Perceived integrity of managers affects employee attitudes. Yet its impact on employee behavior and organizational performance is unknown. Addressing this gap, we examine the effect of perceived integrity in leadership on both subjective firm performance and objective employee productivity. Applying dynamic capabilities theory, we propose that perceived integrity in leadership may not only directly affect the outcome variables but also moderate the effect of the firm’s multiple-strategy implementation on outcome variables. We test the hypotheses using multiple informants from a transitional (...) economy with an ineffective legal and incomplete institutional environment, which could seriously challenge the leader’s commitment to integrity. As hypothesized, perceived integrity is associated with manager’s perception of firm performance directly and objective employee productivity through its moderating role in the firm’s implementation process of dual strategies. The results illustrate that perceived integrity in leadership plays as an important driver for employee productivity in dual-strategy and non-strategy firms. We provide detailed discussions about the integrity challenge and call for additional future research on this topic. (shrink)

Over the past decade, ethical leadership has increasingly become one of the most popular topics in the areas of leadership and business ethics. As a result, there now exists a substantial body of empirical research addressing ethical leadership issues, but the findings reported by this body of research are highly fragmented. The topic has advanced to the stage where a review and synthesis of existing literature can provide great value and help move the scholarly conversation forward. The primary purposes of (...) this article are to review empirical findings from the ethical leadership literature utilizing a framework consisting of the antecedents, mediators, moderators and outcomes of ethical leadership, and suggest a set of interesting research opportunities, thereby facilitating future investigation. We base our synthesis on a review of 62 empirical studies on ethical leadership that were published between 2005 and mid-2015. (shrink)

We propose a three-way interaction model based on substitutes for leadership theory to explore the relationship among ethical leadership, moral personality, and moral ideology on two types of employee voluntary behaviors. Results from a sample of 218 supervisor–subordinate dyads indicate that moral personality attenuates the relationship between ethical leadership and employee voluntary behaviors. Idealism serves as the boundary condition for the moderating effect of moral personality. However, relativism only serves as the boundary condition for the moderating effect of moral personality (...) when predicting workplace deviant behavior. (shrink)

Based on social cognitive theory, this paper explored the cognitive mechanism between ethical leadership and the followers’ extra-role performance. We tested a moderated mediation model in which general self-efficacy mediated the relationship between ethical leadership and the employee extra-role performance, while intrinsic motivation moderated the relationship between ethical leadership and subordinate’s general self-efficacy. Data were collected in two waves from 208 dyads. Results supported the time-lagged effect of ethical leadership on individual extra-role performance and the mediating role of general self-efficacy. (...) Moreover, our findings revealed that intrinsic motivation positively moderated the effect of ethical leadership on general self-efficacy. Furthermore, intrinsic motivation also moderated the indirect effect of ethical leadership on extra-role performance via general self-efficacy. Theoretical and practical implications were further discussed. (shrink)

Despite the proliferation of research on ethical leadership, there remains a limited understanding of how specifically the assumingly moral component of this leadership style affects employee behavior. Taking an identity perspective, we integrate the ethical leadership literature with research on the dynamics of the moral self-concept to posit that ethical leadership will foster a sense of moral identity among employees, which then inspires followers to adopt more ethical actions, such as increased organization citizenship behavior. We further argue that these identity (...) effects should be more pronounced when leaders are perceived to be group prototypical, as their actions then speak louder to followers’ sense of identity. Two studies—a scenario experiment with 138 participants and a field study with 225 employees—provided support for our hypothesized moderated mediation model. Perceived ethical leadership positively affected OCB via followers’ moral identity but only under conditions of high perceived leader group prototypicality. We discuss how the identity pathway of ethical leadership can facilitate novel theorizing about moral transference. Our findings also suggest that, when hiring external ethical leaders or training internal managers, practitioners are well advised to consider that these individuals may only be effective in morally transforming followers when they are perceived as prototypical for the group. (shrink)

