Leadership, Ethics, and Trust 1527513440, 9781527513440

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Leadership, Ethics, and Trust

Leadership, Ethics, and Trust By

Cam Caldwell

Leadership, Ethics, and Trust By Cam Caldwell This book first published 2018 Cambridge Scholars Publishing Lady Stephenson Library, Newcastle upon Tyne, NE6 2PA, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2018 by Cam Caldwell All rights for this book reserved. No part of this book 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 permission of the copyright owner. ISBN (10): 1-5275-1344-0 ISBN (13): 978-1-5275-1344-0

TABLE OF CONTENTS

Foreword ................................................................................................... vii C. Stewart Holloway, PhD Preface ........................................................................................................ ix Chapter One ................................................................................................. 1 Leadership, Ethics, and Trust - Framing the Concepts Chapter Two .............................................................................................. 13 Beginning with the End in Mind – Understanding and Defining Reality Chapter Three ............................................................................................ 33 Why Many Leaders Fail – Insights and Assumptions Chapter Four .............................................................................................. 49 Why Trust is the Glue to Competitive Advantage Chapter Five .............................................................................................. 61 Trustworthiness and Leader Effectiveness Chapter Six ................................................................................................ 73 Integrity, Ethics, and Moral Choices Chapter Seven............................................................................................ 87 The Psychological Contract and Leadership Insights Chapter Eight ............................................................................................. 98 Transformative Ethics and the Pursuit of Excellence Chapter Nine............................................................................................ 114 Authentic Leadership and Building Trust Chapter Ten ............................................................................................. 125 Leadership from the Inside-Out

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Chapter Eleven ........................................................................................ 139 Ethical Stewardship and Covenantal Relationships Chapter Twelve ....................................................................................... 157 Leading with Meaning – Creativity, Innovation, and Constant Learning

FOREWORD

Cam Caldwell’s book takes a unique approach. Dr. Caldwell takes a “secular” leadership model and uses examples from the ministry of Jesus Christ to show this model in action. The management theories and techniques covered by this book will be familiar to those in management and business. What is not as familiar, however, is how these theories and techniques are seen in the ministry of Jesus. People have often said that “all truth is God’s truth.” In other words, if something is true, then it must have its foundation in the mind and heart of God. Further, such truth should display more of God and awaken more love for God in our hearts. As I have journeyed with Dr. Caldwell in this study, I have been amazed at how management and business principles, things that I would have heretofore considered “secular” and unrelated to Jesus, are seen in the leadership style of Jesus. Yet, what leader has started a larger, longer lasting, and more transformational movement than Jesus Christ, and who better exhibits trust and ethics in leadership than the incarnate Son of God? As you read this work, you will find easily-reviewed lists and clear steps for implementation of the theories proposed. You will also find helpful illustrations of how these theories are visible in the life and ministry of Jesus. You may even find yourself drawn to studying the ministry and leadership of Christ in more depth. If that is the case, that study will be an added benefit to you. As a pastor and leader of a local church, I often find myself trying to learn from the leadership style of Jesus. Several helpful books are available about Jesus’ leadership. These include C. Gene Wilks, Jesus on Leadership (Tyndale, 1998); Michael Youssef, The Leadership Style of Jesus (Harvest House, 2013); Bob Briner and Ray Pritchard, The Leadership Lesson of Jesus (B&H, 2008); and Ken Blanchard, Lead Like Jesus (Thomas Nelson, 2006) and Lead Like Jesus Revisited (Thomas Nelson, 2016). With the exception of management expert Ken Blanchard’s works, most leadership books about Jesus are written by pastors and for pastors. While other business leaders will glean insights from such books, pastors get the most benefit.

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Join the movement of transformative leadership! Be trained by the King of kings, the Lord or lords, the Leader of leaders, Jesus Christ. C. Stewart Holloway, PhD First Baptist Church of Pineville, LA

PREFACE

Leaders, or those who wish to be, have a great opportunity as they relate to others. Leadership is, indeed, a relationship. It is based upon the ability to choose service to others over personal self-interest. It is achieved by treating others well and by helping them to become their best. Leaders empower others to achieve unprecedented outcomes. Leaders can change lives -- and help to create better organizations and a better world. The leadership relationship is most effective when leaders honor what are often called “covenantal duties” – sacred obligations owed to their colleagues, to their customers, to shareholders, and to the greater community. This moral obligation to add value and to seek constant improvement is the foundation of ethical responsibility, and leadership and ethics are much like two sides of the same coin. By honoring this responsibility to serve others, to engage and empower them, and to assist them to have a more abundant life, leaders raise the bar and improve the quality of life for themselves and for others. Trust is the commodity that leaders depend upon to improve performance and trust comes when leaders are worthy of others’ best efforts. Trust is far more than just a willingness to collaborate or a desire to cooperate. The trust that others give to leaders is action – high commitment and extra effort because they have confidence that a leader cares about their welfare, treats them fairly, and is honorable and honest. The model for great leadership in this book is Jesus of Nazareth. Throughout his life, this Jesus devoted himself to others’ welfare, led by example, and taught others principles to live by that changed lives and brought others greater insight. Although we all might recognize that we have much to improve to become our best, the life of Christ inspires men and women everywhere to come to a greater understanding of their divine capacity and potential. This book is intended to offer a promise to those who choose to read it. The principles contained herein and the examples from the life of Jesus Christ will help the reader to discover greater abilities than he or she had ever previously realized. Men and women who choose to improve, who seek to discover their greatness and to pursue their highest potential can do so by applying the principles of this book. In becoming the best possible

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version of themselves, those who read this book and incorporate its ideas into their lives can discover a better self and can change the world.

CHAPTER ONE LEADERSHIP, ETHICS, AND TRUST FRAMING THE CONCEPTS

It is no secret that leaders and organizations have struggled throughout time to earn the confidence of others – whether those “others” be customers, colleagues, or employees 1 . Leading is tough. It requires the balance and ability to understand what needs to be done and the most effective way to sustain collaborative relationships to build team commitment and trust2. Leadership failures are common3. Successful and effective leaders are highly prized. Despite the many books and articles written about becoming an effective leader, there continues to be little consensus. Experts disagree. Leadership remains elusive as a relationshipbased concept -- but there is no disagreement that trust in leadership has severely declined, employee engagement is low, and leaders are frequently perceived to be unethical. For these important reasons this new book has been written. This first chapter introduces the book, documents the challenges facing leaders in virtually every type of organization, and presents the main thesis of the book: “The insights and principles demonstrated by the life of Jesus Christ can enable leaders to build trust with followers; honor ethical duties owed to both individuals and their organizations; and become better individuals who are more effective at helping themselves, their organizations, and their employees to achieve their highest potential.” The chapter introduces the underlying concepts upon which this book is based, lays out the format for the remaining chapters of the book, and briefly summarizes the content which the reader will find in the remaining chapters. The theme prevailing throughout this book is that effective leadership relationships demand extremely high standards and those standards mirror the leadership example of Jesus Christ.

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This chapter begins with an introductory definition of leadership, ethics, and trust. Following that brief beginning, the chapter identifies four key elements contained in the thirteen remaining chapters and concludes with a synopsis of each chapter’s contents to guide readers who may have a specific interest in one topic or another.

Defining “Leadership” Over 40 years ago, Ralph Stogdill observed that there are almost as many definitions of leadership as there are people who have attempted to define it 4 . Warren Bennis, one of the most well-regarded leadership scholars, similarly observed the following compelling observation.

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Of all the hazy and confounding areas in social psychology, leadership theory undoubtedly contends for top nomination. And, ironically, probably more has been written and less is known about leadership than about any other topic in the behavioral sciences5.

These observations by highly regarded scholars confirm the importance of studying leadership – and the difficulty involved in tying down its definition. Despite the differences of experts in defining leadership, there is consensus among many scholars that leadership involves four common factors: 1) cooperative effort, 2) relationships of trust, 3) the pursuit of desired goals, and 4) implementation of change6. Leaders succeed based upon influence, personal credibility, and their ability to demonstrate their commitment to others’ needs7. Mary Parker Follett, an early 20th century Boston socialite and a highly respected founder of the organization behavior movement, noted that leaders are most effective when they emphasize “power with” rather than “power over” others8. This book includes insights from many experts who have recognized leadership’s vital importance in the modern organization and takes the position that leadership is most effective when leaders treat others as partners rather than subordinates.

Defining “Ethics” Almost without exception, each individual perceives that (s)he adheres to an ethical standard of conduct. Perspectives about what constitutes ethical behavior may vary greatly from person to person – but for each of us we see the world through the lens of personal experiences, perceptions about ourselves and others, and beliefs about expectations due to and from others 9 . Ethics consist of any of a broad number of philosophical perspectives about right and wrong behavior. All of those perspectives are based upon an underlying set of assumptions about rights, responsibilities, and relationships10. Ethics and one’s assumptions about a leader’s obligations are intimately related11. By understanding the beliefs and values of an individual and the goals that a leader is seeking to achieve, we can anticipate that person’s ethical perspective and actions in dealing with others12. Because beliefs and values are unique and personal, the expectations and assumptions about ethical conduct vary from person to person. Thus, a wise leader will not only recognize the importance of his/her own ethical perspective but will also want to understand the ethical perspectives of others. In this book the ethical perspectives of leaders and those whom they lead are both addressed.

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Defining “Trust” The debate about the precise nature of trust continues13, although trust is widely acknowledged to be critical in cooperative relationships and a key variable in organizational achievement14. The perspective of this book is that trust integrates an individual’s beliefs, attitudes, and intentions and is ultimately manifest as behaviors15. Trust is, ultimately, the relinquishing of personal control to another in the expectant hope that the other party will honor perceived duties owed16. Trust involves uncertainty, risk, and vulnerability and requires a risktaking perspective on the part of the person who trusts17. Leaders earn the trust of those whom they serve by being perceived as trustworthy, and the degree of that trustworthiness creates a subjective response that reflects the perceiver’s individual commitment or compliance 18 . Trust, like religious faith, requires a willingness to act that must ultimately be carried out to be optimally effective in one’s personal life, in relationships, and in organizations19.

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The Structure of this Book The contents and structure of each chapter of this book follow the same basic model. Each of the remaining chapters will 1) introduce and explain key terms and concepts associated with leadership, ethics, and trust; 2) focus on the practical application of those concepts in daily life; 3) identify scripturally-based examples from the life of Christ about how those concepts were applied in his ministry; and 4) offer practical insights for self-assessment and reflection for readers interested in applying each chapter’s principles. The following is a brief summary of each of the remaining chapters for readers interested in a particular topic associated with effective leadership, a leader’s ethical perspective, or the importance of trust.

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Chapter Two: Beginning with the End in Mind – Understanding and Defining Reality This chapter identifies why leaders must have a clear understanding of themselves, their goals, and the context in which they work. The chapter identifies twelve factors essential in the leader’s responsibility to define reality. After explaining the implications of each of those reality-focused factors, the chapter examines how Jesus Christ applied each factor in clarifying to his followers the factor’s importance in achieving a life of adherence to truth and personal excellence. The chapter concludes by emphasizing the importance of achieving a life of meaningful purpose – a life that begins with the end in mind.

Chapter Three: Why So Many Leaders Fail – Insights and Assumptions Great leaders understand that their role is challenging, often unpredictable, and fraught with a broad array of problems. Leadership failure is a common occurrence and is often a result of faulty assumptions about relationships. This chapter describes problems facing modern leaders, explains why so few are effective, and provides insights from experts about what leadership is and what it is not. The chapter identifies ten root causes that make leading others so difficult and contrasts those leadership shortcomings with the principles and practices adopted by Jesus Christ as he led his followers – showing how Christ’s insights and assumptions about the leadership relationship generated high trust, loyal followership, and deep personal commitment.

Chapter Four: Why Trust is the Glue to Competitive Advantage The chapter defines trust as a complex concept and clarifies why it is so crucial to building relationships. The chapter explains trust as it relates to both ethics and leadership. After explaining the nature of trust, the chapter clarifies how and why trust creates distinct advantages in organizations and in relationships. Differentiating between secular trust and religious faith, the chapter identifies ten similarities between trust and faith and enumerates their subtle differences. Finally, the chapter presents examples of trust from the life of Jesus and uses those examples to explain how trust and faith apply in the modern day.

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Chapter Five: Trustworthiness and Leader Effectiveness Trustworthiness is defined as a subjective perspective measured on a continuum. The degree to which leaders understand the nature of that continuum is a key to leader effectiveness. In defining the elements of trustworthiness, the chapter explains the correlation between honorable leadership actions and the acquisition of trust. This chapter identifies five qualities upon which trustworthiness is based. After defining trustworthiness and its importance for leaders, the nature of a subjective mediating lens which assesses trustworthiness is explained – clarifying why perceived trustworthiness often varies within the same organization. Citing examples from the life of Jesus Christ, the chapter then identifies qualities in his life that demonstrate why he was considered trustworthy and that earned him the love and dedication of his followers.

Chapter Six: Integrity, Ethics, and Moral Choices Although integrity and honesty are universally acknowledged as the leadership characteristics most desired by both peers and followers, the importance of ethical behavior is not fully understood. The chapter examines the nature of integrity as a critical quality of leaders and a fundamental element of ethical relationships and moral choices. The chapter also addresses the difficult challenges associated with ethical dilemmas and moral decision-making and identifies five questions that leaders should answer to demonstrate integrity. Turning to the life of Jesus of Nazareth, the chapter then identifies four examples of integrity demonstrated by him and encourages others to follow his example.

Chapter Seven: The Psychological Contract and Leader Insights The psychological contract is a subjectively-viewed perception of obligations and commitments of each party – as viewed by both followers and leaders. Surprisingly, it is the unusual situation when the perceptions of the parties are perceived identically. The chapter identifies common errors that create a perceived breach in relationships and then offers specific suggestions for avoiding a breach. The chapter enumerates six common reasons why perceived duties owed are overlooked by leaders. Citing examples from the life of Jesus Christ, the chapter provides insights about the importance of effective communication in defining relationships with others. The chapter concludes by identifying ten ways in which

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leaders can build trust, honor duties owed to others, and avoid the disappointments and deterioration of relationships that so often occur when psychological contracts are not clarified and honored.

Chapter Eight: Transformative Ethics and the Pursuit of Excellence Transformative Ethics is a new ethical framework that integrates ethical commitments of twelve different ethical perspectives. In this chapter the importance of leaders modeling Transformative Ethics is identified as a resource for building employee trust. The chapter introduces the key characteristics of each ethical perspective that applies to Transformative Ethics and identifies the contribution of each perspective in the pursuit of excellence. Following that explanation, the chapter identifies how the life of Jesus Christ aligns with the principles of this new ethical framework.

Chapter Nine: Authentic Leadership and Building Trust This chapter introduces key elements of Authentic Leadership that enable a leader to build high trust relationships and help a leader to honor obligations to society. The chapter defines Authentic Leadership and identifies its virtues from a relational perspective. Examining four qualities that are most commonly cited as elements of this leadership approach, the chapter explains how each of these qualities contributes to the leader’s ability to build trust. Because building trust involves a high level of emotional intelligence, the chapter also incorporates that concept in clarifying how Authentic Leadership and each of the factors of emotional intelligence are related. Applying the qualities of Authentic Leadership to the life and mission of Jesus Christ, the chapter provides specific examples that demonstrate how his relationships with others incorporated Authentic Leadership concepts as he walked the earth. The chapter identifies six specific ways in which those who wish to become more effective leaders can apply Authentic Leadership in their own lives.

Chapter Ten: Leadership from the Inside-Out This chapter explains the importance of a Six Beliefs Model as a tool for understanding one’s core assumptions, ethical values, and personal priorities in creating relationships with others. The chapter begins with a review of the nature of identity, including the importance of self-

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awareness in the leader’s growth. Incorporating insights from other scholars, the chapter identifies how the servant leader perspective enables leaders to most effectively contribute to organizational success. The chapter concludes with examples from the life of Jesus Christ to identify how Jesus related to others in incorporating the principles associated with the chapter’s theme.

Chapter Eleven: Ethical Leadership and Covenantal Relationships This chapter explains a range of leadership governance perspectives and clarifies why leadership is a covenantal duty that leaders owe both organizations and followers. The chapter identifies the often-misguided assumptions of leaders and organizations in today’s economic, political, environmental, and social context. After defining organization governance, the chapter presents a summary of five governance theories and each theory’s impact and consequences for organization stakeholders. Relating this leadership obligation to examples from the life and mission of Jesus of Nazareth, the chapter explains how Jesus Christ honored his stewardship in creating covenantal relationships and concludes with five insights that today’s leaders can apply as they reflect on practical implications of ethical stewardship and covenantal leadership.

Chapter Twelve: Leading with Meaning: Creativity, Innovation, and Constant Learning Because leadership is often described as “the management of meaning,” the importance of the leader clearly defining assumptions, explaining moral choices, and creating a learning culture is emphasized in empowering employees in the 21st century. The chapter begins with a brief summary of the factors that impact the leader’s roles in managing meaning and an explanation of why the management of meaning is so important in the leadership process. Following that introduction, the chapter identifies the importance of creativity, innovation, and constant learning as requirements for organizational achievement and survival. Applying these insights to the life and mission of Jesus Christ, the chapter identifies how he managed, created, and inspired new meanings in the lives of his disciples – both during his sojourn on the earth and for followers today.

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Chapter Thirteen: Organizational Culture and Leadership – Building Trust through Ethical Leadership The roles of high trust and high-performance work systems are identified and the importance of duties owed by leaders and managers in creating aligned policies, programs, and practices is explained. Principles of Christ-centered leadership are explained in context with the philosophies of successful organizations. The chapter begins by defining organizational culture and three elements upon which culture is based. After identifying the leader’s role in creating organizational alignment, the chapter identifies seven important qualities of high performing organizations. The chapter then emphasizes the relationship between ethical leadership and the creation of high trust and commitment. Relating the elements of organizations and their culture to the life of Jesus Christ, the chapter identifies his role in exemplifying ethical leadership in his ministry on the earth.

Chapter Fourteen: Leadership Without Guarantees Despite a leader’s best efforts, (s)he has no guarantees that the organization in which (s)he works will succeed. Despite that reality, this chapter identifies what individuals must do to become their best and to serve those whom they lead in a challenging and troubled world. This chapter examines eight challenges that have confronted leaders. Citing examples from the lives of men and women who struggled with adversity, the chapter identifies how leaders have successfully met those challenges. Each challenge is described, together with eight insights for would-be leaders as they confront the knotty issues that leaders must overcome. The chapter cites examples from the life of Jesus of Nazareth and describes his response in the face of the burdens he had to endure in his ministry and in his efforts to lead others to eternal truths. Drawing upon Christ’s examples, the chapter concludes with a challenge to men and women to become great leaders – despite the risks, the uncertainties, and the absence of any guarantees.

The Challenge The focus of this book enables leaders and those who wish to lead to reexamine who they are, why they lead, and how they can improve their effectiveness. Citing the examples from Jesus Christ, often cited as the greatest leader of all time, this book provides individuals with a challenge

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to raise the bar of personal excellence and virtuousness in their own lives. Leadership, ethics, and trust are closely-related concepts and understanding their relevance in the service of others can build stronger relationships and create a better world.

Notes 1

The struggles of leaders to earn the trust, commitment, and followership of others are chronicled in Kouzes, J. M. & Posner, B. Z., (2011). Credibility: How Leaders Gain and Lose It, Why People Demand It. San Francisco, CA: Jossey-Bass. 2 The struggle of leaders is well described in Kouzes, J. M. & Posner, B. Z., (2017). The Leadership Challenge: How to Get Extraordinary Things Done in Organizations. San Francisco, CA: Jossey- Bass and in Caldwell, C. and Anderson, V. (2017). “Ethical Leadership in Troubled Times.” International Journal of Public Leadership, Vol. 13, Iss. 2, pp. 54-58. 3 Chester Barnard made this point eighty years ago in Barnard, C. I., (1938). The Functions of the Executive. Cambridge, MA: Harvard College. 4 This citation comes from Stogdill, R., (1974). Handbook of Leadership: A Survey of Theory and Research. New York, NY: Free Press. 5 This citation is found on page 259 of Bennis, W. G., (1959). “Leadership Theory and Administrative Behavior: The Problem of Authority. Administrative Science Quarterly, Vol. 4., Iss. 3, pp. 259-301. 6 These four elements of leadership are identified in Bennis, W. G. & Nanus, B., (2007). Leadership: Strategies for Taking Charge. New York: Harper Business, in Covey, S. R., (2004). The 8th Habit: From Effectiveness to Greatness. New York: Free Press, and in Kouzes, J. M. & Posner, B. Z., (2017). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations (6th ed.). San Francisco, CA: Jossey-Bass. 7 This combination of qualities was identified half a century ago in Barnard, C. I., (1938), op. cit. 8 Mary Parker Follett, frequently cited as the “Mother of Modern Management,” was a visionary clearly fifty years ahead of her time who lived in Boston, MA in the early 20th century. She gained notoriety because of her family influence but was respected for her brilliance and insights. See Follett, M. P., (2013). Dynamic Administration: The Collected Papers of Mary Parker Follett. Mansfield Center, CN: Martino Fine Books. 10 The nature of our individual lenses is described in Caldwell, C., and Hayes, L., (2007). “Leadership, Trustworthiness, and the Mediating Lens.” Journal of Management Development. Vol. 26, Iss. 3, pp. 261-278. 11 This perspective about ethics is explained in Hosmer, L. T., (1995). “Trust: The Connecting Link between Organizational Theory and Philosophical Ethics.” Academy of Management Review, Vol. 20, Iss. 2, pp. 379-403. 12 See, for example, the discussion of the close connection between leadership and ethics in Burns, J. M., (2010). Leadership. New York: Harper Perennial.

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See Caldwell & Hayes, (2007) op. cit. and Hosmer, L. T., (1995) op. cit. Ibid. 15 This perspective is widely agreed upon and emphasized. See Caldwell, C. and Clapham, S., (2003). “Organizational Trustworthiness: An International Perspective.” Journal of Business Ethics, Part 1, Vol. 47, Iss. 4, pp.349-364, 16 The nature of trust and its relationship to ethics is identified in Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. 2009. “The BuyerSupplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 17 Ibid. 18 These key variables of trust are explained well in the classic article, Mayer, R. C., Davis, J. H., & Schoorman, F. D., (1995). “An Integrative Model of Organizational Trust.” Academy of Management Review, Vol. 20, Iss. 3, pp. 702-734. 19 This trust relationship and its individual nature are clarified in Hayes, L., Caldwell, C., Licona, B. and Meyer, T. E., (2015). “Follower Behaviors and Barriers to Wealth Creation.” Journal of Management Development, Vol. 34, Iss. 3, pp. 270-285 and in Caldwell, C., and Hayes, L., (2007). “Leadership, Trustworthiness, and the Mediating Lens.” Journal of Management Development. Vol. 26, Iss. 3, pp. 261-278. 20 Many of the similarities between trust and faith are identified in Caldwell, C., Davis, B., and Devine, J. A., (2009). “Trust, Faith, and Betrayal: Insights from Management for the Wise Believer.” Journal of Business Ethics, Vol. 89, Iss. 1, pp. 103-114. 14

CHAPTER TWO BEGINNING WITH THE END IN MIND – UNDERSTANDING AND DEFINING REALITY

The clear evidence of today’s world is that we are facing a new reality. Global competition, changing values, disruptive innovation, and a host of other factors have reconfigured relationships, challenged assumptions about duties owed, and undermined trust in leaders and confidence in once-sacred institutions. Questionable behavior has become so commonplace that the public no longer seems to be surprised by outlandish conduct. Actions once considered incredible and inappropriate now seem to be daily routines of life. What seems most unsettling is that the standards that provided stability and reassurance have somehow evaporated -- with the distinctions between right and wrong, good and bad, acceptable and unacceptable becoming unclear to the degree that for many people any semblance of clarity is lost. Despite this new instability and confusion, a leader’s role must still be “to define reality1” and articulate a clear vision of what is, what is not, and what needs to be if society is to function effectively in relationships and in organizations2.

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The purpose of this chapter is to identify the importance of the leader’s role in defining reality by articulating true principles, focusing on purpose, and beginning with the end in mind. Within the context of a troubled world there is no better example of a leader who has defined reality than the Man of Holiness, Jesus Christ. This chapter identifies ten factors that are essential in the leader’s responsibility to define reality. After explaining the implications of each of those reality-focused factors, the chapter examines how Jesus Christ applied each factor to achieve a life of purpose, adherence to truth, and personal excellence. The chapter concludes by reemphasizing the importance of defining reality to achieve a life that begins with the end in mind.

Reality and the Leader’s Duty Effective leaders willingly confront the world in which they live and work--and by confronting they identify the problems that must be addressed and the often-difficult journey to resolving those problems3. The ability to accurately define problems is rare 4 . Henry David Thoreau declared that “there is a thousand hacking at the branches of evil to one who is hacking at the root 5 .” Correctly identifying problems and developing solutions that address them properly requires clear vision, contextual understanding, and profound knowledge6.

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Soren Kierkegaard explained that life is a reality to be experienced7 and it is by this experiencing of reality that we discover ourselves. By defining reality, leaders enlighten and empower others in the pursuit of their best selves. Stephen Covey described this best self as one’s “voice” or the intersection of the passions that energize, the skills that are individual strengths, the innovations that add value, and the conscience that motivates each person to act8 . Leaders help others to realize their unique personal significance – or that inherent greatness that is part of each individual’s identity9. In serving others, providing clear direction, and facilitating change, leaders empower others to discover their highest potential. Leaders provide others with resources to pursue outcomes that benefit each individual, organization, and a greater society searching for solutions to the problems that confront a troubled world. It is by understanding their obligations in defining reality and articulating a shared vision that leaders enable others to “begin with the end in mind” in pursuing worthy goals and a noble purpose. In so doing leaders also provide others with virtuous standards and guidelines by which followers may refine their own lives.

Ten Realities of Leadership As leaders throughout history have inspired others to achieve desired outcomes, they follow a repeating pattern that improves the ability of those whom they lead to become self-sustaining and self-directed. Truly great leaders empower those whom they serve to learn and grow. By modeling excellence and by teaching others, leaders throughout time have helped others to govern themselves. Each of these realities affects all of our lives, and by understanding them we are able to benefit by their enduring truths.

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Defining Purpose Effective leaders understand what needs to be accomplished and define a clear vision to guide organizations 10 and to frame employee efforts. However, the McKinsey Company found that only 37% of employees had a clear understanding of what their organization is doing and why, and only one in five had a clear line of sight between the tasks that they performed and the goals of their organizations11. This same survey found that just 40% of employees felt that a firm’s most important goals are being emphasized regularly and only one-third felt that employee efforts at achieving goals get recognized and rewarded. After an extensive study of the relationship between leadership and purpose, Underwood explained that a clear purpose provides both a guiding set of goals and a rational justification which unified others, increased commitment, and amplified meaning in life12. Leadership vision and purpose enable others to execute a plan of action, honor obligations to others, and respond to the demands of change more effectively 13 . Providing a clear vision facilitates individual success and organizational achievement, is a moral obligation of leaders 14 , and is essential for individuals and organizations as they seek to achieve a noble purpose15. Throughout his ministry, Jesus Christ taught others what they needed to do to fulfill life’s’ purpose and attain eternal life16. The great work of his ministry was to reconcile man to their Father in Heaven and his entire life embraced that single objective17. Jesus of Nazareth raised the standard for human living--asking others to treat each other with kindness, consideration, and love. He sought to uplift and bless others and asked them to honor God and to keep God’s commandments. To his followers, Christ offered profound insights about the highest purposes of life. He declared without equivocation that their most important purpose was to come to know God and to honor his teachings18 – promising that those teachings would bring eternal life and peace of mind19. As a leader, Christ sought to be an example that others should follow20 and he devoted his life to helping others to become their best.

Enduring Trials Leaders understand that the learning process often comes from overcoming failures as well as from achieving successes 21 . Leaders demonstrate great character and inspire others by the ways that they respond to difficult situations. Trials are, in fact, tests of character that reveal what we have become and who we truly are. When leaders courageously respond

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to adversity and succeed despite difficult challenges, they model the resilience required in today’s globally competitive world. Leaders demonstrate that “roadblocks, let-downs, and failed attempts at success22” need not define an individual or an organization. Grit, the integration of perseverance and passion, enables individuals to fight through obstacles and overcome the trials that confront every person and every organization23.

Jesus Christ endured his own personal trials throughout his life24. Not only did he model the ability to withstand adversity but he taught his disciples that they too must have the strength to endure hardships that would inevitably confront them. Challenging his followers to increase their faith, Jesus promised his disciples that they would have the power to do even greater things than the miracles that he had performed25. To fulfill his divine mission, Jesus struggled with the anguish of the Garden of Gethsemane and the agony of the cross in accepting his role to suffer for the sins of the world. His willingness to face hardships and his courage in accepting his fate demonstrated to his disciples the reality of trials in their lives – together with the promise that, despite those trials, the work of God not only must go on but would ultimately triumph. The transformation of the apostles from doubting and uncertain followers to courageous emissaries was motivated by Christ’s example.

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Embracing Hope Leaders encourage others to hope – to desire a better condition than that of the past or present. Hope requires three critical elements: 1) the belief that the desired benefit that one values is worth its cost, 2) the confidence that one has the ability to achieve a desired task to achieve that benefit, and 3) the assurance that accomplishing that task will result in the desired outcome26. Despite a difficult economy, constant threats from competitors, and uncertainty about the future, great leaders instill the hope that a successful outcome is not only possible but probable. Hope empowers others to reset their belief system, despite overwhelming challenges that may be facing them, and to move forward with confidence in undertaking difficult tasks. By instilling hope, leaders inspire others to go the extra mile, to believe in themselves, and to discover their hidden potential27. In his interactions with others, Jesus understood that hope preceded faith and was typically motivated by an individual need. To the man whose son possessed a demon that had caused the boy to repeatedly harm himself, Jesus told the man that his son could indeed be healed if the man had faith. Filled with hope but recognizing that his faith was imperfect, the good man replied, “I believe. Help thou my unbelief”. Respecting the man’s hope for a miracle despite his imperfect faith, Jesus rebuked the spirit that possessed the man’s son 28 . The message of Christ and the teachings of his gospel were a message of hope that gladdened hearts that struggled with the difficulties of life--and even today those teachings inspire millions of people.

