Business Ethics: A European Review, EarlyView.

Today’s organizations are operating in a highly competitive and changing environment that pushes them to continuously adapt their organizational structures to such environment. However, the success of change initiatives may face a barrier in the response of employees, especially when they lack readiness to change. While leadership can shape the culture of an organization and a culture of effectiveness can help increase employees’ readiness to change, ethical leaders, who serve as a guide and offer support, can also make a difference (...) by reducing uncertainty. Yet existing research on the role of ethical leadership in the enhancement of the employees’ readiness to change is practically non-existent. Far less is the research that analyses the mechanisms that ethical leadership can use to foster employees’ readiness to change. This study aims to investigate whether the ethical leadership of middle-lower echelons influences on employees’ readiness to change positively (H1) and if this relationship is mediated through shaping an organizational culture of effectiveness (H2). Using data from 270 direct reports of middle–lower managers in public foreign trade Egyptian companies, the findings reveal that ethical leadership enhances employees’ readiness to change and that this impact is partially mediated by an organizational culture of effectiveness. Thus, with these findings, new light is shed on the positive role of ethical leadership and the mechanisms it uses to enhance employees’ readiness to change. (shrink)

Ethical leadership has become a popular subject of empirical research in recent years. Most studies follow Brown et al.’s definition of ethical leadership, which consists of two components: the moral person and the moral manager. In this paper, I argue for a third relevant component: i.e., the moral entrepreneur who creates a new ethical norm. Viewing moral entrepreneurship as a new component of ethical leadership opens up avenues for studying various antecedents and outcomes of ethical leadership that have not been (...) acknowledged so far, or at least, not adequately. (shrink)

Despite urgent calls for more research on the integration of business ethics and the meaning of work, to date, there have been few corresponding efforts, and we know surprisingly little about this relationship. In this study, we address this issue by examining when and for whom ethical leadership is more effective in promoting a sense of work meaningfulness among employees, and their subsequent work attitudes. Drawing on the contingency theories of leadership and work meaningfulness literature, we speculate that both employees’ (...) core self-evaluation and perceived organizational support moderate the relationship, but in different ways, and these associations carry over to employees’ subsequent work attitudes in terms of job satisfaction, organizational commitment and turnover intention. We test our hypotheses with two-wave survey data collected from 377 employees. Results indicate that ethical leadership is effective in eliciting work meaningfulness and attitudes for employees higher in CSE or when POS is lower, and ineffective for those lower in CSE or when POS is higher. A supplementary analysis reveals a three-way interaction between ethical leadership, CSE and POS in predicting a sense of work meaningfulness and subsequent work attitudes. Our research cautions that ethical leadership is not a universally positive practice; it can be ineffective or even have a negative impact under some circumstances. (shrink)

In the aftermath of various corporate scandals, management research and practice have taken great interest in ethical leadership. Ethical leadership is referred to as “normatively appropriate conduct” (Brown et al. in Organ Behav Hum Decis Process 97(2):117–134, 2005), but the prescriptive norms that actually underlie this understanding constitute an open question. We address this research gap by turning to relational models theory (Fiske in Structures of social life: the four elementary forms of human relations, Free Press, New York, 1991), which (...) contextualizes four distinct moralities in four distinct interactional norms (i.e., the relational models). We expect that the norms inherent in each model dictate the type of leader relationship that followers deem ethical. Specifically, we hypothesize that, for each norm, followers will perceive leaders as less ethical the more discrepant, i.e., the more incongruent, followers’ ideal relational norm is with the perceived norm that they attribute to their actual leader–follower interaction. We tested the respective incongruence hypothesis in a cross-sectional survey of 101 Dutch employees. Polynomial regression and surface response analyses provide support for the hypothesized incongruence effects in each of the four relational models, suggesting that normatively appropriate conduct should not be limited to caring (i.e., community-oriented) behaviors. Indeed, all four relational models can predict ethical leadership perceptions. We discuss the implications in the context of ethical leadership research and managerial practice. (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)

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 aim of this study was to find out whether ethical leadership has an impact on employees’ organizational identification and the perceptions of organizational politics moderate this process. To this end, to ensure triangulation on findings, two separate researches were made. First, a cross-sectional survey was conducted on 137 employees who worked at the head office of a private bank in Istanbul using self-report questionnaires. Second, 2 years later, a time-lagged survey was conducted on 119 employees who worked at the (...) same organization. Hierarchical regression analyses were performed on the collected data from studies 1 and 2. Findings of both studies indicated that ethical leadership resulted in organizational identification slightly more weakly in employees who perceived organizational politics. Drawing on findings, new researches investigating impacts of organizational politics on managerial processes in other organizations may be conducted in the future. Moreover, organizational leaders, who realized the adverse consequences of organizational politics, may take precautions against such tactics. Finally, findings may be noteworthy, because this research is believed to be the first to investigate empirically the moderating role of organizational politics in the association between ethical leadership and employees’ organizational identification. (shrink)

