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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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.
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Mindfulness, Hope, and Compassion (Harvard Business
School Press, Boston, MA).
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World Benefit: New Horizons for Research and Ethics: A European Review 13(4), 302-316.
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perrider (eds.), Handbook of Transformative Cooperation: Practice of the Learning Organization (Doubleday, New
New Designs and Dynamics (Stanford Business Books, York).
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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
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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
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