Earning Trust Leaders create relationships based upon trust. Trust is the glue that holds organizations together 29 and is the integration of ethics and organization achievement 30 . By being worthy of follower trust, leaders demonstrate the competency, capacity, conscience, character, and caring that earn them follower support 31 . Trust is ultimately measured by the actions of those who follow32. Only when leaders honor commitments, demonstrate vision and competence, pursue others’ best interests, and achieve meaningful results do leaders demonstrate the trustworthiness that earns follower support. Trust is not demanded by position. It is not compelled by fiat. It is far more than compliance. Ultimately, trust is measured by the degree to which others act on behalf of a leader’s interests and make those interests their own. Trust is the willing

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demonstration of an individual’s belief in a leader’s authority, reflected by the degree to which that person acts in support of the leader’s agenda33.

Trust is the secular equivalent of faith and both trust and faith are measured on a continuum 34 . Faith in God and in the mission of Jesus Christ as the Son of God and the long-awaited savior and redeemer was the first principle of the gospel35. Jesus of Nazareth earned the trust and faith of his disciples by his personal example, the wisdom of his words, and his ability to touch the minds and hearts of those whom he loved. Faith and trust are weak when uncertainty and doubt trouble the mind. Mark records that Jesus counseled, “Be not afraid, only believe36”. The author of Hebrews described faith as “the substance of things hoped for, the evidence of things not seen37. Although Jesus’ miracles gave ample evidence of his divine calling, he urged his disciples to believe and to walk by faith – a faith that was even as small as the grain of a mustard seed38. Both trust and faith are born from the hope that what one believes will ultimately lead to a desired outcome and that the underlying belief is a true principle. Trust and faith drive out fear and give others the courage to honor duties, bless themselves, and bless the lives of others39.

Honoring Identity An individual’s identity is his or her view of self in relationship to others40. One’s identity is typically examined through a “comparator,” an ideal standard by which individuals sub-consciously identify what they believe should be the standards of their personal conduct, their relationships with others, and how they apply their values in managing their lives 41 . Wise leaders understand the importance of empowering others to see themselves as possessing potential greatness – even if that greatness has not yet been discovered42.

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It is by treating people as they can become that others are able to transform their lives and magnify their ability to make a contribution to a troubled world. Thomas Carlyle suggested that man’s unhappiness comes from his greatness and that each person implicitly understands that there is an infinite potential that lies within. Stephen R. Covey is one of many leadership scholars who advocated treating people so well that they come to recognize that inner greatness that is dormant within them. Treating people as they can become enables others to achieve that best version of themselves.

Jesus Christ helped others to envision within themselves a potential that far exceeded anything that his followers had ever imagined. He affirmed that this higher standard of living was, in fact, the reality to which they could and must aspire in honoring their relationships with others and with God. “Come, follow me 43 ,” he invited them. “He that believeth on me, the works that I do shall he do also; and greater works than these shall he do,” Christ promised44. Jesus Christ recognized the divine nature and potential in others. He knew and understood their true identities and their almost limitless potential. Motivated by this love for others and this appreciation of others’ great worth, Christ fulfilled his own divine role and honored his identity as the Son of God and Redeemer of the world. In every sense Jesus Christ achieved his highest potential and became a role model for his followers.

Applying Principles Leaders understand that there are universal principles which inexorably affect each one of us as we make choices. In commenting about the

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importance of principle-centered truths, the famous American film maker, Cecille B. DeMille declared that we cannot break the laws of life, “We can only break ourselves against them—or else, by keeping them, rise through them to the fulness of freedom45.” Stephen R. Covey’s “principle-centered leadership” model acknowledges the universality of principles that govern human relationships and the realities of life46.

Echoing DeMille, Covey often observed that it is by coming to understand universal truths that we take advantage of the opportunity to apply them and to benefit from the rewards that true principles bring. The verity of universal virtues and true principles was a fundamental insight repeatedly taught by Aristotle and is the foundation of virtue ethics47. The reality of universally true principles, C. S. Lewis declared, is acknowledged by every people and by every culture 48 . By teaching others universal truths, leaders empower others to follow those principles to benefit others and to avoid missteps. Jesus of Nazareth spoke of such universal concepts as the Law of the Harvest and the importance of love. His gospel emphasized to his followers the reality of cause and effect and his parables reinforced the practical truths from daily life that powerfully affirmed what others clearly understood – and applied those truths to obedience to God’s law. Raising the bar of personal conduct, Christ explained that each person was expected to do far more than the bare minimum in life. “Love God with all your soul and all your mind and love your neighbor as yourself” was the standard he declared49.

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With that declaration, Christ explained a promised blessing. “If any man will do his will, he shall know of the doctrine, whether it be of God or whether I speak of myself50”. As a leader, Christ was unequivocal. On the Mount of Olives, he declared that those who believed and followed his teaching would know the truth, and the truth would make them free51.

Recognizing Potential Leaders owe others the covenantal obligation to help them to achieve their highest possible potential 52 . Each individual’s capabilities are exponentially greater than are either recognized or fully achieved53. Great leaders understand that part of their moral responsibility is to engage and empower others by creating organizations that are constantly learning54, obtaining new insights55, and using knowledge to create a better world56. Leaders understand that the infinite potential that lies within individuals may actually intimidate those individuals 57 . Marianne Williamson shared that insight in her observations about human potential and the miracles that are possible by discovering one’s unlimited potential58.

Leaders honor the insight attributed to the French philosopher, Teilhard de Chardin, who observed that “We are not human beings having a spiritual experience; we are spiritual beings having a human experience59”. By helping others to recognize and achieve their incredible potential, leaders fulfill a moral obligation to those individuals and to their organizations60. One of the most fundamental qualities of Jesus was to confirm to others their potential greatness. The Sermon on the Mount enumerated to

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his followers the higher standard required of them in their relationships with others and in their duty to God61, encouraging others to perfect their lives and to become like their Father in Heaven62. He reminded others of their divine capabilities, quoting to accusing Jews the Psalmist, David, in declaring, “Is it not written in your law, I said ye are gods.” Jesus promised his disciples that the capacity to do great things was inherently within them and his disciples not only understood that concept but shared it with others as the foundation of his teachings63. As a leader, Jesus understood what was most important – devoting himself to service to others, to helping them to discover their true greatness, and to making a better world.

Valuing Individuals The best leaders treat people as individuals, not as commodities. As explained by the German philosopher, Martin Buber 64 , wise leaders recognize that others are “Yous” rather than “Its” who are worthy of being treated with justice, dignity, and respect. These leaders recognize that how they treat each individual reflects how they value everyone; they honor the “duty to the one” as representing how they would treat every single person65. Leaders who honor each individual do so because they recognize the sanctity, worth, and value that is universally possessed. Just as they acknowledge their own personal value, leaders view others through that same divine lens. In relationships with others, wise leaders strive to be “a light, not a judge.” Such leaders understand the importance of cooperation and commitment, rather than controlling others, to be the primary leadership objective66.

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In his relationships, Jesus of Nazareth demonstrated a divine respect for the worth of each individual and separated that worth from others’ past faults. To the Samaritan woman at Jacob’s well Jesus offered living water. Despite knowing of her adulterous past, he shared with her his own divine mission and changed her life67. Similarly, to the woman taken in adultery whom the Jews sought to stone, Jesus offered the simple words, “Neither do I condemn thee: go, and sin no more 68 ”. Emphasizing his own leadership role, Christ then affirmed, “I am the light of the world: he that followeth me shall not walk in darkness but shall have the light of life69”. To Jesus every individual was important. Though he was the King of Kings, he spent his mission sharing his insights with people of all walks of life and was roundly criticized for associating with “publicans and sinners70”. Jesus performed miracles that blessed the servant of a Roman Centurion71, and a woman deemed to be “unclean” by Judaic law72. He declared unequivocally that his teachings were available to all persons and that everyone who obeyed them were promised the blessings that came with obedience73. All were important. None were to be excluded.

Demonstrating Humility In researching companies that made the transition from good to great, Jim Collins explained that their leaders combined a fierce passion for excellence with great humility 74 . In his widely-read Harvard Business Review article, Collins defined humility as encompassing 1) modesty about personal accomplishments, 2) quiet determination rather than

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personal charisma, 3) ambition focused on outcomes achieved rather than self-promotion, 4) the willingness to accept personal responsibility for failures, and 5) giving credit to the role of others in achieving success75 Ou and colleagues76 explained that humility consisted of an accurate self-assessment, including the ability to acknowledge one’s limitations, and Tangney77 described it as the “forgetting of the self” as the center of focus. Vera and Rodriguez-Lopez 78 explained that humility was a pervasive character trait that enabled a leader to accurately assess without exaggeration his or her own contribution while acknowledging the contributions of others in achieving organizational success. As the Son of God, Jesus Christ willingly took upon himself the humble role of “carpenter’s son” rather than that of a high profile royal leader. Though he clearly understood his divine calling, Jesus willingly humbled himself as a servant to others – going so far as to wash his disciples’ feet as a sign of his servant’s role just prior to the Last Supper79. Although King of Kings, Christ willingly accepted his role to endure an illegal trial by the Sanhedrin, the scourging and mocking of Roman’s soldiers, and the horror of crucifixion80. His leadership role demonstrated a total commitment to serve others, to fulfill his divine mission, and to achieve a noble purpose. In writing about Christ’s willingness to humble himself and subject himself to the Sanhedrin’s trial, the judgment of Pontius Pilate, and death on the cross, the author of Hebrews wrote, “Though he were a Son, yet learned he obedience by the things that he suffered81.” Jesus honored his Father and humbly accepted his role, despite knowing the horrific pain inflicted upon him in bearing the sins of the world82.

Empowering Love Great leaders recognize that investing in others demonstrates a commitment to others’ best interests, strengthens relationships, and enriches lives while improving organizations along the way 83 . Leaders love others enough to give willingly and generously of themselves in the pursuit of others’ welfare, growth, wholeness, and success84. Leaders who genuinely care about others willingly assist them to achieve their goals, overcome their shortcomings, and achieve their highest potential 85 . Koestenbaum described genuine caring as ‘‘the ultimate act of love,’’ the willing surrender of one’s freedom to another, and the gift of oneself 86. In his book, The Art of Loving, Erich Fromm explains the gift of love which he described as the pursuit of oneness with another.

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Chapter Two (The person who loves) gives of that which is alive in him; he gives him of his joy, of his interest, of his understanding, of his knowledge, of his humor, of his sadness—of all expressions and manifestations of that which is alive in him. In thus giving of his life, he enriches the other person, he enhances the other’s sense of aliveness by enhancing his own sense of aliveness. He does not give in order to receive; giving is in itself exquisite joy. But in giving he cannot help bringing something to life in the other person, and this which is brought to life reÀects back to him; in truly giving, he cannot help receiving that which is given back to him87.

Christ’s love of others was at the heart of his ministry and was exemplified by his every action. He counseled others to love God with all their hearts and minds and to love their neighbors as they loved themselves 88 . Foretelling his own personal sacrifice, Christ told his disciples, “Greater love hath no man than this, that a man lay down his life for his friends89 “. Jesus of Nazareth demonstrated that love by suffering for mankind and he did so willingly because of his love for all men. Jesus commanded his disciples to love one another 90 . He affirmed God’s love for others and for all mankind91. His disciples confirmed the central role of love as the fundamental principle of the gospel Jesus taught92. That same love, or charity as Paul called it, would not fail and was fundamental to establishing relationships with others as well as with God93.

Modeling Integrity To live with integrity is to live a life that is whole and complete. Integrity encompasses consistency, honesty, and truthfulness94 and is the fundamental quality of trustworthiness95. Leaders demonstrate integrity by doing what they say they will do, honoring commitments, and keeping promises 96. By modeling integrity, leaders exemplify the standards that they espouse and set an example that transcends empty words97.

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In a world described as “the cheating culture,” leaders with integrity and character are considered uncommon98. Such leaders are revered by those who know them when that integrity is combined with other virtues99. Repeatedly, followers and peers cite integrity as the most desired quality of a leader100. Leaders with integrity define reality by telling the truth, even when the truth may be painful to hear, for they know that sharing the truth enables others to deal with life’s challenges honestly and effectively101. Throughout the Old Testament, the Hebrew words for integrity meant blameless, innocent, sound, and sinless perfection102. In the Sermon on the Mount, Jesus explained that the standard of personal integrity transcended doing the minimum and required that individuals go the extra mile in service of others, in honoring God, and in governing themselves103. The life of Jesus Christ is a model of integrity and honor. From his earliest years as a twelve-year-old boy104. Jesus understood the role that he was to play on this earth and was committed to honoring that calling. As a teacher, he taught with simplicity and clarity, explaining the principles that would enable his followers to understand divine lessons. He explained that there was greatness in service and that those who were greatest among them should be servants of all105.

Conclusion Each of these ten realities about leadership confirms the important qualities of those who lead and serve. Great leaders add value, serve others, and create positive change. They influence rather than control. They give of themselves rather than pursue self-interest. The book of

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Mark reminds us that great leaders seek not to be served, but to serve others106. In today’s troubled world, the need for great leaders – honorable men and women who others can trust and follow – is notably in short supply107. The life of Jesus Christ demonstrated the wisdom of a leader who understood his role, willingly embraced it, and taught others what they could do to fulfill their eternal potential. The reality that he described is challenging but could be accomplished -- promising great growth, inner peace, and a life of significance and meaning. By defining reality and beginning with the end in mind, Jesus Christ set a personal standard for all leaders and lived a life of virtue that all mankind can seek to emulate.

Notes 1

This phrasing comes from DePree, M., (2004). Leadership is an Art. New York: Crown Publishing, p. 11 where Max DePree writes, “The first task of the leader is to define reality.” 2 Ibid. 3 To read more see Kouzes, J. M. & Posner, B. Z., (2017). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations (6th ed.). San Francisco, CA: Jossey-Bass. 4 This point is made in Covey, S. R., (2004). The 8th Habit: From Effectiveness to Greatness. New York: Free Press. 5 See Thoreau, H. D. & Searls, D., The Journal of Henry David Thoreau, 18571861. New York: New York Review of Books. 6 See Deming, W. E., (2000). Out of the Crisis. Cambridge, MA: MIT Press. 7 This statement is part of a larger quote by Soren Kierkegaard which reads, “Life is not a problem to be resolved but a reality to be experienced” found online on March 3, 2018 at https://www.brainyquote.com/quotes/soren_kierkegaard_414008. 8 Covey wrote about the importance of discovering one’s voice and then helping others to find theirs in Covey, S. R., (2004), op. cit. 9 Ibid. 10 Kouzes, J. M. & Posner, B. Z., (2017) op. cit. 11 Covey, S. R., (2004) op. cit.., p. 2. 12 This message is the key focus of Underwood, C., (2016). “Purpose in Leadership.” Training Journal, July, pp. 30-32. 13 See Bennis, W. G. & Nanus, B., (2007). Leaders: Strategies for Taking Charge. New York: HarperCollins. 14 This moral responsibility is explained in Caldwell, C., Ndalamba, K. K., and Anderson, V., (2018). “Leadership Vision as a Moral Duty.” Paper accepted for publication in the Journal of Management Development. 15 See Atwijuka, S. and Caldwell, C., (2017). “Competitive Advantage and a Noble Purpose” in Competitive Advantage: Strategies, Management, and Performance,

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(C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 171-182. 16 See the Sermon on the Mount, Matthew 5-7. 17 Davies. W., (2015). Jesus: Who He Is, What He Did, Why It Matters: A Bible Study for Believers and Skeptics. Seattle, WA: CreateSpace Independent Publishing Platform. 18 See John 17:3. 19 See John 14. 20 See Matthew 4: 19. 21 This topic is the message of Everly, G. S. Jr., Strouse, D. A., Everly, G. S. III (2009). The Secrets of Resilient Leadership: When Failure is Not an Option Six Essential Characteristics for Leading in Adversity. New York: DiaMedica Publishing. 22 Mogdlin, A., (2017). “Why Resilience Is Necessary As A Leader.” Forbes found online on March 3, 2018 at https://www.forbes.com/sites/forbescoachescouncil/2017/07/11/why-resilience-isnecessary-as-a-leader/#548283194ad3. 23 Duckworth, A., (2016). GRIT: The Power of Passion and Perseverance. New York: Scribner. 24 See Luke 4: 1-11; Matthew 4: 1-13. 25 See John 14: 12. 26 Vroom, V. H., (1994). Work and Motivation. San Francisco, CA: Jossey-Bass. 27 Covey, S. R., (2004) op. cit. 28 See Mark 9: 17-29. 29 Covey, S. R., (2004) op. cit. 30 Hosmer, L. T. (1995). “Trust: The Connecting Link Between Organizational Theory and Philosophical Ethics. Academy of Management Review, Vol 20, Iss. 2, pp. 379-403. 31 Caldwell, C., and Ndalamba, K. K., (2017). “Trust and Being ‘Worthy’ – The Keys to Creating Wealth.” Journal of Management Development, Vol. 36, Iss. 8, pp. 1076-1086. 32 Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. (2009). “The Buyer-Supplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 33 Caldwell, C., and Hansen, M., (2010). “Trustworthiness, Governance, and Wealth Creation.” Journal of Business Ethics, Vol. 97, Iss. 2, pp. 173-188. 34 Caldwell, C., and Holloway, C. S., (2017). “Trust, Faith, and Commitment – A Reasoned Action Approach.” Business and Management Research, Vol. 6, No. 3, pp. 51-57 and available online at http://www.sciedupress.com/journal/index.php/bmr/article/view/12256/7526. 35 See Acts 2: 37-38. 36 See Mark 5: 36. 37 This great chapter on faith is Hebrews 11. This verse is Hebrews 11:1. 38 See Matthew 17:20.

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This relationship is addressed in Caldwell, C., Guevarra, L., Licona, B., Tayor, T., and McConkie, M., (2013). “Trust, Faith, and Fear: Moral Development Applications for Leaders and for Life.” Journal of Advanced Management and Business Research, Vol. 1, Iss. 1, pp. 1-15. 40 Sluss, D. M. & Ashforth, B. E., (2007). “Relational Identity and Identification: Defining Ourselves Through Work Relationships.” Academy of Management Review, Vol. 32, No. 1, pp. 3-32. 41 Burke, P. J. & Stets, J., E. (2009). Identity Theory. Oxford, UK: Oxford University Press. 42 Atwijuka, S. and Caldwell, C., (2017), op. cit. 43 See Matthew 4: 19. 44 See John 14:12. 45 This quote comes from DeMille’s May 1957 commencement address at the graduation ceremonies at Brigham Young University, Smith Fieldhouse, Provo, Utah. 46 Covey, S. R., (1992), Principle-Centered Leadership. New York: Fireside Press. 47 Solomon, R. C., (1993). Ethics and Excellence: Cooperation and Integrity in Business. Oxford, UK: Oxford University Press. 48 Lewis, C.S. & Norris, K., (2015). Mere Christianity. New York: HarperCollins. 49 See Matthew 23: 27-28. 50 See John 7:17. 51 See John 8: 31-32. 52 DePree, M., (2004), op. cit. This covenantal relationship is a key theme of Chapter 1 and throughout DePree’s book. 53 Covey, S. R. (2004) op. cit. 54 Senge, P.M., (2006) op. cit. 55 See Pava, M., (2003). Leading with Meaning: Using Covenantal Leadership to Build a Better Organization. New York: Palgrave Macmillan. 56 Anderson, V., Ndalamba, K. K., and Caldwell, C., 2017. “Social Responsibility in a Troubled World: A Virtuous Perspective.” International Journal of Public Leadership, Vol, 13, Iss. 2, pp 98-115. 57 Caldwell, C. and Anderson, V., (2018). “Ethical Responsibilities of Human Resource Management: A Format for Moral Conduct” in Strategic Human Resource Management (C. Caldwell and V. Anderson, eds.). Hauppage, New York: NOVA Publishing. 58 Williamson, M., (1996) A Return to Love: Reflections on the Principles of “A Course in Miracles.” New York: Harper Collins, p. 165. 59 This quotation has often been attributed to de Chardin and was found on March 3, 2018 at https://www.brainyquote.com/lists/authors/top_10_pierre_teilhard_de_chardi_quot es. 60 DePree, M., (2004) op. cit. 61 See the Sermon on the Mount Matthew 5-7. 62 See Matthew 5:48.

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See 1 John 3: 2-3. Buber, M., (2000). I and Thou. New York: Scribner. 65 Covey, S. R., (1992) op. cit. 66 Follett, M. P., (2013). Dynamic Administration: The Collected Papers of Mary Parker Follett. Eastford, CT: Martino Fine Books. 67 For the story of this event see John 4. 68 See John 7: 53 to John 8:11. 69 See John 8:12. 70 See Mark 2: 13-17. 71 This story is recounted in Matthew 8: 5-13. 72 See Luke 8: 43-48. 73 See John 14: 21. 74 Collins, J., (2005). “Level 5 Leadership: The Triumph of Humility and Fierce Resolve.” Harvard Business Review, Vol. 83, Iss. 7/8, pp. 136-146. 75 Ibid. 76 Ou, A. Y., Waldman, D. A., & Peterson, S. J. (2015). “Do Humble CEOs Matter? An Examination of CEO Humility and Firm Outcomes.” Journal of Management, Vol. 44, Iss. 3., pp. 77 See Tangney, J. P. (2000). “Humility: Theoretical Perspectives, Empirical Findings and Directions for Future Research. Journal of Social and Clinical Psychology: Vol. 19, No. 1, pp. 70-82. This quote is from page 70. 78 Vera, D. & Rodriguez-Lopez, A., (2004). Humility as a Source of Competitive Advantage. Organization Dynamics, Vol. 33, No. 4, pp. 393-408. 79 See John 13: 1-7. 80 See John 10: 11-18. 81 See Hebrews 5:8. 82 See John 4: 34. 83 See Caldwell, C., and Dixon, R. D. (2010). “Love, Forgiveness, and Trust: Critical Values of the Modern Leader.” Journal of Business Ethics, Vol. 93, Iss. 1, pp. 91-101, p. 93. 84 See Peck, M. S., (2003). The Road Less Traveled Timeless Edition: A New Psychology of Love, Traditional Values, and Spiritual Growth. New York: Touchstone. 85 Caldwell, C., (2012). Moral Leadership: A Transformative Model for Tomorrow’s Leaders. New York: Business Expert Press. 86 See his superb book, Koestenbaum, P., (2002). Leadership: The Inner Side of Greatness, A Philosophy for Leaders, New and Revised. San Francisco: JosseyBass, pp. 194-195. 87 See Fromm, E., (1956). The Art of Loving, New York: Harper & Row Publishing, p. 23. 88 This counsel is found in Matthew 22: 37-40. 89 See John 15: 13. 90 This obligation to love one another is found in John 15:17. 91 This famous verse is John 3: 16. 92 See, for example, Ephesians 5. 64

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The thirteenth chapter of Corinthians I is famous for its insights about charity. See Cloud, H. (2009). Integrity: The Courage to Meet the Demands of Reality. New York: HarperCollins Publishing. 95 This widely-cited paper about trust and trustworthiness is Mayer, R. C, Davis, J. H. and Schoorman, F, D, (1995). “An Integrative Model of Organizational Trust.” Academy of Management Review, Vol, 20, No. 3, pp. 709-734. 96 These key leadership factors are noted in Kouzes, J. M. & Posner, B. Z., (2017). The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (6th ed.). San Francisco, CA: Jossey-Bass. 97 This theme is a major message of Schein, E. H. & Schein, P., (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass. 98 This point is the theme of Callahan, D., (2004). The Cheating Culture: Why More Americans Are Doing Wrong to Get Ahead. New York: Houghton, Mifflin, Harcourt Publishing. 99 Pfeffer, J., (1998). The Human Equation: Building Profits by Putting People First. Boston, MA: Harvard Business Review Press. 100 These values are the result of surveys of thousands of individuals. See Kouzes, J. M., & Posner, B. Z., (2011). Credibility: How Leaders Gain and Lose It, Why People Demand It. San Francisco, CA: Jossey-Bass. 101 This important message is found in Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: Jossey-Bass. 102 See Walker, W. L., (n.d.) “Integrity.” Bible Study Tools found online on February 28, 2018 at https://www.biblestudytools.com/dictionary/integrity/. 103 Christ spoke these words in the Sermon on the Mount. See Matthew 5-7. 104 This event is recounted in Luke: 41-52. 105 See Matthew 23:11 for this verse. 106 See Mark 10:45 for this verse. 107 For a review of the need for great leaders, see Caldwell, C., and Anderson, V., (2017). “Competitive Advantage and Transformative Leadership” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 161-170 and Caldwell, C., (2017). “Transformative Ethics and Trust – Keys to Competitive Advantage” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 133-146. 94

CHAPTER THREE WHY MANY LEADERS FAIL – INSIGHTS AND ASSUMPTIONS

Eight decades ago Chester Barnard, one of America’s most highly regarded business executives, presented a series of lectures at the Harvard Business School in which he declared that cooperation in organizations was “the abnormal, not the normal condition1”. Barnard noted that most organizations were ineffective and enjoyed short-lived success at best--and added that most leaders were unsuccessful. These lectures were eventually compiled into a book, The Functions of the Executive, which is frequently cited as one of the most influential business books of the last century 2 . Barnard is only one of many who have acknowledged how difficult leadership can be – especially in organizations that face global competition, uncertain economic conditions, and constantly disruptive technological innovation3. In today’s world in which leaders and organizations of all types are frequently criticized and condemned, one wonders whether much has changed about the effectiveness of leaders over the past eighty years4 . Worldwide, only 13% of employees described themselves as “positively engaged” at work – defined as involved, enthusiastic, and committed to their work and workplace5. In fact, according to a 2015 employee survey, 23% of employees describe themselves as actually disengaged at work6. In addition, according to a recent Gallup survey, leaders of many institutions are neither trusted by their employees nor by the general public7. Despite their well-intended efforts and the importance of their organizational responsibilities, most leaders continue to be ineffective.

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Leaders fail to earn the trust, commitment, and followership of others for many reasons. The challenge of leading others in the quest to achieve shared goals is beyond the capabilities of many would-be leaders. In this chapter we identify ten root causes that make leading others so difficult and cite leadership scholars who have addressed those weaknesses. We contrast those root causes with the leadership principles and practices adopted by Jesus Christ as he led his followers.

Common Causes of Leadership Failures Because leadership failures are so common and because trust is so often lost in organizations, understanding common causes behind unsuccessful leadership enables those who want to improve their leadership effectiveness to examine their own mental models and actions. For each of these root causes, we identify examples of how Jesus Christ exemplified positive leadership attributes and briefly comment on why Christ’s interactions model leadership principles that enabled him to earn the devoted followership of others. 1) Following Conventional Wisdom According to Stanford scholar, Jeff Pfeffer, the most common reason why leaders and organizations fail is their reliance upon conventional wisdom about people and organizations8 that is not only untrue but that actually undermines relationships, demotivates followers, and creates a spiral of organization dysfunction. Pfeffer explained that the bar is much higher for correct management practices than most would-be leaders

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recognize. The expectations of those being led, as well as the customers being served, are far more demanding and more sophisticated than many leaders assume. Managing “by the seat of one’s pants” is inadequate and much that is considered acceptable; the standard of leadership that is “good enough” is actually invalid, empirically incorrect, and certainly not helpful. Leaders who honor others treat them as valued “Yous,” rather than as “Its,” or commodities9.

Jesus Christ clearly taught that “conventional” thinking about human relationships was inadequate for earning trust and commitment. He advocated that his followers raise the bar in living exemplary lives and taught that it was not good enough to just be kind to one’s friends but that obligations are owed to enemies as well10. In the Sermon on the Mount, Christ set a standard for mankind that transcends the quid pro quo behavior expected by society, as characterized by social exchange theory and transactional leadership. His teachings went far beyond conventional behavioral standards of interpersonal conduct and demonstrated the importance of leaders honoring others and treating them as valued individuals. 2) Accepting a “Satisfactory” Alternative The tendency of leaders and organizations to “satisfice,” or to accept and implement the first adequate solution that comes along, undermines the accomplishment of an organization’s highest potential and the long-

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term needs of others 11 . Being just “good,” as explained by the awardwinning scholar, Jim Collins, is far from good enough – and is clearly “the enemy of great12.” “Great” has become the new standard for survival for leaders and organizations in today’s global marketplace. Even the mirroring of the best practices of competitors fails to create a competitive advantage13. For leaders and organizations to succeed in today’s world, they must do far more than simply attempt to be “as good as” others--but must demonstrate that they offer a unique advantage that adds value and distinguishes themselves from the commonplace14. Christ encouraged others to seek a standard of performance that reflected an “extra mile” commitment15 – much like what scholars now call Organizational Citizenship Behavior 16 . Christ invited people to become their best17 – and his personal example demonstrated that same commitment to excellence 18 . By raising the bar and modeling the standards of personal excellence, Christ showed the way, demonstrated his commitment to what he believed, and became a personal example19. 3) Misreading the Character of Others. Leaders fail when they misread others, fail to read their true intent, and fail to discern others’ character. Social and emotional intelligence are refined skills in which individuals recognize the nature of a situation and correctly interpret the appropriate response 20 . The misreading of the intentions of others is known as “control blindness” and is a common perceptual error 21 . Effective leaders build resonant relationships with others and demonstrate the ability to discern others’ motives and intent22. These leaders clarify uncertainty and correctly assess people and context. By so doing, they demonstrate the powers of discernment, wisdom, and spiritual intelligence23. Leaders earn the respect and trust of others when they demonstrate “target accuracy” or the ability to accurately discern the intentions of others from their conscious and unconscious signals24.

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Christ frequently displayed the ability to discern the intentions, hearts, and character of others. For example, Christ was approached several times by those who attempted to manipulate his words. Christ saw through the motivation of those who asked him whether it was lawful to pay taxes to Caesar. Asking them to show him a penny upon which Caesar’s face appeared, Christ told them, “Render unto Caesar the things which be Caesar’s, and unto God the things that be God’s”25. In another instance he approached a Samaritan woman at Jacob’s well in Sychar,26 asking her for a drink. Jesus and the woman spoke. Christ discerned the heart of this woman and perceived that she was currently living with a man not her husband – but he nonetheless spoke to the woman with kindness and a commitment to her welfare27. 4) Communicating Ineffectively One of the most critical skills of leadership is the ability to communicate in a manner that conveys meaning, that is memorable, and that demonstrates authentic concern for the welfare of others28. Leaders fail to communicate when they focus on tasks and give insufficient attention to relationships, fail to listen to others and are inattentive, and when they misread others’ needs and project onto them their own assumptions 29 . Great leaders and effective communicators teach with stories which make a point effectively, provide a practical example of a principle, and convey a message that is easily remembered30.

