Leadership in the Global Enterprise: Practicing the Amaranthine Cross Cultural Values of Courage, Moderation, Justice and Wisdom

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7110 Knight Project Global Leadership Values 2

Abstract

While global enterprise is not a new phenomenon, new technologies, such as the internet coupled

with the comparative ease of international travel have made the interchange between cultures

nearly universal. With this interchange comes the resultant interaction between leaders and

managers from one culture leading subordinates and peers from another culture. The interaction

of cross-cultural leadership suggests potential for misunderstandings and confusion even when

utilizing contemporaneous best methods and styles to achieve maximum effectiveness with

minimal confusion. This article suggests that the four virtues of courage, moderation, justice and

wisdom provide a framework for modern leaders to find common ground as the basis, near

universal attributes necessary to lead within a multi-cultural global business concern.

Key Words: ethics; leadership; cardinal virtue; justice; moderation; global business; cross

cultural; moral courage




Table of Contents

Leadership in the Global Enterprise: Practicing the Amaranthine Cross-Cultural Values of

Courage, Moderation, Justice, and Wisdom................................................................................... 1

Abstract........................................................................................................................................... 2

Leadership in the Global Enterprise: Practicing the Amaranthine Cross-Cultural Values of

Justice, Courage, Moderation and Wisdom.................................................................................... 4

Cultural Values ............................................................................................................................... 6

The Four Cardinal Virtues, Judeo-Christian Roots and Greek Philosophy............................ 9

Courage................................................................................................................................. 11

Moderation............................................................................................................................ 12

Justice.................................................................................................................................... 13

Wisdom................................................................................................................................. 13

Conclusion .................................................................................................................................... 14

References..................................................................................................................................... 17




Leadership in the Global Enterprise: Practicing the Amaranthine

Cross-Cultural Values of Justice, Courage, Moderation and

Wisdom

While global enterprise is not a new phenomenon, new technologies, such as the internet

coupled with the comparative ease of international travel have made the interchange between

cultures nearly universal. With this interchange comes the resultant interaction between leaders

and managers from one culture leading subordinates and peers from another culture. The

interaction of cross-cultural leadership suggests potential for misunderstandings and confusion

even when utilizing contemporaneous best methods and styles to achieve maximum

effectiveness with minimal confusion. In 2003, researchers suggested that there is a wide interest

in increasing sophistication in leadership research that leads to universal findings and refinement

of cultural dimensions for clear application to variation in leadership (Dickson, Den Hartog, &

Mitchelson, 2003, p. 751). Dickson et al. suggest that much of “cross-cultural leadership…has

been focused on the issue of equivalence” (p. 732) and that research must identify and

distinguish emics, the unique things of a culture from the etics, the universal. In recent years, the

validity of studying leadership in a cross-cultural context has developed as an independent field

of study (p. 748).

An example of the issues encountered by leadership in the global marketplace is the

growth of corruption that is occurring with the expansion of international trade and global

business competition. While many factors may contribute to a willingness of those in leadership

positions to participate, Beets suggests that there is a role for religious organizations to raise their

voices in condemnation of this corruption (Beets, 2007). Karakas states that humanity and

global cultures not only experience problems in economic, political and material areas, but in




ethical, moral and spiritual areas as well (2006). Certainly business leaders who incorporate

Judeo-Christian principles must also face both the singular moral issue and the more general

challenges of cultural and ethnic dissimilarities. Is it possible then to define a set of basic

leadership values that are at once universal and yet not hostile to the foundations of one’s faith?

Global leaders are called to influence people who come from a variety of cultural, ethnic,

and religious backgrounds. Success comes with a global mindset, toleration for high levels of

ambiguity, along with adaptability and flexibility to cultural variations (Javidan, Dorfman, De

Luque, & House, 2006, p. 85). Leaders may act as impresarios, but they also must recognize that

a type of structure is needed, which stimulates creativity toward organizational goals (Benton,

1992, p. 28). A leader must possess an ability to understand other cultures and to act in

accordance with that understanding in order to achieve goals and further positive relations. A call

for universal values from leaders and scholars appears at first glance to clash in the presence of

the need to function amidst cultural variations, ambiguity, and adaptability that are vital to

commercial success across multiple international arenas. Further, globalization may lead to

moral ambiguity that will culminate in leaders that follow the letter of the law, “but not the spirit

of the law” (Barber, 2009)? Yet, ambiguity does not lead to a practice of a moral system that “is

more than obedience to the rules of social conduct” for “to be moral is to foster the betterment of

humankind” (Phelps, 2009). The apparent contradiction between the need for a universal moral

framework and the need for ambiguity and adaptability suggests that a need for a middle way of

reconciliation is in order.

