Abstract:
Value crisis in corporate world around the globe significantly increased the need to find
new management paradigm to deal with existing ethical dilemma. Study investigates
inherent flaws of the contemporary corporate management in general and value based
corporate management in particular. Study identifies that weaknesses of current corporate
management stem form two main factors first lack of values and ethics and second loss of
leadership integrity. A questionnaire containing 50 items was developed and validated.
Study was carried out by taking a sample of 302 managers from manufacturing and
service sectors of Pakistan. Data was processed and analyzed in SPSS and VPLS. Results
of the study indicate that there is significant and positive relationship among values and
ethics, managerial performance and welfare and protection of all stakeholders of
organization. Findings suggest that management by example is a better management
paradigm to curb many ethical ailments of modern enterprise. The current study
developed ‘Islamic VBM Score’ to assess VBM practices in an organization from Islamic
perspective. Furthermore, results suggest that Islamic leadership tries to take the
organization towards total value based management through ensuring welfare and
protection for all stakeholders of organization including shareholders, employees,
customers and society at large. This study concludes that Islamic leadership in value
based corporate management theory ensures satisfaction of all stakeholders of
organization.