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Jesus Chhrist has oftenn been acknow wledged as thee Master Teacher and a profound coommunicator31. His parablees teach great at truths for liiving and used commoon examples that t others cou uld easily undderstand. He taught t the significancee of a repentannt sinner by relating r a story ry about a wom man who lost a coin and cleaned her h whole house until she found that coin32. He compared faaith to a mustard seed, only y one to two m millimeters in n size, yet capable of pproducing a large l plant33. Christ’s paraables were piccturesque and broughtt to mind impoortant realities essential to people’s livess34. Some were extendded, but manyy were simple,, short, powerrful, and to thee point in dealing withh important religious themes. 5) Lacck of Integrityy Integrityy and honestyy are widely acknowledgedd as the most soughtafter qualitiies of any leader 35 . Leadeership is a reelationship crreated by interaction w with others annd both peers and followerrs overwhelmiingly cite honesty as tthe most important charactteristic that thhey seek in th hose who lead36. Integgrity is also thhe foundation for building tr trust and a key y element of trustworrthiness 37 . Implicit I in th he leadershipp relationship p is the obligation too tell others the truth, to honor h commiitments, and to t pursue others’ bestt interests 38 . Because B leadiing others is an ethical ob bligation, integrity reqquires that leaders are consiistent, fair, annd authentic in n creating relationships39 . Those whho are worthy to be calleed leaders dem monstrate character that encompassses the honorin ng of the obliigations owed d to those whom they sserve40.

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Jesus Christ was a leader who taught others the truth, spoke to them honestly, and did so with compassion and love. He explained the obligation to the law but emphasized that true virtue and character encompassed more than simply complying with minimum legal requirements in relationships. In the Sermon on the Mount, Christ taught that the standard of virtuousness went beyond loving one’s neighbor but included praying genuinely for those “who despitefully use you41.” Christ confirmed. “I am the way, the truth, and the life42”. The gospel Christ taught was about turning to the light or turning to God so that one could follow a path free from sin43. Christ confirmed to his followers that he had sought to follow such a path 44 and encouraged them to do the same – declaring in no uncertain terms the importance of seeking personal perfection in one’s life 45 but showing love to all despite others’ imperfections46. 6) Absence of Humility The role of humility for leaders has been periodically acknowledged for millennia47 and was spotlighted in 2001 as a key characteristic of Level 5 Leaders in Jim Collins’ landmark book, Good to Great48. Humility is often described as “a correct understanding of oneself 49 .” Leadership humility involves self-reflection and self-knowledge, a clear understanding of how one’s behaviors contribute to achieving a desired goal, an acknowledgement of duties owed to others, and a commitment to a noble purpose 50 . Self-serving behaviors and the pursuit of self-interest are qualities that conflict with leadership humility51.

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Jesus Christ was a man of great humility and that humility was reflected throughout the gospels and in the writings of his apostles. Jesus declared that he was sent to do his Father’s will 52 . Christ clearly understood his mission and recognized that he was sent to do what no one else could accomplish. At the same time, he sought no political power or earthly rewards and entered Jerusalem on the back of a humble donkey -fulfilling a prophecy found in the book of Zechariah53. Christ’s mission demonstrated that he willingly accepted his role – and, despite the personal costs, he realized that his sacrifice was his and only his to make. 7) Failure to Forgive One of the common mistakes of would-be leaders is their inability to accept the imperfections of others and their unwillingness to forgive others’ mistakes. Forgiveness acknowledges that the experiences that occur from failures can often teach important truths 54 . Great leaders recognize that helping others to learn and to grow is not only a part of the teaching process but the demonstration of a commitment to the welfare of others 55 . Forgiveness may not endorse other’s performance as good enough, but nonetheless accepts and cares about the individual 56 . Forgiving others and helping them to succeed enables leaders to rebuild relationships57. For Christ, forgiveness of others was a foundation of repentance. The Greek metanoia, the word for repentance, means to change one’s mind or to change one’s heart and was a foundation principle of the gospel that Christ repeatedly taught. To the woman taken in the very act of adultery, Christ’s words were a profound comfort – both to her and to all who have made mistakes 58 . Christ told those who would stone her, “He that is without sin among you, let him first cast a stone at her59.” When those condemning the woman meekly left, Christ acknowledged their leaving and said, “Neither do I condemn thee: go and sin no more60.” Forgiveness, like love, enabled Christ to demonstrate his commitment to others, to their welfare, to their happiness, and to their highest potential61. 8) Misguided in Purpose A key requirement of effective leaders is that they clearly understand their purpose and keep it constantly in focus. The evidence confirms that successful leaders and organizations focus not on profitability but on benefiting their customers and serving society 62 . Those companies adopting that approach have also proven to be most profitable63. Leaders with focus and an awareness of what matters most avoid being distracted by less important priorities that seem to be urgent64. Leaders with a clear

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purpose do not lose sight of their priorities65. Clarifying an organization’s mission and purpose and articulating a clear path to achieving priorities are well established as important tasks of successful leaders66.

Following his 40 days in the wilderness, Christ appeared in the synagogue in the City of Nazareth. Reading from the book of Isaiah 61:1. Christ announced, “The Spirit of the Lord is upon me, because he hath anointed me to preach the gospel to the poor; he hath sent me to heal the brokenhearted, to preach deliverance to the captives, and recovering of sight to the blind, to set at liberty them that are bruised, (t)o preach the acceptable year of the Lord67.” He then declared “This day is this scripture fulfilled in your ears68.” Christ declared without equivocation that he “had come to seek and save that which is lost69”, to die for the sins of all the world, and to be an advocate for mankind with the Father70. In his great High Priestly prayer, he said, “I have glorified thee on the earth: I have finished the work which thou gavest me to do71”. That work culminated with his sacrifice for the sins of the world, his resurrection, his appearance to the apostles in which he completed preparing them for their mission, and his ascension into heaven. 9) Deficiency in Capacity The ability of a leader to achieve desired outcomes – their dynamism and capacity to produce intended results – is a critical success factor of

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leaders72. The ability to successfully execute a plan of action distinguishes those who are truly effective from would-be leaders73. Achieving results by integrating the qualities of character, competence, and caring that are essential to that capacity differentiate leaders who are able to achieve their goals from those who underachieve 74 . Capacity demands the profound knowledge of what is required to succeed75, coupled with a persistence and passion to achieve a worthy outcome76. As a leader who inspired others to change their lives, to achieve far beyond what they had ever thought was possible in themselves, and as the exemplar of that which he taught, Jesus Christ demonstrated capacity and the complete integration of noble virtues worthy of others’ trust. His ministry demonstrated the power to lift others’ lives, to inspire and empower them to serve, and to motivate them to devote their lives to that which he professed. His message of faith, repentance, and obedience has motivated others for the past two millennia to develop and emulate his quest for personal excellence and devotion. 10) Lacking in Love The importance of leaders demonstrating a profound commitment to the interests of those whom they serve – a genuine love for others – has increasingly been recognized as a quality of great leadership 77 . Love includes a willingness to sacrifice on behalf of another 78 , to surrender one’s freedom to another79, and to give the gift of oneself80. At the same time those who love others teach them accountability and the qualities of self-discipline, self-respect, and self-control 81 . Love includes but transcends caring82 and includes a desire to serve others and to help them excel83. Loving others is done with the intent to help others to succeed and to become their best 84 . Such leadership integrates love with other virtues85 – transcending a command and control paradigm and replacing it with leadership based upon commitment and trust86.

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Throughout his ministry Jesus Christ taught his followers the importance of love and its relationship to serving others. When asked by a Pharisee lawyer, “Master, which is the great commandment in the law?” Christ answered that love of God, love of oneself, and love of one’s neighbors constituted “all the law and the prophets87.” The principle of love encompassed the great message of Jesus and epitomized his example as a leader. He testified to the apostles of his love for them. He said, “As the Father hath loved me, even so have I loved you; abide in my love88.” His gospel, he declared, was a gospel of love: “This is my commandment, that you love one another as I have loved you. Greater love has no one than this, than to lay down one’s life for one’s friends89.” These ten root causes of failure inhibit honoring relationships with others and result in losing others’ trust and followership. Contrasting the qualities of many leaders with the higher standards required for success, Jesus Christ possessed ten positive attributes which are the antitheses of these weaknesses. By understanding the differences between our own conventional thinking, fuzzy misperceptions, individual propensities, and personal foibles, each one of us can identify how we can reassess our own leadership limitations. Recognizing the importance of Christ’s personal example and understanding how his actions contrasted with these ten common causes provide rich insights about Christ’s uniqueness, demonstrate the wisdom of his approach to relationships, and serve as a pattern for those who desire to become better leaders.

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Notes 1

See p. 5 of Barnard, C. I., (1938). The Functions of the Executive. Cambridge, MA: Harvard University Press. 2 The Functions of the Executive was cited as the second most influential business book of the 20th century by the Academy of Management, as reported by Bedeian, A. G., and Wren, D. A., (2001). “Most Influential Management Books of the 20th Century.” Organizational Dynamics, Vol. 29, Iss. 3, pp. 221-225. 3 See Christensen. C. M., (2016). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA: Harvard Business School Press. 4 A 2017 Gallup survey about trust in major institutions that trust in those organizations has risen slightly to 35% from 32% -- or that only about one in three persons trust those institutions. See “State of the American Workplace” found online on September 27, 2017 at: http://news.gallup.com/poll/212840/americansconfidence-institutions-edges.aspx 5 See Mann, A. and Harter, J., “The Worldwide Employee Engagement Crisis.” Gallup January 7, 2015 found online on September 27, 2017 at http://news.gallup.com/businessjournal/188033/worldwide-employee-engagementcrisis.aspx. 6 This statistic is found in Modern Survey, (2015). “The State of Employee Engagement – Spring 2015” found online on September 27, 2017 at http://www.modernsurvey.com/wp-content/uploads/2015/04/The-State-ofEngagement-Report-Spring-2015.pdf. 7 See the Gallup report, “Confidence in Institutions” (2017) found online on October 26, 2017 at http://news.gallup.com/poll/1597/confidence-institutions.aspx. 8 Pfeffer makes this powerful assessment in Pfeffer, J., (1998). The Human Equation: Building Profits by Putting People First. Boston, MA: Harvard Business Review Press. 9 Treating others as “Yous” rather than as “Its “was recognized by the German philosopher, Martin Buber, as a distinguishing factor of caring interpersonal relationships. See Buber, M., and Kaufmann, W., (1971). I and Thou. New York: Touchstone. 10 Christ contrasted conventional wisdom with this higher standard in Matthew 5: 43-45. 11 This tendency to “satisfice” or to accept an available option as satisfactory was identified by Nobel Laureate, Herbert Simon in Simon, H. A., (1997). Administrative Behavior (4th ed.) New York: Free Press. Simon acknowledged that leaders were often overloaded with choices and information and “satisficed” rather than carefully analyzing the consequences of their choices. 12 Collins began his best-selling book, Good to Great, with the words, “Good is the enemy of great.” See Collins, J., (2001). Good to Great: Why Some Companies Make the Leap . . . . And Others Don’t. New York: HarperCollins. Collins’ quote is an adaptation of Voltaire’s comment that “perfect is the enemy of good.”

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13 Efforts to copy competitors’ best practices fail to distinguish a company from competitors, as noted by Pfeffer, J., (1998) op. cit. 14 This point is the theme of many scholars. See, for example, Caldwell, C., and Anderson, V. (eds.), (2017). Competitive Advantage: Strategies, Performance, and Management. Hauppage, New York: NOVA Publishing 15 See Matthew 5: 41 and verses following. 16 Organizational Citizenship Behavior, or extra-mile commitment, is acknowledged as a key to wealth creation and competitive advantage. See Organ, D. W., and Podsakoff, P. M. (2006). Organizational Citizenship Behavior: Its Nature, Antecedents, and Consequences. Thousand Oaks, CA: Sage. 17 His message was to repent – meaning to turn to God and live or to change their mind and heart. See Caldwell, C., Dixon, R. D., Atkins, R., and Dowdell, S. M., (2011). “Repentance and Continuous Improvement: Ethical Implications for the Modern Leader.” Journal of Business Ethics, Vol 102, Iss. 3, pp. 473-487. 18 Christ counseled people to strive to be perfect in the Sermon on the Mount. See Matthew 5: 48. 19 The importance of modeling the way has been identified as a critical task of leaders in Kouzes, J. M. and Posner, B. Z., (2016). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations (6th ed.). San Francisco, CA: Jossey-Bass. 20 See Goelman, D., (2007). Social Intelligence: The New Science of Human Relations. New York: Bantam. 21 Control blindness is explained in Willett, A. B. S., Marken, R. S., Parker, M. G.., and Mansell, W., (2017). “Control Blindness: Why People Can Make Incorrect Inferences about the Intentions of Others.” Attention, Perception, and Psychophysics, Vol. 79, Iss. 3, pp. 841-849. 22 Goleman, D., Boyatzis, R. E. and McKee, A., (2013). Primal Leadership with a New Preface by the Authors: Unleashing the Power of Emotional Intelligence. Boston, MA: Harvard Business School Publishing. 23 The nature of spiritual intelligence is described by Covey, S. R., (2004) op. cit. 24 Target analysis and accuracy of perception is found in Kenny, D. A., (1994). Interpersonal Perception: A Social Relations Analysis. New York: The Guilford Press. 25 This event is recounted in Luke Chapter 20. See, particularly, verse 25. 26 This conversation is found in John Chapter 4. 27 Insights about this conversation can be found in an online article, Higgs, L. C., (2008). “The Woman at the Well: Thirsty for Truth – A Study of John 4: 5-42.” Today’s Christian Woman, July found online on September 29, 2017 at http://www.todayschristianwoman.com/articles/2008/july/woman-at-well.html. 28 This important ability to communicate effectively is often discussed by leadership experts. It is a consistent message in the best-selling book, Kouzes, J. M., and Posner, B. Z., (2017) op. cit. 29 Among the many sources that discuss the importance of effective communication and the unfortunate frequency of ineffective interpersonal

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relationships is Albrecht, K., (2009). Social Intelligence: The New Science of Success. San Francisco, CA: Jossey-Bass. 30 For example, see Harbin, J. and Humphrey, P., (2010). “Teaching Management by Telling Stories.” Academy of Educational Leadership Journal, Vol. 14, Iss. 1, pp. 99-106. 31 See, for example, Johnson, W. E., (2014). Digging Into Jesus’ Parables. New York: Create Space Independent Publishing. 32 See Luke 15: 8-10. 33 Although this parable is one of the shorter parables, it is found in Matthew 13:31–32, Mark 4:30–32, and Luke 13:18–19. 34 See Boice, J. M., (2016). The Parables of Jesus. Chicago, IL: Moody Publishing. 35 See Kouzes, J. M., and Posner, B. Z., (2011). Credibility: How Leaders Gain and Lose It, Why People Demand It. San Francisco, CA: Jossey-Bass. 36 Ibid. 37 The literature about trust and trustworthiness confirms the critical importance of integrity as a foundation of leadership and trust. See, for example, Mayer, R. C., Davis, J. H., and Schoorman, F. D., (1995). “An Integrative Model of Organizational Trust” Academy of Management Review, Vol. 20, Iss. 3, pp. 709734 which has been cited more than 16,000 times by other scholars. 38 Max DePree addresses the integrity-based obligations of leaders in DePree, M., (2004). Leadership is an Art. New York: Crown Publishing. 39 See, for example, Atwijuka, S., and Caldwell, C., (2017). “Authentic Leadership and the Ethic of Care.” Journal of Management Development, Vol. 36, Iss. 8, pp. 1040=1051 40 See also Caldwell, C., and Ndalamba, K. K., (2017). “Trust and Being ‘Worthy’ – The Keys to Creating Wealth.” Journal of Management Development, Vol. 36, Iss. 8, pp. 1076-1086. 41 See Matthew 5: 44 and similar verses in the Sermon on the Mount that clarify this higher standard for those who seek to become the children of God. 42 See John 14:6. 43 The concept of shub or shube, the Hebrew word for repentance, means to turn to God in rejoicing. 44 See John 14: 7-9. 45 See Matthew 5:48. 46 See Matthew 26:34 for an account of Christ telling Peter that he would deny him three times that very night. 47 Several early Chinese philosophers emphasized the importance of leadership humility. See, for example, Ni, H. C., (1995). The Complete Works of Lao-Tzu, Tao-Teh Ching, and Hau Hu Ching. New York: Seven Star Communications. 48 Level 5 Leaders were identified by Collins and his researchers as leaders who combined both humility and fierce resolve. See Collins, J. (2001) op. cit. 49 Caldwell, C., Ichiko, R., and Anderson, V., (2017). “Understanding Level 5 Leaders -- The Ethical Perspective of Leadership Humility.” Journal of Management Development, Vol. 36, Iss. 5, pp. 724-732.

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Ibid. See, for example, DePree, M. (2004) op. cit. and Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: JosseyBass. 52 See, for example, John 5:30, John 6: 38, John 7:28, and John 8: 28 as Christ’s declaration of his understanding of his mission. 53 See Zechariah 9:9. 54 This valuable reality is much of what repentance and growth are all about. See also Melock, L. S., (2015). “Don’t Fear Failure: 9 Powerful Lessons We Can Learn from Mistakes.” Huffington Post Jan 4 found online on October 5, 2017 at https://www.huffingtonpost.com/lisabeth-saunders-medlock-phd/dont-fearfailure-9-powerful-lessons-we-can-learn-from-our-mistakes_b_6058380.html. 55 This great truth is explained in some detail in Caldwell, C., and Dixon, R. D. (2010). “Love, Forgiveness, and Trust: Critical Values of the Modern Leader.” Journal of Business Ethics, Vol. 93, Iss. 1, pp. 91-101. 56 This powerful point is made by Greenleaf, R. K., (1998). The Power of Servant Leadership. San Francisco, CA: Berrett-Koehler Publishers. 57 See Ren, H. and Gray, B., (2009). “Repairing Relationship Conflict: How Violation Types and Culture Influence the Effectiveness of Restoration Rituals.” Academy of Management Review, Vol. 34, Iss. 1, pp. 105-126, 58 This powerful story is told in John 8: 3-11. 59 Ibid., vs. 7. 60 Ibid. vs. 11. 61 Caldwell, C. and Dixon, R. D., (2010) op. cit. 62 Collins, J. and Porras, J. I. (2004). Built to Last: Successful Habits of Visionary Companies. New York: Harper Business. 63 Ibid. Collins and Porras emphasize that these companies are “built to last.” 64 This critical leadership principle is made in Covey, S. R., Merrill, A. R., and Merrill, R. R. (1996). First Things First. New York: Fireside. 65 See Covey, S. R., (2013). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change – Special Edition. New York: Simon & Schuster. 66 Kouzes, J. M., and Posner, B. Z., (2017) op. cit. 67 Found in Luke 4:18-19. 68 Luke 4: 21. 69 Luke 19:10. 70 John so declares Christ’s mission in 1 John 2: 1-2. 71 John 17:4. 72 This dynamism or ability to produce outcomes was identified by followers as one of the keys to leadership credibility in Kouzes, J. M., and Posner, B. Z., (2011) op. cit. 73 See Pfeffer, J., (1998) op. cit. 74 For a discussion of capacity and its importance, see Caldwell, C., and Ndalamba, K. K., (2017) op. cit. 51

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75 This “profound knowledge” is addressed by Deming, W. E. (2000). Out of the Crisis. Cambridge, MA: MIT Press and is identified as an understanding of the interrelated factors so critical to success. 76 This combination of persistence and passion that is so important in achieving results is described in Duckworth, A., (2016). GRIT: The Power of Passion and Perseverance. New York: Scribner. 77 Caldwell, C. and Dixon, R. D., (2010), op. cit. 78 This point was made by Dag Hammarskjold, former Secretary General of the United Nations. See Hammarskjold, D., (2001). Markings. New York: Alfred A Knopf. 79 See Koestenbaum, (2002). Leadership: The Inner Side of Greatness, A Philosophy for Leaders, New and Revised. San Francisco, CA: Jossey-Bass. 80 Fromm, E., (1956). The Art of Loving. New York: HarperCollins. 81 Ibid. 82 Autry has written a superb book about love and caring leadership and its practical application in business. See Autry, J. A., (1991) Love and Profit: The Art of Caring Leadership. New York: Avon Books. 83 This stewardship role is identified by DePree, M., (2004), op. cit., Chapter 1. 84 This dedication to the welfare of others and to helping them to be their best is at the heart of Stephen Covey’s simple definition of leadership: “treating others so well that they come to recognize their greatness and strive to achieve it.” See Covey, S. R., (2004) op. cit., p. 98. 85 Batten, J. (1999).” Lead with Love.” Executive Excellence, Vol. 16, Iss. 6, p. 14. 86 Ibid. See also, Beer, M., (2009), High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA: Jossey-Bass. 87 This incident is recorded in Matthew 22: 34-40. 88 John 15:9. 89 John 15: 12-13.

CHAPTER FOUR WHY TRUST IS THE GLUE TO COMPETITIVE ADVANTAGE

Although it is widely agreed that interpersonal relationships and organization effectiveness rely upon trust to achieve meaningful results, the reality is that there are widely divergent opinions about the precise nature of trust 1 . Although trust is regarded as critically important, the antecedents to trust vary from person to person and are based upon numerous individual factors2.

The focus of this chapter is on understanding the complex nature of trust, particularly as it relates to both ethics and leadership. The chapter will then compare trust to religious faith and its applications in the teachings of Jesus Christ. After presenting a summary of the scholarly literature that explains the nature of trust, the chapter clarifies how and why trust plays such a critical role in creating distinct advantages in

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organizations and in human lives. Trust is then explained within the context of the leader’s role and obligations – clarifying how and why leaders earn and retain or lose trust. Turning to the relationship between secular trust and religious faith, the chapter identifies ten similarities between trust and faith while also enumerating subtle differences. Finally, the chapter presents examples of trust from the life of Jesus and uses those examples to explain how trust and faith apply in the modern day.

The Nature of Trust Thousands of articles and hundreds of books have been written about the significance of trust in daily life as people combine their efforts, share common goals, and depend upon one another – whether in personal relationships or in organizational contexts. Despite that extensive coverage of the nature of trust, experts have frequently disagreed about exactly what constitutes trust. Some have called trust a propensity to act or an attitude. Others describe trust as an intention, a belief, or a feeling. Still others suggest that trust is, ultimately, a behavior – a relinquishing of one’s personal power or choice in deference to another, expecting that the other party will reciprocate and honor the typically unarticulated expectations of the person who trusts 3 . There seems to be no disagreement, however, about several key elements of trust. Trust Involves Risk-Taking. Relinquishing one’s personal power or choice requires a conscious action and the belief that another party acknowledges that a two-way relationship exists. The trusting individual takes a risk by foregoing the right to make a choice and by acting for the benefit of the other party4. Trust is Dependent Upon Trustworthiness. The decision to trust is based upon the trustor’s subjective belief that the person or organization being trusted is worthy of being trusted, is credible, and is committed to the trusting person’s best interests5. Trust is an Information-Analyzing Decision. Whether it is consciously, sub-consciously, or unconsciously made, trust requires the ability to interpret information and to take a position that governs one’s beliefs, attitudes, intentions, and behaviors. Trust is Measured on a Continuum. Clearly, there are degrees by which an individual is willing to comply, relinquish personal power, or

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cooperate in the pursuit of the objectives of the other party – and the degree to which the other party is perceived as trustworthy impacts how willing the trustor is to take action. Trust, then, ranges from reluctant compliance to virtually total ownership of the other party’s agenda. The continuum of trust is shown in Figure 1.

Trust is Different Than Distrust. Distrust is self-protecting behavior in which an individual is reluctant to cooperate, accede to the wishes of, or withhold behaviors requested from another party due to a lack of confidence in the credibility of that other party. Like trust, distrust is a conscious, subconscious, or unconscious choice that is reflected by an individual’s behaviors. Leaders and organizations depend upon those with whom they interact to demonstrate trust by their actions, and those trust behaviors are critical to achieving collaborative outcomes.

Why Trust Matters When followers trust a leader, their relationship reflects not only a difference in the mental mindset and emotional feelings of followers but in follower behaviors. The following are eight ways in which employees who have trust in leaders respond. Self-Confidence -- Trust breeds greater confidence in the ability to perform a set of tasks. With that confidence, followers are more

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willing to engage in activities that they otherwise would be reluctant to attempt. Safety/Security – Trust in a leader results in a sense of personal security and reduces the reluctance to take a calculated risk that can be important to achieving a better outcome. Enduring Hardships – The decision to trust enables followers to endure disappointment, trials, and hardships without losing purpose or focus. Willingness to Change – Those who trust a leader are more comfortable with changing conditions or adopting a new idea. Creativity -- Trust is accompanied by an increased willingness to innovate and to be creative. Energy/Effort – Energized by trust in a leader, followers increase their efforts in pursuit of a desired outcome. Followers willingly go the extra mile as a result. Learning Commitment – When trust in a leader is high, followers constantly seek to learn, to apply what they are learning, and to constantly improve. Eustress – Trust creates positive mental energy, satisfaction, and personal fulfillment in the pursuit of a goal.

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Each of these eight follower responses benefits an organization and increases the likelihood that a follower will be more successful in achieving an intended result. Wise leaders have recognized the value of creating high trust organization cultures to engender these responses. The empirical evidence consistently confirms that high trust organizations are more profitable, more effective in creating relationships with others, and more innovative6. Cooperative behaviors are enhanced by trust and the level of commitment is increased7. Organizations depend upon followers’ extramile efforts and high commitment in order to perform better than their competitors -- and the evidence clearly has affirmed that high trust organizations achieve those results 8 . By earning the trust of employee followers, leaders and their organizations are able to achieve the difficultto-imitate dedication and personal ownership that is crucial for obtaining a competitive advantage over rivals.

Trust and Faith Although there are distinct differences between secular trust and religious faith, there are also many commonalities. Similar to the definition of trust, faith has been defined as “the behaviors and actions of an individual to relinquish one’s personal choices and power to God in the expectant hope that those actions will demonstrate that individual’s willingness to comply with God’s will 9 ”. Just as the trusting follower relinquishes his or her power in the hope that a leader will honor his part

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of a perceived obligation, the religious believer relinquishes his or her choices to obey God, often hoping for “blessings” earned by the believer in exchange for that obedience. The following are ten commonalities between trust and faith that demonstrate how the two concepts are similar – although certainly not identical in nature. 1) Focused on Ground Rules – Both trust and faith are often based upon subjective expectations about the ground rules and psychological contract which govern an individual’s commitment to a leader or to God. Those ground rules assume that trust and faith are both the quid pro quo of an exchange relationship.

2) Preceded by Hope -- Trust and faith are both preceded by a hope that one’s actions will equate with an expected outcome or benefit. Both trust and faith exist within a realm of uncertainty. The decision to act or to relinquish one’s personal power or choice is then based upon the decision made to trust or to demonstrate faith. 3) Dependent Upon Reality – Trust and faith are both dependent upon the underlying realities associated with the relationships that exist. Unfortunately, leaders may define that reality differently than those who work with them. Expectations about blessings “deserved” are also dependent upon whether obtaining those blessings is consistent with divine principles.

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4) Impacted by External Factors – In organizations and in relationships, events may intervene that have not been anticipated that make it difficult for leaders to perform as they had intended in fulfilling the duties implicit in a relationship. Those external variables can never be fully predicted but can influence outcomes. Similarly, in our relationships with God, we assume that all external factors can and will occur in our personal self-interest.

5) Based Upon Assumptions – Incomplete information and expectations based upon incorrect assumptions can often affect both trust and faith. It is not uncommon for information that is assumed to be true to lack validity. Faulty assumptions about key factors and incorrect information can cause individuals to completely misinterpret mutual obligations, hoped-for outcomes, or external conditions that impact a situation. 6) Affected by Vulnerability – Both trust and faith require the assumption of a risk and the creation of personal vulnerability by changing one’s behavior or complying with actions required by a leader or established by God. The fear of losses associated with vulnerability and risk is associated with both trust and faith – although the consequences are likely to be more significant when applied to the relationship with God. 7) Demonstrated by Choice – The decision to act with trust or faith is unquestionably a personal decision demonstrated by individual choice. The actions taken may vary in degrees of effort but require a decision which precedes those actions.

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8) Measured on a Continuum – Trust and faith are both measured on a continuum. The strength of the trust or faith is shown in the diagram below which indicates the degrees of effort demonstrated as the factor increases in strength. The continuum identifies subtle differences between the two concepts.

9) Ethically Founded – Trust and faith both affirm a sense of ethical mutuality wherein both parties have adopted an obligation to achieve a common interest that achieves a positive benefit and that adds value. Trust reflects the duty to others and to the community. Faith focuses on duties owed to others and to God. 10) Motivated by Identity – Each person possesses an identity that is central, distinctive, and enduring. Engaging in trust or faith reflects one’s identity and how am individual views himself or herself. The identity for trust reflects secular commitments while the identity of faith affirms one’s relationship to God. Each of these ten common characteristics clarifies the similarities and differences between secular trust and religious faith and demonstrates characteristics required for their practical application in the human experience. Trust and faith acknowledge the interdependent nature of a relationship and the recognition that both parties have the opportunity to achieve more by cooperating in achieving a worthy purpose. Both trust

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and faith acknowledge the virtue of “power with” rather than “power over” as the means by which the superior outcomes can be fulfilled.

Examples and Applications As Jesus taught his disciples, he constantly emphasized the importance of trust and faith to strengthen their commitment to God. Faith acknowledges that trials, challenges, and hardships can teach powerful lessons and actually lead to a closer relationship with God. Those difficult experiences reveal whether a person truly has the faith to hold on, despite adverse conditions. Faith is a quiet assurance, even when trials come.

Christ’s ministry began with preparatory trials and challenges which strengthened his faith. Recognizing that faith is strengthened by personal discipline, Jesus fasted forty days in the wilderness to focus himself and to prepare for the three years of his ministry. Just as Moses prepared to receive God’s word on Mount Sinai and returned with the Ten Commandments, after Christ’s forty-day fast he advocated to his disciples the new standards contained within the Sermon on the Mount10. These new standards raised the bar of commitment and faith and required his followers to treat both enemies and friends with genuine love. To his disciples, Christ counseled, “Let not your heart be troubled11”. Christ understood that it is human nature to think short-term and to lose track of what is truly important. Trust and faith can drive out fear. That same fear caused his followers to be afraid when suddenly a storm came up at sea. Christ chastised his apostles for their lack of faith and failure to trust him12. The word for faith, pisteuo, from the Greek. meant to be convinced or to trust with confidence.