It is widely accepted that ethical leadership is beneficial for the organization, the leader, and followers. Yet, little has been said about potential limitations of ethical leadership, particularly boundary conditions involving the same person perceived to display ethical leadership. Drawing on conservation of resources theory, we argue that supervisor-induced hindrance stress and job hindrance stress are factors linked to the supervisor and work environment that may limit the positive impact of ethical leadership on employee deviance and turnover intentions. Specifically, we (...) expect that high levels of hindrance stress drain resources, specifically perceptions of social support, by inhibiting the completion of work, particularly in combination with the high expectations of ethical leaders. We test our model across two time-lagged field studies. Our results demonstrate that supervisor-induced hindrance stress mitigates some of the beneficial impact of ethical leadership and that job hindrance stress further strains these relationships. Overall, our results suggest that both forms of hindrance stress jointly impact the effectiveness of ethical leadership on important outcomes, and do so partly because of their influence on perceived social support. We discuss theoretical contributions to the ethical leadership and stress bodies of literature, as well as practical implications for managers and organizations wishing to develop ethical leaders. (shrink)

The importance of ethical leadership in organizations has been increasingly recognized, especially as a shield against unethical employee behaviors and corporate misconducts. Ethical leadership has been theorized to include two aspects: “moral person” and “moral manager.” This conceptualization resonates well with Chinese teachings of Confucius on leadership and management—namely xiuji and anren. Based on the theoretical framework of ethical leadership, we develop and validate a new ethical leadership measure. Through qualitative studies and five quantitative studies, we establish the reliability and (...) convergent, discriminant, and predictive validities of the ELM in a Chinese context. In addition, using a US sample, we find that the ELM has partial measurement invariance across Chinese and American contexts. (shrink)

A growing body of research suggests that follower perceptions of ethical leadership are associated with beneficial follower outcomes. However, some empirical researchers have found contradictory results. In this study, we use social learning and social exchange theories to test the relationship between ethical leadership and follower work outcomes. Our results suggest that ethical leadership is related positively to numerous follower outcomes such as perceptions of leader interactional fairness and follower ethical behavior. Furthermore, we explore how ethical leadership relates to and (...) is different from other leadership styles such as transformational and transactional leadership. Results suggest that ethical leadership is positively associated with transformational leadership and the contingent reward dimension of transactional leadership. With respect to the moderators, our results show mixed evidence for publication bias. Finally, geographical locations of study samples moderated some of the relationships between ethical leadership and follower outcomes, and employee samples from public sector organizations showed stronger mean corrected correlations for ethical leadership–follower outcome relationships. (shrink)

Ethical leadership has become a thriving research field. However, on reviewing previous research, we argue that several fundamental questions remain unclear and need further investigation. Ethical leaders are defined as behaving ‘normatively appropriate[ly]’ :117–134, 2005), but it remains unclear what this entails. What specific behaviours does an ethical leader show? To date, ethical leadership has focused primarily on leader behaviour towards employees. Which stakeholders apart from employees are important to the ethical leader, and what kind of ethical behaviour does the (...) ethical leader show towards them? What are further antecedents and consequences of ethical leadership? We addressed these questions by qualitatively analysing interviews with 17, mostly Swiss, executive ethical leaders. The results indicate that executive ethical leaders care not only about employees but also about other stakeholders, such as customers, suppliers, owners of companies, the natural environment and society. Additionally, this study identified a broad range of executive ethical leaders’ behaviours towards these stakeholders, and, therefore, may function as a useful resource for future quantitative studies. Furthermore, we identified several antecedents of executive ethical leadership, for example ethical role models, business strategy and owner’s values, and consequences such as effects on other stakeholders than employees. Finally, our results shed more light on the processes of ethical guidance of employees. Managerial implications and avenues for further research are discussed. (shrink)

