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.