Advertisement

Honour as the (New) Foundational Virtue for Responsible Leadership in the Banking Sector: A Theoretico-Conceptual Analysis

  • Johan BouwerEmail author
Chapter
  • 575 Downloads
Part of the Ethical Economy book series (SEEP, volume 51)

Abstract

This article deals with the question whether the widely accepted integrity can still be seen as the foundational virtue for responsible leadership within the banking sector. This question emerged in the face of the recent public and political outrage concerning an increase in the salaries of the members of the executive board of the ABN AMRO bank in the Netherlands, while apparently there was no breach of integrity. A theoretical/conceptual analysis of the core concepts in this article: responsible leadership (the key factor in sound and virtuous banking), integrity (the current foundational virtue banks act upon) and honour (a virtue related to integrity, but which encompasses it) has been made in order to find an explanation for the public outrage. It is concluded that the virtue of honour – as a foundational virtue – offers a more solid base than integrity in the banking sector, because honour is fundamentally closer related to the public’s ideals, concerns and values, and ascribed virtues to responsible leadership than integrity. It is therefore argued that honour should replace integrity as foundational virtue for responsible leadership in the banking sector.

Keywords

Responsible leadership Integrity Honour Banking sector 

References

  1. ABN AMRO Group N.V. 2014. Sustainability report. Amsterdam.Google Scholar
  2. Appiah, K.A. 2010. The honor code. How moral revolutions happen. New York/London: W.W. Norton & Company.Google Scholar
  3. Archer, M.S. 2000. Being human: The problem of agency. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  4. Audi, R., and P.E. Murphy. 2006. The many faces of integrity. Business Ethics Quarterly 16(1): 3–21.CrossRefGoogle Scholar
  5. Baggini, J., and P.S. Fosl. 2007. The ethics toolkit. A compendium of ethical concepts and methods. Malden/Oxford: Blackwell Publishing.Google Scholar
  6. Barrett, F.J., and T.R. Sarbin. 2008. Honor as a moral category: A historical- linguistic analysis. Theory & Psychology 18(1): 5–25.CrossRefGoogle Scholar
  7. Bass, B.M. 1997. Does the transactional and transformational leadership paradigm transcend organizational and national boundaries? American Psychologist 52(2): 130–139.CrossRefGoogle Scholar
  8. Bass, B.M., and P. Steidlmeier. 1999. Ethics, character and authentic transformational leadership behaviour. Leadership Quarterly 10(2): 181–217.CrossRefGoogle Scholar
  9. Bowie, N.E. 2013. Business ethics in the 21st century. Dordrecht: Springer.CrossRefGoogle Scholar
  10. Cable, D.M., and T.A. Judge. 2003. Managers upward influence tactic strategies: The role of manager personality and supervisor leadership style. Journal of Organizational Behaviour 24(2): 197–214.CrossRefGoogle Scholar
  11. Collins, D. 2012. Business ethics. How to design and manage ethical organizations. Hoboken: Wiley.Google Scholar
  12. Cox, D., M. La Caze, and M. Levine. 2014. Integrity. In Handbook of virtue ethics, ed. S. Van Hooft, 200–209. Durham: Acumen.Google Scholar
  13. Crisp, R. 2006. Aristotle on greatness of soul. In The blackwell guide to Aristotle’s Nicomachean ethics, ed. R. Kraut, 158–178. Malden/Oxford: Blackwell Publishing.Google Scholar
  14. Cross, S.E., A.K. Uskul, B. Gercek-Swing, Z. Sunbay, C. Alözkan, C. Günsoy, B. Ataca, and Z. Karakitapoglu-Aygun. 2014. Cultural prototypes and dimensions of honor. Personality and Social Psychology Bulletin 40: 232–249.CrossRefGoogle Scholar
  15. Darwall, S. 2013. Honor, history and relationship: Essays in second-personal ethics II. Oxford: Oxford University Press.CrossRefGoogle Scholar
  16. Demetriou, D. 2013. The virtues of honorable business executives. In Virtues in action. New essays in applied virtue ethics, ed. M.W. Austin, 23–38. New York/London: Palgrave MacMillan.Google Scholar
  17. DesJardins, J. 2014. An introduction to business ethics, 5th ed. New York: McGraw-Hill.Google Scholar
  18. Devettere, R.J. 2002. Introduction to virtue ethics. Insights of the ancient greeks. Washington: Georgetown University Press.Google Scholar
  19. Dictionary and Thesaurus (online): http://dictionary.reference.com/.
  20. Ferrell, O.C., J. Fraedrich, and L. Ferrell. 2015. Business ethics. Ethical decision making and cases, 10th ed. Stamford: Cencage Learning.Google Scholar