Drawing from research on person–organization fit, work engagement, and emotional intelligence, this study investigates the mediating role of work engagement in the link between goal congruence and organizational deviance, as well as how this mediating effect might be moderated by emotional intelligence. Data captured from 272 employees of four IT companies show that the goal congruence between employees and their supervisor negatively affects the former’s organizational deviance, though this effect disappears when controlling for the intermediate role of work engagement. Further, (...) emotional intelligence moderates both the positive relationship between goal congruence and work engagement and the negative relationship between work engagement and organizational deviance, such that these relationships become invigorated at higher levels of emotional intelligence. The findings also reveal that the indirect effect of goal congruence on organizational deviance through work engagement is more pronounced at higher levels of emotional intelligence, which offers evidence of moderated mediation. These findings have significant implications for research and practice. (shrink)

The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical (...) leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article. (shrink)

ABSTRACT:Organizations constitute morally-complex environments, requiring organization members to possess levels of moral courage sufficient to promote their ethical action, while refraining from unethical actions when faced with temptations or pressures. Using a sample drawn from a military context, we explored the antecedents and consequences of moral courage. Results from this four-month field study demonstrated that authentic leadership was positively related to followers’ displays of moral courage. Further, followers’ moral courage fully mediated the effects of authentic leadership on followers’ ethical and (...) pro-social behaviors. Theoretical and practical implications for further integrating the work on moral courage, authentic leadership and ethics are discussed. (shrink)

Drawing on social exchange theory, the present study seeks to understand how ethical leaders channel followers’ responses to positive treatment from the organization into a dutiful mindset, resulting in in-role and extra-role performance. Specifically, it examines the influence of perceived organizational support on both followers’ job performance and organizational citizenship behaviors, and the mediating effects of duty orientation on such relationships. In addition, it examines whether the mediated effects are contingent on the ethical leadership exhibited by the team leader. Based (...) on multi-source, multi-level data obtained from 233 employees in 60 teams from the Chinese public sector, we found that ethical leadership moderated the mediated relationship between perceived organizational support and follower work behaviors through duty orientation, such that this relationship was stronger in the presence of higher ethical leadership. (shrink)

Little is known about whether followers who perceive ethical leadership are more easily moved to act compassionately with peers. This study hypothesizes four compassionate feelings as mediators of the relationship between ethical leadership and interpersonal citizenship behavior directed at peers: empathic concern or an other-oriented emotional response elicited by and congruent with the perceived welfare of a peer in need; mindfulness, a state of consciousness in which attention is focused on present-moment phenomena; kindness, understanding the pain or suffering of peers; (...) and common humanity, viewing peers’ experiences as part of the larger human experience. Data were obtained from 300 followers working in three-member groups with a common leader in each of 100 investment banks in the city of London. Results indicated that: ethical leadership was significantly and positively linked to compassion and peer-focused citizenship and common humanity is the only compassionate feeling that mediates the link between ethical leadership and peer-focused citizenship. Findings suggest that supervisors who act morally more easily move their followers to become sensitized to peers’ setbacks and misfortunes and take action in the form of interpersonal OCBs to lessen or relieve their suffering. (shrink)

Ethical culture construction is beneficial to maximize policy following behavior and avoid accidents of coal miners in an economic downturn. This paper examines the congruence between coal mine ethical culture values and miners’ moral values and the relationship with PFB. To shed light on this relationship, supervisor moral values act as a key moderator. We build on the initial structure of values to measure ECVs, MVs, and SMVs. At the same time, available congruence was defined to describe the relationship between (...) the two values. Drawing upon a survey of 267 miners in Chinese large state-owned coal mining enterprises, results revealed that ECVs–MVs congruence had a linear relationship with intrinsic PFB and a non-linear relationship with extrinsic PFB. These findings demonstrate that SMVs had a moderating effect on the relationship between ECVs–MVs congruence and extrinsic PFB. Thus, we continued to calculate the available congruence scope in tested enterprises. Furthermore, this study gives relative management proposals and suggestions to improve miners’ moral standards and to reduce coal mine accidents. (shrink)

