The purpose of this study is to examine inclusive leadership as a predictor of innovative work behavior with the mediating role of psychological safety. Data were collected from supervisors–subordinates dyads working in textile industry in Pakistan. Our findings suggest that inclusive leadership is a positively related with innovative work behavior, and psychological safety mediates the effect of inclusive leadership on innovative work behavior. The leader–member exchange theory was used to build our theoretical model. We have also discussed theoretical and practical implications of our findings.

This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the real and fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing.

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Several recent studies and initiatives have emphasized the importance of a strong ethical organizational DNA (ODNA) to create and promote an effective corporate governance culture of trust, integrity and intellectual honesty. This paper highlights the drawbacks of an excessively heavy reliance on rules-based approaches that increase the cost of doing business, overshadow essential elements of good corporate governance, create a culture of dependency, and can result in legal absolutism. The paper makes the case that the way forward for effective corporate governance is to strike an optimal balance between rules-based and principles-based approaches. The recent corporate scandals have demonstrated that the ethical ODNA is critical to the driving force and basis of legal and regulatory requirements. Effective governance means adhering to ethical principles, not merely complying with rules, and is a crucial guardian of a firm’s reputation and integrity. It is through an effective corporate governance program (that is, one that optimally captures and integrates the appropriate aspects of rules-based and principles-based approaches, and identifies and assesses the related risks) that an organization can reconfigure its ODNA for improved performance. Focusing on the ethical ODNA as the basis of new governance measures provides an opportunity to develop a competitive advantage as it represents a potential source of differentiation, strengthens the relationship with all stakeholders of the organization by building a culture of trust and integrity, and re-instills investor confidence. This paper employs dialectical reasoning that links the ODNA through principles-driven rules in developing a risks-based approach. A comparison from a risk assessment perspective between rules-based and principles-based approaches is presented. Although there have been few applications employing dialectical reasoning in business research, this methodology can be extremely useful in isolating ethical issues and integrating them into the business process. The risks-based approach captures the benefits of both rules-based and principles-based approaches, and incorporates trust-based principles suchâ\x90£as solidarity, subsidiarity and covenantal relationships. Copyright Springer Science+Business Media, Inc. 2006effective corporate governance, organizational DNA, ethics, rules-based, principles-based, risks-based, trust-based, solidarity, subsidiarity, dialectical reasoning, compliance,

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The fallout of the 2008 global financial crisis and frequent disregard for labor, environmental, and social standards have instilled new vigor into the study of ethics and virtues. In the contemporary knowledge society, the issue of which virtues the modern day workforce needs to possess is of crucial significance. This study specifies the virtues laid out in the management theory of Peter Drucker , focusing upon the conceptual category of the knowledge worker as the primary unit of the contemporary information and innovation-based knowledge society. The idea and role of intellectual virtues are not yet fully developed in the literature, especially as those identified in this article are the source of critical and creative thinking. This intervention, therefore, identifies prudence, effectiveness, excellence, integrity, and truthfulness as the knowledge worker's intellectual virtues, whereas practical wisdom, responsibility, cooperation, and courage are seen to constitute the knowledge worker's moral character.

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