Responsible Leadership Systems An Empirical Analysis of Integrating

Several global crises such as climate change, the global financial breakdown and corporate corruption scandals have diminished the legitimacy of business. One possible answer to this situation is the concept of corporate responsibility (CR), a voluntary a

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GABLER RESEARCH Markt- und Unternehmensentwicklung / Markets and Organisations Edited by Professor Dr. Dres. h. c. Arnold Picot Professor Dr. Professor h. c. Dr. h. c. Ralf Reichwald Professor Dr. Egon Franck Professor Dr. Kathrin Möslein

Change of institutions, technology and competition drives the interplay of markets and organisations. The scientific series ‘Markets and Organisations’ addresses a magnitude of related questions, presents theoretic and empirical findings and discusses related concepts and models.

Erik G. Hansen

Responsible Leadership Systems An Empirical Analysis of Integrating Corporate Responsibility into Leadership Systems With a foreword by Prof. Dr. Prof. h.c. Dr. h.c. Ralf Reichwald

RESEARCH

Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

Dissertation, Technische Universität München, March 2010

1st Edition 2010 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010 Editorial Office: Ute Wrasmann | Sabine Schöller Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-2386-8

To my grandma Elfriede Für meine Oma Elfriede

VII

Foreword Not all managers in multinational corporations can be exceptional leaders. Hence, corporations provide their managers with a broad set of instruments, methods and tools to support them in achieving outstanding leadership. These instruments stem from various functions like human resources, controlling, corporate communication, strategic management, and knowledge management and present the building blocks of so called leadership systems. A key question is how leadership systems can be aligned with corporate strategy to reach “leadership excellence” — a question that has been subject to empirical research in the recent years. In 2003, a study at my institute at Technische Universität München has shown that most leadership systems are indeed “excellent” in the way they are derived from the overarching corporate strategy; however, the results have also indicated that leadership systems have only weak ties to topics such as values, ethics, and social responsibilities. The major ethical and environmental crises which many of the multinational corporations have been facing motivate