Skip to main content
Log in

A Scale to Assess Ethical Leadership of Indian Private and Public Sector Managers

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Three hundred forty middle-level managers from two private and two public sector manufacturing companies in India rated their superiors on 22 items of ethical leadership. Factor analysis of the scores on such items yielded two dimensions of ethical leadership: (a) empowerment, and (b) motive and character. Items of the scale had high reliability, validity, and discriminative power. On two dimensions of ethical leadership, the superiors self-rated themselves more favorably than their subordinates rated them. This justified the proposal to consider the subordinates' ratings to their superiors in assessing ethical leadership. Subordinates perceived their superiors more ethical in private sector than in public sector. Subordinates' manipulative behavior, and cheating in performance and misuse of finance were less frequent in the presence of ethical superiors. Also, ethical superiors enhanced the job performance, job involvement and affective commitment of their subordinates but not their continuance commitment.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Agle, B. R., R. K. Mitchell and J. A. Sonnenfeld: 1999, 'Who Matters to CEOs? An Investigation of Stakeholder Attributes and Salience, Corporate Performance, and CEO Values', Academy of Management Journal 42, 507–525.

    Google Scholar 

  • Aldrich, H. and C. M. Fiol: 1994, 'Fools Rush In? The Institutional Context of Industry Creation', Academy of Management Review 19, 645–670.

    Google Scholar 

  • Allan, S., B. Adam and C. Carter (eds.): 1999, Environmental Risks and the Media (Routledge, Andover, UK).

    Google Scholar 

  • Banerjee, S. B.: 2000, 'Whose Land Is It Anyway? National Interest, Indigenous Stakeholders, and Colonial Discourses: The Case of the Jabiluka Uranium Mine', Organization & Environment 13(1), 3–38.

    Google Scholar 

  • Bansal, P. and K. Roth: 2000, 'Why Companies Go Green: A Model of Ecological Responsiveness', Acdemy of Management Journal 43(4), 717–736.

    Google Scholar 

  • Barney, J. B.: 1997, Gaining and Sustaining Competitive Advantage (Addison-Wesley, Reading, MA).

    Google Scholar 

  • Bateson, G.: 1972, Steps to an Ecology of Mind (Ballentine Books, New York).

    Google Scholar 

  • Beamish, T.: 2001, 'Environmental Hazard and Institutional Betrayal', Organization & Environment 14(1), 5–33.

    Google Scholar 

  • Bengstsson, M. and S. Kock: 2000, '“Coopetition” in Business Networks-to Cooperate and Compete Simultaneously', Industrial Marketing Management 29(8), 411–426.

    Google Scholar 

  • Bendheim, C. L., S. A. Waddock and S. B. Graves: 1998, 'Determining Best Practice in Corporate-Stakeholder Relations Using Data Envelopment Analysis', Business and Society 37(3), 306–448.

    Google Scholar 

  • Benedetti, M.: 2001, 'Cancer Risk Associated with Residential Proximity to Industrial Sites', Archives of Environmental Health 56(4), 342–350.

    Google Scholar 

  • Berman, S. L., A. C. Wicks, S. Kotha and T. M. Jones: 1999, 'Does Stakeholder Orientation Matter? The Relationship between Stakeholder Management Models and Firm Financial Performance', Academy of Management Journal 42, 488–506.

    Google Scholar 

  • Berry, T.: 1988, The Dream of the Earth (Sierra Club Books, San Francisco).

    Google Scholar 

  • Berry, M. A. and D. A. Rondinelli: 1998, 'Proactive Corporate Environmental Management: A New Industrial Revolution', Academy of Management Executive 12(2) (May), 38–50.

    Google Scholar 

  • Blau, P.: 1964, Exchange and Power in Social Life (Wiley, New York).

    Google Scholar 

  • Bolin, B.: 2000, 'Environmental Equity in a Sunbelt City: The Spatial Distribution of Toxic Hazards in Phoenix, Arizona', Environmental Hazards 2(1), 11–24.

    Google Scholar 

  • Brenner, S. N.: 1993, 'The Stakeholder Theory of the Firm and Organizational Decision Making: Some Propositions and a Model', in J. Pasqeuro and D. Collins (eds.), Proceedings of the Fourth Annual Meeting of the International Association for Business and Society (San Diego), pp. 205–210.

  • Brown, L.: 2000, 'Challenges of the New Century', in L. Brown (ed.), State of the World 2000 (W.W. Norton & Co., New York), pp. 3–21.