Scholars have suggested that leaders’ ethical failures at the beginning of the twenty-first century have raised awareness about the importance of ethical leadership (EL). Yet, there has been no systematic effort to evaluate whether this awareness indeed led to changes in EL or how followers react to this leadership style over time. To address this gap, we examine the evolution in EL means, variability, and its associations with follower outcomes between 2004 and 2019. Our cross-temporal meta-analysis included 359 independent samples (...) from 314 studies published between 2005 and 2020 and focused on followers’ ratings of their leaders using the Ethical Leadership Scale (ELS; Brown et al., in Organizational Behavior and Human Decision Processes, 97(2), 117–134, 2005). Using cubic spline meta-regressions, our results indicated no global changes in EL mean levels and variability across the 15-year period. Nevertheless, country-level comparisons revealed different EL-trends in China (i.e. decrease) versus the United States (i.e. stable), and further moderation analyses highlighted the role of cultural value dimensions and national corruption rates. Finally, we also found that the relationship between EL and desirable follower outcomes (e.g. organizational citizenship behavior) became gradually stronger over time on a global level. These results provide a solid empirical basis to evaluate cross-temporal trends in EL and its (changing) impact on follower outcomes across the globe. (shrink)

Although empowering leadership is central to employees, leaders, and organizations, few studies have examined follower behavior and its role in incentivizing leaders to engage in empowering leadership. We use an exploratory, sequential mixed methods approach to explore comprehensively the influence of employee characteristics (i.e., work performance and ethical behavior) and leader-perceived threats on empowering leadership. We conducted two studies—the first entailed in-depth interviews of 24 managers from different industries to identify (i) the primary employee factors that determine empowering leadership and (...) (ii) the types of leader-perceived threats. The five employee factors and three leader-perceived threats identified lay the groundwork for the quantitative research in the second study. We used leader–member exchange theory and social dominance theory in analyzing data from 357 pairs of employee–supervisor questionnaires. The analysis confirmed the importance of employee ethical behavior (versus work performance) in predicting empowering leadership, and the crucial role of leader trust in connecting employee ethical behavior and work performance with empowering leadership. Leader-perceived power threats negatively influence empowering leadership and mitigate the positive impact of leader trust on empowering leadership. Thus, this study extends the literature’s perspective about empowering leadership to include ethical concerns and leader–member interaction. (shrink)

While deliberation has traditionally played a central role in philosophical and behavioral accounts of ethical decision-making, several recent studies challenge the value of deliberation. These studies find that deliberative thinking, such as considering divergent views or different perspectives, leads to less ethical decisions. We observe, however, that these studies do not address normative deliberation, in which decision-makers consider or apply a normative standard. We predict that normative deliberation improves ethical decision-making. Across six experiments, we examine the effects of non-normative deliberation (...) and normative deliberation on ethical decision-making. We find that normative deliberation improves ethical decision-making and, in contrast to recent studies, no form of deliberation harms ethical decision-making. (shrink)

Workplace aggression has been established as a prevalent and detrimental issue in organizations. While numerous studies have documented the important role of leaders in inhibiting or accelerating workplace aggression, a systematic overview of the associations between different leadership styles and workplace aggression as well as its boundary conditions is still lacking. This study reports a meta-analysis investigating the associations between leadership and workplace aggression. Drawing on data from 165 samples, our results revealed that change-oriented, relational-oriented, and values-based and moral leadership (...) were associated with reduced workplace aggression. In contrast, passive and destructive leadership were associated with increased workplace aggression. Importantly, relative weights analyses revealed that ethical leadership was most strongly negatively associated with workplace aggression. Additionally, moderation analyses revealed that the associations between leadership and workplace aggression were, in some cases, moderated by power distance and rating sources, but independent of measurement time lag. Overall, the findings of this meta-analysis highlight the important associations between leadership and workplace aggression. Implications for future research and policy recommendations aiming to reduce workplace aggression are discussed. (shrink)

