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Between Trust and CSR: The Role of Leadership

In: Theory and Practice of Corporate Social Responsibility

Author

Listed:
  • E. Isaac Mostovicz

    (Janus Thinking Ltd)

  • Nada K. Kakabadse

    (Northampton Business School, The University of Northampton)

Abstract

The aim of Corporate Social Responsibility (CSR) is to restore one of the most critical resources for businesses’ sustainability: trust. However, the current practice of CSR begs the question whether CSR initiatives restore trust or simply relieve mistrust in the marketplace. Because people do not really understand what trust implies, they often use CSR activities as publicity stunts, trying to please the public. In particular, they perceive trust as a means of supporting organisational activities rather than a goal of its own. Following Rabbi Elchanan Wasserman, we trust those who fully commit to their goals and are ready to take responsibility for all consequences. Trust is a voluntary and altruistic act and independent of society. Trust, ethics and leadership are interlinked. Leadership requires choosing between two good options according to our Theta-Lambda worldview. Thetas are socially-motivated and seek affiliation and security whereas Lambdas are personally-motivated and seek challenge and achievement. Pursuing these worldviews helps us get closer to the ethical truth, and it is this self-investment in pursuing truth which builds trust.A review of various CSR theories shows that organizational CSR seeks a similar outcome, that is to demonstrate the responsibilities which the organisation is ready to assume.

Suggested Citation

  • E. Isaac Mostovicz & Nada K. Kakabadse, 2011. "Between Trust and CSR: The Role of Leadership," Springer Books, in: Samuel O. Idowu & Celine Louche (ed.), Theory and Practice of Corporate Social Responsibility, chapter 0, pages 159-178, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-16461-3_10
    DOI: 10.1007/978-3-642-16461-3_10
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