    Google Scholar 

  • Bruntland Commission: 1987, The World Commission on Environment and Development: Our Common Future (Oxford University Press, Oxford, UK).

    Google Scholar 

  • Buchholz, R. A.: 1993. Principles of Environmental Management (Prentice-Hall, Englewood Cliffs, NJ).

    Google Scholar 

  • Carroll, A. B.: 1993, Business and Society: Ethics and Stakeholder Management (2nd ed.) (South-Western, Cincinnati).

    Google Scholar 

  • Carson, R.: 1962, Silent Spring (Fawcett, Greenwich, CT).

    Google Scholar 

  • Centner, T. J.: 2001, 'Evolving Policies to Regulate Pollution from Animal Feeding Operations', Environmental Manager 28(5), 599–609.

    Google Scholar 

  • Clark, T. A.: 2000, Distance & Proximity (Pocketbooks, Edinburgh).

    Google Scholar 

  • Clarkson, M. B. E.: 1994, A Risk Based Model of Stakeholder Theory (Proceedings of the Second Toronto Conference on Stakeholder Theory. Centre for Performance & Ethics, University of Toronto, Toronto).

    Google Scholar 

  • Clarkson, M. B. E.: 1995, 'A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance', Academy of Management Review 27, 42–56.

    Google Scholar 

  • Cyert, R. M. and J. G. March (1992), A Behavioral Theory of the Firm (2nd ed.) (Blackwell Business Press).

  • Daly, H. E.: 1997, Beyond Growth: The Economics of Sustainable Development (Beacon Press, Boston).

    Google Scholar 

  • Daly, H. E. and J. B. Cobb, Jr.: 1994, For the Common Good: Redirecting the Economy toward Community, the Environment, and a Sustainable Future (Beacon Press, Boston).

    Google Scholar 

  • Donaldson, T. and L. E. Preston: 1995, 'The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications', Academy of Management Review 20(1), 65–91.

    Google Scholar 

  • Dowling, J. B. and J. Pfeffer: 1975, 'Organizational Legitimacy: Social Values and Organizational Behavior', Pacific Sociological Review 18, 122–136.

    Google Scholar 

  • Etzioni, A.: 1964, Modern Organizations. (Prentice-Hall, Englewood Cliffs, NJ).

    Google Scholar 

  • Evan, W. M. and R. E. Freeman: 1988, 'A Stakeholder Theory of the Modern Corporation: Kantian Capitalism', in T. Beauchamp and N. Bowie (eds.), Ethical Theory and Business (Prentice Hall, Englewood Cliffs, NJ).

    Google Scholar 

  • Fan, J. P. H. and H. P. Lang: 2000, 'The Measurement of Relatedness: An Application to Corporate Diversification.', The Journal of Business 73(4), 629–660.

    Google Scholar 

  • Forbes, L. C. and J. M. Jermier: 1998, 'Language, Organization, and Environment an Introduction to the Symposium on The Death of Nature [Citation Classics and Foundational Works]', Organization & Environment 11(2), 180–182.

    Google Scholar 

  • Frederick, W. C.: 1998, 'Moving to CSR4 What to Pack for the Trip', Business & Society 37(1), 40–59.

    Google Scholar 

  • Freeman, R. E.: 1984, Strategic Management: A Stakeholder Approach (Basic Books, New York).

    Google Scholar 

  • Freeman, R. E. and W. M. Evan: 1990, 'Corporate Governance: A Stakeholder Interpretation', Journal of Behavioural Economics 19, 337–359.

    Google Scholar 

  • Freeman, R. E. and D. L. Reed: 1983, 'Stockholders and Stakeholders: A New Perspective on Corporate Governance', California Management Review 25(3), 88–106.

    Google Scholar 

  • Frooman, J.: 1999, 'Stakeholder Influence Strategies', Academy of Management Review 24, 191–205.

    Google Scholar 

  • Ghoshal, S. and P. Moran: 1996, 'Bad for Practice: A Critique of the Transaction Cost Theory', Academy of Management Review 21(1), 13–47.

    Google Scholar 

  • Gladwin, T. N., J. K. Kennelly and T. S. Krause: 1995, 'Shifting Paradigms for Sustainable Development: Implications for Management Theory and Practice', Academy of Management Review 20(4), 874–907.

    Google Scholar 

  • Grant, R. M.: 1995, Contemporary Strategy Analysis (2nd ed.) (Blackwell Publishers Inc., Cambridge, MA).