Corruption devours profts, people, and the planet. Ethical leaders promote ethical behaviors. We develop a frst-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership (member rated, Time 1) and employee ethical behaviors (leader rated, Time 3), and treat ethical climate and organizational justice (member rated,Time 2) as dual mediators and leaders’ moral attentiveness (leader rated, Time 3) as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: (...) These dual mediation mechanisms are more robust for high moral leaders than low moral leaders. Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifcally, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only infuences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our fndings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers (subordinates) apply their values (ethical leadership) as a lens to frame their concerns in the immediate (organizational justice and ethical climate) and omnibus (leader moral attentiveness) contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange (LMX), business ethics, and economic potentials in the global competitive markets. (shrink)

The importance of value-based leadership such as authentic, ethical, and servant leadership is inconspicuous. However, the benefits of these leadership approaches are often only explained through the behaviors of their followers. As such, limited research has communicated the leader’s motivation for pursuing such leadership behavior, resulting in such discourse to escape theorizing. We draw upon role theory and paid attention to the role of higher-level management (leadership) through the trickle-down model to underline their importance in the organization. We then expand (...) this role theory framework by synthesizing research to explain the emergence of value-based leadership behavior at the frontline of management. In doing so, we aim to provide a stronger explanation of the emergence of value-based leadership in organizations. We conclude this analysis by guiding future research in the form of propositions to investigate the psychological process and organizational factors to empirically examine the proposed role framework. (shrink)

Little is known about how ethical organizational contexts influence employees’ perceived stress levels and well-being. This study used two theoretical lenses, ethical impact theory (Promislo et al. in Handbook of Unethical Work Behavior, M.E. Sharpe, Armonk, 2013) and ethical decision-making theory (Schwartz in J Bus Ethics 139(4): 755–776, 2016), to investigate the relationships among perceived organizational ethics (comprised of ethical climate, leader/manager ethics, and corporate social responsibility), work-related stress, and employee well-being (comprised of vitality, life satisfaction, personal growth initiative, flourishing, (...) positive mental health, and self-actualization). Findings across two studies indicated that organizational ethics was negatively related to work-related stress, and that work-related stress was negatively related to employee well-being. Perceived organizational ethics is positively related to employee well-being, with post hoc mediation tests indicating that work-related stress partially mediates this relationship. Our findings suggest that organizations should be proactive in improving their ethical climate, such as choosing ethical leaders, developing a robust and well-communicated code of ethics, and actively practicing CSR. These measures should reduce excessive work-related stress and improve employee well-being. (shrink)

We sought to expand on the concept of the moral self to include not just the duty to develop the moral self but the moral duty to develop the self in both moral and non-moral ways. To do this, we focused on how leaders can promote a climate in which individuals feel a sense of duty to develop themselves for the betterment of the team and organization. In our theoretical model, duty orientation plays a key role in determining whether followers (...) will seek performance feedback to develop their work selves. We hypothesized that followers with ethical leaders would experience a greater sense of duty to improve themselves and would therefore be more likely to seek and less likely to avoid leader feedback. Drawing on social learning theory, we hypothesized that duty orientation would mediate the relationship between ethical leadership and feedback-seeking/feedback-avoiding behavior, expert power would moderate the relationship between ethical leadership and duty orientation such that duty orientation would be higher when followers perceived their leader to be both highly ethical and competent, and expert power would moderate the indirect effect of ethical leadership on feedback-seeking/feedback-avoiding behavior through duty orientation. We tested our hypotheses using a sample of 249 followers across two waves of data collection. Results suggest that ethical leadership and leader competence interact to drive followers’ duty orientation, thereby reducing followers’ feedback-avoiding behaviors. Further, ethical leadership had a direct positive relationship with followers’ feedback-seeking behaviors. (shrink)

To remain competitive, organizations need an engaged workforce. Although ample research has been carried out on the antecedents of employee work engagement, a comprehensive understanding of how and when voice climate is associated with employee work engagement is currently lacking. Drawing on the theory of planned behavior (TPB), this study examines the pathway by which voice climate affects employee work engagement. Two studies were conducted to test the proposed linkages. More specifically, in field and experimental studies, we find evidence that (...) voice climate reduces employees’ intention to engage in counterproductive work behavior (CWB), which, in turn, fosters their engagement in their work. In addition, ethical leadership and religiosity were found to act as boundary conditions in the relationship between voice climate and intention to CWB and work engagement. (shrink)

