LEADERSHIP AND RESPONSIBLE INVESTMENT: A REVIEW OF LITERATURE TOWARDS A NEW MODEL FOR AFRICA

ABSTRACT This paper provides the literature review of leaders’ role in promoting responsible investment by considering the moderating effects of important individual, organizational, and institutional variables.... [ view full abstract ]

ABSTRACT

This paper provides the literature review of leaders’ role in promoting responsible investment by considering the moderating effects of important individual, organizational, and institutional variables. Specifically, the paper explores that the relationship between leaders' role and responsible investment is positively moderated by a leader having an attributes of charismatic, socially oriented, ethical, responsive to stakeholder’s requests and having strong integrity. However narcissistic and dysfunctional trait have a negative moderating effect. Leaders performing in developed countries are also believed to promote responsible investment easily than the leaders performing in developing countries. On the other hand, government owned and socially oriented businesses will  moderate the relationship between leaders’ role and responsible investment more positively than privately owned and profit oriented businesses.The proposed model suggests that the above effects will eventually lead to better long term corporate financial performance. 

KEY WORDS: leadership, responsible investment, stakeholder's theory, upper echelon theory, resource based theory.