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Sustainable Business

Sustainable Business

Theory and Practice of Business under Sustainability Principles

Edited by Geoffrey Wells

Recent surveys of international CEOs confirm that companies increasingly see sustainability as critical to their business strategy. The rigorous academic framework for the field of sustainable business required to respond to this need is now emerging. This book presents important new work in the theory of the sustainable firm, in the application of sustainability principles to key management disciplines, in sustainable business in practice, and in the international challenges that are critical to sustainability demands.

Chapter 8: Examining the influence of common core virtues in leader- member exchange (LMX): connecting virtue- based leadership traits to sustainable performance in a moderated mediation model

Erich C. Fein and Aharon Tziner

Subjects: business and management, corporate social responsibility, strategic management, economics and finance, environmental economics, environment, corporate social responsibility, environmental economics


In recent years the number of sustainability related publications in top management journals has increased rapidly, with over 100 articles appearing in the major journals of the Academy of Management on sustainability or sustainability related concepts since 2005. In the majority of these articles, sustainability takes on a social as well as environmental dimension. In accord with the growing recognition that social sustainability is an important complement to environmental and economic sustainability, we focus on social sustainability as related to the quality of relationships within firms. In this chapter we argue that one core mechanism of the sustainability of social systems within firms is based in the reciprocal influence processes within Leader-Member Exchange (LMX). We build on an established core of research that explains how LMX relationships help to produce higher individual performance, which in turn helps drive the economic sustainability of organizations (Gerstner and Day, 1997; Kamder and Van Dyne, 2007; Liden et al., 1997; Sparrowe et al., 2006). However the unique contribution of this chapter is to highlight the under-studied role of individual virtues as moderators in driving sustainable performance and to do so in the context of a moderated mediation model.

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