Strategic human resource management as ethical stewardship

The willingness of organizations to pursue systematically the twin goals of achieving organizational mission and assisting employees to achieve their personal goals is an implicit obligation of ethical stewardship and organizational leadership (Barnard and Andrews, 2007; Caldwell et al., 2008). The resource-based view of the firm emphasizes the importance of meeting the needs of employees to retain them as a resource-based source of competitive advantage (Barney and Wright, 1998). Scholarly research about successful organizations has increasingly suggested that the most successful companies are those that balance instrumental or outcome-based and normative or value-based objectives (Cameron, 2003; Collins, 2001; Pfeffer, 1998). Measuring results and maintaining a commitment to people are wellrespected elements of high performance systems that balance the instrumental and normative priorities of organizations (Pfeffer, 1998, 2007).

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ately have apparently been slow to either understand the benefits all stakeholders and honors the obhgations benefits of implementing high performance and high owed by business to society (Caldwell and Karri, commitment systems, or they simply lack the skills 2005; Solomon, 1992). DePree (2004, Ch. 1) and required to implement such systems (Pfeffer, 1998). Pava (2003, Chapter 1) have described the duties of Pfeffer (1998, Part II) thoughtfully examines the organizational leaders as "covenantal" in nature, consistent failure of HRPs and organizational leaders suggesting that the relationship that organizations to apply the best thinking and empirical research that owed to employees was akin to both a contact and a affirms proven pnnciples of HRM, and clearly sacred obligation. identifies the need for today's organizations to raise Ethical stewardship has been defined as "the the standard of their performance in applying those honoring of duties owed to employees, stakeholders, principles. Yet the sub-optimization of organization and society in the pursuit of long-term wealth crea- performance persists and organization leaders miss tion" (Caldwell et al., 2008, p. 153). Ethical stew- opportunities to effectively serve their employees, ardship is a theory of organizational governance in shareholders, and society at large (Pfeffer, 1998, which leaders seek the best interests of stakeholders Chapter 1). by creating high trust cultures that honor a broad Increasingly, today's HRPs acknowledge that range of duties owed by organizations to followers they can earn a place at their organization's strategic (Caldwell and Karn, 2005; Pava, 2003). Covey pohcy making table only if they understand how to (2004) has described the stewardship role as value- measure the added value of employee contributions based, principle-centered, and committed to the - the "decision science" of human resources - and welfare of all stakeholders. In pursuit of the best help create organizational programs and systems interests of each stakeholder. Covey has emphasized that reinforce desired employee behaviors (Boud- that the duty of leaders is to optimize outcomes, reau and Ramstad, 2005, p. 17). Clardy (2008) has rather than setding for a compromise position that suggested that to manage the core competencies overlooks opportunities - a phrase Covey (2004, and human capital of the entire firm, HRPs must pp. 204-234) has descnbed as "Win-Win or No clearly understand the strategic goals of the firm Deal." and must then play a key leadership role in taking Both Block (1993) and DePree (2004) viewed the advantage of those competencies. Despite this ethical obligations of organizations as neither idealistic obhgation, HRPs are often unprepared to help nor soft. Block (1993, pp. 91-97) has argued that the their organizations to optimize the use of human responsibility of organizations was to fully disclose capital and today's organizations fail to per- critical informadon and to clearly identify threats form effectively (Lawler III, 2008). This inability to facing an organization as well as the accompanying respond to the needs of the modem organization is implications of those threats upon employees. Block an implicit but often unacknowledged and unin- (1993, pp. 25-26) advocated treating employees as tended violation of the responsibilities and duties "ownen and partners" in the governance process owed to the organizations that those HRPs serve and emphasized that in the highly compedtive global (Hosmer, 2007). that relationship encompassed sharing honest and f 174 Cam Caldwell et al. extensive communication. DePree (2004, p. 11) evaluaring consequences of a firm's behaviors to emphasized that "(t)he first task of the leader is to diverse stakeholders. define reality" — a reality that included an obligation If the HRP is to funcfion as an ethical steward in to tell all of the truth to employees, rather than the modern organization, she/he must combine a withholding key information that might treat the profound knowledge (Deming, 2000) of the opera- employees as mere hirelings or the means by which