The purpose of this paper is to examine the effect of ethical leadership on followers’ subjective and objective career success from a P-E fit perspective. Specifically, the mediating effects of demands-abilities fit, needs-supplies fit, and person-organization fit in the relationship between ethical leadership and employee subjective and objective career success were investigated. We collected two-wave data from 160 employees and used hierarchical regressions to test the hypotheses. The findings revealed that ethical leadership had a positive effect on employee career satisfaction, (...) mobility, and promotability. Moreover, employee demands-abilities fit mediated the relationship between ethical leadership and career mobility and promotability; needs-supplies fit and person-organization fit mediated the relationship between ethical leadership and employee career satisfaction. Theoretical and empirical implications were discussed. (shrink)

Past research illustrated that leaders could restrict followers’ deviance by reinforcing social norms of appropriate behaviors. Nevertheless, we submit that this understanding is incomplete without considering the effects of leaders on followers’ self-sanctions given that most undesirable behaviors are controlled internally. This research argues that interactional justice is an effective strategy for leaders to enhance followers’ self-sanctions. Leaders’ interactional justice provides personalized information and dyadic treatment that indirectly reduce employees’ deviance by restraining followers’ moral disengagement. Besides, this study examines the (...) social sanction role of ethical leadership. Ethical leaders highlight the importance of adherence to collective norms, which influence the relationship between followers’ moral disengagement and deviance. By identifying the different pathways via which they influence followers’ moral disengagement, we integrate interactional justice and ethical leadership into one theoretical framework. Our predictions are supported by data analyses of 220 samples from a multi-wave and -source field study. This integrative framework contributes to a comprehensive understanding of how leaders restrict employees’ deviance. (shrink)

The study of ethical behavior in the field of leadership began in the 1990s when Murphy et al. (1992) responded to a call by Randall and Gibson (1990) to develop more rigorous methodologies in empi...

We present a theoretical rationale and supporting studies revealing how unethical leader behavior fosters an unethical climate within workgroups that increases member turnover intentions and malfeasance. Drawing on the attraction–selection–attrition model of organizational behavior, we propose a selective attrition effect whereby unethical leader behavior results in the retention of group members who are more comfortable with dishonesty and, consequently, more likely to engage in unethical behavior toward their group. In two experiments, exposure to unethical leader behavior increased group members’ likelihood (...) of choosing to leave the group. Members who chose to remain in a group with an unethical leader were more likely than those who chose to leave to cheat their group in a subsequent task. A two time-period survey replicated these findings and identified psychological distress as the mechanism driving group members’ turnover intentions. This research extends our understanding of the complex relationships between unethical leadership and follower turnover intentions, psychological distress, and malfeasance. We contribute to the behavioral ethics literature by identifying a previously underappreciated form of selective attrition that produces internal costs to groups and organizations, independent of reputational consequences and whether the unethicality is publicized. (shrink)

The aim of this paper is to investigate among a group of non-profit organizations: a) the effect of ethical leadership on volunteers’ satisfaction, affective organizational commitment and intention to stay in the same organization; b) the role played by job satisfaction as a mediator in the relationship between ethical leadership and volunteers’ intentions to stay in the same organization, as well as between ethical leadership and affective commitment. An anonymous questionnaire was individually administered to 198 Italian volunteers of different non-profit (...) organizations. The questionnaire contained the Ethical Leadership Scale, the Volunteers Satisfaction Index, the Affective organization Scale, as well as questions regarding the participants’ age, sex, type of work, level of education, length of their volunteer works, intention to volunteer in the following months in the same organization. The construct as well the effects of EL on volunteers is approached in light of the Social Exchange Theory and the Social Learning Theory. Structural equation models were used to test hypothesized relationships. The results confirm the role of mediation of volunteer satisfaction in the relationships between the variables studied. In particular, ethical leadership was found to be positively associated both with volunteers’ intention of staying and with their affective commitment. In the first case this relationship is fully explained by the mediation of the volunteers’ satisfaction, while the latter is explained by both direct and indirect factors. To the authors’ knowledge, this the first attempt to understand the role played by ethical leadership on volunteers’ behavior and, more in general, in the management of non-profit organizations. Findings are relevant both for practitioners and managers of non-profit organization, since they suggest the relevance of the perception of ethical leadership by volunteers, as well as for scholars, since they further deepen the knowledge on EL and its effects on the followers. Limits of the study: the questionnaire was administered only among a group of non-statistical sample of volunteers. Furthermore, the study reached only volunteers from Italian non-profit organization. (shrink)

