Ethical Concerns in Emergent Leadership for Crowdfunding


EthicalConcerns in Emergent Leadership for Crowdfunding

EthicalConcerns in Emergent Leadership for Crowdfunding

Crowdfundingfield has emerged and gained acceptance across the world. Bothnon-profit and for-profit organizations are utilizing the concept tofundraise for various reasons. The concept demands trust, confidence,and appropriate stewardship to enhance the attainment of positiveoutcomes. It is noteworthy that the stakeholders operate in virtualplaces that require prompt management and guidance from the leaders.Emergent leadership has surfaced as an appropriate management stylefor crowdfunding in a global community. The virtual team is built ontrust hence, must adopt good and ethical characters. The paper seeksto examine the moral concerns for research on emergent leadershipstyle used for crowdfunding in a global community with self-managedvirtual teams. The management of virtual teams in global environmentis not easy due to diverse characteristics evident among the members.

Accordingto Metcalf and Benn (2013), emergent leadership is where a leader isnot elected to the position but develops with time after interactionother colleagues and work climate. In the current businessenvironment, companies are focusing on developing leaders internallyas opposed to hiring individuals who have served in senior positions.Unfortunately, there emerges ethical concerns in emergent leadershipwhen crowdfunding in a global community. It is recognized that theleaders and stakeholders involved in the exercise need to engage inappropriate strategies to eliminate the ethical concerns. Doing sowill help in the proper management and guidance of the virtual teamshence, the achievement of positive business outcomes. Effectiveemergent leadership for crowdfunding requires the leaders to buildtrust, confidence, and stewardship to assist in reducing the adverseeffects brought by ethical concerns in managing a virtual team in aglobal environment.


Accordingto Gini and Green (2013), leadership revolves around myriad conceptsdue to differences in location, dynamics, goals, problems, andparties, among others. As such, the authors recognize that anyleadership style should mirror the work climate, virtues, andobjectives within a particular grouping. Within any social setting,leadership appears to be rooted in our conviction that forms thebasis for our thinking and actions. Leadership is said to be acquirednaturally and through learning in the course of life. There is anelement of ethical leadership that details crucial ingredients suchas experience, stewardship, and character that influence theoutcomes. The character of a leader is important in generating theright channels of attaining the best results from crowdfunding.Managing a virtual team is not easy due to the ethical concerns suchas difficulties in trust and confidence.

Avolio,Sosik, Kahai, and Baker (2014) notes that the advancement intechnology has contributed to the need to develop e-leadership stylein line with the changing global dynamics. Leadership in a virtualenvironment requires a method that is based on trust and confidencefor teams from diverse setting. Technology resources such as theInternet enable humans to communicate through e-mail and videoconferencing irrespective of time and space. The resources requirebusiness operators, companies, and leaders to organize their workwith a large consideration to the changing dynamics. Technologicaladvancement has also contributed to changes in people’s outlooktowards leadership and business functions. In particular,e-leadership is based on the capacity of a leader to commandstewardship of virtual teams that are not automatically known to theleader. It is necessary for a principal to develop attributes thatwill contribute to the accomplishment of positive outcomes (Avolio,Sosik, Kahai, &amp Baker, 2014). Nonetheless, e-leadershipundermines the conventional style where physical presence wasnecessary to help in understanding the attitudes and thoughts of anindividual.

Effectivevirtual leaders are supposed to comprehend that they are expected toserve hence, the need to adopt servant type of leadership. Emergentstyle in direction can be likened to the expectation of a leader. Assuch, the managers stress the need to build the legitimacy of theperson in charge through sincere relationships. Such a leader valuesthe input of his/her followers and is mainly built on ethical values(Avolio, Sosik, Kahai, &amp Baker, 2014). Besides, it is appropriatefor the leaders working with virtual teams to be trustworthy andpromote openness when attending to their tasks. However, it is noteasy to achieve trust from the followers since the majority have notyet met while others have diverse characteristics. There is concernamong teams, whereby, the existing diversity leads to differences inopinions and management values. Besides, the follow-up procedureafter the success of a crowdfunding exercise may not be implementedin a similar manner. When crowdfunding in a global environment, it isappropriate for the managers and teams to develop a close workingrelationship and build trust as well as confidence.

Accordingto Last (2016), there is a likelihood of intense labor disruption dueto advancement in technology that has brought along multiple conceptssuch as robotics and artificial intelligence. As such, the trend willresult in reorganization of companies and leadership. The trend maydeny qualified people a chance to exercise the skills and knowledgein meaningful socio-economic activities. Further, disruption of humancapital will contribute to re-training of potential candidates tomirror the changing dynamics in the world. The market needs toprepare appropriately to handle the changes without affecting othersectors negatively. The issue is not any different when crowdfundingin a global environment. It is likely the virtual team is reorganizedin a way that suits the goals, which eventually contributes towardslabor disruption. Sometimes, getting the right leader when using theemergent style is difficult since the business operators need toobserve the right person carefully over a length of time (Last,2016).

Further,within a virtual setting, there exist various partners and groupingsthat require being led to achieving their objectives. Emergentleadership takes a different perspective that needs the leaders tounderstand the challenges facing a virtual setting. It does notrequire the leaders to have a great interest in power. However, it isa problem when leading a virtual team when one has no authority toact on members who derail the attainment of positive goals.Misunderstandings among the members due to language barriers, goals,and opinions also generate ethical concerns in new leadership (Gini &ampGreen, 2013). Imagine working virtually in a team where none of themembers understands the language used by others. It would take timeto learn the ropes before engaging effectively with other members.The leaders need appropriate preparation to generate distinctsolutions from previous skills coupled with an understanding of theneeds of the team members to successfully achieve positive outcomes.Emergent leaders should create a cohesive and confident team aimed atattaining success in their missions.

Leadershipneeds to be viewed in the context of an attitude as opposed to theroutine. Effective leadership should inspire others through humanexperiences as opposed to the organizational structures andprocesses. Stewardship in the administration commits the leaders toobserve the guidelines that drive the business agenda in crowdfundingassignment (Avolio et al., 2014). The leaders need to take everyassignment with similar resilience and diligence. Further, leadersought to manage their resources ethically and efficiently to enhancethe realization of their goals. Often, leaders are made throughtraining and guidance from an experienced person hence, the conceptchallenges the formation of emergent leadership. Even with propertraining, people fail to meet their personal or organizational goalswhen working with a virtual team. As such, one realizes that anindividual’s natural abilities contribute significantly towardsdeveloping his leadership competencies. Bottom line, ethical concernsin emergent leadership when working with a virtual team should notundermine the efforts to achieve positive results when engaging in acrowdfunding assignment (Avolio et al., 2014).


Itis appropriate for the leaders to identify the right approaches toimprove their relations with the followers. Commanding followershipis not easy especially when one has to take risks, especially whenworking with a virtual team. Leaders need to motivate supporters andstakeholders in a crowdfunding assignment to improve the attainmentof positive outcomes. Confidence and faith are essential in enhancingthe effectiveness of the new style of leadership when working with avirtual team. Ethical concerns that arise in emergent leadership whenworking with a virtual may require the leaders and stakeholders towork in close collaboration to reduce incidences of adverse effects.


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