Certain current leadership theory may have a broad appeal. For example,

transformational leadership promotes achievement of collective purpose, common mission and

vision, while transactional leadership advances specific benefits for subordinates in




accomplishing specific tasks (Ardichvili & Kuchinke, 2002, p. 101). Further research may

discover existing etic traits that are generalizable across cultures. Some researchers suggest that

traits are recognized in a single cultural context, but others propose that certain traits are

definable and apparent across cultures (Den Hartog, House, Hanges, Ruiz-Quintanilla, & Dorfman,

1999). Murithi, in his discussion of the need for universal values, suggests that “there is an

urgent need to articulate a supplementary universal declaration of human rights duties and

obligations based on values drawn from various cultures” (2007, p. 277). He writes that the

African concept of ubuntu, with its concept of affirmation of and interconnectedness with

humanity points to a certain universality of values as shared with a range of religions (p. 283).

Cultural Values

Murithi is not alone for other leaders, academicians and students support the contention

that there is a need for values in global enterprise. Recognizing that temptations abound, one

writer states, “economists are tempted to placate powerful constituencies; shoemakers are

tempted to use inferior materials. To resist such temptations economists as well as shoemakers

require personal morality” (Phelps, 2009, p. 28). Strauss (1957, p. 344) strongly indicated that

political philosophy should undertake replacing opinion about the nature of political things by

political knowledge, while avoiding neutrality in a process to raise claims about mankind’s

obedience, allegiance, and judgment. Since commerce, communication, and commutation are

common throughout the globe, academic awareness of emerging trends is growing as reflected in

organizational literature. The advent of new models, theories, and movements concerning

spirituality and leadership is growing through observation and study (Karakas, 2006). As pointed

out by Karakas, a set of shared values is appearing in the global consciousness and reflect a sense

for justice, honesty, respect, compassion, and tolerance.




Such an observation is noted by Fowers and Davidov who detail the importance of

acting, thinking, and practicing in ways that “persons of good character do” (2006, p. 586).

Societies across time and culture define character strength and promote the inculcation of

specific values in each generation. Many parents, teachers, philosophers, and clergy endorse

raising virtuous children (Park & Peterson, 2003). Leadership behaviors as studied across five

cultures by Dorfman and Howell (1997) point to the fact that certain leadership traits as

associated with charismatic leadership appear as universals. While not suggesting specific

virtues, one study supports the recognition that a search for universal attributes is appropriate and

that other considerations may have merit (Dickson, et al., 2003). Likewise, another researcher

suggests that while historical contexts and worldviews are different, ancient Indian traditions

present values that transcend time and space (Amaladass, 2007), adding additional support to the

thesis that universal traits of values exist. Further, he states that a leader influences others based

on factors other than formal authority (p. 9), lending credence to the importance of personal

virtue.

In an age when value judgments are often questioned for legitimacy or cross cultural

applicability, Schnapper suggests that “modern democracies increasingly confuse civic or

political equality with a radical relativism that calls into question legitimate principles of

hierarchy and the very idea of value judgments” (2009). Businesses and societies are searching

for the framework that will provide for a basis of leadership. The search is for qualities and

values that are recognized in multi-cultural environments across the global marketplace. A

framework performing a function of providing principles of hierarchy and equitable value

judgments, where can one locate a foundational, general set of traits. A framework that defines

qualities, which are easily recognized, defined, shared, balanced and teachable.






The requirement for leadership skills and virtues that can function in a cross cultural

setting is supported by the importance of the growing need for leaders capable of functioning in a

global cross-cultural environment in an advancing climate of global communication, enterprise,

and multi-cultural interaction importance. The leader steeped in the context of Western culture

with its basis in Judeo-Christian religious prescriptions and principles, Greco-Roman culture,

and Anglo-Saxon legal and economic tradition is fortunate to have access to a heritage that offers

the potential for the necessary universals. These universals consist of the cardinal virtues as

embraced by the church and found in Jewish wisdom literature and the Greek philosophers, Plato

and Aristotle.

The Four Cardinal Virtues, Judeo-Christian Roots and Greek Philosophy

One of the hallmarks of Western culture and more specifically from the Christian roots of

Western culture is a theme of moral excellence, good habit, and exemplary personal qualities as

defined in the seven virtues. Three of the virtues denoted as faith, hope and charity are

considered the spiritual virtues and are taken from a passage of St. Paul in his first letter to the

Corinthians found in the New Testament. The remaining four virtues are defined as courage,

temperance, justice, and wisdom and have a cultural and philosophical history dating from

Jewish wisdom literature (Wisdom 8:7), in addition to the writings of Plato and Aristotle

(Koterski, 2001; Prus, 2007, p. 41). These four, known as the cardinal virtues, may offer a

beginning or foundation point for universal recognition as leadership practices for as Fowers and

Davidov suggest Aristotle’s conception of virtue is an acknowledgement that no one has the last

word on the best kind of life, but rather his idea suggests how should one best live within his

cultural milieu (2006, p. 593). These cardinal (from the Latin cardo meaning hinge) virtues are

the hinge for the access to the ethical and honorable life.