The relevance of leader ethicality has moti- vated ethical leadership theory. In this paper, we emphasize the importance of moral identity for the concept of ethical leadership. We relate ethical leadership incorporating an internalized moral identity to productive deviant workplace behavior. Using qualitative empirical data we illustrate the relevance of critical situations, i.e., situations in which hypernorms and organizational norms diverge, for the distinction of ethical leaders with or without internalized moral identities. Our paper takes a multidisciplinary approach integrating insight (...) from management as well as humanities and social sciences toward a comprehensive sense of ethical leadership. (shrink)

The interest in ethical leadership has grown in the past few years, with an emphasis on the mechanisms through which it affects organizational life. However, research on the boundary conditions that limit and/or enhance its effectiveness is still scarce, especially concerning one of the main misconceptions about ethical leadership, its incompatibility with effectiveness . Thus, the present study examines the relationship between ethical leadership and organizational deviance via affective commitment to the organization, as a reflection of the quality of the (...) employee–organization relationship and proposes this relationship is conditional on the supervisor’s personal reputation for performance . Using a sample of 224 employees and their respective supervisors from 18 organizations, we confirmed our hypotheses . Our findings suggest that ethical leadership is positively related to employees’ affective commitment to the organization, particularly when supervisor’s reputation for performance is high, which in turn is associated with decreased organizational deviance. The theoretical and practical implications of these findings conclude the paper. (shrink)

This paper posits that ethical leadership increases important organizational and individual outcomes by reducing politics in the workplace. Specifically, we propose that perceptions of organizational politics serve as a mechanism through which ethical leadership affects outcomes. We further argue that the modeled relationships are moderated by political skill. By means of data from 136 matched pairs of supervisors and subordinates employed by a state agency in the southern US, we found support for our predictions. Specifically, we found that perceptions of (...) organizational politics fully mediated the relationship between perceptions of ethical leadership and helping and promotability ratings. In addition, political skill was found to moderate the direct and indirect effects. (shrink)

Recent literature suggests that ethical leadership helps to inhibit followers’ unethical behavior, largely built on the premise that followers view ethical leaders as ethical role models and socially learn from them, thereby engaging in more ethical conduct. This premise, however, has not been adequately tested, leaving insufficient understanding concerning the conditions under which this social learning process occurs. In this study, we revisit this premise, theorizing that not all followers will equally regard the same ethical leader as being a personal (...) ethical role model, thereby bounding the leader’s effects in reducing followers’ unethical behavior. We integrate the role of follower self-concepts into social learning theory, hypothesizing that the extent followers emulate their ethical leaders is contingent on how they identify with ethics as well as the particular leader. We test our hypotheses with three-wave survey data collected from 214 employees, finding that ethical leaders are viewed as being role models only amongst followers higher in moral identity and leader identification, and that followers’ perceptions that the leader is an ethical role model mediated the effect of ethical leadership on followers’ unethical behavior. Interestingly, results for the full-model tests show that ethical leadership evokes unethical behavior amongst followers lower in both moral identity and leader identification. These results suggest that ethical leadership is not a universally useful practice to decrease unethical behavior and that a more nuanced understanding of its contingent effects needs to be better understood. (shrink)

This study examines the relation of ethical leadership with loyalty to supervisor, as well as mediating and moderating variables of this relation by proposing a moderated mediation model. Specifically, we employed time-lagged research design to collect two waves of data from 395 supervisor-subordinate dyads in 74 teams, and used multilevel structural equation modeling to test the moderated mediation model. Results indicated that ethical leadership was positively related to loyalty to supervisor, interactional justice mediated the relationship between ethical leadership and loyalty (...) to supervisor, and collectivistic orientation moderated the relationship between ethical leadership and interactional justice. Moreover, collectivistic orientation moderated the strength of the indirect effect of ethical leadership on loyalty to supervisor, and the mediated relationship was stronger for high collectivistic subordinates than for low collectivistic subordinates. Theoretical and practical implications and future research directions were discussed. (shrink)