tions of the firm, an understanding about how to the firm achieved its goals. implement systems by which organizations can The moral posifion of ethical stewardship is that maximize human performance (Becker and Huselid, organizational leaden have the obligation to pursue 2006), an understanding of the empirical value and long-term wealth creation by implementing systems cost/benefit contnburion of high performance sys- that strengthen the organizational commitment of tems (Pfeffer, 1998), and the abihty to communicate each stakeholder (Caldwell and Karri, 2005). Ethical effectively to top management and Boards of stewards in HPJVl demonstrate the insights of great Directors in a convincing manner so that those policy organizations that transform their companies into makers will adopt policies and systems essential for human and humane communities which emphasize creating integrated and effective HRM systems that inclusion, shared partnership, empowerment, and support organizational goals (Lawler III, 2008). leadership trustworthiness (Kanter, 2008). This transforming culture occurs when followen believe that systems will enable employees to achieve desired HRPs and the duties of leadership outcomes and that social contracts will be honored (Caldwell and Karri, 2005; Caldwell et al, 2008). As organizational leaders HRPs have responsibilities Such a culture is also achieved by treafing employees that require insight, skills, wisdom, experience, and a as "yous" or as valued individuals and organizational profound knowledge of their organizations (Becker partners, rather than as "its" or a mere organizational and Huselid, 1999). In this section of our article, we commodity with a human fonn (cf Buber, 2008). suggest that HRPs are "transformative leaders" Grossman (2007) has noted that the HR profes- (Bennis and Nanus, 2007) who honor a broad set of sional must become a steward in frairung an organi- ethical duties in their role as ethical stewards. zation's culture and in facilitating change. Although The HRPs demonstrate principles of transforma- some scholars have advocated that HRPs become tional leadership when they combine a commitment to ethical advocates (Payne and Wayland, 1999), the helping both individuals and organizations to achieve scope of that advocating role and the ethical values unprecedented excellence (Kupers and Weibler, to be incorporated therein have been a source of 2006). Dvir et al. (2002) found that transformational debate (Guest, 2007; Legge, 2000; Palmer, 2007; leaders had a positive impact on followers' develop- Schultz and Brender-Ilan, 2004). Nonetheless, ment and performance and the accomphshment of human resource managers have not typically reported organizational pnorities, affirming Bass and Avolio's performing a major role as ethical educators within (1990, p. 22) claim that transformational leaders their organizations nor have they been successful "elevate the desires of followers for achievement and when they attempted to perform that role (Coltrin, self-development while also promoting the devel- 1991). HRPs would benefit to understand that opment of groups and organizations." Cifing the organizations owe a complex set of duties to mulfiple example of the U.S. Naval Academy graduate, Jim stakeholders, and that they must be accountable to Schwappach, Kouzes and Posner (2007, pp. 118- help organizations understand the ethical implica- 119) describe Schwappach as a leader who was tions of their actions (Hosmer, 2007). In providing a effective at listening deeply to others and involving glimpse into the ethics of management and the duties others in developing solutions that empower of organizations to society, Hosmer (2007) is just employees while greatly increasing the effectiveness one of many ethics scholars who have addressed of an organization in accomplishing organizational the responsibilities of organizational leaders to con- goals. HRM practices that view employees as valued stantly examine the moral calculus of leadership in assets and contributors to the creation of strategic Strategic Human Resource Management as Ethical Stewardship 175 competitive advantage empower people to enhance style demonstrates the influence of charismatic lead- their potential to contribute to the organization's ership in implementing human resource practices success while simultaneously improving employees' which transformed the New Zealand Post "from a skill sets along the way (Becker and Gerhart, 1996; typical government bureaucracy to a profitable state- DePree, 2004). Empowering employees maximizes owned enterpnse and the most efficient post office in cormnitment and enables employees to become a the world" (Pfeffer, 1998, p. 125). source of strategic competitive advantage that com- The HRPs, who demonstrate the abihty to create petitors rarely can duplicate (Becker et al., 2001). a personal charismatic connection with organiza- Becker et al. (2001, p. 4) have noted that "(w)e're tional employees, and who maintain that connection hving in a time when a new economic paradigm - by honoring commitments, honor the duties of characterized by speed, innovation, short cycle