According to Koterski, the moral theory of Aristotle as found in the Nicomachean Ethics

transcends the cultural world in which it was composed. Aristotle searched for common ground

in the pattern of excellence in a diversity of individuals, cultures and social backgrounds (2001).

Further, these virtues as found in Aristotle’s work go beyond the mere personal but are seen as a

part of a larger human context and enacted as part of a community based process. Aristotle

stressed the importance of studying purposive activity from the viewpoint of community based

and linguistic beings (Prus, 2007, p. 15).

One of the key ideas supporting the moral virtues is that of habit. One gains the capacity

for moral behavior and in this model foundational leadership behavior by a routine of practicing

excellence, doing what is right and making better choices as attentiveness and focus are

increasing and becoming habit (Koterski, 2001). The formation of virtue is possible, according to

Strauss (1957, p. 365), through education and the development of habit. The balance for the

leader is to find the middle way of the demands of individual life with the legitimate demands of

the larger community, entity, or organization. The balance accorded to these four virtues appears

to transcend culture (Koterski, 2001) and acknowledge the necessity of community (Prus, 2007,

p. 15). So these four virtues are likely to provide the key elements of a universal set of practices

that place the leader in a position for to perform right actions for self, business, and community

within the global milieu. Each virtue is then a foundation block to prepare a global leader for

encountering the wide array of differences, expectations, and values within his/her scope of

responsibility. An overview of each of these four offers a sense of their fit and form into the

universal framework.




Courage

Courage seems a necessary element for a leader if there is to be any leadership at all. For

what use is any value or virtue if there is no action? In the practice of ethics, courage to act is a

necessary element. If a leader has other virtues and qualities, they are of no value when there is

no action in the face of challenge (Kidder & Bracy, 2001, p. 5). These authors continue by

suggesting that there is a danger in focusing on the old ideal of physical courage and advocate

that the more important path to maturity is in the lessons of moral courage. In the global

economy of today, leadership and the act of courage must shift from a focus on physical courage

to moral courage. For moral courage may prove much more challenging as the leader may find

an easier path by avoiding a moral conflict than a physical one.

The characteristic of moral courage as a virtue means developing the habit to overcome

the fear of humiliation and shame of admitting mistakes, “to confess a wrong, to reject evil

conformity, to denounce injustice, and also to defy immoral or imprudent orders” (Miller, 2000,

p. 254). Walston lists additional constituents of courage such as revealing vulnerability, voicing

unpopular opinion, sacrificing for long-term goals, and manifesting vision (2003). The sense of

this idea emerges in the thinking of Aristotle, who represents courage as a habit where one

chooses the mid-point between cowardice and recklessness (Koterski, 2001).

As courage is an attribute that resonates across most cultures, the global leader is likely to

relate cross culturally by learning and sharing those stories that best reflect heroes that reflect

habits and acts of moral courage. Within the context of global enterprise moral courage should

suggest the courage to be ethical (Kidder & Bracy, 2001). Kidder and Bracey expand on the idea

of moral courage suggesting that it is “the quality of mind and spirit that enables one to face up

to ethical dilemmas and moral wrongdoings firmly and confidently, without flinching or




retreating “ (2001, p. 6). Finally, they contend for the idea that business courage is represented

“in a steadfast adherence to the fundamental values of justice, honesty, and fairness” (p. 9), and it

can be taught.

Moderation

In an age and context, where the students, employees, performers, and civil servants from

many cultures across the globe are experiencing leadership behavior from leaders in the

academy, business, entertainment and government who have mastered the excesses of self-

aggrandizement, self-centeredness, and self-indulgence, the unusual freshness of moderation is

but a distant expectation. The idea of a virtue that calls for moderating our response to pleasures

and excesses appears as a distant vision of the mean between self-indulgence and insensibility,

yet that is considered by Aristotle and his students down through the ages as one of the core

virtues (Koterski, 2001).

The importance of moderation or self-control, the idea of balance is a factor in commerce

as well. Adam Smith is quoted as saying that “self-command is not only itself a great virtue, but

from it all other virtues seem to derive their principle luster” (Shaw, 1997, p. 43). According to

Shaw the market may not generate virtues (p. 44), nevertheless modern commerce is in large part

made possible by virtues, and virtues are possible as Aristotle suggests through habituation.

While Shaw disagrees with Maitland (p. 46) that market forces will encourage virtue and

particularly self-control, the need for such virtue does not dissipate. Those in leadership are

prone to a number of temptations to which they can succumb due to a lack of self-restraint.