Ethical leadership has so far mainly been featured in the organizational behavior domain and, as such, treated as an intra-organizational phenomenon. The present study seeks to highlight the relevance of ethical leadership for extra-organizational phenomena by combining the organizational behavior perspective on ethical leadership with a classical marketing approach. In particular, we demonstrate that customers may use perceived ethical leadership cues as additional reference points when forming purchasing intentions. In two experimental studies, we find that ethical leadership positively affects purchasing (...) intentions because of customers’ concerns for moral self-congruence. We show this by means of both mediation and moderation analyses. Interestingly, the effect of perceived ethical leadership on purchasing intentions holds over and above the ethical advertising claims that are commonly used in marketing. We conclude by discussing the possible ramifications of ethical leadership beyond its effects on immediate employees. (shrink)

ABSTRACT:Although prior work has shown that employees with ethical leaders are less likely to engage in deviant or unethical behaviors, it is unknown whetherallemployees respond this way or to the same extent. Drawing on social learning theory as a conceptual framework, this study develops and tests hypotheses suggesting that two follower characteristics—conscientiousness and core self-evaluation—moderate the negative relationship between ethical leadership and workplace incivility. Data from employees of a U.S. public school district supported our predictions. Implications and future research directions (...) are discussed. (shrink)

Ethically questionable leader conduct continues to garner headlines. It has prompted the leadership field to renew their focus on research regarding the ethical dimensions of leadership. Empirical emphases have focused on understanding negative leader behaviour, with the typical leadership study reliant upon positivist approaches. I critique these studies as not having produced meaningful, practicable or wholly relevant insights regarding the challenges and support mechanisms required to lead ethically. Few studies have in fact examined leadership in not-for-profit organisations where decisions might (...) reasonably be expected to possess elevated moral capital. To test this, my study interviewed leaders from professional sectors in both the USA and the UK, to offer a more holistic interpretation of what underpins and directs leader moral disposition. As corollary, this research explicates issues of practicability and how other sectors might learn from leaders who perpetually practise their ethicality. To gain insights that develop the field of leadership research, my thesis centres on the experiences of ten high-level, elite and specialised leaders. Although not selected as ethical, they were found to be principled, ethical decision-makers. A specific type of in-depth, qualitative interviewing was conducted and justified to more readily reflect the status of the leaders. Elite and specialised interviewing has not been widely used as a data collection tool, but it offered a unique opportunity to garner specialised data, once access issues had been overcome. The findings reveal unique insights into the underexplored ethical leader mindset and highlight the complex processes of leader decision-making in situ by demonstrating what underpins leaders’ behaviour, with reference to how they understand experiences for themselves. This study uncovers the symbiotic and interconnected nature of the variety of ideological frameworks at play, positing theological concepts alongside sociological and philosophical counterparts. Ethical awareness, the notions of trust and responsibility are shown as bedrock and explicit. This research presents a new ethical leadership, a typology that shows how ethical leaders are created through experience, sustained and developed over time, and nourished by awareness beyond the self. Current conceptions have done little to inform ethical leadership development, whereas I offer a more practical and holistic way to use the unexpected, traumatic, and intense crucibles of leadership experience to explicate and consolidate ethical foundations. This thesis presents a vision of a welfare driven leadership originating from the self, in the service of others, and for society; an ethical leadership for all. (shrink)

Studies have shown that internal whistleblowing could be utilized as an effective way to stop an organization’s unethical behaviors. This study investigates the relationship between ethical leadership and internal whistleblowing by focusing on the mediating role of employee-perceived organizational politics and the moderating role of moral courage. An analysis of data collected at three phases indicates that employee-perceived organizational politics partly mediates the relationship between ethical leadership and internal whistleblowing. Also, moral courage is found to moderate the effect of employee-perceived (...) organizational politics on internal whistleblowing and the indirect effect of ethical leadership on internal whistleblowing via employee-perceived organizational politics. Theoretical and practical implications of these results are discussed. (shrink)

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility, empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the interaction (...) between ethical leadership and CSR and, in addition, investigates organic organizational cultures as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior. (shrink)

