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Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance

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  • Min-Seong Kim

    (Department of Tourism, Recreation & Sport Management, University of Florida, Gainesville, FL 32611-8208, USA)

  • Brijesh Thapa

    (Department of Tourism, Recreation & Sport Management, University of Florida, Gainesville, FL 32611-8208, USA)

Abstract

Corporate social responsibility (CSR) has become a major part of the foodservice industry due to external forces which encourage enterprises’ responsiveness. In reality, consumers’ social concern influences their attitudes towards foodservice firms’ socially responsible practices and purchase decisions, thereby influencing senior management to react. Considering this issue, this study examines the impact of senior management’s ethical leadership in evaluating operational, commercial, and economic performances along with the mediating role of CSR in the foodservice industry. A conceptual model was formulated and empirically tested based on responses from 196 foodservice franchise firms in South Korea. The results indicated ethical leadership significantly influenced CSR and operational performance, while CSR also had a positive effect on operational and commercial performances. Additionally, operational performance had a significantly positive influence on commercial performance, which subsequently enhanced economic performance. Overall, the findings highlight the role that ethical leadership exhibited by senior management of foodservice franchises influenced initiation of CSR activities, which provide implications for research and industry practice and is outlined.

Suggested Citation

  • Min-Seong Kim & Brijesh Thapa, 2018. "Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:447-:d:130900
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    20. Zhongju Liao & Manting Zhang, 2020. "The influence of responsible leadership on environmental innovation and environmental performance: The moderating role of managerial discretion," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2016-2027, September.
    21. Afriyadi Cahyadi & József Poór & Katalin Szabó, 2022. "Pursuing Consultant Performance: The Roles of Sustainable Leadership Styles, Sustainable Human Resource Management Practices, and Consultant Job Satisfaction," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
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    23. Byung-Jik Kim & Mohammad Nurunnabi & Tae-Hyun Kim & Taejoong Kim, 2018. "Doing Good Is Not Enough, You Should Have Been Authentic: Organizational Identification, Authentic Leadership and CSR," Sustainability, MDPI, vol. 10(6), pages 1-16, June.

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