The Role of Ethical Leadership Versus Institutional Constraints: A Simulation Study of Financial Misreporting by CEOs [Book Review]

Journal of Business Ethics 93 (S1):33-52 (2010)
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Abstract

This article examines the proposition that a major cause of the major financial accounting scandals that received much publicity around the world was unethical leadership in the companies and compares the role of unethical leaders in a variety of scenarios. Through the use of computer simulation models, it shows how a combination of CEO's narcissism, financial incentive, shareholders' expectations and subordinate silence as well as CEO's dishonesty can do much to explain some of the findings highlighted in recent high profile financial accounting scandals. Furthermore, it shows that the nature and impact of ethical leadership depends greatly on the institutional setting and can be expected to vary greatly by country and culture. In certain circumstances ethical leadership can have either a negligible or even opposite effect to that expected.

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References found in this work

After Virtue.A. MacIntyre - 1981 - Tijdschrift Voor Filosofie 46 (1):169-171.
Lack of Character: Personality and Moral Behavior.John M. Doris - 2002 - New York: Cambridge University Press.
No Character or Personality.Gilbert Harman - 2003 - Business Ethics Quarterly 13 (1):87-94.

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