Ethics has recently gained prominence in debates surrounding social capital creation. Despite the significant theoretical progress in this field, it still lacks empirical research. The goal of this study is to empirically explore the ethical leadership of supervisors as an antecedent of the firm’s social capital. We build on social learning theory to argue that employees can learn standards of appropriate behavior by observing the behavior of role models. By displaying and enforcing ethical behavior, supervisors can facilitate the process through (...) which employees learn to feel empathy toward others and establish profound affective relationships with them. Data were collected from 408 Spanish, French, and Portuguese part-time MBA students. Using structural equation modeling techniques, we show that the ethical leadership of supervisors exerts a significant influence on the structural, relational, and cognitive dimensions of social capital. (shrink)

Ethics is central to leadership because of the impact leaders have on establishing organizational values and engaging followers to accomplish mutual goals. The ethical concerns of leaders may influence ethical decision-making of their followers. This paper attempts to investigate the relationship between leaders and followers on moral judgment, and make a comparison between China and Taiwan on the leader–follower moral judgment relationship. Data were collected through a questionnaire survey on purchasing professionals in China and Taiwan. The development of moral judgment (...) was measured using the defining issues test. Research findings indicate that followers exhibit higher level of moral judgment while their leaders have higher level of moral judgment. A positive moral judgment relationship exists between leaders and followers. The comparative study between China and Taiwan reveals that Chinese purchasing professionals are more easily influenced by their workplace leaders than their Taiwanese counterparts. Power distance would strengthen the leader–follower moral judgment relationship. The present research makes contributions toward the ethics literature by providing empirical insight into the relationship between leader moral judgment and follower moral judgment. This paper also suggests implications and opportunities for future research. (shrink)

In this paper, we investigate the trust-based mechanisms underlying the relationship between ethical leadership and followers’ organisational citizenship behaviours (OCBs). Based on three-wave survey data obtained from 184 employees and their supervisors, we find that ethical leadership leads to higher levels of both affective and cognitive trust. In addition, we find support for a three-path mediational model, where cognitive trust and affective trust, in turn, mediate the relationship between ethical leadership and follower OCBs. That is to say, we found that (...) ethical leadership leads to the development of cognitive trust, which subsequently influences the development of affective trust. Affective trust, in turn, induces followers to exhibit OCBs as a means of reciprocating the leader’s favourable behaviour. Our findings suggest that both affective and cognitive trust plays an important role in the social exchange processes that underlie the relationship between ethical leadership and the discretionary behaviour of followers. (shrink)

Time theft is a costly burden on organizations. However, there is limited knowledge about why time theft occurs. To advance this line of research, this conceptual paper looks at the association between organizational injustice and time theft from identity, moral, and equity perspectives. This paper proposes that organizational injustice triggers time theft through decreased organizational identification. It also proposes that moral disengagement and equity sensitivity moderate this process such that organizational identification is less likely to mediate among employees with high (...) moral disengagement and more likely to mediate among employees who are equity sensitives and entitleds. (shrink)

In this study, we examine the nature of the relationship between ethical leadership and unethical pro-organizational behavior (UPB), defined as unethical behavior conducted by employees with the aim of benefiting their organization, and whether the strength of the relationship differs between subordinates experiencing high and low identification with supervisor. Based on three-wave survey data obtained from 239 public sector employees in China, we find that ethical leadership has an inverted u-shaped (curvilinear) relationship with UPB. As the level of ethical leadership (...) increases from low to moderate, UPB increases; as the level of ethical leadership increases from moderate to high, UPB decreases. Further, we find that the strength of this inverted u-curve relationship differs between subordinates with high and low identification with supervisor. That is to say, the inverted u-shaped relationship between ethical leadership and UPB was stronger when subordinates experienced high levels of identification with supervisor. The theoretical and managerial implications of our findings for understanding how to manage UPB in an organizational context are discussed. (shrink)

