Abstract
This study examines the mediation effect of managers’ ethical behaviour and organizational change on the leadership dimensions that influence sustainability leadership among Sri Lankan managers. Manager’s attitudes to organizational change and their ethical behaviour are identified as essential dimensions to achieve sustainable leadership in the business world. While much of the literature underlines the direct relationship between organizational leadership and either organizational change or manager’s ethical behaviour, only a few studies focus on the mediating effect of the manager’s ethical behaviour and organizational change leadership on perceptions of creating a sustainable organization. Sri Lanka is identified as a developing country with strong socio-cultural values that promote sustainability. Understanding what constitutes sustainability leadership in a developing country such as Sri Lanka is worth examining. The responses of 596 managers were analyzed using factor analysis and structural equation modeling. The findings confirm that stakeholder relations are the most influential dimension for creating sustainability leadership. Mediation analysis tests confirmed that the two mediators of managers’ ethical behaviour and change leadership fully mediate the relationships between employee engagement and leaders’ concern for social and environmental sustainability, which concern was identified as the weakest of the three leadership dimensions suggesting that long-term orientation has not much potential for creating sustainability leadership among Sri Lankan managers.
Highlights
Sustainability issues are common to all countries regardless of their level of economic, social and environmental development (UN, 2015)
Mediation analysis tests confirmed that the two mediators of managers’ ethical behaviour and change leadership fully mediate the relationships between employee engagement and leaders’ concern for social and environmental sustainability, which concern was identified as the weakest of the three leadership dimensions suggesting that long-term orientation has not much potential for creating sustainability leadership among Sri Lankan managers
This study aimed to examine the mediation effect of managers’ change-related attitudes and ethical behaviour on creating sustainability leadership in Sri Lankan organizations
Summary
Sustainability issues are common to all countries regardless of their level of economic, social and environmental development (UN, 2015). Managers need outstanding leadership skills to address issues surrounding organizational sustainability so as to minimize the negative impacts on the triple bottom line (Metcalf & Benn, 2013) Researchers and practitioners such as Avery and Bergsteiner, (2010, 2011); Dunphy and Benn, (2013) and Parkin, (2010) point out that strong leadership that perceives sustainability matters create sustainability in organizations. Leadership scholars argue that leadership theories such as charismatic leadership, transformational leadership, ethical leadership, spiritual leadership, responsible leadership, servant leadership and environmental leadership contribute to organizational sustainability and even help organizations to gain competitive advantage in the industry (Avery & Bergsteiner, 2010, 2011) Those organizations that disregard sustainability have faced corporate scandals and even bankruptcy
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