ABSTRACT:We examine supervisor-subordinate agreement regarding perceptions of the supervisor’s ethical leadership and its relationship to organizational deviance. We find that, on average, supervisors rate themselves more favorably on ethical leadership compared to how followers rate them. In addition, polynomial regression results reveal that unit-level organizational deviance is higher when there is agreement about lower levels of ethical leadership, and disagreement when supervisors rate themselves higher on ethical leadership than subordinates’ ratings of the supervisors. Finally, drawing on social influence theories, we (...) look at antecedents of agreement and find that supervisors’ beliefs about themselves and others are associated with self-other agreement on ethical leadership. (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)

Evidence from a growing number of studies suggests leader character as a means to advance leadership knowledge and practice. Based on this evidence, we propose a process model depicting how leader character manifests in ethical leadership that has positive psychological and performance outcomes for leaders, along with the moderating effect of leaders’ self-control on the character strength–ethical leadership–outcomes relationships. We tested this model using multisource data from 218 U.S. Air Force officers and their subordinates and superiors. Findings provide initial support (...) for leader character as a mechanism triggering positive outcomes such that only when officers reported a high level of self-control did their honesty/humility, empathy, and moral courage manifest in ethical leadership, associated with higher levels of psychological flourishing and in-role performance. We discuss the implications of these results for future theory development, research, and practice. (shrink)

Ethical leadership is an important construct in the literature on behavioral ethics in organizations, given its link with employee attitudes and behaviors. What remains unclear, however, is what leader characteristics are associated directly with ethical leader perceptions and indirectly with employee unethical behavior. In this paper, we use a socio-cognitive lens to integrate goal orientation theory with the literature on ethical behavior in organizations. Specifically, we propose that certain patterns of managers’ goal-oriented behavior provide signals and cues to employees about (...) their managers’ ethical leadership, which then relates to employee displays of more unethical behavior. Using a sample of 265 manager–employee dyads, our findings largely support our claims. We found that leader performance-avoid goal orientation was negatively related to perceptions of ethical leadership and positively related to employee unethical behavior. Moderated mediation tests indicated that the positive indirect effect of leader performance-avoid goal orientation on employee unethical behavior through perceptions of ethical leadership was attenuated by higher levels of leader learning goal orientation. Taken together, these findings suggest that when leaders emphasize avoiding failure while downplaying the importance of personal learning and development, employees perceive them as less ethical and are more willing to engage in ethical misconduct. We discuss implications of our findings for both theory and practice. (shrink)

This article contributes to our understanding of how communication of ethical guidelines by managers may reduce the likelihood of employee unethical behavior. We conduct two vignette experiments to assess the impact of communicating two types of ethical guidelines—general and specific. The second study employs mixed methods experimental design, collecting qualitative data during the experiment. We find that communicating ethical guidelines by managers reduces the likelihood of unethical behavior, but contrary to our hypothesis and prior literature, we observe that general ethical (...) guidelines are more effective than specific ethical guidelines. We conduct thematic coding of open-ended qualitative responses and integrate the findings of qualitative analysis with the quantitative analyses to provide insights into the counter-hypothetical finding. With specific guidelines, we observe that participants use specific details to negate or rationalize ethical concerns, and with general guidelines, participants recognize ethical concerns and are less likely to downplay them. We conclude by discussing the implications of these findings for research on ethical leadership. (shrink)

Studies on the ethical culture of organizations have mainly focused on ethical culture at the organizational level. This study explores ethical culture at the team level because this can add a more detailed understanding of the ethics of an organization, which is necessary for more customized and effective management interventions. To find out whether various teams within an organization can have different ethical cultures, we employ the differentiation perspective and conduct a survey of 180 teams from one organization. The results (...) show that there are significant differences between the ethical cultures of teams. These differences are relevant given the different relationships that were established between high and low clusters of team ethical culture and two outcome variables. The results also show that the dimensions of ethical cultures among teams have different patterns, which indicates the usefulness of using a multidimensional scale for capturing further differences among team ethical cultures. (shrink)

Contemporary leaders are increasingly challenged to execute their leadership roles with a higher sense of responsibility. However, only a handful of studies have empirically examined the influence of responsible leadership on employee and organisational outcomes. Using Social Identity Theory and Psychological Contract Theory, this paper reports the findings of the relationship between responsible leadership and organisational commitment through the mediating role of employee turnover intentions. A web-based online survey was administered to collect data targeting a sample of 200 Australian employees (...) working full time. Structural equation modelling was used to analyse the data. The results reveal that perceived responsible leadership significantly influences employees’ organisational commitment and their turnover intentions. Moreover, the direct relationship between responsible leadership and organisational commitment was found to be partially mediated by employees’ turnover intentions. (shrink)