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According to the New Strong’s Bible Dictionary, the word pisteuo was used in the four gospels 251 times in referencing the nature and importance of faith13. Typically translated as “belief” in English, pisteuo was used to describe the faith required to change lives, to work miracles, and to reflect a deep commitment 14 . Christ frequently encouraged his disciples to strengthen their faith and explained that without adequately preparing themselves and strengthening their faith they would be unprepared to serve others15. The author of the Book of Hebrews wrote extensively about the importance of faith, acknowledging that faith required trust and belief without actually knowing that something was true. Faith was described as “the substance of things hoped for, the evidence of things not seen16 ”. Elaborating more fully, the writer explained that without faith it was impossible to please God17. The Latin word most frequently used for faith, credo, meant “an alignment of the will, a resting of the heart 18 ” and confirmed that a believer was at peace with his or her belief and completely trusted God. Speaking of the impact of faith in their lives, Christ told the apostles at the last supper, “My peace I leave with you, peace I give unto you: not as the world giveth, give I unto you19”. Christ declared that faith exceeded trust in its ability to provide peace of mind, tranquility of heart, and unity with God – even during times of sorrow, trial, and duress which Jesus knew that his apostles would inevitably face. Faith, he knew, was critically important if his followers were to walk in his steps and fulfill their mission.

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After Christ’s sacrifice, resurrection, and appearance to the apostles, their lives changed dramatically. History records their personal commitment to sharing the good news of the gospel. Despite persecution, beatings, and the constant threat of death, his apostles shared their testimonies of Jesus to Jew and Gentile20. Inspired by his life and example, the apostles took the message of Jesus and the principles that he taught throughout the region. Faith in the Lord Jesus Christ was the first principle of their message and they promised all to whom they spoke that belief in Christ would provide peace in this world and eternal life in the world to come21.

For 2,000 years the principles of faith in Christ and trust in God have enabled believers to change their lives, overcome their flaws, and become the best versions of themselves. Faith and trust profoundly impact the lives of both secular and religious individuals and leaders and affirm the importance of true principles.

Notes 1

This point was made by many highly respected scholars. See, for example, Hosmer, L. T., (1995). “Trust: The Connecting Link Between Organizational Theory and Philosophical Ethics.” Academy of Management Review, Vol. 20, Iss. 2, pp. 379-403.

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2 The classic article about trust and trustworthiness is Mayer, R. C., Davis, J. H., & Schoorman, F. D., (1995). “An Integrative Model of Organizational Trust.” Academy of Management Review, Vol. 20, Iss. 3, pp. 709-734. 3 For a review of the differences in perspective about trust, please see Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. (2009). “The Buyer-Supplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 4 Ibid. 5 This relationship between trust and trustworthiness is identified in Caldwell, C. and Clapham, S., (2003). “Organizational Trustworthiness: An International Perspective.” Journal of Business Ethics, Part 1, Vol. 47, Iss. 4, pp.349-364. 6 This principle is the main idea of Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA: Jossey-Bass. 77 Caldwell, C., and Hansen, M., (2010). “Trustworthiness, Governance, and Wealth Creation.” Journal of Business Ethics, Vol. 97, Iss. 2, pp. 173-188. 8 This message is the key theme of Pfeffer, J., (1998). The Human Equation: Building Profits by Putting People First. Boston, MA: Harvard Business Review Press. 9 This quote comes from page 104 of Caldwell, C., Davis, B., and Devine, J. A., (2009). “Trust, Faith, and Betrayal: Insights from Management for the Wise Believer.” Journal of Business Ethics, Vol. 89, Iss. 1, pp. 103-114. 10 For the Sermon on the Mount, see Matthew 5-7. 11 See John 14:1. 12 See Mark 4: 37-40. 13 Strong, J. (1996). The New Strong’s Complete Dictionary of Bible Words. New York: Nelson Reference & Electronic Publishing. 14 Caldwell, C., and Holloway, C. S., (2017). “Trust, Faith, and Commitment – A Reasoned Action Approach.” Business and Management Research, Vol. 6, No. 3, pp. 51-57 and available online at http://www.sciedupress.com/journal/index.php/bmr/article/view/12256/7526. 15 See Matthew 17:21 and Mark 9: 29. 16 This verse is found at Hebrews 11: 1. 17 See Hebrews 11: 6. 18 Fowler, H. W., (1996). A Dictionary of Modern English Usage (3rd ed.). Oxford, UK: Oxford University Press. 19 See John 14: 27. 20 See 2 Corinthians 11: 16-33 for a summary of Paul’s trials. 21 See, for example, Acts 2: 37-38.

CHAPTER FIVE TRUSTWORTHINESS AND LEADER EFFECTIVENESS

Because trust is so critical in the leader-follower relationship, understanding the nature of trustworthiness, or what is required for a leader to be perceived as “worthy” of trust, is also vital.1 Leaders who possess the ability to be trusted differentiate themselves from would-be leaders who struggle to earn the respect and commitment required to succeed in today’s difficult world. Increasingly, leaders have found it difficult to earn or retain the followership of others that enables organizations to obtain and maintain a competitive advantage2.

This chapter clarifies the nature of trustworthiness and identifies five leadership qualities upon which trustworthiness is based. After defining trustworthiness and its importance for leaders, the nature of the mediating lens used to assess trustworthiness is explained to clarify why trustworthiness may vary from person to person within the same

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organization. Citing examples from the life of Jesus Christ, the chapter then identifies the qualities in his life that demonstrate why he was not only considered trustworthy but that earned him the love and dedication of his followers.

The Nature of Trustworthiness

Although the nature of trust has been a topic of considerable dispute3, it is universally accepted that trustworthiness reflects the trustor’s subjective perceptions of a leader’s behaviors, reputation, and/or commitments in several very specific ways. Trustworthiness at the individual and organizational levels consists of five factors. x Ability or Competence – Trustworthy leaders demonstrate a profound understanding of the needs of their customers, the nature of their industry, the context of the economy, and the systems necessary to produce and deliver products and services in the marketplace 4 . This standard of excellence requires an understanding of “profound knowledge” that others rarely possess5. x Integrity or Character – As leaders keep their commitments, tell the truth, and honor relationships, they earn the respect of others. Integrity and character are highly desired personal attributes of leaders6. x Beneficence or Caring – The leader’s commitment to the welfare, growth, and wholeness of others is demonstrated by treating others with kindness, courtesy, and respect. Leaders generate trust by valuing others as important ends, rather than as means to the leader’s agenda 7 . Beneficence, the behavior, reflects benevolent intention8. x Execution or Capacity – Leaders demonstrate the capacity to integrate the efforts of the organization to produce results. Execution requires that leaders achieve desired outcomes and

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results by understanding how to put a plan into action. Although the ability to develop a clear action plan or strategy is important for success, the effective execution of a plan is far more important9.

x Fairness or Conscience – Leaders who treat others justly recognize their moral obligation to make the choices that protect others’ rights, treat them equitably, and recognize their respective needs. As leaders explain the rationale for the decisions that they make, they communicate their responsibility for the impact of their actions10. Conscience is the moral sense within an individual which guides a person to acting virtuously and to treating others fairly11. Leaders undermine follower trust when they are perceived as acting in ways that lack the elements of trustworthiness. Thus, trust is lost when leaders 1) do not demonstrate personal competence, 2) fail to honor commitments or perceived obligations, 3) treat others as objects rather than individuals, 4) underperform in ensuring that the organization achieves its goals, or 5) violate expected standards of ethical conduct. Figure 1 identifies the five qualities that contribute to trustworthiness.

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Figure 1: Five Qualities of Trustworthiness

As indicated by Figure 1, Conscience is the overarching factor that impacts all of the behaviors of a leader and demonstrates that his or her choices are morally just. Character, Competence, and Caring each interact together and are dependent upon a leader’s ability to integrate those factors to demonstrate the Capacity to accomplish tasks 12 – or “to do things right.” But in the last analysis, trustworthiness is ultimately dependent upon “doing the right things13.”

In every case the standards of trustworthiness expected from a leader are viewed through the unique perspective of each individual. Each of the elements of trustworthiness is viewed through a subjective mediating lens. This mediating lens is that perceptual framework within each one of us that is the basis for evaluating individual and organizational behavior and is the foundation for all of our value-based opinions, preferences, and choices. The lens is made up of six defining elements14: 1) Based upon Six Core Beliefs – One’s core beliefs form the basis of the values and priorities that frame each person’s identity and

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include beliefs about self, others, the divine, the past, current reality, and the future. How one views each of these factors determines key beliefs and values about the world and colors the contextual perspective. 2) Both Cognitive and Affective – Elements of subjective perception are both cognitive or rational and affective or attitudinal15. Every person balances rational thinking and cognition with the feelings and emotions which are subjectively perceived in making decisions. Both cognitive and affective factors play a strong role in the process of evaluating decisions and making judgments16. 3) Contextually Interdependent – The context of situations and their place in one’s personal experience and life history profoundly impact how one perceives meanings and assesses events in life17. The sense-making process attempts to connect experiences as part of an attempt to more fully understand life. 4) Ethically Founded – The ethical nature of perception is based upon individual beliefs and values which affect the duties owed in relationships 18 . Individuals view the world through a variety of ethical perspectives, often without realizing that those perspectives may actually conflict19. 5) Goal Directed – Perceptions are instrumental and goal-oriented but are also normative and value-oriented – with goals, or ends, and values, or the means by which we achieve those ends, typically integrated at the subconscious level in an attempt to reinforce our self-perceptions and identities20. 6) Systemically Dynamic – Information processing is complex and dynamic with outputs, analysis, inputs, assessment, and feedback continually occurring as part of an ongoing system for seeking clarity and establishing meaning21. These six characteristics of the mediating lens provide a basis for interpreting the world around us and for increasing our understanding of paradigms, priorities, and principles. As related to trustworthiness and the qualities of leaders, each person interprets leadership behaviors through his or her individual lens in determining whether to trust and the degree to which commitment and effort are to be extended22.

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Figure 2: Trustworthiness and Trust Behaviors

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Figure 2 shows that the five leader qualities or behaviors that demonstrate trustworthiness are viewed through each individual mediating lens23 – and through that lens each person makes a subjective assessment of the leader’s trustworthiness which (s)he assesses on a continuum from low to high24. Based upon that assessment, the follower makes his or her decision to trust and to cooperate, follow, or otherwise relinquish personal choice or control. The follower’s trust behaviors in cooperating are also measured on a commitment from reluctant compliance to personal stewardship25,26.

Trustworthiness and Examples from Christ Throughout his ministry, Jesus Christ consistently demonstrated that he was worthy of the trust of others. By his example he demonstrated each of the qualities of trustworthiness -- treating others as beloved children of their Heavenly Father, reminding them of their inherent greatness, and challenging them to perfect their lives27. The following are just some of the ways in which Christ’s life mirrored the qualities of trustworthiness.

Christ and Competence From the time he was a young boy, Jesus caused others to marvel because of his insights into the Word of God28. He confounded those who sought to present him with knotty problems to lure him into an offense for which he could be criticized -- responding with wisdom, compassion, and a divine perspective 29 . As a teacher of the law, Christ taught “as one having authority, not as the scribes 30 ”. Even the Jewish leaders and members of the Sanhedrin marveled at Jesus and his understanding of the scriptures 31 . His ministry was non-monetary and non-political and his concerns were not for customers or for personal recognition but sought to benefit men and women of all types – from lowly publicans and sinners to Nicodemus of the Council of the Sanhedrin. Though his teaching made the scholars marvel, his parables touched the hearts of common men and women who immediately understood the meanings and examples of metaphors familiar in their daily lives.

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Christ and Character The integrity and character of Jesus Christ in honoring his mission and in living a life of service to others is a defining quality of his life. Everything that he did throughout his three-year mission was to glorify his Father in Heaven and do the work that he had been sent to the earth to do 32 . Christ’s daily walk echoed the message of the Proverbs, “The integrity of the upright guides them33.” Christ declared to his followers that it was by keeping the commandments and following him that they would inherit eternal life34. Christ declared to others that he was the light of the world and that by following him they would not walk in darkness35.

Christ and Caring As the exemplar of selfless service, Jesus served others with love and a commitment to others’ welfare. Healing the sick – both inside and out – enabled him to change others’ lives and demonstrated to the apostles the work that they were to do in his absence36. His standard of caring and commitment was clearly shared: “Love one another. As I have loved you, so you must love one another. By this shall all men know that you are my

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disciples, if you love one another37”. It was by this pure love that Christ willingly gave of himself in service to mankind.

Christ and Capacity As the only begotten of the Father, Christ alone had the ability to atone for the sins of the world and he alone had the capacity to overcome evil and the burdens of physical and spiritual death 38 . He affirmed to his disciples that it was his role to bring eternal life to others. By knowing him and keeping the commandments, his followers could avail themselves of God’s blessings and eternal life39. Of Christ the apostles declared that it was in him and in him alone that mankind could receive the benefits of eternal life and salvation40.

Christ and Conscience

As the Son of God, Christ was administered to by angels 41and directed by the Holy Spirit42. In his great High Priestly prayer, he affirmed to the Father that he had done the work that he had been sent to do43 -- and he completed that work in the Garden of Gethsemane44and on the cross45. By honoring his divine mission, Jesus Christ honored his Heavenly Father and fulfilled in every degree the role he was ordained to play for all mankind.

Conclusion As a leader, each individual recognizes that he or she must honor relationships, live a life of integrity, treat others as valued partners, and demonstrate great skill and ability in earning the trust and followership of others. Trustworthiness requires that leaders adhere to a standard of personal integrity and competence that most would-be leaders fail to achieve.

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The example of Jesus Christ sets the bar high for those who would strive to earn the respect and followership of others. Christ’s life of service, his willingness to put others first, his commitment to helping others to become their best, and his compassionate forgiveness of those who were far less perfect than himself are great examples of what leaders can do to earn the trust that all leaders seek to obtain. Though Christ’s example is a daunting challenge, his commitment to correct principles and his desire to achieve the best possible outcomes are guidelines that other leaders can strive to follow as they seek to be perceived as worthy of others’ trust.

Notes 1

Worthiness associated with trust is addressed in Caldwell, C., and Ndalamba, K. K., (2017). “Trust and Being ‘Worthy’ – The Keys to Creating Wealth.” Journal of Management Development, Vol. 36, Iss. 8, pp. 1076-1086. 2 Gallup, (2018). “Honesty/Ethics in Professions” found online on March 5, 2018 at http://news.gallup.com/poll/1654/honesty-ethics-professions.aspx. 3 Hosmer, L. T., (1995). “Trust: The Connecting Link Between Organizational Theory and Philosophical Ethics.” Academy of Management Review, Vol. 20, Iss. 2, pp. 379-403. 4 The highly regarded work about trust and trustworthiness is Mayer, R. C., Davis, J. H., & Schoorman, F. D., (1995). “An Integrative Model of Organizational Trust.” Academy of Management Review, Vol. 20, Iss. 3, pp. 709-734..

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Profound knowledge is identified as a critical leadership qualification in Deming, W. E., (2000). Out of the Crisis. Cambridge, MA: MIT Press. 6 Kouzes, J. & Posner, B. Z., (2011). Credibility: How Leaders Gain and Lose It, Why People Demand It. San Francisco, CA: Jossey-Bass. 7 For a review of the concept of beneficence and its contribution to trustworthiness and competitive advantage, see Caldwell, C., Floyd, L. A., Taylor, J and Woodard, B. (2014). “Beneficence as a Source of Competitive Advantage.” Journal of Management Development, Vol. 33, Iss. 10, pp. 1057-1069. 8 Ibid. 9 Pfeffer, J., (1998). The Human Equation: Building Profits by Putting People First. Boston, MA: Harvard Business Review Press. 10 Hosmer, L. T., (2010). The Ethics of Management. New York: McGraw-Hill. 11 Covey, S. R., (2004). The 8th Habit: From Effectiveness to Greatness. New York: Free Press. 12 Caldwell, C. & Ndalamba, K. K., (2017), op. cit. 13 Bennis W. G. & Nanus, B., (2007). Leaders: Strategies for Taking Charge. New York: HarperCollins. 14 For a review of this lens, see Caldwell, C., and Hayes, L., (2007). “Leadership, Trustworthiness, and the Mediating Lens.” Journal of Management Development. Vol. 26, Iss. 3, pp. 261-278. 15 Hamilton, D.L., & Mackey, D.M. (1993). Affect, Cognition, and Stereotyping: in Group Perception. New York, New York: Academic Press. 16 Ibid. 17 Enos, R. D., (2016). “Context, Perception, and Intergroup Relations.” Psychological Inquiry, Vol. 27, Iss. 4, pp. 294-298. 18 Anderson, V. and Caldwell, C., (2017). “Transformative Ethics and Trust – Keys to Competitive Advantage” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 133-146. 19 Caldwell, C. (2009). “Identity, Self-Deception, and Self-Awareness: Ethical Implications for Leaders and Organizations.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 393-406. 20 Burke, P. M. & Stets. J. E., (2009). Identity Theory. Oxford, UK: Oxford University Press. 21 Senge, P. M., (2006). The Fifth Discipline: The Art & Practice of the Learning Organization. New York: Doubleday. 22 Caldwell, C. and Clapham, S., (2003). “Organizational Trustworthiness: An International Perspective.” Journal of Business Ethics, Part 1, Vol. 47, Iss. 4, pp.349-364. 23 Caldwell, C. & Ndalamba, K. K., (2017), op. cit. 24 Gullett, Canuto-Carranco, Brister, Turner, & Caldwell, (2009), op. cit. 25 Hayes, L., Caldwell, C., Licona, B. and Meyer, T. E., (2015). “Follower Behaviors and Barriers to Wealth Creation.” Journal of Management Development, Vol. 34, Iss. 3, pp. 270-285. 26 Ibid.

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See Matthew 5. See Luke 2: 41-52. 29 See John 8: 1-11. 30 See Matthew 7: 29, 31 See John 3 and John 7:15 32 See John 17. 33 See Proverbs 11:3. 34 See John 14: 1-27. 3535 See John 8: 12. 36 See John 14:12. 37 See John 11: 34-35. 38 See John 16. 39 See John 3:16; John 17:3. 40 See Acts 4: 12. 41 See Matthew 4: 11 and Luke 22 43. 42 See Matthew 3: 13-17. 43 See John 17: 1-4. 44 See Matthew 25: 36-56; Luke 22: 39-46. 45 See Matthew 27: 32-56; Luke 23: 26-43. 2828

CHAPTER SIX INTEGRITY, ETHICS, AND MORAL CHOICES

Integrity, honesty, and truth earn the respect and trust of others1. When individuals tell the truth, honor commitments, and live moral lives they are noticed, valued, and perceived to be uncommon in a world where so many leaders are considered untrustworthy2. Despite the fact that honesty and integrity are the personal qualities most desired in others3, leaders of all types struggle to earn the respect of colleagues and employees4. A 2017 Gallup survey of attitudes about moral values in the United States (US) revealed that 77% of those surveyed believe that moral values are declining and 81% of respondents rated US moral values as either “fair” or “poor5.” This chapter examines the nature of integrity as a critical quality of leaders and a fundamental element of ethical relationships and moral choices. The chapter begins by defining integrity and its many facets in the leadership relationship and addresses the difficult challenges associated with ethical dilemmas and moral decision-making. This review identifies five questions that leaders should address as they demonstrate integrity. Turning to the life of Jesus of Nazareth, the chapter then identifies four examples of integrity demonstrated by Christ.

Defining Integrity Integrity means to live one’s life in private in the same way that a person lives in public6. Integrity is as critical to the establishment of trust between parties7. Ryan Hamm reminds us that “Any time there is a human relationship, there is an opportunity for integrity or lack thereof 8 .” Integrity requires that an individual comply with acceptable ethical principles and consistently adheres to professed standards of conduct associated therewith.

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Because the nature of trust and trustworthiness are subjective constructs9, the principles and values that one displays are subjectively evaluated and become the basis for determining whether that person is perceived as possessing integrity10. Personal integrity typically refers to an individual’s compliance with his or her own standards, principles, and values whereas moral integrity refers to how that behavior complies with an observer’s criteria11. Becker noted that integrity extends beyond conscientiousness or dependability to encompass “a code of morally justifiable rational principles12”. Integrity encompasses personal honesty, fairness, consistency, and predictability13. Associated with these basic principles are an individual’s actions and behaviors. The determination of whether a person possesses integrity is based upon the obligations and duties owed within interpersonal relationships. Honoring promises, keeping one’s word, doing what one commits to doing, and telling the truth when the truth may be difficult to convey are all examples of behaviors that characterize integrity--because integrity is alignment between a person’s words and his or her actions14. In their extensive study of leader effectiveness, James Kouzes and Barry Posner emphasized the importance of the congruence between a leader’s behaviors and commitments as a critical determinant of effectiveness in modeling behavior, inspiring a shared vision, encouraging the heart, and enabling others to act15. Integrity is viewed as a leader’s responsibility in creating an organizational culture wherein espoused values are consistent with the application of those values in daily practice.16” Integrity also includes the willingness to confront injustice, to challenge the status quo, and to address the need for constant improvement17. Leaders with integrity are not satisfied with the mediocre 18 and recognize that

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“good” is the enemy of “great19” They constantly seek opportunities to improve, they empower their employees, and they acknowledge their own mistakes when mistakes are made20. They recognize that taking calculated risks are sometimes necessary to become excellent, they empower employees to take those risks, and they use mistakes as teaching opportunities that demonstrate the leader’s commitment to both achieving excellence and honoring employees’ best interests21. Leaders with integrity willingly challenge the process and encourage customers and employees to help them to improve – remembering that excellence is only achieved by constant effort22. Leaders who demonstrate integrity have the humility and courage to understand that self-deception is a common problem that can be avoided only by acknowledging their own imperfections and striving to overcome those faults23.

Ethical Dilemmas and Moral Decision-Making Ethical dilemmas frequently occur in organizations. Ethical dilemmas occur whenever two alternatives may have positive outcomes or when both options may be undesirable. The difficulty lies in the uncertainty of assessing the full nature of the impacts of a choice, their implications on the achievement of goals, and their effects on stakeholders24. In assessing the impacts of moral choices, a useful framework for evaluating their implications can be effectively addressed by a framework developed by Michigan’s LaRue Hosmer25.

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Figure 1: Hosmer Model for Ethical Decision-Making

Hosmer, 2010

Integrity is viewed in context with the ethical standards shared within an organization26 – but those ethical standards often vary27. Leaders can improve the likelihood that their actions are viewed as ethical when they demonstrate that they have considered the benefits and harms of their options on stakeholders, as well as the impact of decisions on the rights of others. In doing that assessment, leaders can then articulate the complete moral problem and their understanding of its consequences. Incorporating economic, legal, and ethical obligations, leaders can communicate the rationale for their preferred moral solution. By applying the Hosmer model, leaders demonstrate that they have understood the ethical costs and benefits of choices and made decisions based upon carefully considering the consequences28.

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Moral decision-making presumes that there are universally established standards and principles for evaluating decisions 29 . Although there are many different ethical perspectives, each with a philosophical ethical basis, morality is frequently assessed according to two different moral frameworks. The most commonly-cited moral framework is based upon Lawrence Kohlberg’s six stages of moral development 30 . Kohlberg’s moral framework is often described as a moral perspective that is rational, rule-based, and focused on justice 31 .. Kohlberg’s model assumes that justice is at the center of moral reasoning and that one’s perspectives about justice define moral responsibility32. The Kohlberg framework consists of six stages and three levels of moral development33. x Pre-conventional Morality - This level is defined by selfgratification and external rules. Stage One is based upon obedience and is motivated by compliance to avoid punishments. Stage Two is founded on individualism and exchange and seeks to optimize personal benefits by compliance. x Conventional Morality - This level defines morality in terms of compliance with social norms. Stage Three identifies peer group social conventions and rules as the standard for moral behaviors. Stage Four focuses on obeying social order and complying with societal expectations as the standard for morality. x Post Conventional Morality. This level defines morality based upon principles and values that define rules but supersede the rules themselves. Stage Five defines morality as part of a social contract between an individual and a group but transcends the rules of that group. Stage Six is a morality of universal principles based upon justice, dignity, reciprocity, and moral hypernorms. Moral maturity progresses through an increasingly comprehensive recognition of moral obligations, according to the Kohlberg framework34. Because Kohlberg’s research involved only young boys as subjects, it has often been described as a masculine moral perspective.35 In contrast with Kohlberg’s moral framework, Carol Gilligan proposed a moral perspective based upon relationships and responsibility that focused on a distinctly feminine moral point of view36. Gilligan observed that women view moral dilemmas through a different lens than men. Gilligan defined the feminine ethic as incorporating the context of a situation rather than an impartial assessment of abstract ethical issues

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which fail to take into consideration the level of caring and the moral obligations implicit in a relationship 37 . In the feminist perspective, the highest ideal of morality is in caring about others and honoring duties owed that reflect that care.

The ability to care deeply about others is a fundamental element of love and is a stewardship commitment38. Helping others, building their competence and self-esteem, and conveying genuine concern are important characteristics of caring and authentic leadership and demonstrate a leader’s credibility39. The feminist ethic advocates caring, honoring relationships, and emphasizing the importance of people rather than rules and provides a moral perspective about relationships that can increase commitment and enhance an organization’s ability to perform effectively and compete successfully.

Five Questions for Integrity Joseph Badaracco identified five important questions that apply to integrity, ethics, and moral choices in addressing the “gray areas” associated with ethical choices. Badaracco suggested that these questions have a profound application for leaders and organizations in establishing relationships of trust with others. The following are Badaracco’s questions, adapted to address the roles of leaders40.

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x What are the net consequences? This question aligns with the Hosmer Moral Decision-Making Model which requires leaders to examine the impact of decisions on stakeholders, including that impact on others’ rights. As indicated in the Hosmer Model, consequences include economic, legal, and ethical factors41. x What are my moral obligations? Integrating both the masculine and feminine moral frameworks, this question addresses both interpersonal and organizational relationships and issues of fairness and justice. Obligations owed include responsibilities to customers and to society and extend far beyond the internal environment of an organization42. x What will work in the world as it is? This question assumes that a leader recognizes that he or she has a practical obligation in the world that encompasses duties owed to the larger community over an extended period of time. For every individual, there is an implicit obligation to add value to the world, to make it a better place for others, and to honor long-term as well as short-term obligations43. x Who am I? This identity-based question requires each person to examine his or her self in terms of their roles in life, their values, their implicit ethical obligations, and their personal mission. Leadership begins with this inside-out perspective that provides context and direction to each individual’s life44. x What can I live with? Identifying our highest hopes is an important element of one’s identity and self-image 45 . Although a person’s reach may exceed his or her grasp, (s)he must identify what can make life acceptable and satisfying. Refining one’s life and continuing to grow, to progress, and to make a meaningful contribution are the essence of living a satisfying life46. An essential part of our moral and ethical responsibilities is our ability to discover the greatness that lies within each one of us. By achieving this potential, sometimes called “finding our voice,” and by helping others to then find their voice as well, we achieve a sense of wholeness which is the essence of personal integrity47.

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Integrity and the Example of Christ Jesus Christ personified the virtues of integrity and sought throughout his life to honor his obligations to mankind, to his believers, and to his Heavenly Father. For each of his followers, Christ set an example of following his Father’s will in facing life’s difficult lessons with humility and grace. By identifying four examples from Jesus’ life, this section of the chapter provides practical insights into the role of integrity in honoring ethical duties and making moral choices in our own lives. x Christ the Good Shepherd. Perhaps Jesus had the Psalmist’s words, “He fed them according to the integrity of his heart48,” in mind when he declared to his disciples that he was the good shepherd49. As the good shepherd and protector of his flock, Christ cares about each individual. He knows his sheep and they know him 50 . Contrasting the good shepherd with a mere hireling who lacked a close relationship and commitment to his sheep, Jesus eloquently defined his commitment to those who would hear his voice and follow him51. x Christ the Wise Teacher. Jesus taught with profound knowledge and wisdom, using simple examples that struck to the heart of a matter. His teachings enabled him to convey a message that inspired, uplifted, and raised the bar for provident living. He reminded his followers that the proof of what he taught was found

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by living the principles52 – and only by knowing and living true principles would they be truly free53. x Christ the Obedient Follower. Christ not only led with integrity but demonstrated the importance of being an obedient follower and personal example. Perhaps there is no greater testament to his willingness to follow than his prayer to the Father recorded in John, Chapter 17. Christ’s prayer conveys his great love for his Father in Heaven and his willingness to serve him – as well as his unflagging love for others and his desire for their success 54 . As a personal example, he counseled others “Follow me55,” and promised that he would empower them to not only do what he had done but to exceed those things56 x Christ the Forgiving Light. Leaders with integrity strive to be a light rather than simply a judge in their relationships with others57, and Christ repeatedly set the example of a forgiving light. To the woman taken in adultery who suddenly found herself with no accusers, he counseled, “Neither do I condemn thee: go and sin no more 58 .” To a man he had healed by the Bethesda pool in Jerusalem, Jesus offered the similar counsel to “sin no more 59 .” Christ recognized his role as one to bless and forgive, not to punish or berate. His purpose, he declared, was that people “might have life, and that they may have it more abundantly60.” For leaders with integrity, Jesus Christ set a great example of the leader’s role, his commitment to the welfare and growth of others, his great love and forgiveness, his wise insights and counsel, and his obedience to true principles.

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Conclusion As leaders reflect upon their own lives and contemplate their responsibilities to others, they should always remember that a leader is a servant first 61 . Great leadership requires a personal example of consistency, and honesty – and it begins with love and a commitment to the welfare of others62. Leaders with integrity willingly give of themselves because they recognize that others have great value and that one of the greatest gifts that a leader can give is to help others to realize their greatness63. Leaders with integrity live lives consistent with what they espouse and their example touches hearts and minds. By modeling a life of integrity, leaders build trust and commitment, honor the ethical duties that leaders owe others, and make the difficult moral choices that affirm the values that are universal principles in a world struggling to know the truth64.