    Google Scholar 

  • Green, M. B. and R. B. McNaughton (eds.): 2000, Industrial Networks and Proximity (Ashgate, Burlington, VT).

    Google Scholar 

  • Greenley, G. E. and G. R. Foxall: 1997, 'Multiple Stakeholder Orientation in U.K. Companies and the Implications for Company Performance', Journal of Management Studies 34(2), 259–284.

    Google Scholar 

  • Hacking, I.: 2000, 'Our Fellow Animals', The New York Review of Books 47(11), 20–26.

    Google Scholar 

  • Harrison, J. S. and C. H. St. John: 1996, 'Managing and Partnering with External Stakeholders', Academy of Management Executive 10(2), 46–58.

    Google Scholar 

  • Hart, S. L.: 1995, 'A Natural-resource-based View of the Firm', Academy of Management Review 20, 986–1014.

    Google Scholar 

  • Hart, S. L. and G. Ahuja: 1996, 'Does It Pay to be Green? An Empirical Examination of the Relationship between Emission Reduction and Firm Performance', Business Strategy and the Environment 5, 30–37.

    Google Scholar 

  • Heuer, M. A. and M. Starik: 2002, 'Multidirectional Stakeholder Networks: Specifying Capability, Turbulence, and Reputation', Presented at the Academy of Management Meetings (Denver, Colorado), August.

  • Hill, C. W. L. and T. M. Jones: 1992, 'Stakeholder-agency Theory', Journal of Management Studies 29(2), 131–154.

    Google Scholar 

  • Homer-Dixon, T.: 1994, 'Environmental Scarcities and Violent Conflict: Evidence from Cases', International Security 19(1), 5–40.

    Google Scholar 

  • Hybels, R. C.: 1995, 'On Legitimacy, Legitimation, and Organizations: A Critical Review and Integrative Theoretical Model', Best Paper Proceedings of the Academy of Management, pp. 241–245.

  • Intergovernmental Panel on Climate Change: 2000, 'Emissions Scenarios 2000: Special Report of the Intergovernmental Panel on Climate Change', IN N. Nakicenovic and R. Swart (eds.) (Cambridge University Press, UK), p 570.

    Google Scholar 

  • Jennings, D. and P. A. Zandbergen: 1995, 'Ecologically Sustainable Organizations: An Institutional Approach', Academy of Management Review 20(4), 1015–1052.

    Google Scholar 

  • Jones, T. M.: 1980, 'Corporate Social Responsibility Revisited, Redefined', California Management Review 22(2), 59–67.

    Google Scholar 

  • Jones, T. M. and A. C. Wicks: 1999, 'Convergent Stakeholder Theory', Academy of Management Review 24(2), 206–221.

    Google Scholar 

  • Kenis, P. and D. Knoke: 2002, 'How Organizational Field Networks Shape Interorganizational Tie-formation Rates', Academy of Management Review 27(2), 275–293.

    Google Scholar 

  • Kenna, A.: 2000, 'Animal-abuse Laws that Bite', Governing 14(2), 52–54.

    Google Scholar 

  • King, A. A. and M. Lenox: 2000, 'Industry Self-regulation Without Sanctions: The Chemical Industry's Responsible Care Program', Academy of Management Journal 43(4), 698–716.

    Google Scholar 

  • Laverty, K. J.: 1996, 'Economic “Short-Termism”: The Debate, the Unresolved Issues, and the Implications for Management Practice', The Academy of Management Review 21(3), 825–860.

    Google Scholar 

  • Lee, R. M and S. B. Robbins: 2000, 'Understanding Social Connectedness in College Women and Men', Journal of Counseling and Development 78(4), 484–491. (Ballentine, New York) (Orginal work published in 1949).

    Google Scholar 

  • Lovins, A. B., L. H. Lovins and P. Hawken: 1999, 'A Road Map for Natural Capitalism', Harvard Business Review (May-June), 145–158.

  • Mitchell, R. K., B. R. Agle and D. J. Wood: 1997, 'Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts', Academy of Management Review 22(4), 853–886.

    Google Scholar 

  • Morello-Frosch, R., M. Pastor and J. Sadd: 2001, 'Environmental Justice and Southern California's “Riskscape”: The Distribution of Air Toxics Exposures and Health Risks among Diverse Communities', Urban Affairs Review 36(4), 551–578.

    Google Scholar 

  • Mosakowski, E. and P. C. Earley: 2000, 'A Selective Review of Time Assumptions in Strategy Research', Academy of Management Review 25(4), 796–812.

