Responsible Global Leadership in Emerging Markets

Abstract

Abstract Highly publicized scandals and increased stakeholder activism for sustainable development have resulted in calls for more responsible global leadership. At the same time, emerging economies characterized by weak institutions, political instability, and a shaky rule of law have gained in importance for global business. Under the lens of responsible global leadership, we highlight the challenges that global leaders face in addressing the needs of diverse, cross-boundary stakeholders, with a particular focus on Western multinational enterprises (MNEs) doing business in emerging markets. We identify three prototypical approaches that MNEs and their leaders take in responding to calls for responsible global leadership, focusing on the tensions and possible trade-offs between globally integrated and locally adapted approaches. We discuss the implications in view of managerial decision making and behavior and offer recommendations for how organizations may promote responsible global leadership.