  21. Guerra, V.M., V.V. Gouveia, R.C.R. Araujo, J.M. de Andrade, and C.A. Gaudencio. 2013. Honor scale: Evidence on construct validity. Journal of Applied Social Psychology 43: 1273–1280.CrossRefGoogle Scholar
  22. Hackett, R.D., and G. Wang. 2012. Virtues and leadership. An integrating conceptual framework founded in aristotelian and confucian perspectives on virtues. Management Decision 50(5): 868–899.CrossRefGoogle Scholar
  23. Hartman, E.M. 2013. Virtue in business ethics. Conversations with Aristotle. Cambridge/New York: Cambridge University Press.CrossRefGoogle Scholar
  24. Hartman, L.P., J. DesJardins, and C. MacDonald. 2014. Business ethics. Decision making for personal integrity & social responsibility, 3rd ed. New York: McGraw-Hill.Google Scholar
  25. Jackson, B., and K. Parry. 2008. A very short, fairly interesting and reasonably cheap book about studying leadership. London: Sage.Google Scholar
  26. Karssing, E. 2009. Integriteit. In Bedrijfsethiek een goede zaak, ed. R.J.M. Jeurissen, 47–57. Assen: Van Gorcum.Google Scholar
  27. Kets de Vries, M.F.R., and D. Miller. 1985. Narcissism and leadership: An object relations perspective. Human Relations 38(6): 583–601.CrossRefGoogle Scholar
  28. Luyendijk, J. 2015. Dit kan niet waar zijn: Onder bankiers. 7e druk. Amsterdam/Antwerpen: Uitgeverij Atlas/Contact.Google Scholar
  29. Maak, T., and N.M. Pless. 2006. Responsible leadership in a stakeholder society. Journal of Business Ethics 66: 90–115.CrossRefGoogle Scholar
  30. Maccoby, M. 2000. Narcissistic leaders: The incredible pros, the inevitable cons. Harvard Business Review 78(1): 68–77.Google Scholar
  31. MacIntyre, A.C. 2007. After virtue. A study in moral theory, 3rd ed. Notre Dame: University of Notre Dame Press.Google Scholar
  32. Merriam-Webster Online Dictionary: http://www.merriam-webster.com/.
  33. Michel, J. The 12 virtues of leadership. Retrieved from http://generalleadership.com/the-12-virtues-of-leadership/ on 14 Nov 2015.
  34. Näsi, J. 1980. Yrityksen suunnittelun perusteet. Käsitteellis-metodologiset rakenteet ja tieteenfilosofinen tausta. Yrityksen taloustieteen ja yksityisoikeuden laitoksen julkaisuja, Series A 1, Tutkimuksia 15, University of Tampere.Google Scholar
  35. Nederlandse Vereniging van Banken. 2010. Code Banken. Amsterdam.Google Scholar
  36. Oprisko, R.L. 2012. Honor: A phenomenology. London: Routledge.Google Scholar
  37. Oxford Online Dictionaries: http://www.oxforddictionaries.com/.
  38. Peterson, C., and M. Seligman. 2004. Character strengths and virtues: A handbook and classification. Oxford: Oxford University Press.Google Scholar
  39. Pless, N.M. 2007. Understanding responsible leadership: Role identity and motivational drivers. Journal of Business Ethics 74: 437–456.CrossRefGoogle Scholar
  40. Rachels, J. 1999. The elements of moral philosophy, 3rd ed. New York: McGraw-Hill.Google Scholar
  41. Ross, D. 2009. (Transl.) The Nichomachean ethics. Oxford: Oxford University Press.Google Scholar
  42. Russel, D. 2005. Aristotle on the moral relevance of self-respect. In Virtue ethics, old and new, ed. S.M. Gardiner, 101–124. New York: Cornell University Press.Google Scholar
  43. Skinner, C. 2015. The biggest banking challenge is leadership. Financial Services Club Blog, http://thefinanser.co.uk/fsclub/2015/01/the-biggest-banking-is-leadership.html.
  44. Smith, M.A., and J.M. Canger. 2004. Effects of superior ‘big five’ personality on subordinates attitudes. Journal of Business and Psychology 18(4): 465–481.CrossRefGoogle Scholar
  45. Solomon, R.C. 1999. A better way to think about business. How personal integrity leads to corporate success. Oxford: Oxford University Press.Google Scholar
  46. Stückelberger, C. 2014. Responsible leadership handbook: For staff and Boards. Geneva: Globethics.net.Google Scholar
  47. Stückelberger, C., and J.N.K. Mugambi (eds.). 2007. Responsible leadership. Global and contextual ethical perspectives. Geneva: Globethics.net.Google Scholar
  48. Swanton, C. 2003. Virtue ethics: A pluralistic view. New York: Oxford University Press.CrossRefGoogle Scholar
  49. Van Es, R. 2001. Professionele Ethiek. Morele besluitvorming in organisaties en professies. Deventer: Kluwer.Google Scholar
  50. Vocabulary (online dictionary). http://www.vocabulary.com/.
  51. Walker, L., and K. Avant. 2011. Strategies for theory construction in nursing, 5th ed. New York: Prentice Hall.Google Scholar
  52. Yukl, G.A. 1999. An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly 10(2): 285–305.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.NHTV Breda International University of Applied SciencesBredaNetherlands

Personalised recommendations