Shame as a leadership virtue: theoretical and practical grounds

Abstract

Purpose: Scandals around world famous companies as well as local business practices question the abilities of some business leaders to critically evaluate own moral judgements and be aware of the results of own moral choices. This research paper argues that although the external mechanisms of ethical regulations dictated by compliance to law, fashion for CSR (Corporate Social Responsibility), ‘other’ marketing good-image activities are to a some degree shifting leadership decisions towards enhancement of the ethicality of business, without internal regulation such as shame, they are not emphasising enough the value of personal choice and moral maturity. The rationale of this research paper is highlighting the meaning of shame to ethical leadership, specifically in Latvian business context.

Design/methodology/approach The research investigates the social representations of the word “shame” in understanding the phenomena of ethical leadership among employees of banking and gambling sectors in Latvia. These sectors were chosen due to their ambiguous relation in regards to societal ethicality. Associations of the word shame and those connected to shame in leadership were analysed on the sample of 200 employees in both industries.

Findings The paper prepares theoretical platform for discussing shame as leadership category, and the study reveals in the minds of Latvian employees the concept of shame as referred to leadership reminds of ‘responsibility’ and of ‘a lost value’.

Research limitations/implications the study was conducted in Latvian business context, and a cross-cultural study would make a more rigorous look at the phenomena of shame as referred to leadership. The sample consisted of just 200 employees, a bigger survey would be needed for generalisation of the results.

Practical and social implications The paper argues that shame should become an operational category for the business, and take its part among the virtues of leadership. This can raise the question of raising such quality for the leaders of tomorrow, in its “healthy dosage”. Previous studies demonstrate this would benefit the society and increase the social responsibility and moral awareness of the companies.

Originality/value Shame as an important internal mechanism of self-regulation (Nebylitzyn, 1991, Freud, 1937) has not been in the scope of scholars’ attention in the field of management and ethical leadership; negative connotations of this word might be a reason for it. Here the rationale for highlighting the meaning of shame to ethical leadership specifically in Latvian business context is addressed. This study contributes to our understanding about how shameful business leadership practices can be reduced. Additionally, some problems in these regards are observed.