times, ethical stewardship by encouraging the hearts of quality, and customer satisfaction — is highlighting the employees (Kouzes and Posner, 2007, Chapters 11 importance of intangible assets." The intangible and 12). That abihty to create high commitment and human assets essential for sustaining competitive high trust is at the heart of high performing organi- advantage depend on whether a finn's leadership zations (Senge, 2006) and is a key responsibility of understands how to integrate people into the effective leadenhip. achievement of organizational goals (Becker and In honoring ethical duties, HRPs are also princi- Huselid, 1998, 2006). The abihty of transformational ple-centered. Principle-centered leadership incorpo- leadership to simultaneously pursue both individual rates foundations of ethical stewardship to the degree needs and organizational goals has long been con- that it seeks to integrate the instrumental and nor- sidered a critical element of organizational success mative objectives of an organization while being (Barnard, 1938), and is widely regarded as an congruent with universal principles demonstrated by important characteristic of high performance orga- effective leaders. Covey (1992, 2004) argued that nizations (Cameron, 2003). leadership is the most successful when it adheres to a The HRPs also honor their duties to others when patterned set of well-accepted principles of effec- they apply principles of charisinatic leadership. tiveness and respected moral values. According to Charismatic leaders are ethical stewards to the degree Covey (1992, p. 31), principle-centered leadership is that they personally inspire others to achieve worthy practiced "from the inside out" at the personal, goals (Caldwell et al., 2007). Charismatic leadership interpersonal, managerial, and organizational levels. is "an attribution based on follower perceptions of Principle-centered leaders earn trust based upon their their leader's behavior", and reflects the followers' character and competence (Covey, 2004). Kouzes "perception of their leader's extraordinary character" and Posner (2003b, 2007) have noted that great (Conger et al., 2000, p. 748). House (1977) described leaders sustain their credibdity based upon their charismatic leadership as being characterized by consistency in modeling correct principles and in high emotional expressiveness, self-confidence, self- honoring values that demonstrate personal integrity. determination, freedom firom internal conflict, and a The principle-centered leader recognizes that conviction of the correctness of the leader's own virtuous outcomes supersede adherence to rules behefs. Kouzes and Posner (2007, p. 133) emphasized (Kohlberg, 1985) and that moral purposes comple- that inspiring leaders appeal to common ideals and ment best practices in achieving stewardship goals animate an organization's vision in a way that reso- (Caldwell and Karn, 2005). Principle-centered nates deeply within the hearts of others. leaders model organizational values (Kouzes and Charismatic leaders recognize that it is in reso- Posner, 2007) and recognize that effective leadership nating with people at the emotional level that creates is ultimately the integration of both ends and means the greatest personal commitment (Boyatzis and (cf Burns, 1978). In their classic study of the most McKee, 2005). While writing of effective human successful businesses of the past century, Colhns and resource leadership, Pfeffer (1998, p. 125) cited the Porras (2004, pp. 131-135) noted the emphasis that case of Elmar Toime of the New Zealand Post who Procter and Gamble placed on creating a strong implemented high trust practices based upon close principle-based culture based on core values and a relationships with individual employees. Toime's core ideology. 176 Cam Caldwell et al. The HRPs honor the obligations of ethical The HRPs who demonstrate a commitment to the stewards when they develop a knowledge of guiding "welfare, growth, and wholeness" (Caldwell et al., principles that characterize great organizations 2002, p. 162) of stakeholders are servant leaders and (Pfeffer, 1998), and when they help organizations to ethical stewards. It is this commitment to stakeholder create aligned organizational cultures that match interests that makes leaders credible and trustworthy actual behaviors with espoused values (Schein, 2004). (Kouzes and Posner, 2003a). HRPs, who fail to This commitment to values and principles of prin- create policies that demonstrate a commitment to ciple-centered leadership is a key element in estab- serving employees, and who do not behave con- lishing and implementing human resource systems gruently with those values, undermine the trust of that earn employee commitment and trust (Covey, employees and inhibit the ability of organizations to 2004). maximize long-term wealth creation (Senge, 2006). The HRPs that demonstrate principles of servant The HRPs are Level 5 leaders when they dem- leadership build trust and inspire the confidence of onstrate their fierce commitment to the success of the others. Servant leadership is at the heart of ethical organization while creating