When a person lacks self-control, he or she is susceptible to countless dangers, writes Durand

(2008). This would appear even more important when leading others in cross-cultural business

situations where the possibility of misunderstood actions and words are even more likely.




Justice

Within organizations the practice of justice as perceived by the staff is associated with

higher satisfaction (Fischer & Smith, 2006, p. 542). A leader with aspirations for high staff

satisfaction needs to recognize that employees will come into the work environment from

different socio-cultural backgrounds with different expectations and value systems. The

perception of justice by the organization may be the pivotal variable. While it may seem that

people value justice out of self-interest studies continue to indicate the importance of justice in

the workplace (Mueller & Wynn, 2000, p. 20)

The elements of justice will consist of a sense of fairness, empathic concern, and a

capacity for problem solving (Jonsson & Flanagan, 2000, p. 197). These characteristics reflect

the balance of priorities as indicated by males and females and as such, the leaders in global

business must work to understand the expectations of the staff. Justice is also the habit of

choosing the mean, of rendering the right amount at the right time within the knowledge of the

relevant circumstances (Koterski, 2001). For the global leader, sensitivity to justice, a justice that

recognizes the similarities and distinctions of the various cultures in the organization, should be

seen as a key element to the cross-cultural context of organizational vision and mission.

Wisdom

Wisdom, as promulgated by Aristotle, in the sense of prudence, is knowing how to act by

realistic deliberation, coming to an appropriate decision in a reasonable period of time to secure

the ends and goals for human life (Koterski, 2001). As an element of the requirements for global

leadership, wisdom marks the person who is balanced in their approach to discernment and

decision-making. While our age may be an information age, the Polish philosopher Czarnoka

(2006) is concerned that wisdom in the contemporary world does not reflect that of previous






and contexts will only increase. The basis for leadership development and the framework for

values and spirituality calls for a bridging theory between customs, ethnicities, and cultures; a

basis that captures “the diversity of universal ethical and spiritual values across the globe”

(Karakas, 2006, Conclusion section, ¶ 4).

In support of Karakas, the four cardinal virtues as understood in western culture appear to

meet the criteria for a universal framework. These qualities are learned by the development of

habits that reflect right action, the habit of choosing the correct response (Koterski, 2001; Shaw,

1997, p. 46). For leaders in training in the post-Reformation western tradition with its Judeo-

Christian background, caution is urged by Kreeft suggesting that it is a mistake to assume that

virtues are a gift from God and writes that we cannot dispense, “with natural human foundations

and with our responsibility to be active, not passive, in cultivation of virtuous habits” (Kreeft,

1986, a common Christian misunderstaning, ¶ 2). The process of becoming a leader capable of

recognizing the distinctions inherent in other cultures must come through experience, for formal

training is not enough (Light, 2003, p. 6).

Finally, the need to define and articulate a more global set of values is recognized as a

desirable goal (Karakas, 2006; Schnapper, 2009). Yet, additional studies are needed according to

Dickson, who suggests that most studies done in the area of global leadership have significant

limitations, such as inconsistent leadership measures, overreliance on surveys, and methods of

measuring or application of cultural dimensions (Dickson, et al., 2003, p. 751).

Do virtue ethics as universals provide a theoretical framework for the development of a

process by which a more generally acknowledged training and preparation program can be

developed? Does the concept of experience by habitually practicing good and right actions while

allowing for the flexibility of different cultures and values provide a stable enough structure for




ethical practices across the scope of a global enterprise (Dickson, et al., 2003)? In the end, the

cardinal virtues provide an amaranthine starting point for teachers and practitioners to join in a

healthy cross-cultural dialogue.




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About the Author

E. Allen Knight serves as director of the Hosmer Center for Entrepreneurship and

Innovation, as well as serving as assistant professor of business for the Gainey School of

Business at Spring Arbor University. Knight is currently a Doctor of Business Administration

candidate at the Falls School of Business, Anderson University. His interests include leadership,

strategic management, and Christian principles as applied to business. Knight has served as

senior consultant for A&B Consulting Associates, Inc. and senior vice president of Ingram Book

Group/Spring Arbor Distributors. He was influential in coordinating and leading the successful

entrepreneurship workshop hosted by SAU in 2008 and 2009. The latest endeavor is the

development of entrepreneurship training and support through local churches in Detroit, MI.

Email: [email protected]

Personal Website: http://www.linkedin.com/in/allenknight

mailto:[email protected]

http://www.linkedin.com/in/allenknight

http://www.linkedin.com/in/allenknight

mailto:[email protected]

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Leadership in the Global Enterprise: Practicing the Amaranthine Cross Cultural Values of Courage, Moderation, Justice and Wisdom