Notes 1

The importance of integrity in earning the trust of others is identified in Caldwell, C., Hayes, L., and Long, D., (2010). “Leadership, Trustworthiness, and Ethical Stewardship.” Journal of Business Ethics, Vol. 96, Iss. 4, pp. 497-512. 2 Princeton’s David Callahan identifies this phenomenon in a world where dishonesty has become increasingly common in Callahan, D., (2004). The Cheating Culture: Why More Americans are Doing Wrong to Get Ahead. New York: Houghton, Mifflin, Harcourt Publishing. 3 Thousands of respondents of both types have indicated that honesty is the quality that they most desire in leaders. See Kouzes, J. M. & Posner, B. Z., (2011). Credibility: How Leaders Gain and Lose It, Why People Demand It. San Francisco, CA: Jossey-Bass. 4 Trust in many institutions is low according to a Gallup Survey Report found on February 5, 2018 at http://news.gallup.com/poll/1597/confidence-institutions.aspx. 5 See Gallup News, (2017). “Views of US Moral Values Slips to Seven-Year Lows” May 22, 2017 found online on February 5, 2018 at http://news.gallup.com/poll/210917/views-moral-values-slip-seven-yearlows.aspx. 6 Ibid. 7 The nature of integrity as it applies to trustworthiness is well established and is set forth in the widely quoted paper, Mayer, R. C., Davis, J. H. & Schoorman, F. D., (1995). “An Integrative Model of Organizational Trust.” Academy of Management Review, Vol. 20, Iss. 3, pp. 709-734. 8 This wise insight is found in Hamm, R., (2013). “Leading with Integrity – How to Live a Life that Matters.” Christian Bible Studies: Transformed by the Truth August 20, 2013 found online on February 7, 2018 at

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https://www.christianitytoday.com/biblestudies/articles/churchhomeleadership/lea ding-with-integrity.html. 9 For a discussion of the nature of trust and trustworthiness and their inherently subjective nature, see Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. (2009). “The Buyer-Supplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 10 This principle associated with trust and trustworthiness is widely accepted. See, for example, Caldwell, C., and Clapham, S., (2003). “Organizational Trustworthiness: An International Perspective,” Journal of Business Ethics, Vol. 47, Iss. 4, p. 349364. 11 This distinction is identified in Becker, T. E., (1998). “Integrity in Organizations: Beyond Honesty and Conscientiousness.” Academy of Management Review, Vol. 23, No. 1, pp. 154-161. 12 Ibid. Becker makes this point on page 158. 13 Mayer, R. C., Davis, J. H. & Schoorman, F. D., (1995), op. cit., 1414 Kannan-Narasimhan, R. & Lawrence, B., (2012). “Behavioral Integrity: How Leader Referents and Trust Matter to Workplace Outcomes.” Journal of Business Ethics, Vol. 111, Iss. 2, pp. 165-178, 15 Kouzes, J. M. & Posner, B. Z., (2017). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations (6th ed.). San Francisco, CA: Jossey-Bass. 16 Schein, E. H. & Schein, P., (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass. 17 See Kouzes & Posner, (2016), op. cit., pages 143-193 for a detailed review of this important element of integrity. 18 Ibid. 19 This key point is emphasized in the first six words of Collins, J., (2001). Good to Great: Why Some Companies Make the Leap and Others Don’t. New York: HarperCollins. 20 Kouzes & Posner, (2016), op. cit. 21 Ibid. See also Collins, J. and Hansen, M., (2011). Great by Choice: Uncertainty, Chaos, and Luck, Why Some Thrive Despite Them All. New York: HarperBusiness. 22 Ibid. 23 This point is clearly made in The Arbinger Institute (2009). Leadership and Self-Deception: Getting Out of the Box (2nd ed.). San Francisco, CA: BerrettKoehler and in Caldwell, C. (2009). “Identity, Self-Deception, and SelfAwareness: Ethical Implications for Leaders and Organizations.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 393-406, 24 The complex nature of ethical dilemmas is identified in Badaracco, J. L., (2016). Managing in the Gray: Five Timeless Questions for Resolving Your Toughest Problems at Work. Boston, MA: Harvard Business Review Press. 25 This ethical decision-making framework is found in Hosmer, L. T., (2010). The Ethics of Management (7th ed,). New York: McGraw-Hill. 26 Kannan-Narasimhan, R. & Lawrence, B., (2012), op. cit.

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27 Hosmer noted the nature of this conundrum, identifying ten distinctly separate ethical perspectives in his discussion of trust. See Hosmer, L. T., (1995). “Trust: The Connecting Link between Organizational Theory and Philosophical Ethics.” Academy of Management Review, Vol. 20, Iss. 2, pp. 379-403. 28 This paragraph succinctly summarizes Figure 1 and the rationale explained by that diagram as set forth by Hosmer in Chapter One of Hosmer, L. T., (2010), op. cit. 29 See, for example, Xu, F., Caldwell, C., and Anderson, V., (2016). “Moral Implications of Leadership—Transformative Insights.” International Journal of Business and Social Research, Vol 3, Iss. 6, pp. 75-85. 30 For a complete review of Kohlberg’s Moral Development Model, see Kohlberg, L, (1981). The Philosophy of Moral Development: Moral Stages and the Idea of Justice. New York: Harper & Row. 31 For a thorough review of moral theory, see Kurtines, W. M., Gewirtz, J., & Lamb, J. L., (1991). Handbook of Moral Behavior and Development: Volume 1: Theory. New York: Psychology Press. 32 Kohlberg, L., (1981), op. cit. 33 Ibid. The six stages that follow are a brief summary of Kohlberg’s moral framework. 34 For a review of moral maturity, see Gibbs, J. C., Basinger, K. S. & Fuller, D. (2015). Measuring the Development of Sociomoral Reflection. New York: Lawrence Erlbaum. 35 See, for example, Donleavy, G., (2008). “No Man’s Land: Exploring the Space between Gilligan and Kohlberg.” Journal of Business Ethics, Vol. 80, Iss. 4, pp. 807-822. 36 This feminine perspective is identified in Gilligan, C., (2016). In a Different Voice: Psychological Theory and Women’s Development. Boston, MA: Harvard University Press. 37 Ibid. 38 This point is emphasized in Peck, M. S., (2003). The Road Less Traveled Timeless Edition: A New Psychology of Love, Traditional Values, and Spiritual Growth. New York: Touchstone. 39 For insights about these important leadership virtues, see Kouzes, J. M. & Posner, B. Z., (2011), op. cit. and Atwijuka, S., and Caldwell, C., (2017). “Authentic Leadership and the Ethic of Care.” Journal of Management Development, Vol. 36, Iss. 8, pp. 1040-1051. 40 These five questions come from Badaracco, J., (2016). Managing in the Gray: Five Timeless Questions for Resolving Your Toughest Problems at Work. Boston, MA; Harvard Business Review Press. 41 Hosmer, L. T., (2010), op. cit. 42 This point is repeated several times in Covey, S. R., (2004), op. cit. 43 This responsibility is cited in various sources. See, for example, Friedman, T. L., (2009). Hot, Flat, and Crowded: Why We Need a Green Revolution – And How It Can Renew America, Release 2.0. New York: Picador.

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44 This responsibility for personal self-assessment is a key theme of Covey, S. R., (2004), op. cit. 45 The nature of identity and each person’s ideal “identity standard” is described in Burke, P. J. & Stets, J. E., (2009) Identity Theory. Oxford, UK: Oxford University Press. 46 Stephen R. Covey emphasizes the importance of pursuing one’s potential in Covey, S. R., (2004), op. cit. 47 Ibid. This powerful message is the heart of Covey’s book, The 8th Habit, and enables individuals to honor the best within themselves. 48 Psalms 78: 70-72 alludes to the role of a good shepherd and all of Christ’s disciples understood the shepherd’s role in leading with love and protecting his sheep. 49 In John Chapter 10 Jesus elaborates on his ministry and on his role as the good shepherd. 50 Christ declares that he is the good shepherd who knows his sheep and is known by them. See John 10:14. 51 Christ distinguishes the good shepherd from a hired worker. The good shepherd loves the sheep and would willingly fight to the death to protect them but the hireling will run away, if threatened, and cares only for his own safety. See John 10: 11-13. 52 By doing the will of God, Christ affirmed that his followers would know of the truth of his doctrine. See John 7:17 and John 8:31-32. 53 Christ encouraged followers to continue in his word so that they might know the truth and declared that the truth would set them free. See John 8: 31-32. 54 This great prayer demonstrates so many of Christ’s virtues, his integrity, his love, and his willing desire to do that which he was called to do. 55 In the New Testament Jesus talks about people following him 23 times: Matthew 4:19, 8:22, 9:9, 10:38, 16:24, 19:21, 19:28; Mark 1:17, 2:14, 8:34, 10:21; Luke 5:27, 9:23, 9:59, 14:27, 18:22; and John 1:43, 8:12, 10:27, 12:26, 13:36, 21:19, 21:22. 56 Jesus testified of his mission and purpose and promised the disciples that they would be able to do even greater things than he had done in John 14:12. 57 The value of this insight to be a light not a judge was frequently proclaimed by Stephen R. Covey and is recalled in Duncan, R. D., (2014). “Stephen Covey: A Legacy of Humanity and Wisdom.” Forbes, July 7, 2014 found online on February 7, 2018 at https://www.forbes.com/sites/rodgerdeanduncan/2014/07/07/stephencovey-a-legacy-of-humanity-and-wisdom/#784145c658db. 58 This touching story is recounted in John 8: 3-11, with Christ demonstrating the integrity of love and forgiveness. 59 This complete story is found in John 5: 1-15 and his counsel to “sin no more, lest a worse thing come unto thee” is found in verse 11. 60 Christ made this declaration of his purpose and mission in John 10: 10. 61 This simple truth that leaders are servants first is the message of Greenleaf, R. K., (2015). The Servant as Leader. Atlanta, GA: The Greenleaf Center.

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This commitment to the welfare of others is the foundation of love and the message of Peck, M. S., (2003), op. cit. 63 Communicating to others their greatness and helping them to recognize it is the definition of leadership in Covey, S. R., (2004), op. cit., page 98. 64 Ibid.

CHAPTER SEVEN THE PSYCHOLOGICAL CONTRACT AND LEADERSHIP INSIGHTS

Steven R. Covey, the highly regarded management consultant, author of several best-selling books on human relationships, and leadership scholar offered as one of his 7 habits of highly effective people the counsel “Seek first to understand, then to be understood.” Covey understood the profound truth that communication between leaders and followers – and typically among most people – is often ineffective. Rather than listening to understand and giving full attention to others, many individuals spend their time while others are talking preparing what they want to say next. The unfortunate outcome of such communication is that people with concerns often do not feel heard and would-be leaders miss the opportunity to convey to others the message, “I understand you. You matter to me. What you have just said is important.”

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In a world where leaders seem to have lost their way and employees seem to lack commitment to their organizations, a major reason for the disconnection is the ineffectiveness of leaders in understanding the needs, words, and expectations of those whom they would hope to lead. This chapter addresses the gap that frequently occurs when leaders fail to understand the psychological contracts that others believe are owed to them. The chapter begins by explaining the nature of that psychological contract and its subjective perceptions. The chapter then enumerates six common reasons why perceived duties owed to others are overlooked by leaders who depend upon the followership of others. Citing examples from the life of Jesus Christ, the chapter provides insights about his awareness of the importance of interpersonal communications in creating relationships with others. The chapter concludes by suggesting ten ways in which leaders can build trust, honor the duties they owe to others, and avoid the disappointments and deterioration of relationships that so often occur when psychological contracts are not clarified and honored.

The Nature of Psychological Contracts Society has been dependent upon cooperation and interdependent efforts for millennia. Implicit in that cooperation is an expectation of mutuality – a quid pro quo exchange of obligations wherein one party has a responsibility to perform while expecting that another party or parties will honor an expected obligation as well. The nature of this relationship is commonly thought of as a contract -- a voluntary and self-organizing agreement in which two or more parties willingly cooperate for their mutual benefit1.

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In many societies contracts are reduced to writing. But contracts can also be verbal commitments explicitly made or even non-verbal and implicit obligations that are nothing more than assumptions based upon how each individual interprets context, relationships, societal norms, and moral duties. For example, simply venturing out onto the street in one’s automobile presumes that all other drivers understand and will comply with the “rules of the road” on any given day. Psychological contracts are typically unwritten and/or unspoken expectations that occur in relationships -- most commonly work situations -- wherein there are assumptions about implicit promises or obligations that exist between the parties involved. What is interesting about these assumptions is that they are frequently perceived differently by the parties involved and, as a result, a breach or failure to honor an expected obligation often occurs with a concurrent reduction in trust between the parties 2 . One party has assumed that a promise or obligation has been made that has not been honored, as expected, and believes that another party has failed in honoring a moral obligation – often with that other party perceiving that no such obligation, promise, or breach has ever existed. The ramifications of such subjectively determined expectations and their accompanying obligations can have profound effects on relations within organizations and between individuals3.

Factors Influencing Leader Perceptions Just as others make assumptions about implicit duties owed to them, leaders’ belief frameworks also play a role in affecting their perceptions of duties and responsibilities that determine the psychological contract of the leader-follower relationship. Six commonly occurring factors distort individual perceptions and cloud the ability of a leader in discerning others’ perceptions of duties owed. x Personal agenda. Leaders may become so focused on their own goals and their own personal agenda that they fail to give proper attention to others. Leaders may also assume that others understand the importance of the leader’s goals and the constraints that are on a leader’s capabilities. x Internal focus. Individuals in relationships may be self-centered, narcissistic, and/or so focused on themselves that they are simply unaware of the needs and perceptions of others and overlook their own personal obligations.

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x Undeveloped empathy. Leaders may have a low degree of emotional intelligence and be limited in their capacity to assess a situation, empathize with the position of others, or understand the circumstances which others are facing. x Self-deception. At the sub-conscious level, some individuals may recognize that they have responsibilities that impose on them an obligation to act but they may deny that duty to act because doing so may not be convenient or may conflict with other more powerful priorities. Self-deception is simply the holding of two conflicting perspectives in one’s mind at the same time while failing to acknowledge their inconsistency4. x Moral blindness. The failure to recognize or acknowledge a moral obligation associated with an implicit duty may simply be due to the moral blindness or inability of an individual to understand the nature of ethical relationships or the accompanying obligations that are part of interpersonal responsibilities. x Inability to act. In some cases, the failure to honor the obligations reasonably expected in an interpersonal relationship may be influenced simply by the inability of a person to act in order to honor the obligations which they recognize that they owe to others. Lack of resources, time pressure, unforeseen circumstances, or logistical limitations may inhibit a person – sometimes because they have failed to carefully think through a situation to recognize that they are unable to perform as required. These commonly occurring factors that affect a leader’s obligation to another party can destroy trust, create distrust, and result in a lowered commitment from others. Failing to honor the duties of a perceived psychological contract can damage the credibility and reputation of a leader and cause others to feel betrayed or to perceive that their leader is unethical and untrustworthy5.

Christ and Others’ Perceptions In contrast to the human tendencies of modern leaders, Jesus Christ was not burdened with the inability to recognize the perceptions and feelings of others and did not lack the ability to understand how others perceived him or his obligations to them. Jesus not only communicated

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clearly in words easy to understand but could see into the hearts of others. John records that at the Passover in Jerusalem in the beginning of Christ’s ministry many believed in Jesus because of the miracles that he performed – but noted that Jesus understood that this belief was because of the miracles he performed rather than because the multitudes understood his teachings6. Repeatedly, Jesus saw through the attempts of others to lure him into saying something for which he could be accused of political insurrection or blasphemy. In each case, Christ’s responses revealed his profound insight into the duplicity of those who had approached him. To the scribes and Pharisees who asked him what should be done with the woman taken in adultery, Christ understood their intent and knew of their sinful nature. He responded, “He that is without sin among you, let him first cast a stone 7 ” and knew that his words would condemn each of the accusers within their own hearts.

Jesus of Nazareth epitomized the leader’s focus on understanding the needs of others and affirmed by his life that he had come not to be served but to serve8. By that declaration he affirmed the importance of leadership as truly recognizing others’ priorities and responding to their needs with an enlightened response. In the parable of the Sower and the Seeds, Jesus told of seeds sown on ground of different types and described how seeds that landed on different soil either withered and died or thrived and bore fruit. He then counseled, “Who have ears to hear, let them hear 9 ”. For each disciple, Christ emphasized the importance of listening – not just with their ears but with their heart and with a desire to fully understand. It was his ability to understand the hearts of others and to discern their hearts that he healed the sick, telling them “Your faith has saved you10.” To the man with a son

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possessed of a foul spirit, Christ knew that the man’s faith was not perfect but that he sought with all his heart to believe in Christ11. This capacity to discern is the essence of truly caring about others and seeking to truly understand them -- and above all men, Jesus exemplified that ability to understand others.

Ten Insights for Understanding As leaders who genuinely care about others and seek to improve their communication effectiveness, the ability to hear, to listen, and to understand can be greatly enhanced by applying principles exemplified by Jesus Christ. The following is a brief description of ten communication insights that apply to people who genuinely seek to better understand others. x Stop preparing your response. Listening requires hearing and striving to understand another. It is not the time to mentally prepare your next message12. Receive the message of the other person by giving them your full attention.

x Listen for the words and the meaning. A message from another person contains words and meaning. Many messages contain a literal content and a hidden content that reflects what the other individual is really feeling and trying to communicate. Meanings are in people13. Strive to understand how the other person defines the relationship.

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x Listen for the need and the hope. People communicate about what they need. They interact with others because they have desires, goals, and hopes that they often desperately want to fulfill or accomplish. Listen with the intent to understand both needs and hopes 14 . Psychological contracts reflect the needs and hopes of others and can be best understood when those hopes are heard15. x Listen with your head and your heart. Communication occurs at the cognitive or rational level that reflects what people believe – or claim that they believe. Communication also occurs at the attitudinal and emotional levels and reflects how people feel 16 . Listening with your head and understanding the cognitive message is far from enough. Listen with your heart as well to get to the root of how people really feel. Psychological contracts often require that a leader understands perceived obligations at both the rational and the emotional levels. x Probe for clarity, as needed. If you are listening effectively, you can ask questions to clarify what may sometimes be unclear. Although others feel strongly about their message, they may convey it imperfectly. Their feelings can hamper their ability to put into words what they mean. Seek to determine what the other person expects or precious meaning can be easily overlooked17.

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x Prepare to restate the message and the meaning. Great listening requires that the person who listens is able to accurately summarize both the message and the feelings that the speaker has about that message. As you listen, focus on confirming that you understand not only the message but the meaning behind the message and be prepared to restate it – confirming to the other person that (s)he has been understood, acknowledged, and validated. In particular, restate what the other person expects as part of the unwritten or unspoken psychological contract18. x Remember who the other person is. The Austrian-born philosopher, Martin Buber, reminds us that each person is a “You” and not an “It 19 .” (S)he is, in words attributed to Teilhard de Chardin, “a spiritual being having a human experience20” rather than simply a human being. Each person deserves to be treated as a valued individual – because that is who they really are. x

Prepare to be a light, not a judge. In listening and understanding others, remember that they most often will benefit from caring consideration. Focus on being a light, not a judge as you listen21. If a person communicates about an issue in which there is a problem that they need to resolve, that person probably is already aware of the need to make a change. Help them in as positive a way as possible.

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x Honor your ethical stewardship. Ethical stewardship is about honoring each person with whom you have a relationship, assisting them to achieve their highest and best potential22, and treating them so well that they come to recognize that highest and best version of themselves and are motivated to become even better23. x Emulate Christ’s commitment to serve. Great leaders remember Christ’s message that he came to serve, rather than to be served24. Service to others is achieved best by following Christ’s personal example. Listening with the intent to bless the lives of others for good is the noblest of opportunities. Listening requires so much more than simply hearing words and interpreting their message. Listening is an acknowledgement, a validation, and a connection with others when it is done well. It is a means whereby leaders can demonstrate who they really are, what they value, and why they deserve to be trusted by others.

Conclusion For today’s leaders and organizations, those people with whom they work must be treated as valued partners in the pursuit of worthy goals25. Leadership, done effectively, is a covenantal relationship in which leaders owe others a series of debts and obligations. By striving to understand how others perceive duties owed to them, leaders are able to clarify what they can and cannot do to meet others’ expectations.

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Each individual deserves to be treated as a unique and important person – for that is who they are26 . As leaders recognize the needs of others, and especially their need to constantly improve and to grow, they become more valuable to others and they achieve the ability to not only bring out the best in others but to enable their organizations to excel and society to benefit. As those same leaders reflect on their own identities and responsibilities, they realize that others are also sojourners on a path of life where becoming one’s best self-achieves a divine purpose – and by listening to others effectively leaders can achieve that purpose for themselves and for those whom they serve.

Notes 1

Rousseau, D. M., (1995). Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Thousand Oaks, CA: Sage Publications. 2 Robinson, S. L., (1996). “Trust and Breach of the Psychological Contract.” Administrative Science Quarterly, Vol. 41, Iss. 4, pp. 574-599. 3 Caldwell, C., Davis, B., and Devine, J. A., (2009). “Trust, Faith, and Betrayal: Insights from Management for the Wise Believer.” Journal of Business Ethics, Vol. 89, Iss. 1, pp. 103-114.

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Caldwell, C. (2009). “Identity, Self-Deception, and Self-Awareness: Ethical Implications for Leaders and Organizations.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 393-406. 5 Rousseau, D. M., (1995), op. cit. 6 See John 2: 24. 7 See John 8: 7. 8 See Mark 10:45. 9 See Matthew 13: 3-9. 10 See Luke 7:50. 11 See Mark 9:24. 12 This message is emphasized in Covey, S. R., (2013). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. New York: Simon & Schuster. 13 Ibid. 14 Ibid. 15 Rousseau, D. M., (1995), op. cit. 16 These insights are identified in the Theory of Reasoned Action. See Ajzen, M. & Fishbein, I., (2015). Predicting and Changing Behavior: A Reasoned Action Approach. New York: Routledge. 17 Rousseau, D. M., (1995), op. cit. 18 Hoppe, M., (2007). Active Listening: Improve Your Ability to Listen and Lead. Greensboro, NC: Center for Creative Leadership. 19 Buber, M., (2000). I and Thou. New York: Scribner. 20 This quote is attributed to Teilhard de Chardin and was found online on March 7, 2018 at https://www.brainyquote.com/quotes/pierre_teilhard_de_chardi_160888. 21 Covey, S. R., (2004), op. cit., 22 Caldwell, C., Hayes, L., Karri, R., and Bernal, P., (2008). “Ethical Stewardship: The Role of Leadership Behavior and Perceived Trustworthiness.” Journal of Business Ethics, Vol. 78, Iss. 1/2, pp. 153-164. 23 Covey, S. R., (2004), op. cit. 24 See Mark 10: 45. 25 This point about the importance of treating employees as owners and partners is emphasized throughout Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: Jossey-Bass. 26 Buber, M., (2000), op. cit.

CHAPTER EIGHT TRANSFORMATIVE ETHICS AND THE PURSUIT OF EXCELLENCE

In the wake of ENRON in 2002, leaders of business, government, education, and religion struggled to capture the commitment and followership of employees where only one in three US employees can now be categorized as fully “engaged” in their work1. The clear evidence of both scholarly research and opinion polls is that confidence in leaders and organizations has declined while employee commitment has decreased. Although there are several causes for decreasing trust in leaders, one of the more significant issues that leaders have is the challenge of being perceived as ethical and honest by those with whom they work.

The purpose of this chapter is to explain the ethical framework, “Transformative Ethics (TE),” and how this recently developed new ethical perspective contributes to leadership. The chapter introduces TE as an ethical framework that encompasses key characteristics of twelve other

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frequently-cited ethical perspectives. The chapter then identifies the contribution of each of the perspectives in the pursuit of excellence. Following that explanation, the chapter identifies how the life of Jesus Christ aligns with the principles which are part of TE’s ethical framework. The chapter concludes by identifying four ways that individuals can incorporate the TE framework to improve their status as ethical leaders.

Understanding Transformative Ethics TE was developed after recognizing that trustworthiness is a subjectively perceived construct, based upon the ethical lens of each individual 2 . TE combines the ethical duties implicit in twelve ethical perspectives and this new ethical model can be a powerful tool for leaders who recognize the importance of high trust in relationships 3 . The TE model in Figure 1 identifies TE’s acknowledgement of the importance of values about duties owed – whether as human relationships, individual rights, governmental requirements, or religious standards associated with the twelve ethical perspectives4.

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Figure 1; A Model of Transformative Ethics

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TE is an integrated model of ethical stewardship which honors relationships to stakeholders, seeks to optimize long-term wealth creation, and adapts to the demands of change by combining twelve other well-accepted ethical perspectives5. The nature of TE as an example of ethical stewardship is explained as follows6: x An integrated model – TE acknowledges that ethical perspectives are derived from their own philosophical foundations, although each perspective calls out a slightly difference “voice” or set of guidelines for ethical decision-making7. TE integrates many voices, based upon the premise that the different ethical perspectives upon which TE is based need not be mutually exclusive8. x Ethical stewardship – Ethical stewardship encompasses the leader’s moral obligation to pursue the responsibility to choose service over self-interest9, to treat others as valued individuals10,” and to acknowledge the importance of pursuing mutually beneficial alternatives 11 rather than compromises which often waste resources, limit possibilities and fail to optimize beneficial results12. x Honor relationships with stakeholders – TE advocates that leaders and organizations have a “covenantal duty” to pursue the best interests of all stakeholders 13 – despite the fact that those interests may sometimes seem to conflict. Leaders and organizations are duty-bound to help employees to discover their highest potential 14 . Included in stakeholder obligations is the responsibility to create a sustainable world that renews available resources and that honors duties owed and the rights of all parties15. x Optimize long-term wealth creation – TE pursues long-term value creation by focusing on the obligation to be efficient and effective16. Short-term decisions often compromise the ability of people and organizations to achieve their highest potential in the long term and can jeopardize the survival of an organization17. x Adapt to the demands of change – Change is constant in a rapidly evolving world that is constantly threatened by self-interest, and dishonesty 18 . TE emphasizes the practical importance of being flexible while continually following unchangeable principles of truth19.

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x Combining twelve ethical perspectives – The twelve ethical perspectives that define TE are identified in Figure1 20 . These perspectives fall into the three general categories of relationshipbased, duty-based, and outcome-based ethical models which all affect moral and ethical decisions21. Leaders create high trust organizational cultures and strong interpersonal relationships by applying each of the twelve ethical perspectives of this TE model and those twelve perspectives are briefly summarized22. 1) Ethic of Care – This perspective views ethical duties in terms of the relationships in which a person is engaged. Honoring those relationships, demonstrating genuine empathy, and responding accordingly enable leaders to model the responsible caring that this perspective requires. This ethic creates connection between a leader and others. 2) Ethic of Self-Actualization – Empowering others to become their best possible version of themselves is the obligation of this perspective. The assumption of those who believe this ethic is that organizations owe their employees the obligation to discover their greatness. The Ethic of Self-Actualization demonstrates a recognition of the innate value of others. 3) Ethic of Contributing Liberty – This perspective advocates the freedom of each individual to pursue personal freedom and choose to achieve what (s)he personally values. This viewpoint emphasizes individual freedoms and advocates the rights of others. 4) Ethic of Distributive Justice – Distributive justice emphasizes that the rights of all those who are most vulnerable must be carefully considered and protected. This perspective honors the universal needs of others. 5) Ethic of Economic Efficiency – This perspective emphasizes the obligation to pursue the highest and best economic use of resources and opposes wasting resources and being inefficient. With this ethic leaders emphasize efficiency in judgment.

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6) Ethic of Universal Rights – Universal rights are rights that must be protected. These rights guarantee the safety of all individuals in society. This perspective preserves the freedom of others. 7) Ethic of Universal Rules – This ethic adopts the belief that there are universal principles that impose a standard of just action that are fundamental principles of virtually every culture. This ethic advocates recognition of universal standards of conduct. 8) Utilitarian Ethics – This perspective seeks outcomes that produce “the greatest good for the greatness number” as the standard for ethical decisions. Outcomes that optimize the greatest benefits obtained are considered superior to other choices, assuming that the rights of others should always be taken into account. Utilitarian ethics represents the commitment to excel and optimize. 9) Ethic of Government Regulations – This ethic imposes the legal responsibility to obey the law – including a commitment to the spirit and intent of the law. This ethic shows the importance of purposeful legal intent. 10) Ethics of Religious Injunction – Religious beliefs impose personal and social standards of respect for others; kindness; and the obligations owed to God, to self, to others, and to society. This perspective reflects sensitivity toward others. 11) Virtue Ethics – Virtues are the values to which people give priority in their relationships with others. Persons are committed to personal excellence and required to acquire virtues that create a flourishing world. This ethic demonstrates individual character. 12) Ethic of Self-Interest – This ethic advocates that each person is best served by pursuing his or her individual self-interests, recognizing that the best long-term benefit requires that a person maintains a reputation of being trustworthy and honorable. This ethic demonstrates wise perspective. These twelve ethical standards establish the obligations of ethical stewardship. or the responsibility to seek outcomes that optimize longterm creation of wealth for individuals, organizations, and society23. By pursuing ethical outcomes, leaders demonstrate that they are worthy of the

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trust of individuals who believe in the importance of these ethical standards. Excellence is the underlying quality for all twelve of these ethical perspectives and is the implicit purpose for adopting each ethical standard24. Each of the contributing ideals of the twelve ethical perspectives of TE is briefly described in Table 1, which also identifies the ethical virtue of the perspectives and a summary of how each ethical perspective contributes to the pursuit of excellence25. Table 1: Contributing Perspectives to TE and Excellence Ethical Perspective Ethic of Care

Contributing Ideal

Ethical Virtue

“Respect others as valued individuals, share concern for their welfare, and honor the responsibility to treat each person with empathy and compassion.”

Care Authentically

Ethic of SelfActualization

“Seek to discover your innate greatness and fulfill that potential to create a better world.”

Discovered Greatness

Ethic of Contributing Liberty

“Take no actions which impede the self-development or self-fulfillment of others.”

Selffulfillment

Contribution to Excellence Advocates the moral responsibility to care for others’ best interests and to treat others with love and with demonstrated concern for their welfare, growth, and wholeness. Emphasizes the innate talents, gifts, and highest potential of individuals and their responsibility to use those talents productively to make a better world. Promotes the liberty which allows all individuals to pursue selfdevelopment and self-fulfillment and affirms that society benefits thereby.