    Google Scholar 

  • Nash, R.: 1987, The Rights of Nature (University of Wisconsin Free Press, Madison).

    Google Scholar 

  • Nasi, J.: 1995, 'What is Stakeholder Thinking? A Snapshot of a Social Theory of the Firm', in J. Nasi (ed.), Understanding Stakeholder Thinking (LSR-Julkaisut Oy, Helsinki), pp. 19–32.

    Google Scholar 

  • Nasi, J., S. Nasi, N. Philips and S. Zyglidopoulos: 1997, 'The Evolution of Corporate Social Responsiveness: An Exploratory Study of Finnish and Canadian Forestry Companies', Business and Society 3(6), 296–321.

    Google Scholar 

  • National Academy of Sciences: 2002, www4.nationalacademies. org/news.nsf/isbn/0309075742?Open Document, viewed August 1, 2002.

  • Oliver, C.: 1991, 'Strategic Responses to Institutional Processes', Academy of Management Review 16(1), 145–179.

    Google Scholar 

  • National Parks and Conservation Association: 1994, Our Endangered Parks (Foghorn Press, San Francisco, CA).

    Google Scholar 

  • Pacelle, W.: 2000, 'Battle of the Ballots: A Guide to State Voter Initiatives in 2000', The Animals' Agenda 20(5), 44–45.

    Google Scholar 

  • Park, S.: 1994, 'Industry Clustering for Economic Development', Economic Development Review 12(2), 26–38.

    Google Scholar 

  • Patagonia: 2002, Company website: http://www. patagonia.com/sports/surf.shtml Viewed 08/04/ 02.

  • Pfeffer, J.: 1981, Power in Organizations (Pitman, Marshfield, MA).

    Google Scholar 

  • Pfeffer, J.: 1992, Managing with Power: Politics and Influence in Organizations (Harvard Business School Press, Boston, MA).

    Google Scholar 

  • Pfeffer, J. and G. R. Salancik: 1978, The External Control of Organizations (Harper and Row, New York).

    Google Scholar 

  • Phillips, R. A. and J. Reichart: 2000, 'The Environment as Stakeholder? A Fairness-based Approach', Journal of Business Ethics 23(2), 185–197.

    Google Scholar 

  • Purser, R. E., C. Park and A. Montuori: 1995, 'Limits to Anthropocentrism: Towards an Ecocentric Organization Paradigm?', Academy of Management Review (Special topic forum on ecologically sustainable organizations, 20, 1053–1089.

    Google Scholar 

  • Renner, M.: 2000, 'Creating Jobs, Preserving the Environment', in L. Brown (ed.), State of the World 2000 (W.W. Norton & Co., New York), pp. 162–183.

    Google Scholar 

  • Reuters: June 25, 2002, Tourism must respect environment, Pope says. www.cnn.com/2002/ TRAVEL/NEWS/06/25/environment.pope.reut/ index.html, viewed July 5, 2002.

  • Rolston, H.: 1994, Conserving Natural Value (Columbia University Press, New York).

    Google Scholar 

  • Rowley, T. J.: 1997, 'Moving Beyond Dyadic Ties: A Network Theory of Stakeholder Influences', Academy of Management Review 22(4), 887–910.

    Google Scholar 

  • Ryland, E.: 2000, 'Gaia Rising: A Jungiuan Look at Environmental Consciousness and Sustainable Organizations', Organization & Environment 13(4), 381–402.

    Google Scholar 

  • Savage, G. T., T. H. Nix, C. J. Whitehead and J. D. Blair: 1991, 'Strategies for Assessing and Managing Organizational Stakeholders', Academy of Management Executive 5, 61–75.

    Google Scholar 

  • Schmidheiny, S. and F. J. L. Zorraquin: 1996, Financing Change: The Financial Community, Ecoefficiency, and Sustainable Development (MIT Press, Cambridge).

    Google Scholar 

  • Schumacher, E. F.: 1973, Small is Beautiful: Economics as If People Mattered (Harper & Row, New York).

    Google Scholar 

  • Shrivastava, P.: 1994, 'CASTRATED Environment: GREENING Organization Studies', Organization Studies 15(5), 705–726.

    Google Scholar 

  • Shrivastava, P.: 1995a, 'Ecocentric Management for a Risk Society', Academy of Management Review 20(1), 118–137.

    Google Scholar 

  • Shrivastava, P.: 1995b, 'The Role of Corporations in Achieving Ecological Sustainability', Academy of Management Review 20(4), 936–960.