This research investigates the interlinkage between corporate social responsibility and ethical leadership in inducing employees’ socially responsible behaviors. Specifically, building on organizational identification theory and cue consistency theory, we develop and test an integrated moderated mediation framework in which employees’ perception of ethical leadership moderates the mediating mechanism between their perceptions of CSR, organizational identification, and SRBs. The findings highlight the need for consistency between employees’ perceptions of CSR and ethical leadership to foster their propensity to further social good through (...) relationship-building activities with their organization. The results, which largely verify the theoretical framework, contribute to and have implications for both research and practice. (shrink)

Human Quality Treatment (HQT) is a theoretical approach expressing different ways of dealing with employees within an organization and is embedded in humanistic management tenants of dignity, care, and personal development, seeking to produce morally excellent employees. We build on the theoretical exposition and present a measure of HQT-Scale across several studies including cross-culturally to enhance confidence in our results. Our first study generates the 25 items for the HQT-Scale and provides initial support for the items. We then followed up (...) with a large study of managers (n = 363) from Nigeria in study 2, which confirms the theoretical properties of the five dimensions of HQT and highlights a two-factor construct: HQT Ethically Unacceptable and HQT Ethically Acceptable using a 20-item HQT-Scale. Study 3 with a large sample of New Zealand employees (n = 452) again confirms the nature of the construct and provides construct validity tests. Finally, using time-lagged data, study 4 (n = 308) focuses on New Zealand employees and job attitudes and behaviors, and a well-being outcome. That study not only confirms the theoretically implied effects but also shows the HQT Ethically Acceptable factor mediates the detrimental effects of HQT Ethically Unacceptable. Overall, our four studies provide strong support for the HQT-Scale and highlight important understandings of HQT and humanistic management in the workplace. (shrink)

Using a sample of 114 leaders (described by 516 team members), we show empirically that the association between leader relational transparency and leader receptiveness to relational transparency of team members is indirect (through leader respect) and conditional on leader humility. When a transparent leader expresses humility, he/she conveys respect to team members and is perceived as more receptive to the relational transparency of employees toward him/her. The indirect association between leader relational transparency and leader receptiveness to the relational transparency of (...) team members is negative, however, when the leader is perceived as non-humble. Our paper contributes to discussion about the limits of relational transparency as an indicator of authentic leadership. We suggest that what is often described as relational transparency is no more than unidirectional transparency—from leaders to followers. We conclude that transparency (and authenticity) in leaders is relational only when it is bidirectional. (shrink)

In recent years, scholars have sought to investigate the impact that ethical leaders can have within organisations. Yet, only a few theoretical perspectives have been adopted to explain how ethical leaders influence subordinate outcomes. This study therefore draws on social rules theory (SRT) to extend our understanding of the mechanisms linking ethical leadership to employee attitudes. We argue that ethical leaders reduce disengagement, which in turn promotes higher levels of job satisfaction and organisational commitment, as well as lower turnover intentions. (...) Co-worker social undermining is examined as a moderator of the relationship between ethical leadership and disengagement, as we suggest that it is difficult for ethical leaders to be effective when co-worker undermining prevails. To test the proposed model, questionnaires were administered to 460 nurses in Romanian hospital settings over three time points separated by two-week intervals and the hypotheses were tested using generalised multilevel structural equation modeling (GSEM) with STATA. The findings revealed that ethical leadership has a beneficial effect on employee attitudes by reducing disengagement. However, the relationship between ethical leadership and disengagement was moderated by co-worker social undermining, such that when undermining was higher, the significance of the mediated relationships disappeared. These results suggest that while ethical leaders can promote positive employee attitudes, their effectiveness is reduced in situations where co-worker undermining exists. (shrink)

Perceptions of psychological empowerment play a vital role in the way an individual perceives things at the workplace. In spite of this, there is scant research on the antecedents and consequences of psychological empowerment. This study is an attempt to fill this gap by analyzing the mediating role of psychological empowerment on the relationship between its antecedents (leader–member exchange) and its consequences (work engagement and psychological withdrawal behavior). Data were collected from 454 employees working in the Research and Development (R&D) (...) departments of the information technology (IT) and pharmaceutical sectors operating in India. Results suggest that employees who have a high-quality relationship with their leader have high psychological empowerment, they are highly engaged at work, and their psychological withdrawal behavior is also low. In addition to this, high levels of psychological empowerment have a positive impact on their engagement toward work, which further leads to a low psychological withdrawal behavior. The theoretical and practical implications of these results are discussed. (shrink)