Transformative Ethics and the Pursuit of Excellence Ethic of Distributive Justice

“Act only in ways that acknowledge the rights, liberty, and equality of all and take no actions that harm the least among us.”

Honor Everyone

Ethic of Economic Efficiency

“Achieving an efficient use of resources to create value for society is a virtuous goal.”

Efficient Use

Ethic of Universal Rights

“No one, including governments, may take action that infringes upon the legitimate rights of any other individual.”

Guaranteed Rights

Ethic of Universal Rules

“Act according to universal principles and rules which you would have others apply if they were in your similar situation and your positions were reversed.” “No actions should be engaged in which do not result in the greatest good for that community of which you are a part.”

Just Action

Utilitarian Ethics

Value Optimization

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Recognizes that, though justice is a multi-faceted construct, no actions should be taken that harm those who are disadvantaged in society. Conserves and efficiently uses scarce resources and acknowledges that efficient and effective value creation must be achieved to benefit society. Honors basic human rights and ensures that those rights may not be infringed upon – even under color of claim for a public benefit. Treats others as they wish to be treated and complies with universallyunderstood principles that benefit mankind. Affirms that this greatest good is both outcomeoriented and rightsoriented in creating value – with an obligation to minimize any possible harm.

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Ethic of Religious Injunction

Virtue Ethics

Ethic of SelfInterest

“Live by both the letter and the spirit of the law in honoring duties owed to others but remember that the law by itself is a minimal moral standard.” “Always treat others with dignity, respect, and kindness – as valued ‘Yous’ and never as anonymous ‘Its.’” “Constantly pursue excellence, make that pursuit a habit, and treat others with integrity.”

Genuine Compliance

Insists that the purpose of rules must always be taken into account and that the intent of those rules is as important as the letter of the law.

Authentic Understanding

Demands that others be treated with kindness, compassion, and empathy at all times.

Commitment to Excellence

“Pursue outcomes which have the greatest positive benefit for oneself and one’s organization without infringing upon the rights of others.”

Balanced SelfInterest

Requires that striving to be honorable and to develop habits of excellence are fundamental personal standards. Insists that value creation is vital, but that others have rights that must be honored and that contribute to one’s self-interest to pursue – especially over the long term.

Transformative Ethics and the Life of Christ As an exemplar of righteousness, Jesus of Nazareth modeled each of the twelve perspectives of TE. The life of Jesus demonstrated his commitment to all mankind and modeled both the quest for excellence and the pursuit of an abundant life. By so doing, Jesus established a pattern for others to follow as they seek to establish guidelines for their own lives. The following are examples from the life of Christ that reflect how his life complied with all twelve TE perspectives26.

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x Ethic of Care – Throughout his mission, Jesus demonstrated his

compassion for others, his commitment to their eternal welfare, and his understanding of their needs. He created connection with others in a myriad of ways, whether healing the sick or teaching the principles of eternal life. His role, he declared, was to enable others to have a more abundant life27. His personal sacrifice for mankind in his role of Savior demonstrated his love for others and his willingness to serve them.

x Ethic of Self-Actualization – Jesus constantly taught others to

pursue the highest and best within themselves, to repent of their shortcomings, and to obtain forgiveness of their personal foibles by willingly forgiving others. His valuing of others reflected his understanding of their divine potential and his love for them28.

x Ethic of Contributing Liberty – Jesus Christ was an advocate of

personal eternal freedom – and clearly understood the importance of that pursuit. He told others that obedience to his teachings would enable them to achieve that which they desired and that his teachings would empower them to achieve freedom29.

x Ethic of Distributive Justice – Jesus came to serve people at all

levels of society. He performed miracles that blessed people of all backgrounds and willingly gave his life to bless mankind30.

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x Ethic of Economic Efficiency – After feeding the five thousand,

Jesus asked his disciples to gather the food uneaten – resulting in the preserving of twelve basketsful that were left over so that none would be wasted31. In teaching the Parable of the Talents, he taught that each person must be accountable and responsible32.

x

Ethic of Universal Rights – Jesus taught that the blessings of his teachings were available to all men – and that they could be recipients of those blessings by obedience to eternal truths. Christ declared that all were to enjoy freedom and liberty and promised that his gospel would let the oppressed go free33.

x Ethic of Universal Rules – – Jesus taught the truth of eternal

principles and recognized that those principles brought others great blessings. He declared unequivocally that he was “the way, the truth, and the life” and the means whereby all mankind could receive the blessings of eternal life34.

x Utilitarian Ethics – Jesus Christ encouraged all men to excel, to do

good, and to make a better world. His Sermon on the Mount set a standard for living that was designed to not only bless the doers of his word but all others with whom they associated35.

x Ethic of Government Regulations – Jesus encouraged others to

follow the law, and to “render therefore unto Caesar the things that are Caesar’s; and unto God the things that are God’s36.”

x

Ethics of Religious Injunction – The gospel of Jesus Christ fulfilled the Law of Moses and established principles of truth that were in harmony with that law but that superseded simple compliance and obedience. In declaring the standards of pure religion, Christ declared a higher obligation to love God with all of one’s heart and to show that love by loving one’s neighbors as one loved oneself37.

x Virtue Ethics – The life of Jesus Christ was a life that epitomized the virtues. Jesus was kind to all, sought to only do good, and fulfilled the mission and purpose to which he had been foreordained38. He epitomized what was good and true.

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x Ethic of Self-Interest – The perspective of Jesus was an eternal

perspective that could only be achieved by his faithful adherence to his divine purpose. That purpose not only blessed the lives of all who were to dwell upon the earth but would allow him to fulfill his life’s mission and calling39.

By honoring the ethical perspectives of TE, Christ demonstrated his love for mankind, his commitment to their welfare and growth, and his desire that others achieve their highest potential. By honoring his obligation to His Father in Heaven Christ also modeled the way of life that he taught to others. The standards of TE demand a life of integrity that requires leaders to be honorable and trustworthy in order to earn the followership, and respect of others. By following Christ’s example and the ethical standards of TE, other leaders can earn that same trust40.

Applying Transformative Ethics Although the standards of TE may be broad and challenging, they acknowledge the rights of others, the principles of justice, and the value of working for the good of mankind. Leaders who have the courage to reflect on their own moral obligations and what they seek to accomplish in life can do well by using TE as a personal ethical guideline. The following are four important steps in incorporating TE into one’s own life. 1) Examine your own ethical assumptions. The process of selfawareness begins with thoughtful and regular self-examination41. Unfortunately, for most people their assessment of their ethical

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assumptions rarely is conducted at the conscious level. Making that conscious effort is a worthy investment and reveals insights that reinforce moral values. 2) Compare your perceptions with the standards of TE. TE’s standards that encompass the twelve ethical perspectives are realistic, reasonable, and applicable in the lives of others. Those ethical standards form the basis for establishing trust in relationships and in organizations42. 3) Acknowledge the reality of others’ ethical expectations. Trust is dependent upon the subjective perceptions of others and is largely dependent upon the ethical perceptions of each individual43. Being trusted by others depends upon meeting their ethical expectations44. 4) Constantly review your progress in honoring TE. The selfassessment process requires constant reflection, self-examination, and a willingness to be personally accountable 45 . Track your progress over time and set goals to increase your ethical commitment.

The personal standards of TE enable a leader to live a life of personal integrity – a life that others can respect and deeply appreciate. In every sense, the life of Jesus Christ provides a powerful model for understanding the significance of ethical standards in creating relationships with others that will enable leaders to raise the bar of their personal performance46.

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Notes 1

This statistic comes from Gallup (2017). “The Gallup 2017 Employee Engagement is Out: And the Results: Nothing has Changed.” Found online on February 18, 2018 at http://www.theemployeeapp.com/gallup-2017-employeeengagement-report-results-nothing-changed/. 2 This insight about the subjective nature of trustworthiness has been addressed by many scholars. See, for example, Caldwell, C., and Clapham, S., (2003). “Organizational Trustworthiness: An International Perspective,” Journal of Business Ethics, Vol. 47, Iss. 4, p. 349-364. 3 TE was developed as an ethical perspective by Caldwell, C., and Anderson, V. (2017). “Transformative Ethics: An Integrative Model of Ethical Stewardship.” Paper presented at the International Academy of Management and Business Conference in New Orleans, Louisiana on January 20, 2017. 4 See Caldwell, C. & Holloway, C. S., (2017). “Raising the Bar – Transformative Ethics and the Example of Christ.” Business and Management Research, Vol. 6, No. 4, pp. 54-63 and found online on January 16, 2018 at http://www.sciedupress.com/journal/index.php/bmr/article/view/12460/7692. 5 Ibid. 6 These elements of Ethical Stewardship are identified in Caldwell, C., (2018). “Strategic Human Resource Management: An Ethical Stewardship Obligation” in Strategic Human Resource Management (C. Caldwell and V. Anderson, (Eds.). Hauppage, New York: NOVA Publishing, pp. 13-26. 7 The concept of distinctly different ethical voices, based upon the various ethical perspectives is a key element of Brady, F. N.., (1999). “A Systematic Approach to Teaching Ethics in Business.” Journal of Business Ethics, Vol 19, Part 2, Iss. 3, pp. 309-318. 8 Caldwell, C., and Anderson, V. (2017), op. cit. 9 Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: Berrett-Koehler. 10 Treating people as valued “Yous” is identified as the wise leader’s responsibility as identified in Buber, M., and Kaufman, W., (1970). I and Thou. New York: Touchstone. 11 11 Win-win alternatives are clearly part of Covey, S. R., (2012). The 3rd Alternative: Solving Life’s Most Difficult Problems. New York: Free Press. 12 Ibid. 13 Caldwell, C., and Anderson, V. (2017), op. cit. 14 Covey, S. R., (2004). The 8th Habit: From Effectiveness to Greatness. New York: Free Press. 15 Solomon, R. C., (1993). Ethics and Excellence: Cooperation and Integrity in Business. New York: Oxford University Press. 16 Caldwell, C., and Anderson, V. (2017), op. cit. 17 Pfeffer, J., (1998). The Human Equation: Building Profits by Putting People First. Boston, MA: Harvard Business School Press.

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The conditions of the American culture and economy are clearly identified in Chapter 1 of Freidman, T. L. (2009). Hot, Flat, and Crowded: Why We Need a Green Revolution – And How it Can Renew America 2.0. New York: Picador Press. 19 Caldwell, C., and Anderson, V. (2017), op. cit. 20 Ibid. 21 This same conceptual framework is identified by Brady, F. N.., (1999) op. cit. 22 This summary comes from Caldwell, C. & Okpala, C. O., (2018). “Human Resource Management: A Transformative Approach” working draft. This paper is currently under review with the Open Journal of Human Resource Management. 23 The nature of ethical stewardship is explained in Caldwell, C., Hayes, L., and Long, D., (2010). “Leadership, Trustworthiness, and Ethical Stewardship.” Journal of Business Ethics, Vol. 96, Iss. 4, pp. 497-512. 24 Caldwell, C., and Anderson, V. (2017), op. cit. 25 The contributing ideals for ten of these twelve perspectives originally came from Hosmer, L. T., (1995). “Trust: The Connecting Link between Organizational Theory and Philosophical Ethics.” Academy of Management Review, Vol. 20, Iss. 2, pp. 379-403. The contributing ideals have been included in several other papers about TE. 26 For more about Christ’s compliance with TE, see Caldwell, C. & Holloway, C. S., (2017). “Raising the Bar – Transformative Ethics and the Example of Christ.” Business and Management Research, Vol. 6, No. 4, pp. 54-63 found online at http://www.sciedupress.com/journal/index.php/bmr/article/view/12460/7692. 27 Jesus declared his commitment to help others have an abundant life in John 10: 10. 28 Jesus expressed his love for others and his commitment to them – and his recognition of the need for his followers to demonstrate that same love in John 13: 34-35. 29 Jesus taught that obedience to divine principles was the key to personal freedom in John 8: 31-32. 30 The author of Hebrews describes Christ’s sacrifice in Hebrews 9:11 – 10:18. 31 The story of this amazing miracle is recounted in Matthew 14: 13-21. 32 See Matthew 25: 14-30. 33 Jesus addressed these fundamental rights in Luke 4: 18-19. 34 Jesus made this declaration in John 14:6. 35 The standards of the Sermon on the Mount are set forth in Matthew 5 – 7. 36 This declaration and the story leading up to it are found in Matthew 22: 15-22. 37 In Matthew 22: 34-40 and in the Sermon on the Mount, Jesus declared the higher law of obedience to the Spirit, rather than simply compliance with the Law of Moses. 38 We gain great insight about Christ’s mission and its fulfillment in his prayer In John 17. 39 Ibid. 40 These standards and a description of Christ’s compliance with TE are found in Caldwell, C. & Holloway, C. S., (2017), op. cit.

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41 The importance of ethical self-assessment is identified in Jones, T. M., (1991). “Ethical Decision-Making by Individuals: An Issue-Contingent Model.” The Academy of Management Review, Vol. 16, No. 2, pp. 166-395. 42 This relationship between ethics and trust is explained well in Hosmer, L. T., (1995), op. cit. 43 This point about the relationship between ethics and trustworthiness is clearly addressed in Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. (2009). “The Buyer-Supplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 44 The importance of understanding this relationship between TE and trust is identified in Caldwell, C., (2017). “Transformative Ethics and Trust – Keys to Competitive Advantage” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, p. 133-146. 45 Ibid. 46 Caldwell, C. & Holloway, C. S., (2017), op. cit.

CHAPTER NINE AUTHENTIC LEADERSHIP AND BUILDING TRUST

The ability of leaders to establish powerful personal relationships, to earn the trust and respect of others, and to honor their roles and responsibilities as leaders is a byproduct of a leader’s consistency, genuineness, and openness to others 1 . When leaders are authentic and transparent with those whom they serve, there is no hidden agenda or misrepresentation of who they are and what they are striving to accomplish. Such leaders have a clear knowledge of their strengths and shortcomings, their priorities and values, and pursue the best interests of their colleagues, their organizations, and society2.

The purpose of this chapter is to present the concept of Authentic Leadership (AL) and to explain the qualities that make up that leadership perspective. The chapter begins with a definition and summary of AL and its virtues from a relational perspective. Examining the four qualities that are most commonly cited as elements of this leadership approach, the chapter then explains how each of these qualities contributes to the leader’s ability to build trust. Because building trust involves a high level of Emotional Intelligence (EI), the chapter incorporates that concept as

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well in clarifying how AL and EI are closely related. Applying the qualities of AL to the life and mission of Jesus Christ, the chapter then provides specific examples that demonstrate how his relationships with others incorporated AL as he walked the earth. The chapter identifies six specific ways in which those who wish to become more effective leaders can apply AL in their own lives.

Qualities of Authentic Leadership Despite growing interest in the nature of (AL), no uniform definition exists3 – although there is agreement that AL is a behavioral approach to interacting with others in which a leader combines personal honesty, high self-knowledge, and a commitment to creating open participative relationships with others in the pursuit of common goals4. AL emphasizes the legitimacy or authority of the leader’s role, based upon his or her establishment of honest relationships with followers, a commitment to honoring principles of truth, and a willingness to engage and empower employees in guiding the organization5. AL has been cited as an ethicallybased response to the decline in trust among institutions of all types.6. AL is practiced by individuals who know what they believe and value and act upon those values and beliefs when interacting with others7. In describing AL, scholars identify four widely-accepted elements upon which AL is based8: 1. Self-Awareness. Self-awareness involves an understanding of one’s strengths and weaknesses, their impacts on other individuals, and the lens through which a leader interprets the world and evaluates behavior. Self-awareness is a demonstrated by a leader’s understanding of the importance of his/her own behaviors and is fundamental to emotional intelligence. 2. Relational Transparency. Relational transparency includes a leader’s presentation of his/her true nature in dealing with others. Leaders demonstrate their ethical and moral assumptions with no attempt at deception about who they are and what they believe. 3. Balanced Processing. The leader’s actions demonstrate both the leader’s integrity and his/her ability to separate himself/herself from the process and outcomes inherent in making decisions. AL takes into consideration others’ viewpoints and assesses

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information objectively with the best interests of all parties in mind. 4. Moral Perspective. Authentic leaders possess a moral perspective that enables them to incorporate a variety of moral guidelines in the decision-making process. Their defining moral standard forms the basis for decision-making for themselves and for their organizations. Each of these four factors enhances the ability of leaders to create and sustain high-trust relationships with employees – relationships that are absolutely critical to earning the extra-mile employee commitment upon which excellent service, customer satisfaction, increased profitability, and competitive advantage are based9

Self-awareness is critical to establishing trust because it enables individuals to come to terms with their values, priorities, and personal identity10. By knowing what they value and by understanding their own strengths and limitations, self-aware individuals who apply that knowledge can use those insights to communicate to others in an honest way11. Self-awareness and personal effectiveness have been identified as closely related concepts in high-performing individuals12. Relational transparency has been identified as an important variable in creating trust, and especially in restoring trust when it has eroded 13 . Because relational transparency requires consistency between values and principles espoused and those followed, this factor has a clear connection with the ability of EI to relate with others and to respond appropriately to contextual situations. Segon and Booth pointed out that the very definition

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of EI demands that leaders respond in a manner that is appropriate to both situation and context. Implicit in any leader’s role is the obligation of ethical stewardship which demands compliance with the best interests of stakeholders – requiring that leaders possess integrity in honoring duties owed to society at large in order to be considered trustworthy14. As leaders engage in balanced processing, they demonstrate objectivity, the willingness to consider others’ input, and an innate sense of fairness. Each of those qualities enables leaders to earn follower trust, understand available information, and provide others with the opportunity to be heard15. As has been noted in several studies, fairness and trustworthiness are closely related constructs and balanced processing demonstrates procedural fairness 16 . This importance of balance in honoring duties enables an organization to achieve long-term goals by honoring duties owed to its many stakeholders – thereby earning those stakeholders’ trust. In articulating a moral perspective in their rationale for decisionmaking 17 , leaders provide others with the assumptions, values, and information upon which decisions are made and the impact of those decisions on stakeholders. A moral perspective is vital in creating a sense of legitimacy about a leader’s actions and enhances employee respect and commitment 18 . This moral perspective demonstrates that a leader has considered the consequences of decisions and clarifies the moral, economic, and legal factors that have been used in decision-making. By demonstrating values by their actions, understanding their own abilities and values, and by being moral and transparent, leaders that demonstrate the qualities of AL merit the respect of followers. In a world where trust in many leaders is low and employees feel disengaged and unempowered, AL provides leaders and organizations with a foundation for creating the trust and followership that enables employees to excel19.

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Authentic Leadership and Emotional Intelligence EI is the capability to recognize one’s own feelings and emotions and those of others and use that information to govern one’s own response to adapt to other persons and/or a specific context to most effectively achieve one’s goals20. According to the Harvard psychologist, Daniel Goleman, EI consists of five key elements21. Self-awareness. This skill is the capacity to tune in to one’s own feelings and emotions in a specific circumstance. Self-regulation. The ability to monitor and control one’s responses is required to be able to meet the needs of others and to be contextually appropriate. Motivation. Motivation includes the personal desire to interact with others to seek a specific goal or outcome. Empathy. This quality is the capacity to feel what others are feeling and to experience their emotions. Social skills. These skills include the ability to understand the most effective response to others in a specific situation or context and to respond to their needs appropriately AL and EI have been frequently linked because both constructs require superior self-awareness and self-knowledge22. However, AL’s balanced processing, relational transparency, and moral perspective are also important factors in effective interpersonal relationships23 and in earning the trust and respect of others24. As leaders convey their genuine concern for others by their actions, by the systems that they establish and policies that they put in place, and by treating others with care and consideration, they model the virtues of AL and EI in practical ways. The alignment between their espoused values and their relationships with others affirms leaders’ integrity and their commitment to the importance of people in organizations25. By matching their concern for others with appropriate responses that are contextually meaningful and effective, leaders with AL display a refined set of skills that reflect the moral obligations of leaders and organizations to pursue the best interests of the employees that they serve26.

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Authentic Leadership and the Example of Christ In all of his relationships Jesus of Nazareth modeled the concepts of AL. He clearly understood who he was and his role for mankind -- and his message was a message of hope that he offered to the entire world. “I am the resurrection and the life27,” he declared. “I am the light of the world. He that followeth me shall not walk in darkness but shall have the light of life28.” Christ listened to the hearts of others and understood their needs. To his Mother at the wedding in Cana, he gently chided, “Woman, what has this to do with me. My hour has not come.” Despite that gentle protest, Jesus then changed water into wine in a loving response to his Mother’s request29. He understood the hearts and minds of his apostles, knew of their weaknesses and strengths, and counseled them with love. To the Samaritan woman at the well, he offered her living water and declared that he was, indeed, the promised Messiah – showing great love despite her spotted past30.

More than any other man, Jesus Christ epitomized a moral perspective. He taught truths that challenged men and women to examine their own hearts, love themselves, be devoted to God, and to show that love by loving their neighbors. His teachings advocated a higher moral law, a spirit of the law, rather than simply compliance with its letter. His

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challenge to people was to become their best possible version of themselves, to turn to God and live, and to seek to perfect their lives31. Christ willingly served and sacrificed – focusing on the needs of others and devoting himself to honoring others and honoring God. He declared, “Greater love hath no man than this, that a man lay down his life for his friends32,” and he then gave up his own life. He suffered for the sins of the world so that all mankind might benefit. As a model of AL, Jesus Christ understood his own role, cared deeply for others, and spent his time on earth in service to others.

Six Steps to Authentic Leadership As individuals seek to become more effective leaders and to acquire the virtues of AL, there are six steps to consider in the pursuit of that worthy objective. Incorporating insights from leadership scholars, the following is a brief summary of those steps. 1) Develop the habit of self-assessment. Periodically conducting a personal inventory of one’s life and seriously reflecting on what one needs to do to become a better person is a process advocated for millennia. Stephen Covey phrased that process, “Begin from the inside-out33.” Integrity begins by being honest with self.

2) Formalize your life’s purpose. Prepare a mission statement that you can pursue with persistence and passion 34 that defines your unique significance 35 . Writing that purpose down, regularly

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reviewing your performance, and focusing on how you can make that mission effective can make that purpose a reality. 3) Establish and achieve relationship-based goals. Goals should be touchstones for achieving your life’s purpose and they are achieved best with others. Leadership is a relationship 36 . Win the daily private victory over self by setting and achieving these goals37. 4) Obtain candid feedback. Apply the “mastermind” approach of identifying individuals who can help focus your direction, evaluate your choices, and assist you to constantly improve your life38. 5) Develop the skills of Spiritual Intelligence. Listen to your conscience and your heart of hearts to discover your inner voice. Spiritual Intelligence is the capacity to follow your conscience, make virtuous choices, and understand your own unique significance and divine purpose39.

6) Create and apply a moral decision-making model. Develop a clear understanding of the consequences of decisions; their impacts on others’ rights; their ethical, legal, and economic ramifications; and the moral obligation to explain decisions clearly to those affected by them. AL enables leaders to inspire others by their genuineness, their transparency, their virtuousness, and their personal example. By understanding its core principles, its ability to relate to others effectively, and its moral implications regarding duties and obligations, individuals who seek to become more complete leaders can do well to incorporate AL into their own lives.

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Notes 1

The importance of these factors is described in Harvard Business Review (2017). Authentic Leadership. Boston, MA: Harvard Business Review Press. 2 To learn more about the importance of these qualities, see, for example, Caldwell, C. (2009). “Identity, Self-Deception, and Self-Awareness: Ethical Implications for Leaders and Organizations.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 393-406. 3 The disparate definitions of AL are identified by Berkovich, I., (2014). “Between Person and Person: Dialogical Pedagogy in Authentic Leadership Development.” Academy of Management Learning & Education, Vol. 13, Iss. 2, pp. 245-264. 4 This definition integrates content contained in Gardner, W. L., Avolio, B. J., Luthans, F., May, D. R., & Walumbwa, F. O. (2005). “’Can You See the Real Me?’: A Self-based Model of Authentic Leader and Follower Development.” The Leadership Quarterly, Vol. 16, pp. 343–372. 5 This definition is derived from Walumbwa, F. O., Wang, P, Wang, H, Schaubroeck, J, & Avolio, B. J. (2010), “Psychological Processes Linking Authentic Leadership to Follower Behaviors.” The Leadership Quarterly, Vol. 21, pp. 901–914. 6 This ethical decline is the focus of an article about the practical application of Authentic Leadership in Covellii, B. J. & Mason, I., (2017). “Linking Theory to Practice: Authentic Leadership.” Academy of Strategic Management Journal, Vol. 16, Iss. 3, pp. 1-10, 7 Walumbwa, F. O., Wang, P, Wang, H, Schaubroeck, J, & Avolio, B. J. (2010), op. cit. 8 These four factors are identified in Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008), “Authentic Leadership: Development and Validation of a Theory-Based Measure. Journal of Management, Vol. 34, Iss. 1, pp. 89-126. 9 High trust and high commitment and their importance in sustaining competitive advantage and improved performance are identified in Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA: Jossey-Bass. 10 See Showry, M. & Manasa, K. V. L. (2014) “Self-Awareness - Key to Effective Leadership.” IUP Journal of Soft Skills, Vol. 8, Iss. 1, pp. 15-26. 11 These insights are identified in Hayes, L. A., and Caldwell, C. (2016). “SelfEfficacy and Self-Awareness: Moral Insights to Increased Leader Effectiveness.” Journal of Management Development, Vol. 35, Iss. 9, pp. 1163-1173. 12 For a review of this relationship, see Church, A. H., (1997). “Managing SelfAwareness in High Performing Individuals in Organizations” Journal of Applied Psychology, Vol. 82, Iss. 2, pp. 281-292. 13 The correlation between relational transparency and trust is addressed in Auger, G. A., (2014). “Trust Me, Trust Me Not: An Experimental Analysis of the Effect of Transparency on Organizations.” Journal of Public Relations Research, Vol. 26, Iss. 4, pp. 325-343.

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14 For an extensive review of ethical stewardship, leadership, and trust, see Caldwell, C., Hayes, L., and Long, D., (2010). “Leadership, Trustworthiness, and Ethical Stewardship.” Journal of Business Ethics, Vol. 96, Iss. 4, pp. 497-512, 15 The contribution of AL to trust building through Balanced Processing is noted in Boekhorst, J. A. (2015). “The Role of Authentic Leadership in Fostering Workplace Inclusion: A Social Information Processing Perspective.” Human Resource Management, Vol. 54, Iss. 2, pp. 241-264. 16 The relationship between fairness, or justice, and trustworthiness is identified in Clapham, S. E., Meyer, C. K., Caldwell, C., and Proctor, G. B., Jr., (2014). “Trustworthiness, Justice, and the Mediating Lens.” Journal of Business and Behavioral Sciences, Vol. 26, Number 1, pp. 55-74. 17 The importance of leaders explaining their rationale in moral decision-making is a key element of Hosmer, L. T., (2010). The Ethics of Management. New York: McGraw-Hill, Chapter 1. 18 This relationship between AL, ethics, and trust is identified in Beddoes-Jones, F., (2012). “Authentic Leadership: The Key to Building Trust”. People Management, pp. 44-47. 19 Ibid. 20 This definition is a summary of EI found in Coleman, A., (2008). A Dictionary of Psychology (3rd ed.). Oxford, UK: Oxford University Press. 21 These five key points are summarized in Goleman, D., (2005). Emotional Intelligence: Why It Can Matter More than IQ. New York: Bantam. 22 For example, this connection between Al and EI is noted in Liu, H., Cutcher, L. & Grant, D., (2015). “Doing Authenticity: The Gendered Construction of Authentic Leadership.” Work & Organization, Vol. 22, Iss. 3, pp. 237-255. 23 This relationship between AL and EI is affirmed in Miller, L., E, (2016) “Authentic Leadership.” Leadership Excellence Essentials, Vol. 33, Iss. 10, p. 30. 24 For a summary of the key elements of trust and trustworthiness and the antecedents to trust, see Gullett, J., Canuto-Carranco, M., Brister, M., Turner, S., and Caldwell, C. (2009). “The Buyer-Supplier Relationship: An Integrative Model of Ethics and Trust.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 329-341. 25 This alignment of espoused values and leader actions is the key to creating effective organizational cultures and is the theme of Schein, E. H. & Schein, P., (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass. 26 For insights about these qualities and their relationship to creating high trust in organizations, see DePree, M., (2004). Leadership is an Art, New York: Crown Publishing and Covey, S. R. (2004), op. cit. 27 Christ promised his followers eternal life and declared his mission clearly. See John 11:25. 28 Christ’s life was a shining light for others. See John 8:12. 29 This story is recounted in John 2: 1-12. 30 This wonderful story affirms Christ’s great love for all, even those who have stumbled in the past. It is found in John 4: 1-28.

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31 His Sermon on the Mount, recorded in Matthew 5-7, set a new standard of extramile commitment to God and to all others. 32 Jesus made this declaration, knowing that he would give up his own life, in John 15:13. 33 Covey repeatedly advocated this “inside-out” approach and avidly encouraged would-be leaders to first examine themselves before attempting to lead others. See Covey, S. R., (2004), op. cit. 34 Angela Duckworth emphasizes the powerful importance of these two qualities in Duckworth, A., (2016). GRIT: The Power of Passion and Perseverance. New York: Simon & Schuster. 35 Ibid. Such a formal mission statement gives a life direction and focus. 36 The leadership relationship is clearly described in Kouzes, J. M. & Posner, B. Z., (2017) op. cit. 37 This daily private victory is a key step to self-discipline and the development of personal integrity. See Covey, S. R., (2004), op. cit. 38 This mastermind concept incorporates the qualities of AL and is powerfully explained in Hill, N., (2016). Think and Grow Rich: The Original, An Official Publication of the Napoleon Hill Foundation. Wise, VA: Napoleon Hill Foundation. 39 Spiritual Intelligence can facilitate the development of Moral Perspective and is described in Covey, S. R., (2004), op. cit.

