The Role of Responsible Leadership in Creating a Risk Culture that Promotes Sustainable Innovation in Business
Keywords:
business sustainability, risk culture, responsible leadership, sustainable innovation
Abstract
The purpose of this study is to show that responsible leaders are those who are risk takers and develop a risk culture that encourages sustainable innovation. Through a review of literature, it was revealed that research on sustainable development seems to have underestimated the role of responsible leadership in embedding a risk culture that underpins sustainable innovation. Therefore, this study through a critical approach, discusses the strategic imperative of a risk culture that encourages sustainable innovation in organisations and how a responsible leader can instil such culture. The study further proposes four (4) set of actions through which responsible leaders can establish and maintain a risk culture that promotes sustainable innovation; this is relevant to both decision makers and practitioners.
References
Ahmed, P. (1998). Culture and Climate for Innovation. European Journal of Innovation Management, 1(1), 30-43.
Ashby, S., Bryce, C., & Ring, P. (2018). Risk and the Strategic Role of Leadership. London: The Association of Chartered Certified Accountants.
Baumgartner, R. J. (2009). Organizational Culture and Leadership: Preconditions for the Development of a Sustainable Corporation. Sustainable Development, 17, 102–113.
Bertels, S., Papania, L., & Papania, D. (2010). Embedding Sustainability in Organizational Culture (pp. 1–74). pp. 1–74. Ontario: Network for Business Sustaiinability, Simon Fraser University.
Boons, F., & Lüdeke-Freund, F. (2013). Business Models for Sustainable Innovation: State-of-the-Art and Steps Towards a Research Agenda. Journal of Cleaner Production, 45, 9–19.
Brands, R. F., & Kleinman, M. J. (2010). Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival. John Wiley & Sons.
Brennan, L., & Binney, W. (2010). Fear, guilt and shame appeals in social marketing. Journal of Business Research, 63(2), 140-146
Collinson, V. (2008). Leading by learning: new directions in the twenty‐first century. Journal of Educational Administration, 46(4), 443-460.
De Bettignies, H. (2014). The five dimensions of responsible leadership. Asian Business. Retrieved from https://knowledge.insead.edu/responsibility/the-five-dimensions-of-responsibleleadership3685#ULI2fzPzlfdWHwB8.99
Deloitte. (2016). The Way to Risk Culture. London: Deloitte & Touche CIS.
Dholakia, U. M., Kahn, B. E., Reeves, R., Rindfleisch, A., Stewart, D., & Taylor, E. (2010). Consumer behavior in a multichannel, multimedia retailing environment. Journal of Interactive Marketing, 24(2), 86-95.
Drewell, M. (2012). A new narrative and globally responsible leadership. Journal of Global Responsibility, 3(1), 10-18.
Galpin, T., Whitttington, L., & Bell, G. (2015). Is your Sustainability Strategy Sustainable? Creating a Culture of Sustainability. Corporate Governance, 15(1), 1–17.
Gandz, J., & Seijts, G. (2013). Leadership and Risk Culture. Retrieved from https://iveybusinessjournal.com/publication/leadership-and-risk-culture/
Gorzeń-Mitka, I. (2015). Management Challenges in the Context of Risk Culture. Problems of Management in the 21st Century, 10(2), 60–61.
Hillson, D. (2013). The A-B-C of Risk Culture: How to be Risk-mature. PMI Global Congress 2013. North America, New Orleans, LA. Newtown Square, PA: Project Management Institute.
IRM (Institute of Risk Management). (2012). Risk Culture, Resources for Practitioners. London: IRM amd Protiviti.
Khaola, P., & Coldwell, D. (2019). Explaining how leadership and justice influence employee innovative behaviours, European Journal of Innovation Management, 22(1), 193-212.
KPMG. (2011). 20 Issues on Building a Sustainable Business. Sydney: Institute of Chartered Accountants in Australia and KPMG.
Lv, W. D., Tian, D., Wei, Y., & Xi, R. X. (2018). Innovation Resilience: A New Approach for Managing Uncertainties Concerned with Sustainable Innovation. Sustainability, 10, 1–25.
Muller. (2016). “We Didn’t Lie,” Volkswagen CEO Says of Emissions Scandal. Retrieved from https://www.npr.org/sections/thetwo-way/2016/01/11/462682378/we-didnt-lie-volkswagen-ceosays-of-emissions-scandal
Naranjo-Valencia, J., Jimenez, Jimenez, D., & Sans-Valle R. (2011). Innovation or Imitation? The role of Organizational Culture. Management Decision, 49(1), 55-72.
Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Prahalad and Ramaswamy. Havard Business Review, (September), 57–64.
Paraschiv, D. M., Nemoianu, E. L., Langă, C. A., & Szabó, T. (2012). Eco-innovation, Responsible Leadership and Organizational Change for Corporate Sustainability. Amfiteatru Economic Journal, 14(32), 404–419.
Pless, N. (2007). Understanding Responsible Leadership: Role Identity and Motivational Drivers. Journal of Business Ethics, 74, 437–456.
Schüz, M. (2016). Sustainably Responsible Leadership and Innovation. Proceedings of the 4th International Conference Innovation Management, Entrepreneurship and Corporate Sustainability. Czech Republic: Vysoká škola ekonomická v Praze, Nakladatelství Oeconomica.
