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In this part we focus on the structures, systems, and processes that support and encourage the development of leaders in the organization. David Day introduces the theme, exploring the social architecture most conducive to the development of leadership throughout the organization and the role strategic leaders need to play to create such architecture. The next two chapters show how two large organizations have gone about changing their social architecture in order to develop both a broader and a more engaged leadership cadre. Ellen Van Velsor and Patricia O’Connor show how a large US service organization has started to change its social architecture by creatively combining empowerment, learning and performance orientations. Paul Broeckx and Robert Hooijberg show how Nestlé, the Swiss-based global fast-moving consumer goods company, has started to replace the most limiting aspects of the traditional hierarchy to more fully engage the full human capacity of its workforce.

The purpose of this Guest editorial is to introduce a much needed special issue on leadership and sustainability/CSR, and to provide a road‐map for readers as to focus and content. And, last but not least, it seeks to present an opportunity for the Guest editor to thank the many kind people who gave of their time to review the many papers submitted for this special issue. If it were not for their help and wisdom, the project would not have been possible.

The Guest editorial begins by reviewing some of the key issues facing leaders in organizations operating in a context of both serious global social problems and looming environmental crises.

It was found that, while books and articles focusing on CSR abound, there is very little that addresses the leadership aspect, and even less that is based on sound empirical research.

The introduction provides a brief overview of the articles contained in the special issue and a summary of what each contributes to the field.

This paper aims to argues that effective and well‐designed leadership development can help successful managers stay on the right path, in terms of ethical behaviour. In addition to reviewing key research findings on the factors that lead to success and derailment in European organisations, the paper discusses key aspects and outcomes of well‐designed leadership development initiatives and how those relate to the ethical issues and problems posed as “successful” managers move into more senior levels with the attendant demands and pressures.

The paper involves a qualitative analysis of data on learning and goals set and achieved as part of an international leadership development programme held in Europe. Also included is a summary of previously published research on European success and derailment factors, to provide context for the programme data.

What managers report learning in a leadership development programme, and the goals they set and achieve, are very much in line with theory on avoiding ethical failure in leadership roles. Leadership development supports ethical action by providing participants with opportunities for rich and comprehensive feedback, enhancement of self‐awareness, time to reflect on personal and professional relationships, and improved understanding of the nature of strategic processes.

It was not possible to track actual ethical/unethical behaviour before or after the programme, a significant direction for future research.

Well‐designed leadership development may play a more important role than previously thought in supporting ethical action.

Ethical violations are often committed by people who have a history of good behaviour, but who are generally not well prepared to face complex issues and the increased power and privilege of the upper ranks. There is little known about the relationship between leadership development and ethical action, and this paper presents results that are provocative of what further research along these lines may produce.

The purpose of this paper is to expand the field of sustainability/corporate social responsibility research to include a focus on leadership. It aims to present an exploratory study of senior leaders in organizations formally adopting principles of sustainability and how these leaders enact the tasks of leadership: setting direction, creating alignment, and maintaining commitment within the context of sustainability.

The study uses a qualitative approach, sampling senior executives from organizations formally adopting sustainability practices and using a structured interview to uncover their leadership practices related to sustainability.

Leaders adopting sustainability practices are similar to other “effective” leaders and yet they also have additional capacity and mindset to include a wider expanse of stakeholders and a different mindset as to the purpose of organizations.

Limited sample of senior executives/CEOs, as well as a difficulty in attesting an organization's level of commitment to sustainability; this research links the field of leadership to the field of sustainability and calls for a more in‐depth investigation into the roles leaders and leadership play in the successful implementation of sustainability practices.

Leaders interested in pursuing a sustainability agenda should pay attention to how the concept is framed and introduced into the organization; they should build capacity in their systems (educational, communication, rewards, performance, etc.) and culture to support sustainability, and broad and deep stakeholders engagement is essential for success.

What people learn during a widely used management simulation is considered. The learning data are used to examine the value of behavioural simulation, by comparing what managers report learning to data on behaviours found essential to effectiveness on the job.

This chapter describes an approach to leadership development that focuses on enhancing an organization's capacity for “connected leadership.” The framework is based on the idea that, in the face of complex challenges, three organizational-level leadership tasks must be accomplished: (1) direction must be set not once and for all, but in a way that is recurring and iterative; (2) alignment must be created among aspects of a work flow, among people and groups, and among organizational systems and processes; and (3) commitment must be generated and maintained throughout times of change. We describe four features of our approach and illustrate using examples from an organization in the midst of significant transformation.

The purpose of this paper is to outline how CSR can be effectively implemented and driven through the organisation. The emphasis of the paper is not on CSR definition but on the skills and capabilities needed by individuals and organizations to fully implement CSR application.