CHAPTER TEN LEADERSHIP FROM THE INSIDE-OUT

One of the great paradoxes of life is that we strive for success and to become our best selves -- then ultimately discover that the greatest joy in life is to give of ourselves to others. Applied to leadership this great irony is that those who lead best do so when they serve others and “choose service over self-interest1.” As the apostle, Paul, encouraged the believers, “Remember the words of the Lord Jesus, how he said, It is more blessed to give than to receive2,”

Leadership is a personal process. We each struggle to understand our own identity and to discover life’s highest purpose. This chapter focuses on the universal journey to self-awareness and emphasizes the importance of identity as leaders relate to others. The chapter begins with a review of the nature of identity, including the relationship between identity, selfawareness, voice, continuous improvement, and moral choice. The chapter then introduces a Six Beliefs Model which leaders can use to understand themselves more fully and to clarify their understanding of their responsibilities as leaders. Incorporating insights from other scholars, the chapter then identifies how the servant-leader perspective enables leaders

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to most effectively contribute to organizational success. Finally, the chapter turns to examples from the life of Jesus Christ to identify how Jesus related to others in incorporating the principles associated with the chapter’s theme.

Identity and Self-Awareness One’s identity is that which defines an individual and consists of that which is central, enduring, and distinctive3. Often, that identity is made up from the looking-glass reflected from others who affirm or disconfirm identity by their feedback about behaviors, appearance, or other qualities which they deem important4. To that extent, the identity is very much a social construct directly related to and derived from relationships with others5.

We each have a sub-conscious identity standard, or comparator, which is the ideal or model which we have defined for our self-image and which we constantly use as the criteria for assessing our own behaviors 6 . Through this comparator, we constantly are evaluating ourselves against that standard and use it to influence behavioral choices – along with the feedback that we receive from others 7 . Our comparator and our actual behaviors profoundly influence our self-image and perceptions about our worth and potential8. Implicit in the respective theories about identity is the fundamental assumption that we each have the opportunity to learn and grow9.

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Diagram 1: Comparator or Identity Standard

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As indicated by Diagram 1, individual behavior creates a reflected response which is interpreted as perceived meaning. That interpretation is compared with an individual’s ideal self-image. The difference between one’s perceived behaviors and the comparator then affects an individual’s expectations of performance and intentions about future behavior. The degree that each individual’s behavior fits with his or her interpretation with that comparator reinforces the individual’s self-image10.

Identity, Self-Image, and Voice Stephen Covey, the highly regarded leadership expert, noted that each individual’s identity and self-image are related to four important intelligences essential in achieving personal excellence11. The table below summarizes each of those four intelligences that make up one’s unique significance, or voice12. Each of the four contributing areas is an important part of one’s individual identity. Table 1: Four Intelligences and Contribution to Excellence Intelligence

Summary

Intelligence Quotient

Cognitive Knowledge

Physical Competence

Dexterity and Capability Personal Mastery and Control Conscience and Inspiration

Emotional Quotient Spiritual Intelligence

Improvement Process Constant Learning

Contribution to Excellence Wisdom

Skill Training

Technical Expertise

Listening and Understanding Others

Connection and Empathy

SelfMonitoring and Repentance

Moral Sensitivity

Comment Focus on applying knowledge Technical abilities and skills Communication, caring, and concern Standard for ethical expectations

In describing the relationship of these four intelligences, Covey has explained that Spiritual Intelligence, or conscience, provides a unifying direction that integrates the other three intelligences13. Diagram 2 reflects that relationship.

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Diagram 2: Importance of Spiritual Intelligence

Each of these four intelligences identifies opportunities for making a unique contribution in the world. Where the four intelligences overlap, they identify specific opportunities where an individual can achieve his or her highest potential in serving others, in fulfilling personal needs, and in making a value-adding difference in the world. Diagram 3, shown below, is a physical representation of the overlap of these four intelligences in identifying one’s voice or unique significance.

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Diagram 3: Voice or Unique Significance

When an individual is able to identify that overlap between the four key intelligences, (s)he then has a clearer understanding of his or her ability to make a significant contribution to the world and to the lives of others14.

Identity and Continuous Improvement Repentance and continuous improvement fit within the comparator model inasmuch as they both reflect an individual’s intention to positively change their own behaviors15. Whether we choose to acknowledge those facts or not, the way that we live our lives and the degree to which we pursue the path of personal improvement are a testament of who we are and what we believe. By our actions, we echo the words of Mahatma Gandhi who declared “My life is my message.” Our relationships with others and with God, the way we live, and the choices that we make affirm our faith, our trustworthiness, our integrity, and our abilities as a leader.

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The comparator enables us to constantly assess our lives and identify what we can do to improve in areas in which we have shortcomings. This improvement process is closely aligned with the concept of repentance. The word for repentance was ȝİIJȐȞȠȚĮ or metanoia in the Greek. Metanoia meant “to make a transformative change of heart or mind – especially a spiritual conversion.” In the Hebrew, the word ʡ˒ˇ or shube means “to return to God or to turn to the light and live.” Both the Greek and Hebrew words for repentance are closely aligned with the concept of continuous improvement and reflect the purpose of the comparator in identity theory16.

Identity and the Moral Standard Each individual’s identity is also based upon his or her moral standard. A moral standard reflects the principles which an individual adopts as the guiding priorities or values for decision-making. Lawrence Kohlberg developed a six-stage moral standard in which moral decisions were successively dependent upon self-interest, social acceptance, and universal principles. Kohlberg’s moral standard has typically been described as a justice-based or rule-based standard and is considered to be a masculine moral perspective.

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In contrast to the Kohlberg model, Carol Gilligan’s Ethic of Care represents a moral standard based upon duties owed in relationships. Gilligan’s standard adopts a feminist perspective that views established relationships as an ethical responsibility between individuals. The Ethic of Care argues that duties owed to others in such relationships must be considered in honoring moral responsibility. Both the Kohlberg standard and the Gilligan standard are a part of a person’s moral identity. Lennick and Kiehl, in their description of “Moral Intelligence,” propose that individuals and organizations have three obligations: 1) to do no harm; 2) to create value in the short term; and 3) to create value in the long term17.

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The Six Beliefs Model Leadership perspective is based upon each individual’s beliefs, values, and moral standards which are the by-products of an individual’s “Six Beliefs Model.” This model identifies the six core beliefs which each individual possesses and that ultimately determine their life priorities, their values, and ethical and moral frameworks. This Six Beliefs Model has evolved from the research of several insightful scholars and includes the following beliefs18. 1. Beliefs about Self – One’s identity and self-image include an individual’s assumptions about personal worth, strengths and capabilities, and weaknesses and shortcomings. These beliefs include the values that define them, the ideal model of who they are in their comparator, their various life roles, and their behaviors and thoughts. 2. Beliefs about Others – These beliefs encompass duties owed to and by others, especially the significant individuals and groups that make up one’s life. This category includes whether an individual classifies himself or herself as a member of groups and the significance of such memberships. It also entails generalized assumptions about human nature and the character of others. 3. Beliefs about the Divine – This belief includes whether one believes or does not believe in a divine presence, specific religion, or a higher power. That belief includes obligations imposed upon a person in their relationship with God, the nature of that relationship, and its impact on self-image. 4. Beliefs about the Past – This belief is made up of an individual’s personal and family background, the individuals who have had important roles in his or her life, and the significant events that have occurred which have influenced an individual’s perspectives. These beliefs also include what has and has not been accomplished in an individual’s past and the roles that a person has played. 5. Beliefs about Current Reality – An individual’s definition of current reality includes how (s)he identifies current opportunities available in life, how one perceives his or her present status in

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relationships with others, and the conditions and situations that define the present. 6. Beliefs about the Future – Goals for the future, attitudes and hopes about desired accomplishments, one’s feelings about the need for and capability of making changes, potential opportunities, and one’s fears about barriers that affect improvement or success are essential elements of this belief. For each of these six fundamental beliefs, individuals are able to create a matrix regarding the key priorities and factors which are part of their lives. Capturing how the perspectives from each of the six beliefs relate to those priorities and writing down those connections enable an individual to elevate their understanding of key themes, beliefs, and assumptions that affect their identity from the subconscious or unconscious levels to the conscious level. This self-assessment process is a powerful way for individuals to discover insights about themselves and their actions that are often not fully realized at the conscious level19.

Relationship to Servant Leadership As leaders frame their beliefs and assumptions at the conscious level, they frequently come to recognize that leadership is fundamentally about service20. The Six Beliefs Model empowers individuals to recognize more clearly their moral obligations to others, as well as enabling them to realize the importance of key relationships in their lives21. As individuals reflect on their own identities and come to recognize their personal greatness and unique significance, that knowledge also confirms to them that others also possess incredible worth, value, and potential22. Teilhard de Chardin, the French philosopher, has been attributed to have observed, “We are not human beings having a spiritual experience. We are spiritual beings having a human experience23.” Leaders who have come to view their identities as unique and significant and who recognize their moral obligation to others align with Stephen Covey who defined leadership in terms of “communicating to people their worth and potential so clearly that they come to see it in themselves 24 .” Covey’s 8th habit affirms this servant leader responsibility to “find your voice and inspire others to find theirs 25 .” This commitment to the welfare, growth, and wholeness of others is the essence of servant leadership and ethical stewardship26.

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Jesus Christ and Identity From as early as a young boy of twelve, Jesus Christ demonstrated by his words and actions that he understood who he was and why he was on the earth. The scriptures record that as a boy of twelve Jesus knew that he needed to be about his Father’s business, that he was filled with wisdom, and that he “increased in wisdom and in stature, and in favour with God and man27.” His Mother, Mary, was fully aware of her own calling and the many evidences of the special role that Jesus was to play – and undoubtedly recounted to Jesus many times those remarkable events28. Despite the risks that he knew he would face, Jesus unequivocally declared his mission to the world and his relationship with Heavenly Father. “I am the good shepherd,” he declared. “The good shepherd giveth his life for the sheep29.” “I and my Father are one30,” he added – and affirmed that relationship before the Sanhedrin31 and to Pontius Pilate32. Clearly, Jesus lived a life that meshed with his understanding of his teachings and his personal identity. Jesus Christ also saw the worth and value of others and his gospel message for mankind was for each person to discover the divine greatness within themselves. He saw through the imperfections of the apostles, knowing far better than they their inadequacies but recognizing, as well, their ultimate commitment to him, to God the Father, and to mankind. To the imperfect Peter, he counseled, “But I have prayed for thee, that thy faith fail not: and when thou art converted, strengthen thy brethren 33 . Though Peter was to deny Christ three times, he was nonetheless to become the head of the apostles in leading the new Christian church.

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To his many disciples, Christ also saw greatness in them -- despite their flaws. His Sermon on the Mount urged his followers to raise the bar of their potential. Faith, though absolutely necessary, also needed to be accompanied by works. All men and women, Jesus declared, needed to examine themselves and perfect their lives34. But Christ also promised that the love of God would be sufficient to sustain them. “Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened,35” he promised.

Conclusion The challenge to leaders is to begin from the inside-out 36 . It is a challenge to come to know oneself, control oneself, and give oneself. One’s identity, self-image, and self-knowledge enable a person to communicate with others more effectively, to serve more fully, and to honor their God more completely.

As leaders and those who seek to serve others examine their own lives and make the commitment to improve, the promise of the King of Kings

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offers inspiring insights. “Service is the rent we pay for living in this world of ours37”, and great leaders are great servants. They understand who they are. They care deeply about others. They strive to find their own voice and then help others to find their voices as well38.

Notes 1 This leadership approach is the fundamental insight offered in Block, P., (2013). Stewardship: Choosing Service over Self-Interest. San Francisco, CA: JosseyBass. 2 This scripture is found in Acts 20:35. Although the concept is consistent with the teachings of Jesus Christ, the verbiage is not otherwise found in the four gospels. 3 This point about the nature of individual identity is made in Caldwell, C. (2009). “Identity, Self-Deception, and Self-Awareness: Ethical Implications for Leaders and Organizations.” Journal of Business Ethics, Vol. 90, Supp. 3, pp. 393-406. 4 This point about our identity is made by Bandura, A., (1997). Self-Efficacy: The Exercise of Control. Basingstoke, UK: Worth Publishers. 5 Ibid. 6 Peter Burke and Jan Stets are acknowledged experts about Identity Theory. See Burke, P. J. & Stets, J. E., (2009). Identity Theory. Oxford, UK: Oxford University Press. 7 The nature of identity and self-efficacy is the topic of Bandura, A., (1997), op. cit. 8 Burke, P. J. & Stets, J. E., (2009), op. cit. 9 Ibid. 10 Ibid. 11 These four intelligences are identified in Covey, S. R., (2004). The 8th Habit: From Effectiveness to Greatness. New York: Free Press. 12 Ibid. 13 Ibid. 14 Ibid. 15 Both repentance and continuous improvement are the subject of a paper written about the commonalities of those two behaviors and their practical relevance for leaders. See Caldwell, C., Dixon, R. D., Atkins, R., and Dowdell, S. M., (2011). “Repentance and Continuous Improvement: Ethical Implications for the Modern Leader.” Journal of Business Ethics, Vol 102, Iss. 3, pp. 473-487. 16 Ibid. 17 This definition of moral intelligence comes from Lennick, D. & Kiel, F., (2011). Moral Intelligence 2.0: Enhancing Business Performance and Leadership Success in Turbulent Times. Boston, MA: Pearson Education. 18 The Six Beliefs Model evolved from the early work of Senge, P. M., (2006). The Fifth Discipline: The Art & Practice of The Learning Organization. New York: Random House. Senge identified the first, second, fourth, and fifth of these beliefs. Caldwell, C., Bischoff, S. J., & Karri, R., (2002). “The Four Umpires: A

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Paradigm of Ethical Leadership.” Journal of Business Ethics, Vol. 36, Iss. 1/2, pp. 153-163 added a fifth belief, and Caldwell, C., (2012). Moral Leadership: A Transformative Model for Tomorrow’s Leaders. New York: Business Expert Press included all six beliefs. 19 This key point is identified as a powerful self-assessment learning tool for leaders in Caldwell, C., (2012), op. cit. 20 Servant leadership and the leader’s responsibilities are addressed in DePree, M., (2004). Leadership is an Art. New York: Crown Publishing, Covey, S. R., (2004), op. cit., Caldwell, C., (2012) op. cit., and Block, P., (2013), op. cit. 21 Caldwell, C., (2012) op. cit. For a more complete insights about the impact of beliefs and values on identity and ethical perceptions, see also Caldwell, C., and Hayes, L., (2007). “Leadership, Trustworthiness, and the Mediating Lens.” Journal of Management Development. Vol. 26, Iss. 3, pp. 261-278, 22 This true principle is affirmed in Covey, S. R. (2004), op. cit. 23 This idea has been attributed to de Chardin and has been frequently cited by Stephen R. Covey, Wayne Dyer, and many others who believe in the great human potential of mankind. See Teilhard de Chardin Wikiquotes found online on February 25, 2018 at https://en.wikiquote.org/wiki/Pierre_Teilhard_de_Chardin. 24 Covey’s definition of leadership and its implicit moral responsibility to serve others is found at Covey, S. R., (2004), op. cit., p. 98. 25 Ibid. 26 These points about servant leadership and ethical stewardship are made in Caldwell, C., (2012), op. cit. 27 This observation comes from Luke 2: 40-52 which describes Jesus as a boy of twelve. The verse in quotations is Luke 2: 52. 28 See for example, Luke 1: 25-38.and Luke 2: 7-51. 29 See John 10 for Jesus declaring his shepherd’s role and articulating his mission. This scripture is John 10: 11. 30 See John 10:30 for this declaration. 31 See Matthew 26:64 and verses following where Jesus declared his divine relationship despite the threat of being accused of blasphemy. 32 John 18 records the sacred events of Jesus from his hours in Gethsemane to his meeting with Pontius Pilate. The dialogue before Pilate is recorded in John 18:3338. 33 See Luke 22: 28-34 for Christ’s interchange with Peter at the last supper. 34 The Sermon on the Mount is in Matthew 5-7 and Christ’s challenge to achieve perfection is in Matthew 5:48. 35 This promise is found in Matthew 7:7. 36 This perspective is contained in each of Stephen Covey’s books. See, especially, Covey, S. R., (2004), op. cit. 37 This quote has been stated by many, including the Canadian leader and Latterday Saint, Nathan Eldon Tanner. 38 This theme of The 8th Habit: From Effectiveness to Greatness by Stephen R. Covey is a testament to his insights about the leader’s role. See Covey, S. R., (2004), op. cit.

CHAPTER ELEVEN ETHICAL STEWARDSHIP AND COVENANTAL RELATIONSHIPS

How a leader chooses to lead is a complex decision that is based upon that leader’s perceptions of the ethical responsibilities and duties owed to stakeholders. These obligations are typically broad and the challenges of guiding an organization in the global marketplace are difficult. Inevitably, the governance philosophy adopted by each leader is based upon assumptions about what matters most and how organizations can achieve the best possible outcomes. Those governance theories play a significant role in determining whether organizations are successful and whether their leaders are perceived to be ethical and worthy of being trusted.

This chapter explains five governance theories and the underlying assumptions upon which each theory is based. After beginning by defining organization governance, the chapter presents a summary of these governance theories; the philosophical rationale; each theory’s ethical

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implications; and their impacts and consequences on organization stakeholders. Examining the consequences of each theory, the chapter explains why the most successful governance approach is an ethical stewardship governance model that honors the covenantal relationship which leaders owe to those whom they serve. Relating this leadership obligation to examples from the life and mission of Jesus of Nazareth, the chapter explains how Jesus Christ honored his stewardship in creating covenantal relationships and concludes with five insights that today’s leaders can apply as they reflect on practical implications of ethical stewardship and covenantal leadership.

Understanding Organization Governance The American Society for Quality (ASQ) defines governance as “A system by which an organization makes and implements decisions in pursuit of its objectives1.” ASQ further explains that “(g)overnance systems include the management processes designed to deliver on performance objectives while considering stakeholder interests 2 .” Governance of organizations includes “(1) how an organization is managed to optimize performance and accountability, (2) how values and goals are reÀected by the systems and structures that are created, (3) how leaders establish relationships that engender the commitment of those who work with and for them, and (4) how the application of leadership is formally applied in the conduct of organizational business3.”

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The governance model selected by an organization is based upon assumptions and values of key decision-makers and typically involves decisions to reduce the potential exchange problems created by bounded rationality, or the differences in the ability of stakeholders to assess decisions based upon available information. Governance choices are also based upon the risk of opportunism on the part of an agent or principal who may possess superior information and seek to pursue his or her selfinterests at the expense of others4. The shareholders of an organization determine its governance philosophy to create long-term wealth for stakeholders and for their organization5. Five distinct governance models have been identified, although two of those models most commonly occur6. Each of the five governance models is summarized, together with a brief description of the assumptions and principles upon which each model is based.

Agency Theory Agency theory is derived from an economics-based paradigm in which humans are rational actors who seek to maximize their self-interest7. As organizations have grown in size, their owners have often recognized the need to hire a professional manager to act on behalf of the owners and to make decisions based upon the agent’s education, training, and professional expertise8. The professional manager is the agent on behalf of the principals, or owners of a firm, and makes decisions with the principals’ oversight. The risk for the principals is that the agent will act in his/her own interest when doing so benefits the agent at the expense of the principals.

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The response to opportunism is to create incentives for the agent to make decisions that benefit the firm in the long-term 9 by creating a contractual framework that promotes both parties’ best interests 10 . The ethical assumption is that the agent’s goals are teleological, or goaloriented, and deontological, or duty-oriented and that an agent will typically pursue an ethic of self-interest 11 . In cases where agents inappropriately use their superior knowledge to serve their own interests, other stakeholders may be at risk and organizations may suffer by selfserving agent choices.

Stakeholder Theory Stakeholder Theory is a governance theory that proposes that an organization and its leadership have an obligation to create added value for all of the parties that have a stake in a firm and its activities 12 . A stakeholder is any party that has an interest in the success of a firm, and this broad definition of interest in a firm’s success contributes to both the richness and the vagueness of the theory 13 . Stakeholder Theory also struggles with the notion of creating value – inasmuch as value can be defined in very different terms for the respective parties14. Addressing the value problem, Post and colleagues described the theory in terms of "the cumulative result of corporate performance over time, including all of the assets, competencies, and revenue generating capacities developed by the firm15." Stakeholder Theory seeks to pursue outcomes that are procedurally fair. Fairness is based upon resolving conflicts of interest within the organization to benefit all parties. The agent’s role is to balance the interests of the shareholder or principal with the multiple interests of other stakeholders so that no stakeholder rights are violated while balancing the legitimate interests of all parties 16 . Balancing stakeholder interests and treating all parties fairly are guiding organizational values. The rationale behind this theory is based upon a justice-based ethical perspective. The ethical assumption is that all parties have rights that deserve to be balanced17. A potential limitation of this theory is that in balancing the interests of all stakeholders, rather than focusing on long-term wealth creation, the entire organization may underperform in both the short term and the long term.

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Stewardship p Theory Stewardsship Theory is i a governance model in w which the priiorities of the leader are focused on pro-organ nizational ratther than sellf-interest behavior18. Block propossed a steward dship role thatt sought "serv vice over self-interest,," believing that t organizations are besst served by honoring relationships and treatinng followerss like "owneers and parttners 19 ." Stewardshipp places the long-term l inteerests of the organization over the personal inteerests of the agent a or the prrincipals20.

The undderlying assuumption of Stewardship Theory is that the optimizationn of the organnization’s long g-term best innterests best serves s the owners and all stakeholdders21. Thus, cooperation c annd trust becom me a key 22 2 theme of orrganizational relationships r and affirm th the importance of each 233 participant and the mutuuality of relatiionships24. Thhe rationale beehind this theory is thhat the creatioon of high trrust will enabble an organiization to optimize lonng-term wealthh creation and d thereby optim mize the beneefit for all stakeholderss. This ethiical assumpttion incorporrates severall ethical perspectivess ranging from m the Ethic off Economic Effficiency and the Ethic of Self-Acttualization to the theory of Transform mative Ethicss 25 . The consequencees of Stewardship Theory are a that stakehholders may so ometimes have to foorego short-teerm benefits for the lonng-term good d of the organizationn and society.

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Principal Theory Principal Theory is a model of organizational governance “in which organizational owners and shareholders are ethically opportunistic and authoritarian in taking advantage of employees who serve them26.” In this governance model, the employees of the firm are perceived by the principals/owners/ stockholders as instruments to create short-term wealth to increase the principals’ profits27. Others in the organization are viewed as means to the principals’ interest or “Its”, rather than valued ends in and of themselves, or “Yous28.” The underlying assumption of Principal Theory is that the employment relationship is a transactional exchange and that employees receive a quid pro quo for their labors29. Adopting the Milton Friedman assumption that “the social responsibility of business is to increase its profits30,” Principal Theory focuses on the fundamental right of shareholders to make a profit above all other values. The ethical underpinning of this governance model is “the consummate example of an ethic of power, wherein principals operate under the "BWC Rule" - making decisions "because we can" rather than because they benefit the organization long-term 31 .” The consequences of Principal Theory are that the interests of the principals are maximized for the short term but that other stakeholders may suffer, particularly in the long term.

Principle Theory Principle Theory is a governance philosophy which emphasizes a set of "guiding principles" in the governance process, sometimes to the point of overemphasis 32 . Those guiding principles occasionally supersede the mission and purpose of an organization in creating long-term value, “become out of balance, and begin to replace the broader organizational duties of wealth creation and corporate citizenship33.” Relying too heavily on “sacred” principles of management and conventional wisdom can sometimes lead to losing track of the goals of an organization and can result in the conquest of technique, or theory, over purpose34. The assumption underlying Principle Theory is that its guiding principles of management are universally true. However, empirical evidence confirms that principles must be properly applied according to the unique contextual needs of a business and its customers35. The ethical perspective of this theory is based upon an Ethic of Universal Rules or a Kantian Ethic, but those principles and rules are known to be contextually conditional in their application and do not always apply36. The consequences

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of Principle Theory are that an organization may overemphasize guiding principles to the detriment of the organization and all of its stakeholders in achieving an organization’s mission or purpose.

The Nature of Ethical Stewardship The concept of ethical stewardship affirms the importance of Stewardship Theory’s commitment to the needs of all of its stakeholders, including the needs of society, by optimizing long-term wealth creation37. Ethical stewardship seeks “the best interests of stakeholders by creating high trust cultures that honor a broad range of duties owed by organizations to followers38.” The stewardship role is principle-centered, value-based, and responsible for optimizing outcomes, rather than settling for a compromise that overlooks opportunities 39 . Increasingly, the empirical evidence about organization success affirms the wisdom of a stewardship approach based upon high trust and commitment, respect for each party, and integrated systems that align an organization as it pursues long-term value creation40. The leader’s moral responsibility as an ethical steward is to pursue long-term wealth by implementing systems that strengthen the organizational commitment of all stakeholders41. The obligations of ethical stewardship require that the leader be an ‘‘integrator of shared interests’’ with a responsibility to help its members to self-actualize, to empower employees to be successful, and to assist the organization to achieve its highest potential42. It is by “communicating to people their worth and potential so clearly that they come to see it in themselves43” that leaders honor their interpersonal stewardships. In turn, organizations can then “enable each person to inwardly sense his or her innate worth and potential for greatness and to contribute his or her unique talents and passion to accomplish the organization’s purpose and highest priorities in a principle-centered way44.” In their role as ethical stewards, “leaders will avoid self-defeating short-term decisions that inÀate market value but that impair the ¿rm’s fundamental mission – despite the allures and seductions of a Wall Street model that panders to short-term ¿nancial targets and stock prices45.”

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Ethical Stewardship and Covenantal Relationships Implicit in the ethical stewardship role is a series of obligations that rise to the level of a sacred or covenantal set of responsibilities. Covenantal duties as leadership obligations have been addressed by many scholars who have recognized the responsibility of leaders and organizations to those whom they lead and serve46. As leaders perform their roles, they create relationships containing implicit psychological contracts which contain morally significant obligations. The extent of followership is ultimately dependent upon whether a leader is perceived as trustworthy in honoring those implicit obligations 47 . In describing the leader’s covenantal obligations, Max DePree explained that leaders and organizations had a covenantal duty to be a “servant and a debtor” to employees – helping those employees to be successful and to thrive personally and professionally.48 Moses Pava developed the perspective of covenantal leadership which emphasized the sacred nature of the leader’s responsibilities 49 . Pava identified five important roles of the covenantal leader which are summarized in the following table50.

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Table 1: Roles of the Covenantal Leader Covenantal Role

Summary Description

Servant

Leaders owe others a servant’s duty to help others be successful on the job and to achieve both personal and organizational goals.

Teacher

Leaders define reality, redefine paradigms, and provide insights for others that enable others to grow and to discover their potential – thereby adding value to the organization. Leaders will do what they say they will do. They demonstrate commitment to the organization that inspires others.

Exemplar

Psychological Contract Expectations Leaders serve others by providing the resources required to succeed, creating a culture that facilitates success, and removing barriers that impede success. Leaders recognize that wisdom that is not shared fails to benefit the organization. They openly share information key to an organization’s success. Leaders live the values they profess and recognize that congruence between what they say, what they do, and what they make possible must exist.

Moral Implications Leaders care about individuals as unique and important contributors to the organization. Leaders have the ethical duty of treating others as valued “Yous” rather than as impersonal “Its”. Leaders treat others as valued ends rather than as simply the means to their own self-interest or the goals of the organization. The leader’s duty honors the ethic of care. Leaders demonstrate a fierce commitment to the goals which they espouse to others and honor the values they endorse. Their ethic is a virtue ethic of integrity and excellence.

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Truth Seeker

Leaders recognize that they must understand and follow correct principles and constantly seek for truth.

Empowerer

Leaders empower decision-making and set policies, systems, and rules that develop employees and facilitate the achievement of goals.

Leaders tell the truth, provide others the resources to discover the truth, and create opportunities to learn and apply new truths. Leaders treat all employees as valued owners and partners and recognize that their contributions add value that distinguishes service level quality.

Leaders owe an obligation to society, their organization, their employees, and themselves by being highly ethical truth seekers. Leaders recognize that organization success is dependent upon “power with” rather than “power over” others. Leadership unleashes the capabilities of others.

Table 1 describes each of the five roles of the covenantal leader, the psychological contract expectations imposed by the leadership relationship, and the moral implications of each role of covenantal leadership. Covenantal leadership honors each of the leader’s obligations to teach, serve, model the way, and empower others in the pursuit of excellence -- but also adds the important responsibilities associated with constantly learning, continuously improving, creating new meaning, and seeking truth51. The personal commitment and the extra-mile dedication of the leader honoring covenantal duties are key elements which, in turn, generate increased employee commitment and followership52. By creating covenantal relationships with others in organizations, covenantal leaders demonstrate their commitment to others, their pursuit of excellence, their devotion to creating new meaning, and the pursuit of truth53.

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Christ as Covenantal Leader and Ethical Steward

Jesus of Nazareth honored each of the five roles of covenantal leaders in his short ministry and constantly sought to serve others, teach others correct principles, help them to become the best possible version of themselves, and create a better world. The following are examples from the life of Christ that demonstrate each of those five roles.

Christ as a Servant The life of Jesus Christ was a life of service. Perhaps his most remembered words about service are found in the tenth chapter of the Gospel of Mark, “And whosoever of you will be the chiefest shall be servant of all54.” In declaring the irony of service to others, Jesus told his apostles, “He that findeth his life shall lose it: and he that loseth his life for my sake shall find it55.” His life of service was not only epitomized by his death for mankind but by his humble example in the washing of his apostles’ feet56. “For I have given you an example, that you should do as I have done unto you,” he told them57.

Christ as a Teacher Teaching with parables that taught profound truths, Christ had the ability to communicate simply but effectively. His teachings were listened to by everyone – from the common people to Nicodemus of the Sanhedrin.

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He taught by his actions – whether by healing the sick, or feeding the five thousand. His followers sought him out and listened intently as he conveyed to them a higher law of personal excellence58. His instructions to his apostles, “Go ye into all the world 59 ” conveyed to them the importance of his message and their responsibility to carry his message.

Christ the Exemplar For Jesus Christ the path that he walked and the way that he lived affirmed his message. His actions mirrored his teachings and he spent his ministry serving others. His reputation was derived not only from his profound teachings but by the lives he touched and the people he served. His personal example has set the standard for his followers for two thousand years.

Christ the Truth Seeker From the time he was a young boy, Christ was aware of his divine calling and the need to prepare himself. At twelve he accompanied his parents to Jerusalem, but unknown to Mary and Joseph, he remained behind at the temple. Sitting in the midst of the scholars, listening and asking questions for three days, he amazed those with whom he was talking by his understanding of the scriptures60. His forty days fasting in the wilderness refined his understanding and prepared him for his ministry 61 . As the source of new truth to others, Jesus exemplified the Covenantal Leader’s commitment to the truth.

