Implications for society
Members of society are linked to organizations in significant ways as customers,
employees, suppliers, and shareholders. Organizations are not inherently good or bad,
but they reflect the values and behaviors of the people who lead them and who work
for them (Grojean et al., 2004). Most people prefer to work for organizations that are
socially responsible and have ethical leaders. Our research suggests that organizations
led by ethical and empowering leaders are more likely to maintain positive
relationships with employees and in return may benefit from their trust and loyalty.
Such relationships may also help organizations in attracting the best and the brightest
employees and facilitating lasting relationships with external stakeholders. Finally,
leaders who encourage ethical and empowering practices may benefit society by
developing organizations that are more socially responsible (Carlson and Perrewe,
1995).