systems that recognize stewardship (Caldwell et al., 2007) and exemplifies its employee contributions and give credit to employees depth of commitment to serving the individual. for achieving an organization's success. Level 5 leaden DePree (2004, p. 11), one of the most highly re- demonstrate a leadership insight that willingly shares garded advocates of servant leadership, opined that both power and the credit for accomplishments while organizational leaders had the ethical responsibility to accepting personal responsibility for organizational be "a servant and a debtor" to employees by estab- failures (Collins, 2001). In his study of great corpo- lishing policies that demonstrate the organization's rations, Collins (2001, pp. 17-40) found that the commitment to the welfare of each employee. leaders of the organizations that evolved "from good Hamilton and Nord (2005, p. 875) describe servant to great" were typified by high commitment coupled leadership as "valuing individuals and developing with great personal humility. In discussing these people, building community, practicing authenticity, Level 5 leaders, Marcum and Smith (2007) explained and providing leadership that focuses on the good of that Level 5 leaders avoided the counterfeit leader- those who are being led and those whom the orga- ship qualities of egoistic self-interest that typified nization serves." high profile leaders in inany organizations. CoUins Greenleaf (2004, p. 2) emphasized that the great (2001, p. 27) emphasized that Level 5 leaders were not leader is a servant first because that commitment to "I-centered" leaders who punued self-serving goals serving others is his identity "deep down inside." or who viewed themselves as the upfront personifi- Servant leadership honors each individual as a valued cation of their organization's success. Instead, they end, rather than simply as a means to organizational tended to be described by those who worked with or outcomes (cf Buber, 2008; Hosmer, 1995). The wrote about them as ''quiet, humble, modest, reserved, servant leader puts the needs, desires, interests, shy, gracious, mild-mannered, self-effacing, understated, and welfare of others above his or her self-interest did not believe his own clippings; and so forth" [Italics in (Ludema and Cox, 2007, p. 343) while also honoring the original] (Colhns, 2001, p. 27). duties owed to the organization (DePree, 2004). Collins (2001, p. 30) reported that Level 5 leaders Pfeffer (1998, pp. 91-92) noted that Herb Kelleher, also possessed a "ferocious resolve, an almost stoic the former CEO of Southwest Airlines, and Sam determination to do whatever needs to be done" to Walton, the founder of Wal-Mart, were both known serve the organization and to make it great. Werhane for valuing employees as critical to the success of their (2007, p. 433) also noted that the most successful organizations and for adopting a leadership philoso- leaders in her study of effective women leaders were phy incorporating principles of servant leadership. Level 5 leaders who "seem to care more about the This valuing of employees at both Wal-Mart and sustained success of their organization than their own at Southwest Airlines balanced a consideration for legacy." Level 5 leaders are transformative in dem- employees' welfare with a recognition that treating onstrating humility about their own accomplish- employees well increases their commitment in ments, giving credit to others in their organization return. for success while accepting full responsibility for the Strategic Human Resource Management as Ethical Stewardship 111 errors made by an organization and working working for the welfare of stakeholders (Caldwell unceasingly to address those errors (Collins, 2001, et al., 2006). It is in this abihty to help people to 2005). Citing the case of AES Corporation's CEO, discover new truths and achieve the best within Dennis Bakke, Pfeffer (1998, pp. 99-103) empha- themselves at both the individual and organizational sized that effective organizations do not achieve levels, enabhng organizations to optimize wealth short-term profitabihty by short-changing employ- creation (Senge, 2006) and honor their role as ees. Working for the long-term success of an orga- covenantal leaders and ethical stewards (Caldwell nization and creating policies and systems that reward and Dixon, 2007; Caldwell et al., 2007). Kouzes employees for laying the foundation to achieve long- and Posner (2007, p. 317) cited the example of term growth rather than a short-term appearance of Bob Branchi, the Managing Director of Western growth takes courage and integrity in the face of Australia's largest network of automobile dealerships, pressures to achieve short-term results in today's in teaching a dehvery driver that his value as an distorted business environment (Pfeffer, 1998). individual and his role in the organization were also Human resource professionals act as both ethical important to the organization's success - thereby stewards and Level 5 leaders when they create human helping that individual not only to share in the resource systems and processes that are fully ahgned organization's