Journal of Business Ethics 101 (4):553-561 (2011)

Abstract
The gulf between multinational enterprises’ focus on high income countries and the reality of 80% of the world living in developing, bottom of pyramid (Hahn, J Bus Ethics 84:313–324, 2009 ) economies could magnify the anti-globalisation movement and political backlashes in the twenty-first century. The global financial crisis of 2008 and 2009 has increased such social tensions throughout the world and creates greater challenges for, responsible leadership. In this conceptual article, the authors analyse the value and identity of local managers, and the liability of foreignness caused by over-reliance on expatriate managers and under-reliance on local managers in bottom of pyramid countries (Hahn, 2009 ). It is argued that multinational enterprises need to assess local managers’ knowledge and contributions as having not only operational and market value, but also institutional value, such as access to local knowledge and local social capital; such a holistic approach will ensure fairer, equal treatment of all managers in the multinational enterprise. Responsible leadership in the twenty-first century requires a greater appreciation of local managers’ institutional value and the overcoming of any psychological distance towards local managers of bottom of pyramid countries
Keywords responsible leadership  anti-globalisation  liability of foreignness  institutions  psychic distance  bottom of pyramid  knowledge
Categories (categorize this paper)
DOI 10.1007/s10551-011-0736-x
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 59,916
Through your library

References found in this work BETA

Collective Action.Russell Hardin - 1984 - Ethics 94 (2):336-339.

View all 14 references / Add more references

Citations of this work BETA

View all 6 citations / Add more citations

Similar books and articles

Global Players in the Local Field.Betty Dee Makani-Lim & Felix Chan Lim - 2009 - International Corporate Responsibility Series 4:59-81.
Integral Leadership for the 21 St Century.Vana Prewitt - 2004 - World Futures 60 (4):327 – 333.
MNCs, CSR and Developing Countries.Dima Jamali - 2008 - Proceedings of the International Association for Business and Society 19:172-183.

Analytics

Added to PP index
2011-07-25

Total views
36 ( #291,681 of 2,433,205 )

Recent downloads (6 months)
1 ( #463,180 of 2,433,205 )

How can I increase my downloads?

Downloads

My notes