    Google Scholar 

  • Smith, D. M.: 2000, 'Proximity: Locality and Community', in D. M. Smith (ed.), Moral Geographies: Ethics in a World of Difference (Edinburgh University Press, Edinburgh).

    Google Scholar 

  • Smith, J. (ed.): 2000, The Daily Globe: Environmental Change, the Public, and the Media (Earthscan, London).

    Google Scholar 

  • Soukhanov, A. H. (ed.): 1984, Webster's II New Riverside Dictionary (Houghton-Mifflin Co., Boston, MA), p. 948.

    Google Scholar 

  • Srikantia, P. and D. Bilimoria: 1997, 'Isomorphism in Organization and Management Theory', Organization & Environment 10(4), 384–406.

    Google Scholar 

  • Starik, M.: 1994, 'What is a Stakeholder? Essay by Mark Starik. Pp. 89–95 of the Toronto Conference: Reflections on Stakeholder Theory', Business & Society 33, 82–131.

    Google Scholar 

  • Starik, M.: 1995, 'Should Trees have Managerial Standing? Toward Stakeholder Status for Nonhuman Nature', Journal of Business Ethics 14(3), 207–217.

    Google Scholar 

  • Starik, M. and G. P. Rands: 1995, 'Weaving an Integrated Web: Multilevel and Multisystem Perspectives of Ecologically Sustainable Organizations', Academy of Management Review 20(4), 908–935.

    Google Scholar 

  • Stead, J. G. and W. E. Stead: 2000, 'Ecoenterprise Strategy: Standing for Sustainability', Journal of Business Ethics 24(4), 313–329.

    Google Scholar 

  • Stead, W. E. and J. G. Stead: 1996, Management for a Small Planet (2nd ed.) (Sage, Thousand Oaks, CA).

    Google Scholar 

  • Stinchcombe, A. L.: 1968, Constructing Social Theories (University of Chicago Press, Chicago).

    Google Scholar 

  • Stone, C.: 1974, Should Trees Have Standing? Towards Legal Rights for Natural Objects (William Kaufmann, Los Altos, CA).

    Google Scholar 

  • Suchman, M.: 1995, 'Managing Legitimacy: Strategic and Institutional Approaches', Academy of Management Review 20, 571–610.

    Google Scholar 

  • Suzuki, D.: 1997, The Sacred Balance: Rediscovering our Place in Nature (Greystone Books, Vancouver).

    Google Scholar 

  • Szwajkowski, E.: 2000, 'Simplifying the Principles of Stakeholder Management: The Three Most Important Principles', Business & Society 39(4), 379–396.

    Google Scholar 

  • Thompson, J. K., S. L. Wartick and H. L. Smith: 1991, 'Integrating Corporate Social Performance and Stakeholder Management: Implications for a Research Agenda in Small Business', Research in Corporate Social Performance and Policy 12, 207–230.

    Google Scholar 

  • Tsai, W.: 2000, 'Social Capital, Strategic Relatedness, and the Formation of Intraorganizational Linkages', Academy of Management Journal 21(9), 925–939.

    Google Scholar 

  • Uzzi, B.: 1997, 'Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness', Administrative Sciences Quarterly 42(1), 35–67.

    Google Scholar 

  • Weber, M.: 1947, The Theory of Social and Economic Organization (Free Press, New York).

    Google Scholar 

  • Whiteman, G.: 1997, 'Poems from James Bay [Poetry]', Organization & Environment 10(2), 186–193.

    Google Scholar 

  • Wilson, E. O.: 1992, The Diversity of Life (Belknap Press, Cambridge, MA).

    Google Scholar 

  • Wood, D. J.: 1991, 'Corporate Social Performance', Academy of Management Review 16, 691–718.

    Google Scholar 

  • Issue/page9. htm, viewed June 23, 2002.

  • Worldwatch: www.Worldwatch.org. December 29, 2000.

  • Zeller, S.: 2000, 'Counsel for a Menagerie of Clients', National Journal 32(10), 714–715.

    Google Scholar 

  • Zimmerman, M. A. and G. J. Zeitz: 2002, 'Beyond Survival: Achieving New Venture Growth by Building Legitimacy', Academy of Management Review 27(3), 414–431.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Khuntia, R., Suar, D. A Scale to Assess Ethical Leadership of Indian Private and Public Sector Managers. Journal of Business Ethics 49, 13–26 (2004). https://doi.org/10.1023/B:BUSI.0000013853.80287.da

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:BUSI.0000013853.80287.da

Navigation