Drawing on theoretical arguments from the psychology discipline, we investigate the implications of employee entitlement in organizational settings. Specifically, we utilize workplace engagement theory to suggest that due to their skewed sense of deservingness, employees high in entitlement are less likely to experience workplace engagement. Furthermore, the negative relationship between employee entitlement and workplace engagement is strengthened when ethical leadership is low, yet mitigated when ethical leadership is high. Finally, we predict that under conditions of low ethical leadership, reductions in (...) engagement explain why employee entitlement results in hindered job performance. This mediated effect does not hold when ethical leadership is high. We tested our theoretical model utilizing field data from employees and their direct supervisors in the financial services industry. Our results support our theoretical model. Theoretical and practical implications are discussed. (shrink)

Business ethics and firm economic performance have traditionally often been regarded as mutually exclusive ends. We challenge this “either-or” belief and analyze when and how ethical firm leadership and firm performance may harmonize well. In extension of earlier research on ethical leadership and performance at the individual and team level, we study the context–dependency of the organization level relationship between CEO ethical leadership and firm performance. We propose a moderated mediation model of the link between CEO ethical leadership and firm (...) performance, identifying mediating and moderating variables unique to the organization-level of analysis. CEO ethical leadership is argued to work through organizational ethical culture which promotes firm performance under the condition that there is a strong corporate ethics program in place. Results from a multisource cross-sectional study, in which we surveyed 145 participants from 32 organizations and validated organizational performance ratings by objective performance data, showed support for our conceptual model. (shrink)

This study investigates how business leaders dynamically narrate their aspirational ethical leadership identities. In doing so, it furthers understanding of ethical leadership as a process situated in time and place. The analysis focuses on the discursive strategies used to narrate identity and ethics by ethnic Chinese business leaders in Indonesia after their conversion to Pentecostal–charismatic Christianity. By exploring the use of metaphor, our study shows how these business leaders discursively deconstruct their ‘old’ identities and construct their ‘new’ aspirational identities as (...) ethical leaders. This leads to the following contributions. First, we show that ethical leadership is constructed in identity talk as the business leaders actively narrate aspirational identities. Second, the identity narratives of the business leaders suggest that ethical leadership is a context-bound and situated claim vis-à-vis unethical practice. Third, we propose a conceptual template, identifying processes of realisation and inspiration followed by significant shifts in understanding, for the study of aspirational ethical leadership. (shrink)

This study examines the relationship between procedural justice and employee job insecurity, and the boundary conditions of this relationship. Drawing upon uncertainty management theory and ethical leadership research, we hypothesized that procedural justice is negatively related to job insecurity, and that this relationship is moderated by ethical leadership. We further predicted that the moderating relationship would be more pronounced among employees with a low power distance orientation. We tested our hypotheses using a sample of 381 workers in Macau and Southern (...) China. The results support all of our hypotheses. The implications of these results for research and practice are discussed. (shrink)

The study's goal was to examine the socially responsible power use in the context of ethical leadership as an explanatory mechanism of the ethical leadership-follower outcomes link. Drawing on the attachment theory (Bowlby, 1969/1982 ), we explored a power-based process model, which assumes that a leader's personal power is an intervening variable in the relationship between ethical leadership and follower outcomes, while incorporating the moderating role of followers' moral identity in this transformation process. The results of a two-wave field study (...) ( N = 235) that surveyed employees and a scenario experiment ( N = 169) fully supported the proposed (moderated) mediation models, as personal power mediated the positive relationship between ethical leadership and a broad range of tested follower outcomes (i.e., leader effectiveness, follower extra effort, organizational commitment, job satisfaction, and work engagement), as well as the interactive effects of ethical leadership and follower moral identity on these follower outcomes. Theoretical and practical implications are discussed. (shrink)