accomplishments but also to redefine with the normative and instrumental goals of the himself organization while giving employees credit for their Sung-Choon et al. (2007) have emphasized the role in the accomplishment of those goals (Caldwell vital role of knowledge creation in fii-ms as an et al., 2007). These aligned and congruent systems important element of the human resource architec- and processes balance the needs of the organization ture and have advocated the importance of adopting with a commitment to the best interests of its a learning organization culture to create a sustainable stakeholders (Pauchant, 2005) and create reward competitive advantage. HRPs become covenantal systems that also reward employees for contributing leaders when they focus on individuals, empower to organizational success. them to increase their level of commitment to When HRPs model the behaviors of covenantal themselves and to the organization, and create leadership, they help organizations create new opportunities for creating new knowledge and knowledge which enables firms to create and main- insight that benefits both the organization and the tain competitive advantage and constantly improve. individual (cf Pava, 2003; Senge, 2006). Covenantal leadership integrates the roles of the leader As HRPs adopt the characteristics of ethical as a servant, role model, a source of inspiration and as stewardship, they help their organizations add value a creator of new insight and meaning (Caldwell et al., to the lives of individuals and organizations. Solo- 2007; Pava, 2003). Covenantal leadership encom- mon and Flores (2003, p. 6) have called leaders who passes the pursuit of a noble purpose, often described demonstrate high corrmiitment to others and to their as rising to the level of a contractual or even a sacred organizations "authentic" and praise the trustwor- duty (Bamett and Schubert, 2002; DePree, 2004; thiness and integrity of those who lead unselfishly Pava, 2003). Covenantal leaders seek not only to and effectively. Kolp and Rea (2005, pp. 154-158) enhance the skills and abiUties of those with whom have also cited the character of such leaders and have they associate, but also to "unleash the great human described their accomphshments as balancing "value potential which is often dormant and silent" and virtue" in creating cultures where employees in organizations (Pava, 2003, p. 26). Striving to feel empowered to take risks and achieve unprece- serve both individuals and the organization, shar- dented results. HRPs who adopt the leadership ing knowledge, inspiring by personal example, behaviors of ethical stewardship understand the value and learning with others, covenantal leadership is of the individual as well as the organization while attuned to the importance of continuous learning holding both people and the organization in high (Pava, 2003). regard. Covenantal leadership incorporates ethical stew- By integrating the best elements of leadership, ardship's commitment to creating new solutions to HRPs honor their role as ethical stewards and con- problems, creating new wealth and value, and tribute to the capability of their organizations while 178 Cam Caldwell et al. profoundly benefiting the employees who work in with strategic objectives are well documented those organizations. As contributors to the optimal by management scholars (Lawler III, 2008; strategic accomplishment of an organization's mis- Pfeffer, 1998, 2007). sion, HRPs who exhibit transformative leadership 2. We describe and clarify the role of SHRM as it behaviors have the opportunity to serve the needs of relates to the principles of ethical stewardship and a multiple set of stakeholders in honoring a broad emphasize the implicit ethical duties owed by range of ethical duties (Hosmer, 2007). HRPs can HRPs to their organizations. Ethical stewardship help organizations to build trust and commitment in is a philosophy of leadership and governance the pursuit of long-term wealth creation (cf Senge, that optimizes long-term wealth creation and 2006) as ethical stewards when they serve their that honors duties owed to all stakeholders organizations as transformative leaders. (Caldwell and Karn, 2005; Pava, 2003). As a framework that integrates both normative and instrumental ethical values (cf Paine, 2003), the principles of ethical stewardship build Contributions of our article both the trust and the commitment of follow- ers (Caldwell et al., 2008). HRPs owe their Today's modern organizations desperately need organizations a set of obligations and duties leaders who they can trust if their organizations are to that include helping the top management be successful in a highly competitive global market place (Cameron, 2003). Those leaders include highly team to contribute to the strategic effective- competent, knowledgeable, and skilled HRPs who ness of the firm while simultaneously meeting understand how to ahgn HRM programs with cor- the needs of organizational members (Barnard, porate objectives and strategic plans (Becker et al., 1938; Becker and Huselid, 1999). Rarely are 2001). We argue that the leadership skills of these organizations able to earn the trust of employ- HRPs must encompass the moral perspectives of ees if HRM systems and processes conflict ethical stewardship and the unique contributions of with the strategic goals of the firm (Pfeffer, transformative leadership. 1998). Congruent and effective leadership and We suggest that our article contributes to the consistent policies help organizations to obtain SHRM hterature in four significant ways. the commitment fi-om employees which is the key to long-term wealth creation (Senge, 2006). 1. We affirm the importance of SHRM as a vital ele- 3. We identify the importance of the ethical duties ment of successful organizations when aligned with inherent in best leadership practices as essential ele- the overall goals, values, and priorities of that orga- ments of the HRPs' responsibilities in honoring nization. We note, however, that many HRPs their organizational roles. The leadership obliga- either fail to understand this strategic role of HRM tions and responsibihties of HRPs incorporate or lack the abilities to align HRM systems to the best elements of transformational leader- serve their firms. Human resource management ship, charismatic leadership, servant leader- practices that are integrated in a manner ship, Level 5 leadership, and covenantal that reinforces strategic objectives can play leadership. Each of these six leadership per- a major role in enabling organizations to spectives of leadership is normatively and utilize employees as the source of strategic instrumentally consistent with the scope competitive advantage (Hartel et al., 2007; and duties of SHPJVl (Pfeffer, 1998, 2007) Konzelmann et al., 2006). Although designing and facilitate both social and financial out- aligned human resource systems and firaming comes of organizations (cf Collins, 2001; a well-conceived strategy are important, it Hosmer, 2007; Paine, 2003). These ethical is in implementing these systems that a firm responsibilities demonstrate the importance of achieves desired organizational outcomes aligned and congruent organizational systems (Pfeffer, 1998; Sun et al., 2007). The failures and are consistent with the empirical of organizations to create aligned and congru- evidence that affirms the importance of ent organizations with HR systems that mesh high performing organizations in creating Strategic Human Resource Management as Ethical Stewardship 179 long-term wealth (Colhns, 2001; Paine, 2003; Nonetheless, this challenge is consistent with the Senge, 2006). needs of organizations that must compete in an 4. We reinforce the importance of human resource pro- increasingly competitive world that is heavily fessionals elevating their contribution to organiza- dependent on the skills and commitment of tions professionally, ethically, and strategically. employees to create value and long-term wealth HRPs have often been ineffective at contrib- (Covey, 2004; Pfeffer, 2007). uting to the success of organizations because Although the role of HRM has changed substan- they have failed to demonstrate the requisite tially over the past 20 years, HRPs continue to have knowledge and skills to help organizations to opportunities to broaden and strengthen their role in achieve objectives that are vital to their role helping organizations maximize productivity, govern as business partners and major decision mak- more ethically, and compete more effectively (Pfef- ers (Lawler and Mohrman, 2000). In today's fer, 2007). In understanding their role as transfor- highly competitive business environment, the mative organizational leaders, HRPs have the role of employees has become increasingly obhgation to prepare themselves to accomplish the important to achieving strategic competitive goals of their organizations by honing their expertise advantage, and the opportunity for organiza- about organizational goals, developing the skills of tions to create that advantage by unlocking organizational members, and creating aligned systems employee potential is often the key difference that are critical to the success of modern organiza- for both competitive advantage and increased tions (Hosmer, 2007; Werhane et al., 2004). Such profitabihty (Pfeffer, 2007). HRPs who help preparation demands that HRPs also develop insights create organizational cultures based on nor- about ethical and moral issues and that they set the matively virtuous principles can increase the example as ethical leaders (Kouzes and Posner, 2007; abihty of their companies to earn the high Pinnington, et al., 2007). trust and employee commitment which leads The willingness of organizations to pursue to better quahty, improved customer service, systematically the twin goals of achieving organiza- and increased profitability (Cameron, 2003). tional mission and assisting employees to achieve their The roles of HRPs in organizations enable personal goals is an implicit obligation of ethical their companies to be more professional and stewardship and organizational leadership (Barnard more successflil strategically while enabling and Andrews, 2007; Caldwell et al., 2008). The the companies to honor the implicit ethical resource-based view of the firm emphasizes the duties owed to employees. importance of meeting the needs of employees to retain them as a resource-based source of competitive The clear message of management scholars who study advantage (Barney and Wright, 1998). Scholarly today's organizations is that "good" is not good en- research about successful organizations has increas- ough and is, in fact, "the enemy of great" (Collins, ingly suggested that the most successful companies are 2001, p. 1). The challenge for today's leaders is to those that balance instrumental or outcome-based and move from "effectiveness" to "greatness" (Covey, normative or value-based objectives (Cameron, 2003; 2004, pp. 3-4) to optimize the potential of the Collins, 2001; Pfeffer, 1998). Measuring results and modem organization. maintaining a commitment to people are well- respected elements of high performance systems that balance the instrumental and normative priorities of Conclusion organizations (Pfeffer, 1998, 2007). Organizations that integrate principles of ethical Only when HRPs are perceived as competent and leadership with a strategic approach to HRM opti- ethical will they be able to merit the trust of those mize the maximization of values and outcomes and organizational stakeholders with whom they work achieve results which pay off long-term (Colhns and (Graham and Tarbell, 2006). Adopting the standards Clark, 2003; Paine, 2003). By honoring their duties of ethical stewardship and the best practices of lead- as ethical stewards and incorporating principles of ership may be a daunting challenge for transformative leadership, HRPs can make a major HRPs. 180 Cam Caldwell et al. contribution to their organization's financial success Boudreau, J. W. and P. M. 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M.: 2006, The Fifth Discipline: The Art and perrider (eds.), Handbook of Transformative Cooperation: Practice of the Learning Organization (Doubleday, New New Designs and Dynamics (Stanford Business Books, York). Palo Alto, CA), pp. 333-373. Solomon, R. C: 1992, Ethics and Excellence: Cooperation and Marcum, D. and S. Smith: 2007, egonomics: What Makes Integrity in Business (Oxford Univenity Press, New York). Ego Our Greatest Asset (or Most Expensive Liability) Solomon, R. C. and F. Flores: 2003, Building Tmst: In (Fireside Publishing, Wichita, KS). Business, Politics, Relatiomhips, and Life (Oxford Paine, L. S.: 2003, Value Shift: Wliy Companies must Merge University Press, New York). Social and Financial Imperatives to Achieve Superior Sun, L.-Y.. S. Aryee and K. S. Law: 2007. 'High-Per- Performance (McGraw-Hill, New York). formance Human Resource Practices, Citizenship Palmer, G.: 2007, 'Socio-Pohtical Theory and Ethics Behavior, and Organizational Performance: A Rela- in HPJVl', in A. Pinnington, R. Macklin. tional Perspective', Academy of Management Journal T. Campbell (eds.), Human Resource Management: Ethics 50(3), 558-577. and Employment (Oxford University Press, Oxford), Sung-Choon, K., S. S. Morris and S. A. SneU: 2007, pp. 23-34. 'Relational Archetypes, Organizational Learning and Pauchant, T. C: 2005, 'Integral Leadership: A Research Value Creation: Extending the Human Resource Proposal', Jowwd/ of Organizational Change Management Architecture', Academy of Management Revieu^ 32(1), 18(3), 211-229. 236-256. Pava, M.: 2003, Leading with Meaning: Using Covenantal Ulrich, D. and D. Beatty: 2001, 'From Partners to Leadership to Build a Better Organization (Palgrave Players: Extending the HR Playing Field', Human MacMiUan, New York). Resource Management 40(4), 293-299. Payne, S. L. and R. F. Wayland: 1999, 'Ethical Obliga- Ulrich, D. and W. Brockbank: 2005, 'The Work of tion and Diverse Value Assumptions in HI^JVl', Inter- HR Part One: People and Performance', Strategic HR national Journal of Manpower 20(5/6), 297-308. Review 4(5), 20-23. Pfeffer, J.: 1998, The Human Equation: Building Profits by Werhane, P. H.: 2007, 'Women Leaders in a Globalized Putting People First (Harvard Business School Press, Woi\d\ Journal of Business Ethics 74(4), 425-435. Boston, MA). Werhane, P. H., T. J. Radin and N. E. Bowie: 2004, Pfeffer, J.: 2007, 'Human Resources from an Organiza- Employment and Employee Rights (BlackweU Pubhshing, tional Behavior Perspective: Some Paradoxes Ex- Oxford). phmed\ Journal of Economic Perspectives 21(4), 115-134. Pinnington, A., R. Macklin and T. Campbell: 2007, Cam Caldwell 'Introduction: Ethical Human Resource Management', University of Georgia, in A. Pinnington, R. Macldin and T. Campbell (eds.), Athens, GA, U.S.A. Human Resource Management: Ethics and Employment E-mail: cam.caldwelK^mail.com (Oxford University Press, Oxford), pp. 1-20. Schein, E. H.: 2004, Organizational Culture and Leadership Do X. Truong, Pham T. Linh and Anh Tuan (Jossey-Bass, San Francisco, CA). Vietnam National University, Schultz, T. and Y. Brender-Ilan: 2004, 'Beyond Justice: Hanoi, Vietnam Introducing Personal Moral Philosophies to Ethical Copyright of Journal of Business Ethics is the property of Springer Science & Business Media B.V. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.

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