal Setting......Page 100
9.1.4.3 Decision-making Rules and Tools......Page 102
9.2 Leadership Metrics......Page 103
9.2.1 Performance Metrics on the Organisational Lev......Page 104
9.2.1.1 Individual Performance Indicators......Page 107
9.2.1.2 Overall Performance Indicators......Page 110
9.2.2.1 Balanced Scorecard Approaches......Page 118
9.2.2.2 EFQM Excellence Model......Page 120
9.2.3 Performance Metrics on the Individual Level......Page 122
9.2.4 Summary......Page 125
9.3 Leadership Deployment......Page 126
9.3.1.1 Incentives and Compensation Based on CR Metrics......Page 127
9.3.2 Non-Monetary Incentive and Reward Systems......Page 129
9.3.2.1 Award Schemes......Page 130
9.3.2.3 Employee Community Involvement......Page 131
9.3.2.4 Career Planning......Page 134
9.3.3 Compliance Mechanisms......Page 135
9.3.4 Summary......Page 137
9.4.1.1 Recruiting and Selection......Page 138
9.4.2 The Development Subsystem: Developing Responsible Leaders......Page 139
9.4.2.1 Horizontal Development......Page 144
9.4.2.2 Vertical Development......Page 146
9.4.2.3 Service Learning......Page 149
9.4.3.1 Overview......Page 153
9.4.3.2 CR Development by Educational Institutions......Page 154
9.4.4 Summary......Page 156
10.1 Strategy......Page 158
10.1.1 Formal Instruments of Strategy......Page 159
10.1.1.1 Vision and Mission Statements......Page 160
10.1.1.2 Strategy Hierarchy......Page 162
10.1.2 Challenges......Page 164
10.2 Structure......Page 165
10.2.1 Organisational Structures......Page 166
10.2.1.1 Executive Board Level......Page 168
10.2.1.2 Corporate Level......Page 169
10.2.1.3 Functional Level......Page 171
10.2.2 Challenges......Page 172
10.2.3 Summary......Page 173
10.3.1 Corporate Culture......Page 174
10.3.2 Challenges......Page 178
10.3.3 Summary......Page 179
11 Summary of Part II......Page 181
Linkages Between Overall Framework and Individual Leaders......Page 182
Part III. RESPONSIBLE LEADERSHIP SYSTEMS IN MULTINATIONAL CORPORATIONS......Page 184
12.1 Research Design......Page 185
12.2.1 Pilot Cases......Page 187
12.2.2 Final Cases......Page 188
12.3.1 Documentary Analysis......Page 190
12.3.2 Semi-structured Interviews......Page 191
12.4.2 Data Evaluation and Scoring......Page 193
13.1 Overview of Results......Page 197
13.2.1 Leadership as a Day-to-Day Interactive Process......Page 200
13.2.1.1 Values and General Guidelines......Page 201
13.2.1.2 Business Codes......Page 202
13.2.1.3 Communication......Page 203
13.2.1.4 Goal Setting and Decision Making......Page 206
13.2.2 Leadership Metrics......Page 208
13.2.2.1 Organisational Metrics......Page 209
13.2.2.2 Strategic Performance Measurement Tools......Page 215
13.2.2.3 Individual Performance Evaluation......Page 218
13.2.3.1 Monetary Incentives and Rewards......Page 219
13.2.3.2 Non-monetary Incentives and Rewards......Page 221
13.2.3.3 Compliance......Page 223
13.2.4 Selection of Leaders and Leadership Development......Page 224
13.2.4.1 Selection of Leaders......Page 225
13.2.4.2 Horizontal Leadership Development......Page 226
13.2.4.3 Vertical Development and Service Learning......Page 229
13.2.5 Summary of Core Fields......Page 232
13.3.1 Strategy......Page 233
13.3.1.1 Vision and Mission Statements......Page 234
13.3.1.2 Formulated Strategies......Page 235
13.3.2 Structure......Page 240
13.3.2.1 Main Organisational Structures......Page 241
13.3.2.2 Additional Organisational Structures......Page 246
13.3.3 Culture......Page 247
13.3.4 Summary of Contextual Fields......Page 248
13.4.1 Interdependencies Between the Core Fields......Page 249
13.4.2 The Relation between Contextual Fields and Core Fields......Page 252
13.4.3 Responsible Leadership Systems and CR Performance......Page 254
13.4.4 Pathways to Responsible Leadership Systems......Page 257
13.4.5 Most Important Future Trends......Page 259
14.1.1 Interactive Process......Page 262
14.1.2 Leadership Metrics......Page 263
14.1.4 Selection of Leaders and Leadership Development......Page 265
14.2.1 Raising Integration of Strategy and CR......Page 267
14.2.2 Critical Aspects of Portfolio Strategies......Page 268
14.2.3 Organisational Structures......Page 269
14.3.1 Relationships......Page 271
14.3.2 Scope of Solutions......Page 273
Part IV. SUMMARY AND OUTLOOK......Page 276
15 Summary and Major Findings......Page 277
Distinguishing Horizontal and Vertical Development......Page 280
Using Qualitative Research Methods......Page 281
Leveraging the RLS Toolbox......Page 283
Balancing the Elements of the RLS Framework......Page 286
Improving Collaboration of CR and HR Functions......Page 287
18.1 Methodological......Page 288
Contextual Fields......Page 289
Micro Levels (Core Fields)......Page 291
Macro Level......Page 292
18.4 Embarking Towards New Research Fields......Page 294
Sustainability-Oriented Innovation......Page 295
CR Ontology......Page 296
19 Outlook......Page 297
References......Page 298
A.1 Overview of Interviews Conducted......Page 342
A.2 Interview Guideline for CR managers......Page 344
Index......Page 352