The need for ethical leadership in navigating today’s complex, global and competitive organisations has been established. While research has confirmed the importance of ethical leaders in promoting positive organisational and employee outcomes, scant research has examined the antecedents of ethical leadership. Furthermore, there has been a call for further examination of leadership models, particularly indigenous leadership models. Responding to these issues, this study suggests Māori leaders’ values add insights into enhancing ethical leadership. Three studies confirm the role of Māori values (...) and ethical leadership. Study one, based on kaupapa Māori research methods, is an exploratory 22-interview study of Māori leaders and identifies five values, as common to successful indigenous leaders. In study two, 249 employees rate their leaders on these five dimensions in relation to their ethical leadership and exchange relationships. Structural equation modelling shows strong support for the distinct nature of the five values and their positive influence on ethical leadership perceptions and quality exchange relationships. Study three, on 122 employees, reinforces the findings of study two—and demonstrates that LMX predicts job outcomes both indirectly and directly, with humility and collectivism also directly predicting outcomes. Our findings suggest that indigenous leaders’ values enhance perceptions and outcomes of ethical leadership for employees. (shrink)

Although a number of studies have demonstrated that perceived ethical leadership engenders beneficial follower outcomes, there is a dearth of research on ethical leadership in the sales context. This is surprising given that salespersons constantly face ethical challenges in their work environment and ethical leadership could provide them with appropriate guidelines for navigating such challenges successfully. Focusing on the salesperson’s perspective and responding to calls for investigating underlying processes responsible for the effects of ethical leadership, this study proposes that sales (...) managers’ ethical leadership influences salespersons’ emulation intentions—i.e., their intentions to model or imitate the manager’s ethical behavior—which, in turn, influences both behavior and outcome performance. In addition, salespersons’ perceptions of the manager’s competence and gratitude toward the manager are examined as moderating mechanisms on the relationship between ethical leadership and salespersons’ emulation. Finally, three aspects of the ethical climate prevailing in the organization—ethical responsibility, peers’ unethical behavior, and unethical sales practices—are included as control variables. The proposed relationships are tested by using data from 290 business-to-business salespeople. Based on the findings, implications are offered for theory and practice. (shrink)

Corruption devours profits, people, and the planet. Ethical leaders promote ethical behaviors. We develop a first-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership and employee ethical behaviors, and treat ethical climate and organizational justice as dual mediators and leaders’ moral attentiveness as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: These dual mediation mechanisms are more robust for high moral leaders than low moral leaders. (...) Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifically, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only influences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our findings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers apply their values as a lens to frame their concerns in the immediate and omnibus contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange, business ethics, and economic potentials in the global competitive markets. (shrink)

Leaders, particularly new leaders, seek to establish high levels of trust, as it has been associated with higher levels of effectiveness and group outcomes. This study is designed to understand how trust changes and develops for leaders in a new role and the implications of that change. Although calls for research on trust over time have been made for the past 2 decades, our knowledge of this phenomenon is still quite limited. The findings indicate that leader and unit performance is (...) a function not only of absolute trust level, but is also affected by the direction and magnitude of change in trust across time periods, with the highest levels of effectiveness being associated with leaders who exhibited an increase in trust from the group over time. The data also suggest that the direction and rate at which trust grew was determined by initial expectations and transformational leadership behaviors. (shrink)

This paper explores how consumers perceive retailer ethics. Based on a review of the marketing and consumer research literature, we conceptualize consumer perceptions of the ethics of retailers as a multidimensional construct and propose that its effects on consumer purchase behavior and word-of-mouth communication are more salient when consumers have strong rather than weak ethical beliefs. The model was validated using a random sample of 399 respondents in a collectivist society. The results of structural equation modeling confirmed that CPER is (...) a second-order construct comprising product fairness, price fairness, non-deception, fair trade, and green products. CPER positively predicted consumer purchase behavior and word-of-mouth communication. Moreover, ethical beliefs moderated the positive relationship between CPER and the word-of-mouth communication of consumers with strong ethical beliefs but did not moderate the relationship between CPER and purchase behavior. The implications of the findings are discussed. (shrink)

Drawing on social cognitive theory, this study extends our understanding of the relationship between ethical leadership and employee work engagement, by exploring self-efficacy as an important mediating variable. In addition, we propose that the quality of LMX moderates the relationships such that the direct and indirect relationships between ethical leadership, self-efficacy, and work engagement are stronger when the quality of LMX is high. Data collected in two-waves from 373 respondents working in different manufacturing organizations of Pakistan supported our hypothesized theoretical (...) model. Theoretical and practical implications 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)

Research on ethical leadership generally falls into two categories: one celebrates individual leaders and their ‘authentic’ personalities and virtuous stewardship of organizations; the other decries toxic leaders or individuals in positions of power who exhibit ‘dark’ personality traits or dubious morals. Somewhere between these extremes, leadership is ‘done’ by imperfect human beings who try to avoid violating their own ethical standards while at the same time navigating the realities of social and organizational life. This paper discusses the concept of ‘Moral (...) Recovery’ as an ethical leadership process that begins in moral failure, but enables eventual personal, organizational, and social change. It builds on the concept of ‘Moral Injury’ from the work of the psychiatrist Johnathan Shay and refers to the experiences of armed service personnel traumatized by experiences where either they, or their leaders, violated their own values. ‘Morally injured’ parties recover their sense of wellbeing through engaging with restorative communal actions which address the social causes of unethical practices. The process of Moral Recovery requires restorative communal actions which address the social causes of unethical practices. This paper will outline the concept of ‘Moral Recovery’ as a form of practical ethical leadership and change. It will illustrate its relevance to ethical leadership practice with reference to one high-profile case; Ray Anderson of Interface. As this paper is primarily conceptual, avenues for future research are identified, and implications for teaching practice are discussed. (shrink)

Drawing on the work–family enrichment theory, the present study investigates the cross-domain effects of ethical leadership on employees’ family and life satisfaction. Moreover, it focuses on the mediating role of work–family enrichment and the moderated mediation process of family-supportive supervisor behaviors underlying the relationship between ethical leadership and employees’ family and life satisfaction. Using a sample of 371 employees and their immediate supervisors in China, we found that WFE mediated the relationship between ethical leadership and employee-rated and supervisor-rated family and (...) life satisfaction. Moreover, FSSB positively moderated the relationship between ethical leadership and WFE, such that the relationship was strengthened when FSSB were higher. Furthermore, the mediations of WFE between ethical leadership and employee-rated and supervisor-rated family and life satisfaction were also positively moderated by FSSB, such that the indirect effects were stronger when FSSB were higher. The theoretical and managerial implications of our findings are further discussed. (shrink)

The value of a company’s ethical reputation has become a focal point for management researchers. We seek to join this conversation and extend the research centered on a firm’s ethical reputation. We accomplish this by shifting our focus away from its impact on external stakeholders to its impact on internal stakeholders. To this end, we rely on signaling theory to explain why a firm’s ethical reputation matters to its employees in an effort to bridge the macro–micro research gap. Across two (...) studies, we propose and demonstrate that a firm’s ethical reputation impacts employee subjective career success in form of career opportunities and work–life balance. Given our signaling theory framework, we also identify and explain when two industry-level characteristics operate as boundary conditions that distort a firm’s ethical reputation signaling properties. Specifically, the results demonstrate that a firm’s ethical reputation is positively related to employees’ perceptions of career opportunities and work–life balance. The results of our studies also demonstrate that the relatively high levels of industry competition and industry regulation weaken the positive impact of a firm’s ethical reputation on career opportunities and work–life balance. Theoretical and practical implications are discussed. (shrink)

Since taking office, the President of the United States has consistently refused to make his tax returns available for public scrutiny. In so doing, he has broken with presidential tradition and kept people guessing about what his tax returns would show if they were disclosed. Interestingly enough, in the absence of concrete knowledge about the President’s tax circumstances, some taxpayers perceive that he did not pay his fair share and others perceive that he did. This situation presents an opportunity for (...) us to consider how vertical equity perceptions about the President’s fair share of taxes, and identification with the President via voting behavior, are jointly associated with taxpayers’ compliance. Using insights from equity theory as reported in Adams Advances in experimental social psychology, Academic Press, New York, 1965) and social learning theory as reported in Bandura, we anticipate and find that those taxpayers who perceive that the President did not pay his fair share of taxes and who most closely socially identify with him have the lowest tax compliance. We use a survey of 600 American taxpayers to capture their perceptions of vertical equity, voting behavior, and tax compliance intentions. Our results may reflect that taxpayers who identify with the President will tend to model his tax-related actions, or may also indicate that some taxpayers vote for a president whose actions are similar to their own. Insights and implications for ethics and tax researchers and tax policy makers are discussed. (shrink)

Based on ideology-infused psychological contract theory and cognitive evaluation theory, this study investigated the curvilinear relationship between ethical leadership and employee creativity. A curvilinear mediation model was proposed to explain the impact of ethical leadership on creativity, using employee intrinsic motivation as the mediator. