Mario Fernando

Leading Responsibly

in the Asian Century

Springer

Contents

1 Introduction 1 References 7

2 The Context 9 Introduction 9 Responsibility 10 Social-Contract Theory 11 A Crisis of Legitimacy and Trust 12 Why Good People Succumb to Unethical Acts? 15 Corporate Social Responsibility 17 The Necessity to Consume 21 Responsible Corporations and Capitalism 24 Conclusion 27 References 28

3 The Moral Basis for Responsibility 31 Introduction 31 Ethics 31 Factors Influencing Leaders' Moral Behavior 36

Religion 36 Ethical Relativity 36 Conscience and Self-Interest 37 Power 38 Altruism 39

Moral Philosophies 40 Utilitarianism 40 Kantianism (Deontology) 41 Virtue Ethics 43

Application of Moral Philosophies 45 Morality in Leadership 47 Conclusion 50 References 51

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xiv Contents

4 The Complexity of Leadership 53 Introduction 53 Characteristics of Leadership 54 Key Approaches to Leadership 55

Situational-Leadership Theories 56 Transactional Leadership 56 Transformational Leadership 57 The Füll Range Leadership Model 57 Transcendental Leadership 58 House's Path-Goal Theory 58 Spiritual Leadership 60 Ethical Leadership 63 Servant Leadership 64 Authentic Leadership 65

Conclusion 66 References 66

5 Responsable Leadership in Theory 71 Introduction 71 What Is Responsible Leadership? 71 Antecedents of Responsible Leader Behaviour 75 Responsible Leadership for Performance (RLP) 76 Responsible Leadership for Relations (RLR) 80 Differences Between RLP and RLR 83 Responsible Leadership and Social Capital 84 Values and Responsible Leadership 87 The Poetic Seif 90 Links with Other Leadership Approaches 94

Ethical Leadership 95 Shared Leadership 95 Spiritual Leadership 96 Servant Leadership 98 Authentic Leadership 98

Conclusion 99 References 99

6 Responsible Leadership in Practice 103 Introduction 103 Responsible Decision-Making Options for Leaders 104 Corporate Social Responsibility (CSR) and Responsible Leadership 105

Approaches to CSR 107 Strategie CSR in the Asian Context 110

Responsible Leadership in Global Business 113 Globalization and MNEs 116 Impact of Globalization on Leading Responsibly 118

Contents xv

Habermas and Responsible Leadership 121 Communicative Action and Responsible Leadership Outcomes in the Asian Century 124

Sustainability and Responsible Leadership 127 Climate Change and Responsible Leadership 131 Challenges to Practicing Responsible Leadership 133 Conclusion 137 References 137

7 Responsible Leadership in the Asian Century 143 Introduction 143 Asian Management Styles 144 Chinese Cultural Influences on Responsible Leadership 147 The Importance of Social-Purpose Business in the Asian Century 152 Social Innovation 155 Social Innovation and Responsible Leadership 158

Social Innovation Through Performance 158 Social Innovation Through Relationships 159

Virtuousness Through Socially Innovative Responsible Leadership 167 Conclusion 171 References 172

8 The Future for Responsible Leadership 177 Introduction 177 Potential of Responsible Leadership 177

Responsible Leadership: Another Management Fad? 179 Developing Responsible Leaders 180

Transformative Teaching and Learning Through Social Innovation 182 The Subject 184 Assessments 185 Content of Social-Innovation Projects 186

Conclusion 188 References 188

9 Appendix: Sample Asian Century Leader Interviews 191 Introduction 191 Jia Li, Co-Founder, Baixing.com, China 191

Career 191 The Greatest Leadership Challenge 193 Responsible Leadership 194 Leading in Asia 194 Recent Changes in Chinese Business Culture 195 Summary 196

Bernie Landy, President, BlueScope China 196 Career 196 Leadership 197

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Advice for Leading Successfully 198 Leading in China 198 Responsible Leaders 199 Responsible Leadership and Profits 200 Impact of Leading in Asia on Responsible Leadership 200 Future of Leadership 202

Simon Linge, President, NS BlueScope Indonesia 202 Career 202 Leadership 203 Challenges of Leadership 204 Responsible Leaders 204 Responsible Leadership and Profits 204 Impact of Leading in the Asian Century on Responsible Leadership 205 Challenges and Opportunities in Different Markets and Cultures 206 Future of Leadership 207

Atul Gogna, Vice President, Strategie Marketing, NS Bluescope Coated Products, Singapore 208

Responsible Leadership in Asia 208 Challenges Pacing Leadership in Asia 208 Future of Leadership in Asia 209