Although a growing body of research has shown the positive impact of ethical leadership on workplace deviance, questions remain as to whether its benefits are consistent across all situations. In this investigation, we explore an important boundary condition of ethical leadership by exploring how employees’ moral awareness may lessen the need for ethical leadership. Drawing on substitutes for leadership theory, we suggest that when individuals already possess a heightened level of moral awareness, ethical leadership’s role in reducing deviant actions may (...) be reduced. However, when individuals lack this strong moral disposition, ethical leadership may be instrumental in inspiring them to reduce their deviant actions. To enhance the external validity and generalizability of our findings, the current research used two large field samples of working professionals in both Turkey and the USA. Results suggest that ethical leadership’s positive influence on workplace deviance is dependent upon the individual’s moral awareness—helpful for those employees whose moral awareness is low, but not high. Thus, our investigation helps to build theory around the contingencies of ethical leadership and the specific audience for whom it may be more influential. (shrink)

The popular press is often fraught with high-profile illustrations of leader unethical conduct within corporations. Leader unethical conduct is undesirable for many reasons, but in terms of managing subordinates, it is particularly problematic because leaders directly influence the ethics of their followers. Yet, we know relatively little about why leaders fail to apply ethical leadership practices. We argue that some leaders cognitively remove the personal sanctions associated with misconduct, which provides them with the “freedom” to ignore ethical shortcomings. Drawing on (...) moral disengagement theory, we examine the relationship between supervisor moral disengagement and employee perceptions of ethical leadership. We then examine the moderating role of employee moral disengagement, such that the negative relationship between supervisor moral disengagement and employee perceptions of ethical leadership is stronger when employee moral disengagement is low versus high. Finally, we examine ethical leadership as a conditional mediator that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior. Results from a multi-source field survey provide general support for our theoretical model. (shrink)

We use a lab experiment to examine whether and how leaders influence workers’ (un)ethical behavior through financial reporting choices. We randomly assign the role of leaders or workers to subjects, who can choose to report an outcome via automatic or self-reporting. Self-reporting allows for profitable and undetectable earnings manipulation. We vary the leaders’ ability to choose the reporting method and to punish workers. We show that workers are more likely to choose automatic reporting when their leader voluntarily does so and (...) can assign punishment. Even workers who choose self-reporting tend to cheat less when their leader chooses automatic reporting. Nonetheless, most leaders do not opt for automatic reporting in the first place: they often choose self-reporting and punish workers who rather choose automatic reporting. Collectively, our results reveal a dual effect of leadership on ethical behaviors in organizations: workers behave more ethically if their leader makes ethical choices, but often leaders do not make ethical choices in the first place. Hence, leading by example can backfire. (shrink)

With the increasing demand for ethical standards in the current business environment, ethical leadership has received particular attention. Drawing on self-verification theory and social exchange theory, this study investigated the effect of leaders’ core self-evaluation on the display of ethical leadership and the moderating role of employees’ exchange ideology in the relationship between ethical leadership and employees’ job performance. Consistent with the hypotheses, the results from a sample of 225 dyads of employees and their immediate leaders showed a positive relationship (...) between leaders’ core self-evaluation and ethical leadership. Moreover, the results showed that ethical leadership mediates the effects of leaders’ core self-evaluation on employees’ job performance. Furthermore, we found that employees’ exchange ideology moderates the relationship between ethical leadership and job performance. The theoretical and practical implications of these findings are discussed. (shrink)

Unlike many other studies which assumed narcissism to be equivalent to overt narcissism, the purpose of this study is to empirically examine how covert and overt narcissism affect counterproductive work behaviors, a type of unethical behavior that can be discussed by ethical ideology. Furthermore, this research tests whether the relationship between managerial position and CWBs is direct or mediated by narcissism. The population of this study consisted of managers and nonmanagerial employees in 10 relatively small Iranian firms. Questionnaires were used (...) to collect the required data. The results indicated that most of the Iranian managers show both types of narcissistic behaviors specifically overt type, covert narcissism is a stronger predictor of interpersonal and organizational CWBs than overt narcissism, and managerial position does not seem to have a direct effect on CWBs, but has an indirect effect mediated through covert narcissism. (shrink)