Torrance, M. (2016). Sustainability, Risk Culture and the Mining Executive. Canadian Mining Journal, 137(10), 28.
United Nations General Assembly. (1987). Development and International Economic Co-operation: Environment. Report of the World Commission on Environment and Development. New York.
Ashby, S., Bryce, C., & Ring, P. (2018). Risk and the Strategic Role of Leadership. London: The Association of Chartered Certified Accountants.
Baumgartner, R. J. (2009). Organizational Culture and Leadership: Preconditions for the Development of a Sustainable Corporation. Sustainable Development, 17, 102–113.
Bertels, S., Papania, L., & Papania, D. (2010). Embedding Sustainability in Organizational Culture (pp. 1–74). pp. 1–74. Ontario: Network for Business Sustaiinability, Simon Fraser University.
Boons, F., & Lüdeke-Freund, F. (2013). Business Models for Sustainable Innovation: State-of-the-Art and Steps Towards a Research Agenda. Journal of Cleaner Production, 45, 9–19.
Brands, R. F., & Kleinman, M. J. (2010). Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival. John Wiley & Sons.
Brennan, L., & Binney, W. (2010). Fear, guilt and shame appeals in social marketing. Journal of Business Research, 63(2), 140-146
Collinson, V. (2008). Leading by learning: new directions in the twenty‐first century. Journal of Educational Administration, 46(4), 443-460.
De Bettignies, H. (2014). The five dimensions of responsible leadership. Asian Business. Retrieved from https://knowledge.insead.edu/responsibility/the-five-dimensions-of-responsibleleadership3685#ULI2fzPzlfdWHwB8.99
Deloitte. (2016). The Way to Risk Culture. London: Deloitte & Touche CIS.
Dholakia, U. M., Kahn, B. E., Reeves, R., Rindfleisch, A., Stewart, D., & Taylor, E. (2010). Consumer behavior in a multichannel, multimedia retailing environment. Journal of Interactive Marketing, 24(2), 86-95.
Drewell, M. (2012). A new narrative and globally responsible leadership. Journal of Global Responsibility, 3(1), 10-18.
Galpin, T., Whitttington, L., & Bell, G. (2015). Is your Sustainability Strategy Sustainable? Creating a Culture of Sustainability. Corporate Governance, 15(1), 1–17.
Gandz, J., & Seijts, G. (2013). Leadership and Risk Culture. Retrieved from https://iveybusinessjournal.com/publication/leadership-and-risk-culture/
Gorzeń-Mitka, I. (2015). Management Challenges in the Context of Risk Culture. Problems of Management in the 21st Century, 10(2), 60–61.
Hillson, D. (2013). The A-B-C of Risk Culture: How to be Risk-mature. PMI Global Congress 2013. North America, New Orleans, LA. Newtown Square, PA: Project Management Institute.
IRM (Institute of Risk Management). (2012). Risk Culture, Resources for Practitioners. London: IRM amd Protiviti.
Khaola, P., & Coldwell, D. (2019). Explaining how leadership and justice influence employee innovative behaviours, European Journal of Innovation Management, 22(1), 193-212.
KPMG. (2011). 20 Issues on Building a Sustainable Business. Sydney: Institute of Chartered Accountants in Australia and KPMG.
Lv, W. D., Tian, D., Wei, Y., & Xi, R. X. (2018). Innovation Resilience: A New Approach for Managing Uncertainties Concerned with Sustainable Innovation. Sustainability, 10, 1–25.
Muller. (2016). “We Didn’t Lie,” Volkswagen CEO Says of Emissions Scandal. Retrieved from https://www.npr.org/sections/thetwo-way/2016/01/11/462682378/we-didnt-lie-volkswagen-ceosays-of-emissions-scandal
Naranjo-Valencia, J., Jimenez, Jimenez, D., & Sans-Valle R. (2011). Innovation or Imitation? The role of Organizational Culture. Management Decision, 49(1), 55-72.
Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Prahalad and Ramaswamy. Havard Business Review, (September), 57–64.
Paraschiv, D. M., Nemoianu, E. L., Langă, C. A., & Szabó, T. (2012). Eco-innovation, Responsible Leadership and Organizational Change for Corporate Sustainability. Amfiteatru Economic Journal, 14(32), 404–419.
Pless, N. (2007). Understanding Responsible Leadership: Role Identity and Motivational Drivers. Journal of Business Ethics, 74, 437–456.
Schüz, M. (2016). Sustainably Responsible Leadership and Innovation. Proceedings of the 4th International Conference Innovation Management, Entrepreneurship and Corporate Sustainability. Czech Republic: Vysoká škola ekonomická v Praze, Nakladatelství Oeconomica.
Torrance, M. (2016). Sustainability, Risk Culture and the Mining Executive. Canadian Mining Journal, 137(10), 28.
United Nations General Assembly. (1987). Development and International Economic Co-operation: Environment. Report of the World Commission on Environment and Development. New York.
Published
2019-12-30
Issue
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright for this article is retained by the author(s), with first publication rights granted to the journal.
This is an open-access article distributed under the terms and conditions of the Creative Commons Attribution license (http://creativecommons.org/licenses/by/4.0/).
