The Relationship Between Leadership, Ethical Stewardship and Trustworthiness in Corporate Organizations

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The problem to be investigated is the relationship between leadership, ethical stewardship and trustworthiness in corporate organizations. The relationship of the three elements is based on the culture of the organization. Since global market is very competitive, organizations depend on employees’ creativity, commitment and ability to make advancement (Caldwell, Hayes & Long, 2010). According to Caldwell, Hayes & Long (2010), “the importance of understanding the relationships between leadership behavior, perceptions about leader’s trustworthiness, and the ethical duties implicit in the psychological contract have become increasingly important”. The relationship is related to the needs of stakeholders and the ability to expect peculiar things from the organization so that they can maintain a trustful relationship in the organization (Castaldo, 2007, p. 57). In this situation, the leadership of a company needs to ensure that the organization develops an organizational culture that uses ethical stewardship to develop a sense of corporate trustworthiness among its various stakeholders so that it can enhance its sustainability in a highly competitive market (Sebastian, 2011). In this investigation, a research was done regarding the relationship between leadership, ethical stewardship and trustworthiness in corporate organizations and the issues related to the relationship if the business is totally invaded by an information system. A number of researchers support the theoretical concept of trustworthiness in corporate relationships in different ways. Individuals such as Covey and Paine suggest that a long-term trustworthiness is essential to establish a sustainable organization (Coldwell, Hayes & Long, 2010). A foundational basis social relationship will initiate interactions between persons quickly. Because, each person understand what they can provide to others and

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