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Christ the Empowerer Jesus Christ changed people’s lives, empowering them by his words, healing their maladies, raising others from the dead, and inspiring their hearts. His disciples learned principles that enabled them to draw closer to God, to improve their relationships, and to create a better world. By following his teachings, others he taught were empowered to achieve eternal life62. In calling his apostles to their work, Luke records that Jesus promised his disciples that “ye shall receive power, after that the Holy Ghost is come upon you: and ye shall be witnesses unto me both in Jerusalem, and in all Judaea, and in Samaria, and unto the uttermost part of the earth63.”

Five Insights The significance of ethical stewardship and its impact on relationships is that this approach to leadership governance builds the confidence of others and increases organization commitment and employee trust. There are five important insights that leaders can take advantage of as they apply the principles implicit in ethical stewardship and covenantal leadership. 1. Empowering others includes many elements. Treating others well, building confidence in others, communicating to them their innate value, and providing them with resources that enable them to succeed are all elements of empowerment and are all consistent with ethical stewardship and covenantal relationships.

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2. Effective leadership is best achieved when leaders are servants first. As leaders honor their role as servants to others and as they pursue outcomes that achieve the long-term best interests of organizations, they create an organizational culture that inspires employee extra-mile efforts. 3. The five roles of covenantal leadership enable leaders to model their values. The five roles of covenantal leadership reflect the values upon which covenantal leadership is based and enable those leaders to demonstrate those values by their actions. 4. Ethical stewardship’s focus on long-term value creation honors all stakeholders. Pursuing long-term wealth creation demonstrates the commitment to long-term organization success rather than short-term profit taking. Ethical stewardship’s pursuit of long-term value creation enables organizations to make decisions that optimize their highest potential. 5. Leadership that seeks the welfare of others creates high commitment. When leaders strive to honor covenantal obligations, they establish relationships that are uncommon in the typical organization and their actions in support of employee best interests create unusually high employee commitment. Each of these five insights affirms the practical importance of ethical stewardship and covenantal leadership as contributors to effective organization governance. Understanding these insights affirms the importance of value-based leadership that honors others and pursues the best interests of stakeholders in creating long-term wealth.

Notes 1

ASQ cites the American National Standards Institute guidelines for quality, ANSI 26000 found online on February 28, 2018 at https://webstore.ansi.org/RecordDetail.aspx?sku=ISO%2026000:2010%5BS%5D &gclid=Cj0KCQiAh_DTBRCTARIsABlT9MavO0yQOYsgdrmeO4NWCzajNfd G4LBH60kazV027F-xEbZ8etboS7gaAnIFEALw_wcB. The ASQ citation and definition is found on http://asq.org/learn-about-quality/social-responsibility/governance.html. 2 Ibid.

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3 This description of organization governance is provided on pages 178-179 of Caldwell, C., and Hansen, M., (2010). “Trustworthiness, Governance, and Wealth Creation.” Journal of Business Ethics, Vol. 97, Iss. 2, pp. 173-188. 4 These two factors were identified in Barney, J. and W. Hesterly, (1996). “Organizational Economics: Understanding the Relationship Between Organizations and Economic Analysis” in S. Clegg, C. Hardy, & W. l Nords (Eds.) Handbook of Organizational Studies, Thousand Oaks, CA: Sage, pp. 115-147. 5 This point about the shareholders’ best interests is cited in Caldwell, C., and Karri, R. J., (2005). “Organizational Governance and Ethical Systems: A Covenantal Approach to Building Trust.” Journal of Business Ethics, Vol. 58, Iss. 1, pp. 249-259. 6 The two dominant models of governance are Agency Theory and Stakeholder Theory. See Shankman, N. A., (1999). “Reframing the Debate between Agency and Stakeholder Theories of the Firm.” Journal of Business Ethics, Part 1, Vol.19, Iss. 4, pp. 319-334. 7 This description of Agency Theory is found in Hernandez, M., (2012). “Toward an Understanding of the Psychology of Stewardship.” Academy of Management Review, Vol. 37, Iss 2, pp. 172-193. 8 Agency Theory is summarized in Bosse, D. A. & Phillips, R. A., (2016). “Agency Theory and Bounded Self-Interest.” Academy of Management Review, Vol. 41, iss. 2, pp. 276-297. 9 This relationship is addressed in Nyberg, A. J., Fulmer, I. S, Gerhart, B. & Carpenter, M. A., (2010). “Agency Theory Revisited: CEO Return and Shareholder Interest Alignment.” Academy of Management Journal, Vol. 53, Iss. 5, pp. 1029-1049. 10 Ibid. 11 The Ethic of Self-Interest suggests that individuals will act to achieve their longterm best interests and is explained in Caldwell, C. and Atwijuka, S., (2018). “Self-Examination and the Ethic of Self-Interest.” Paper accepted for publication in the Journal of Values-Based Leadership in December 2018. 12 The Stakeholder Theory has its roots in various aspects of organization theory but many scholars suggest that its primary beginnings lie with the work of Freeman, R. E., (1984). Strategic Management: A Stakeholder Approach. New York: HarperCollins. 13 This important point about the vagueness of who is actually a stakeholder is addressed in Miles, S., (2017). “Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of Definitions.” Journal of Business Ethics, Vol. 142, Iss. 3, pp. 437-445. 14 The “measurement of value” problem is addressed in several places. See, for example, Harrison, J. S. & Wicks, A. C., (2013). “Stakeholder Theory, Value, and Firm Performance.” Business Ethics Quarterly, Vol. 23, Iss. 1, pp. 97-124. 15 This quote comes from page 30 of Post, J. E., Preston, L. E. & Sachs, S., (2002). Redefining the Corporation: Stakeholder Management and Organizational Wealth. Stanford, CA: Stanford University Press. 16 See Caldwell, C., Karri, R., and Vollmar, P., (2006), op. cit.

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Ibid. A summary of Stewardship Theory is found in Davis, J. H., Schoorman, F. D. & Donaldson, L, (1997). “Toward a Stewardship Theory of Management.” Academy of Management Review, Vol. 22, Iss. 1, pp. 20-47. 19 The stewardship role of leaders is explained in detail in Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: BerrettKoehler. 20 See Hernandez, M., (2008). “Promoting Stewardship Behavior in Organizations: A Leadership Model.” Journal of Business Ethics, Vol. 80, Iss. 1, pp. 21-28. 21 See Davis, J. H., Schoorman, F. D. & Donaldson, L, (1997), op. cit. 22 Ibid. 23 The importance of each employee is a key theme of Block, P., (2013), op. cit. 24 This mutuality is addressed in Hernandez, M., (2012), op. cit. 25 For a summary of these ethical perspectives and their ethical assumptions, see Caldwell, C., (2017). “Transformative Ethics and Trust – Keys to Competitive Advantage” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 13-24. 26 Principal Theory is introduced as a theory of governance and defined on page 209 of Caldwell, C., Karri, R., and Vollmar, P., (2006), op. cit., 27 Ibid. 28 The importance of treating others as ends rather than means is a fundamental duty-based ethic articulated by Immanuel Kant, (2016). The Critique of Pure Reason. Seattle, WA: CreateSpace Independent Publishing. The idea that people are “Yous” rather than “Its” was expressed by the German philosopher, Martin Buber in Buber, M., (1972). I and Thou. New York: Scribners. 29 Transactional leadership and its exchange relationship assumptions are described in Hamstra, M., Van Yperen, N., Wisse, B. & Sassensberg K. (2014). “Transformational and Transactional Leadership and Followers’ Achievement Goals.” Journal of Business and Psychology, Vol. 29, Iss. 3, pp. 413-425. 30 This famous line is the title of a New York Times article and has been the source of great discussion in the wake of the corporate social responsibility movement. See Friedman, M., (1970). “The Social Responsibility of Business is to Increase Its Profits.” New York Times Magazine. 31 This quote comes from the description of Principal Theory on page 212 in Caldwell, C., Karri, R., and Vollmar, P., (2006), op. cit. 32 Principle Theory is described in Caldwell, C., Karri, R., and Vollmar, P., (2006) Ibid. 33 Ibid., p. 212. 34 This conquest of technique over purpose was identified as a common problem of public personnel administration. See Stahl. O. G., (1976). Public Personnel Administration (7th ed.). New York: Harper & Row. 35 The dysfunction of relying on conventional wisdom and management myths has been noted by Pfeffer, J., (1998). The Human Equation: Building Profits by 18

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Putting People First. Boston, MA: Harvard Business Review Press. See also Caldwell, C., Karri, R., and Vollmar, P., (2006), op.cit. 36 For a summary of the Ethic of Universal Rules, see Caldwell, (2017), op. cit. 37 The concept of ethical stewardship was identified in Caldwell, C., Bischoff, S. J., & Karri, R., (2002) op. cit., in Caldwell, C., Hayes, L., Karri, R., and Bernal, P., (2008). “Ethical Stewardship: The Role of Leadership Behavior and Perceived Trustworthiness.” Journal of Business Ethics, Vol. 78, Iss. 1/2, pp. 153-164, in Caldwell, C., Hayes, L., and Long, D., (2010). “Leadership, Trustworthiness, and Ethical Stewardship.” Journal of Business Ethics, Vol. 96, Iss. 4, pp. 497-512, and in several other papers by the author of this book. 38 This explanation of ethical stewardship is found on page 173 of Caldwell, C., Truong, D., Linh, P., and Tuan, A., (2011). “Strategic Human Resource Management as Ethical Stewardship.” Journal of Business Ethics, Vol. 98, Iss. 1, pp. 171-182, 39 Stephen R. Covey repeatedly addresses the importance of leaders honoring their stewardship responsibilities and his writings frequently articulate this important stewardship obligation. See Covey, S. R., (2004), op. cit. 40 The research about high performance work systems and positive organizational scholarship are replete with examples of the value of treating employees as valued partners. See, for example, Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage and Caldwell, C. and Anderson, V., (2018). “High Performance Organizations and Human Resource Management” in Strategic Human Resource Management (C. Caldwell and V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 171-184. 41 The moral responsibility of ethical stewardship is identified in Caldwell, C., and Karri, R. (2005), op. cit. and Caldwell, C., Truong, D., Linh, P., and Tuan, A., (2011) op. cit. 42 For a review of the leader’s role as an ethical steward, see page 254 of Caldwell, C., and Karri, R. J., (2005) op.cit. 43 This phrasing is Stephen R. Covey’s definition of leadership, found on page 98 of Covey, S. R., (2004) op. cit. 44 This phrasing describes the universal organizational mission or organizational leadership responsibility. Ibid., p. 99. 45 This insight about the role of ethical stewardship comes from page 501 of Caldwell, C., Hayes, L., and Long, D., (2010), op, cit. 46 The list of scholars who have addressed the nature of covenantal duties is growing in length. Stephen R. Covey, Moses Pava, and Max DePree have each written extensively about covenantal responsibilities of leaders. See also Caldwell, C, and Hasan Z., (2016). “Covenantal Leadership and the Psychological Contract – Moral Insights for the Modern Leader.” Journal of Management Development, Vol. 35, Iss. 10, pp. 1302-1312. 47 The nature of trustworthiness and the leader-follower relationship is identified in Hayes, L., Caldwell, C., Licona, B. and Meyer, T. E., (2015). “Follower Behaviors

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and Barriers to Wealth Creation.” Journal of Management Development, Vol. 34, Iss. 3, pp. 270-285. 48 Max DePree’s insights about the nature of the covenantal relationship and the duties of leaders and organizations are found in Chapter One of his book. The quote cited is found on page 11 of DePree, M., (2004), op. cit. 49 Pava’s work explains the nature of covenantal leadership superbly and is found in Pava, M., (2003), op. cit. 50 This table summary incorporates Pava’s work but comes from Caldwell, C, and Hasan Z., (2016), op cit. 51 This important truth-seeking responsibility is a key leadership function emphasized throughout Pava, M., (2003), op. cit. 52 The contribution of followers to wealth creation is also clarified in Caldwell, C, and Hasan Z. (2016), op.cit. 53 See Pava, M., (2003), op. cit. 54 Jesus Christ emphasized the importance of service for himself and his apostles in Mark 10: 44-45. See also Luke 22: 24-26 for a similar message. 55 See Matthew 10:39. 56 The washing of the apostles’ feet is described in John 13: 4-16 and emphasized Christ’s humility and the importance of service. 57 These words are found in John 13:15. 58 The Sermon on the Mount in Matthew 5 – 7 profoundly illustrates Christ’s teaching about a higher standard of personal living. 59 In Matthew 28: 19-20 and Mark 16:15 Christ commanded his apostles to carry out his work. 60 This story of Christ’s experience at the temple as a twelve-year-old boy is recounted in Luke 2: 42-49. 61 Christ’s preparation fasting in the wilderness is described in Matthew 4: 1-11. 62 His teachings promised others the opportunity to fulfill their eternal destiny. See John 3:16 and John 17:3 as examples. 63 Luke records Christ’s empowering promise to his apostles in Acts 1: 4-8. The quote is found in Acts 1: 8.

CHAPTER TWELVE LEADING WITH MEANING – CREATIVITY, INNOVATION, AND CONSTANT LEARNING

To lead is to influence others in a shared direction, to accomplish a mutually desired outcome that creates value, and to align the values and priorities of those who are involved 1 . In the leadership process the relationship between the participants is fraught with a complex set of individual perceptions, subjective intentions, and personal assumptions – all of which involve the intended purposes of collaborative efforts.

As Linda Smircich and Gareth Morgan observed more than thirty-five years ago, leadership is the management of meaning2. As leaders create and clarify meaning, they engage in a sense-making process that seeks to model, teach, inspire, and empower others in the pursuit of a cooperative result. The purpose of this chapter is to identify the key importance of creativity, innovation, and constant learning in the creation of better

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outcomes as leaders manage organizational and interpersonal meanings. The chapter begins with a brief summary of the factors that impact the leader’s roles in managing meaning and an explanation of why the management of meaning is so important in the leadership process. Following that introduction, the chapter identifies the importance of creativity, innovation, and constant learning as requirements for organizational achievement and survival. Applying these insights to the life and mission of Jesus Christ, the chapter identifies how he managed, created, and inspired new meanings in the lives of his disciples – both during his sojourn on the earth and for his followers today.

Managing Meaning and the Leader’s Roles Being clear about what needs to be done, how to do it, and the reasons why what is being doing is important are important elements in the management of meaning. Leaders who possess profound knowledge but who either do not communicate that knowledge to others or who communicate it ineffectively are no better off than leaders who lack that knowledge – and their companies suffer as a result 3 ! Leaders manage meaning in a multitude of ways. James Kouzes and Barry Posner identified five important leadership practices which involve managing meaning effectively in organizations, with examples for each practice included below4. o Challenging the Process – Effective leaders use information effectively to identify problems that need to be improved and policies that are ineffective. o Inspiring a Shared Vision – Creating a shared vision requires involving and empowering employees at all levels in defining a clear direction for the organization and for achieving measurable results.

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o Enabling Others to Act – Policies, practices, systems, and culture are leadership resources that help employees to succeed and that demonstrate their leaders’ commitment to values, outcomes, and priorities. o Modeling the Way – By their actions leaders affirm their priorities and set the example. Leaders validate the importance of what matters most in achieving organizational outcomes. o Encouraging the Heart – Through treating employees as valued owners and partners and creating a culture that values employees, great leaders communicate the importance of each individual and their commitment to employee success. As leaders engage in these five important practices, they communicate who they are, what they value, and why they are worthy of others’ followership, commitment, and trust 5 . As explained by one highlyregarded theorist, leadership is “meaning-making in a community of practice” by the way that leaders interact with others6. Leadership often involves a process wherein one or more individuals attempt “to frame and define the reality of others7.” It is this “framing skill” which often creates meaning and organizational wisdom by defining a problem, focusing effort, or taking the initiative in proposing a plan of action8. Leadership creates meaning by its capacity to present information effectively enough to articulate the nature of reality – a reality agreed to and accepted by others9. By accepting the leader’s perspective of reality, followers affirm the leader’s role, his or her positional responsibility, and the meanings which (s)he defines – thereby confirming the legitimacy of the leader’s authority and supporting the mission and purpose of the organization according to that definition10.

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Great leaders focus not only on their organizations but on each person within them. By putting service to others before their own self-interest, leaders honor the stewardship obligation to treat others as valued individuals 11 . In so doing, leaders communicate their commitment to employees’ welfare, growth, and wholeness by their actions rather than simply by their words12. A leader also plays a vital role in the creation of new meanings and the pursuit of truths that serve organizations, inspire new innovation and creativity, and improve the lives of employees and customers 13 . The ability to manage meaning is achieved by creating an empowered learning culture that not only benefits an organization but that supports and enables personal growth in individual employees. This additional contribution to “leading with meaning” has powerful significance in today’s knowledge-, wisdom-, and information-based economy. By creating organizations that empower, develop, and encourage constant learning and improvement, leaders honor their obligations to employees to help them to grow and make leading with meaning an important source of competitive advantage14.

Creativity and New Meanings Creativity is critical in the creation of meaning – particularly new meanings associated with learning and synergy 15 . For creativity to be effective in organizations, the generated outcomes must be both original and effective in adding utility, value, or wealth 16 . Creativity is largely

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affected by the organizational culture created and the commitment of leaders to establish an environment in which employees can contribute and take personal initiative 17 Creativity is enhanced by the interplay of “strategy, structure, support mechanisms, behavior that encourages innovation, and open communication18” Alignment in each of these factors empowers risk taking, provides time and resources, and rewards that same creativity19.

Creativity can be kaleidoscopic – enabling individuals to link and integrate principles, technologies, and concepts in new ways as they incrementally increase their understanding of new information. Focusing on constant learning and the sharing of new insights within an organization is vital to the creativity process20. That which is new and creative is often simply the linking of established principles in new ways21. Creativity is essential to the creation of new meanings because it can enhance quality of life and contribute to organization innovation22.

Innovation as Applied Meaning Although innovation can include any new idea, application, technology, device, or process, the more complete definition of the term emphasizes the practical applied value of an innovation that includes an improved outcome, a better product, new requirements, unarticulated but real needs, or products that create a new market23. The advancement in innovation is a byproduct of technological progress that has increased exponentially as

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information sharing and access to others’ research has expanded knowledge and opportunities24. “Disruptive innovation” is the term used for the creation of new products that often contain fewer features than are commonly found but that cost significantly less and are therefore attractive to an entirely new set of customers. Often these new innovations are subsequently enhanced while remaining much lower in cost – thereby eroding the market base of established customers and effectively making existing products obsolete25. Innovation can redefine an entire product market and create new meanings and opportunities for customers. The focus of innovation is on the question, “What is our customer seeking to do and how can we assist in achieving that outcome more effectively, more easily, or at a lower cost26?”

Creativity and innovation are often integrated and are closely related – but the focus of innovation is on the applied meaning of the process and the outcomes of being creative--particularly as creativity enables an organization to secure a competitive advantage that is unique, difficult to duplicate, or organizationally specific. 27 Innovation redefines meaning about what is possible, available, and useful to customers. Innovations by competitors redefine the standards of an industry and make it necessary for a company to keep pace with the changes that are occurring in products, prices, and services in order to successfully28.

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Constant Learning and Redefining Reality The process of constant improvement can occur at the incremental level or at a larger reengineered level that may address change from a new paradigm29. Learning organizations are established to not only constantly improve products and services but to keep pace with the rapid change that has become the byword of the modern business environ 30 . Constantly learning, continuous improvement, and adapting to change are the necessities for survival and redefine the realities of relationships with customers and the marketplace31. The requirements of a knowledge-, wisdom-, and information-based economy have also redefined the skills that are critical in the new economy. These important skills include the relationships between supervisors and employees and the importance of “flair factors” in employee selection and retention 32 . Constant learning and creating learning organizations redefine meanings and restructure the nature of reality in a world that has sped up, gotten smaller, and become exponentially more competitive33. Leaders must face their obligation to manage meaning by promoting creativity, facilitating innovation, and creating cultures that enhance learning or the organizations that they lead are destined for failure in a world where being simply as good as the competition is no longer good enough34.

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Christ and Leading with Meaning In comparing the leadership of Jesus Christ with the five leadership practices enumerated by Kouzes and Posner, the actions of Christ closely mirror those same categories. The following are specific examples of Christ’s actions that match the Kouzes and Posner categories. Challenging the Process – Christ’s teachings and the standards that he set challenged Jewish tradition, as practiced by the Pharisees and leaders of the Sanhedrin. His gospel espoused a higher law that required his followers to be guided by love, faith, and obedience, as opposed to compliance with a formalized set of rules. Inspiring a Shared Vision – Christ’s vision asked men and women to look into their own hearts in the pursuit of righteousness and in obedience to the Spirit of God’s law by loving their neighbors, loving themselves, and loving their God with all their hearts. Enabling Others to Act – Perhaps no greater evidence of Jesus Christ’s ability to empower others is his influence on the lives of his apostles – and that same empowerment has changed the hearts and minds of millions of believers today. Modeling the Way – Jesus Christ led with love, forgave others, taught with patience and skill, and demonstrated by his actions his love of his Father in Heaven and his brothers and sisters on the earth. Truly, he lived an exemplary life. Encouraging the Heart – Jesus healed broken hearts and spent his mortal ministry teaching others how they could have not only happiness but peace of mind. His message constantly encouraged others to become their best and to turn to God and live a more abundant life. The life of Christ affirmed his message and in each of these five leadership practices Jesus communicated to others their personal value, their potential, and the path that they should follow. Throughout his life on the earth, Jesus of Nazareth emphasized the importance of a new level of meanings and truth. His gospel raised the bar for the standard of expectations for his followers and superseded the Law of Moses as the requirement for entering into the Kingdom of God.

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Meaning for this new standard centered around the basic principles of loving oneself, loving God, and loving one’s neighbor. Forgiveness of others, he also taught, was a condition precedent to being forgiven of one’s own sins35. Jesus declared without equivocation that he was “the way, the truth, and the life. No man cometh to the Father but by me 36 .” He told his disciples and those who accompanied him into the temple treasury, “I am the light of the world: he that followeth me shall not walk in darkness, but shall have the light of life 37 .” To the Jews who believed in him he declared, “If ye continue in my word, then are ye my disciples indeed; And ye shall know the truth and the truth shall make you free38.” Because meaning was so important, Jesus spoke to others in simple stories and parables. His examples were common. He spoke of a woman who lost a valued coin or cited familiar objects like a mustard seed, a lamp, or the building of a barn. His teachings, though simply expressed, were most often profound. His examples, like the story of the man who fell among thieves on the road to Jericho, were both practical and interesting and enabled him to teach powerful lessons that caused others to examine their own behaviors. His story of the prodigal son -- and the father who loved him despite the son’s bad choices -- exemplified the love and forgiveness of God toward every one of his children . . .. if they would only turn to him and repent. Though Jesus taught from the Hebrew scriptures with which many of his listeners were familiar, he nonetheless advocated a new and higher standard of living while confirming the alignment of his standards with sacred teachings. Most importantly, Jesus Christ clearly enumerated a Plan of Happiness for all mankind and his message became clearly known to his apostles to whom he declared, “Go ye into all the world, and preach the gospel to every creature39.”

Conclusion For every individual the actions of leaders which they are asked to follow are looked upon and compared with the values that those leaders proclaim40 – and whether those leaders are perceived as worthy of trust depends upon the alignment between their leaders’ actions and their words41.

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Creativity, innovation, and constant learning are mechanisms that leaders use to build their organizations, create strong cultures, affirm their values, and empower their employees to compete in today’s challenging environ. Each of those factors help leaders to create meaning. But for leaders, as in the life of Jesus Christ, their most significant message in managing meanings is their own personal example and the integrity with which they live their lives and align their actions with their words.

Notes 1

This definition of leadership incorporates insights from a number of scholars and is described in greater detail in Lussier, R. N. & Achua, C. F. (2012). Leadership: Theory, Action, & Skill Development. Mason, OH: Thompson Publishing and in Caldwell, C., (2012). Moral Leadership: A Transformative Model for Tomorrow’s Leaders. New York: Business Expert Press. 2 See the article Smirch, L. & Morgan, G., (1982). “Leadership: Management of Meaning.” Journal of Applied Behavioral Science, Vol. 18, Iss. 1982, pp. 257273. 3 This important point was emphasized in Simon, H. A., (1997). Administrative Behavior (4th ed.). New York: Free Press. Simon received the Nobel Prize for this research. 4 These important practices are reviewed in detail in their award-winning book. See Kouzes, J. M., & Posner, B.Z., (2017). The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations (6th ed.). San Francisco, CA: Jossey-Bass.

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5 The relationship between commitment, trust, and leadership is the focus of Hayes, L., Caldwell, C., Licona, B. and Meyer, T. E., (2015). “Follower Behaviors and Barriers to Wealth Creation.” Journal of Management Development, Vol. 34, Iss. 3, pp. 270-285. 6 These insights come from an interview with Wilfred Drath in Volckmann, R., (2014). “Bill Drath on Leadership and Making Meaning in a Community of Practice.” Integral Leadership Review, Vol. 14, Iss. 3, pp. 40-50. 7 This quoted phrasing comes from Smircich, L. & Morgan, G., (1982) op. cit., page 258. 8 Ibid. 9 The surrender of the right to define reality and the cooperation implicit in following a leader’s definition of what that reality means were described by Barnard, C. I., (1938). The Functions of the Executive. Cambridge, MA: Harvard College in his description of the nature of authority. He emphasized that leadership is not demanded, based upon position, but is agreed to by those who acquiesce to the leader’s guidance and his or her definition of reality. 10 Smircich, L. & Morgan, G., (1982) op.cit. 11 This stewardship responsibility of leaders is the focus of Block, P., (2013). Stewardship: Choosing Service Over Self-Interest. San Francisco, CA: JosseyBass. 12 This moral obligation to followers is part of the definition of leadership of DePree, M., (2004), Leadership is an Art. New York: Crown Publishing, page 11. 13 This powerful insight about creating new meanings and searching for truths has been addressed by numerous scholars. See, for example, Christensen, C. M., (2016). The Innovator’s Dilemma. When New Technologies Cause Great Firms to Fail. Boston, MA: Harvard Business Review Press. 14 This relationship between leaders and those whom they lead is explained in Caldwell, C., and Hasan, Z. (2016), “The Covenantal Leader – Honoring Implicit Relationships with Employees.” Graziani Business Review, Vol. 19, Iss. 2 and available online at http://gbr.pepperdine.edu/2016/10/the-covenantal-leader. 15 This insight about the nature of creativity comes from Csikszentmihalyi, M., (2013). Creativity: Flow and the Psychology of Discovery and Innovation. New York: HarperCollins. 16 This definition of utility comes from Runco, M. A. & Jaeger, G. J., (2012). “The Standard Definition of Creativity.” Creativity Research Journal, Vol. 24, Iss. 1, pp. 92-96. 17 This point is a key theme of Gumusluoglu, L. & Ilseve A., (2009). “Transformational Leadership, Creativity, and Organizational Innovation.” Journal of Business Research, Vol. 62, Iss., pp. 461-473. 18 The factors of a culture that stimulate creativity are identified on page 64 of Martins, E. C. & Terblanche, F., (2003). “Building Organizational Culture that Stimulates Creativity and Innovation.” European Journal of Innovation Management, Vol. 6, Iss 1, pp. 64-74, 19 Elements of organizational culture and the importance of the application of leadership intent to create this alignment are emphasized in Schein, E. H. &

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Schein, P. (2016). Organizational Culture and Leadership (5th ed.). San Francisco, CA: Jossey-Bass. 20 The importance of constant learning and an explanation of creativity and the learning process are key themes of Senge, P., (2006). The Fifth Discipline: The Art & Practice of the Learning Organization. New York: Doubleday. 21 Christensen, C. M., (2015), op. cit. 22 These powerful contributions to meaning are identified in Csikszentmihalyi, M., (2013), op. cit. 23 This broader definition of innovation is identified by Christensen, C. M., (2016), op. cit. 24 This reality is a primary message of Friedman, T. L. (2007). The World is Flat 3.0. New York: Picador Press. 25 Once again, this description of disruptive innovation comes from Christensen, C.M. (2016), op. cit. who is widely recognized as the leading academic authority in this field. 26 Ibid. 27 The nature of competitive advantage and innovation is described in detail in Anderson, V., and Caldwell, C., (2017). “Competitive Advantage and the Elusiveness of Sustainability” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp.183-192, 28 Ibid. 29 The dynamic differences between incremental improvement and a reengineered paradigm are clearly identified in Hammer, M. & Champy, J. (2006). Reengineering the Corporation: A Manifesto for Business Revolution. New York: HarperCollins. 30 This point is clearly made in Anderson, V., and Caldwell, C., (2017). “Strategy, Competitive Advantage, and Performance” in Competitive Advantage: Strategies, Management, and Performance, (C. Caldwell & V. Anderson, eds.). Hauppage, New York: NOVA Publishing, pp. 1-12. 31 Christensen, C. M., (2016), op. cit. emphasizes this redefining process. 32 Caldwell, C, Beverage, M., and Converse, P., (2018). “Selecting for Flair Factors: Improving the Selection Process.” Business and Management Research, Vol 7, No. 1, pp. 1- 9 and available online at http://www.sciedupress.com/journal/index.php/bmr/article/view/12892/7975. 33 This redefining of reality is the message of Friedman, T. L, (2007), op. cit. 34 The reality of this new requirement to constantly improve and to become world class is the fundamental message of Collins, J., (2001). Good to Great: Why Some Companies Make the Leap . . . And Others Don’t. New York: HarperCollins and Collins, J. & Hansen, M., (2011). Great by Choice: Uncertainty, Chaos, and Luck—Why Some Thrive Despite Them All. New York: Harper Business. 35 Christ’s message about forgiving others as a condition for receiving forgiveness from God is found at Matthew 6: 14-15. 36 This declaration of Christ’s role is found in John 14:6. 37 This text is found in John 8:12.

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38

Christ’s declaration about his mission and teachings is found in John 8: 31-32. Christ gave the eleven apostles this charge, as recorded in March 16: 15 after his resurrection. 40 This point of alignment and its importance for leaders is identified by Schein, E. H. & Schein, P., (2016), op. cit. 41 The harmony between words and actions is the essence of trustworthiness and is repeatedly cited in Covey, S. R., (2004), op. cit. and in many other sources. 39