As a qualitative study, interview, data feedback, and participant observation were the particular methodologies adopted.

Three stages of CSR implementation and, within those stages, ten leadership skills and capabilities are identified. The nature of their inter‐relationship and how that impacts on application, is discussed and explored. The ten skills and capabilities form a portfolio for individual leaders to consider and indeed develop in their management of CSR. These capabilities are called forth in three logical stages from those required for early decision making to those required for full enactment of CSR, forming a clear model. This model provides a road‐map for leaders to increase their consciousness and their effectiveness in the implementation of true rather than token CSR.

A limitation is the qualitative case‐based method. The learning arising from the study can be pursued and further tested through quantitative survey methods in order to provide for balanced, comparative analysis.

A road‐map to effective CSR application for leaders of organisations is offered. This road‐map can be used to guide current leaders and as a guide to developing future leaders.

Originality is high as no such model of CSR application exists. The value of the paper is to offer a research‐based practical guide to CSR implementation.

The move of organizations towards corporate global responsibility (CGR) is often a major change process that requires leadership throughout the organization. Despite an array of studies on managerial competencies in this area, previous research on leadership for CGR has not studied the actual leadership practices that are employed in a company's journey to CGR. The paper aims to fill this gap and to show how leadership for CGR is enacted by individuals and organizations that are highly successful CGR leaders.

The paper uses a comparative case‐study approach of five multinational companies that are recognized as industry leaders for CGR. A total of 54 semi‐structured interviews with senior managers were complemented by ten focus groups and an examination of company reports, value charters and mission statements. Interviews as the main source of information were double‐coded in a three‐step process with the goal of knowledge development.

The paper identifies eight interrelated categories of leadership practices for global responsibility: developing CGR vision, strategy, and goals; integrating CGR into business decisions and operations; top management role modeling of CGR; engaging across boundaries; employee development and empowerment; systematic communication about CGR; developing accountability for CGR; and visible integrity in management behavior and decision making.

The findings suggest that focusing on these leadership practices helps organizations build a strong leadership culture that is supportive of CGR.

The examination of actual leadership practices on multiple levels complements the existing knowledge on individual management competencies that are useful for driving CGR in organizations.

The purpose of this paper is to compare the stringency of different types of public financing institutions' safeguard mechanisms in the financing of large dams in developing countries. It seeks to do so by examining: the institutional strategies and policies currently in place in a set of key public financing institutions; and project‐level case studies of dams financed by these institutions and the stringency with which existing policies are applied by the key financing institutions. It aims then to cite the key factors determining why the “safeguard‐performance” between these types of financing institutions differs and what the implications are for leaders working to effect improvements in these areas.

The study compares the safeguard mechanisms of two types of financing institutions by applying a set of benchmark criteria to both existing strategy and policy documents and to the actual application of those policies at the project level, through correspondence, interviews, and site visits.

The study argues that leaders may make a difference on improving the sustainability performance gap in the financing of large dams – with more difficulty in those cases where the current gap is mainly to be explained by “systemic” factors; and arguably with more ease in cases where the current gap is caused mostly by other factors.

The study leads to the above findings for the case of public financing institutions and large infrastructure projects (with a focus on dams). To make for greater generalisability of the findings, future research should complement this work by focusing on private financing institutions and on the financing of other types of projects.

Large infrastructure projects have massive social and environmental impacts, and public financial institutions have a large stake in determining the sustainability (or otherwise) of these projects. The paper seeks to help make large infrastructure investments more sustainable by providing guidance to leaders as to where and how sustainability aspects could best be integrated in financing decisions for these projects.

The value added lies in helping leaders define where sustainability efforts in large infrastructure finance are warranted – and where, conversely, they represent largely wasted efforts.

The purpose of this paper is to demonstrate how top managers seek to provide the necessary leadership inside an organisation when sustainability is a primary strategic objective, and the paper seeks to ask to what extent it is possible to influence sustainability at the operational level by contemporary management control systems as it proposes to integrate the perspective of organizational culture.

The paper is based on a single case study of Novo Nordisk A/S.

The paper concludes by asking questions to managerial practice as well as to theory, concerning to what extent sustainability practices are measured by concurrent management control systems, and to what extent organizational culture perspective is a necessary prerequisite to manage and control sustainable leadership practice.

Future research should engage in exploring informal and organizational cultural aspects of how managers control the integration of sustainability into business practice.

The paper is based on a single case study of a company internationally known for its high standards of sustainable leadership practice, and the conclusions therefore provide guidelines for other managers considering ways of integrating sustainability.

The paper brings new attention to the appropriateness of existing management control systems when managers attempt to control sustainability practices and it suggests the importance of organizational culture in an original case study of Novo Nordisk A/S.