Guest editorial: Why didn’t we change the future yesterday?

Analyzing organizational politics, we understand how ethical leadership can be both a vehicle for transformation and a remedy for leadership failure. Through these lenses, we better understand what holds organizations back and what might drive them forward. In overcoming the present understanding of what makes an organization successful, leaders often face resistance when ethical goals threaten established power dynamics or entrenched interests. The shift toward sustainability requires a shift in how we understand business. The relational business model reframes the organization as a network of mutual responsibilities rather than a profit-maximizing entity. It emphasizes relationships with employees, communities, ecosystems and future generations as fundamental to business success.

However, adopting this model means rethinking traditional success metrics. Short-term profits must give way to long-term value creation. This is difficult in systems where quarterly results and shareholder returns dominate. Without leadership willing to embrace new relational paradigms, responsibility remains an abstract ideal rather than a practical strategy. Ethical leadership is not merely about good intentions. Rather, it involves making difficult decisions, challenging the status quo and maintaining integrity even when it is inconvenient. Unfortunately, political gamesmanship often overshadows these commitments.

Culture profoundly influences ethical leadership. In the MENA region, encompassing diverse economies such as Saudi Arabia, the United Arab Emirates, Egypt, Morocco and Jordan cultural norms in accounting and governance create tensions between global ethical standards and local practices. Ethical leadership must therefore be contextually grounded. Leaders who ignore cultural realities risk alienating stakeholders or fostering superficial change. Conversely, leaders who embrace ethical frameworks that resonate with local values, whether religious, communal or traditional, can inspire more authentic engagement and deeper transformation.

Also, small and medium-sized enterprises (SMEs), especially in transitional economies like Malaysia, face unique challenges in adopting Environmental, Social and Governance (ESG) practices. While large corporations may have the resources and visibility to implement ESG initiatives, SMEs often lack access to capital, expertise and support. The research on ESG adoption among Malaysian MSMEs highlights how ethical leadership is critical in overcoming these barriers. When leaders are genuinely committed to sustainability, they find creative ways to align business goals with ESG principles, even with limited resources. Conversely, when ESG is adopted superficially, due to regulation or pressure, it lacks transformative power.

Culture must not be used as a justification for inaction; rather, it should be regarded as a foundational framework that shapes the pathways through which transformation toward a sustainable future becomes possible.

In “I am, I can, I ought, I will,” the author highlights how ethical leadership begins with the self. Responsible leadership requires inner development—courage, moral clarity, humility—not just technical skills. Failures of leadership often arise not from a lack of knowledge, but from a lack of ethical character or will. Yet leadership development programs rarely focus on virtue or moral reasoning. They prioritize efficiency, performance and innovation while neglecting the ethical dimension of influence. As a result, leaders may intellectually understand what is right but lack the emotional and moral depth to act on it under pressure. Transforming organizations thus demands investing in the ethical formation of leaders. Organizational resilience, the ability to adapt and thrive amid disruption, is linked to ethical leadership. The ethical climate of an organization mediates how leadership influences employee behavior, especially during crises or change. When ethical norms are clear and consistently modeled, employees are more likely to act with integrity, remain committed and innovate responsibly.

Leaders who invest in building an ethical climate not only improve performance but also prepare their organizations for future shocks. As the paper on ethical leadership and resilience argues, values like transparency, fairness and care form the bedrock of enduring institutions.

When leaders model green values authentically, employees are more likely to feel connected to those values and adopt them. Authenticity and consistency matter more than slogans or policy documents. Employees need to believe that their leaders care about sustainability, not just as a business strategy, but as a shared value and moral obligation.

We did not change the future yesterday because change demands more than awareness. It requires courageous, ethical and relational leadership. It requires cultures that support reflection, systems that reward long-term thinking and leaders who embody the values they espouse. Both public institutions and private firms must confront the political, structural and cultural inertia that undermines transformation.

The call for papers rightly points out that we must learn from previous leadership failures to shape better theories and practices. Ethical leadership is not a luxury; it is the foundation for a future that prioritizes justice, sustainability and human dignity. It is not too late, but the time to act is now.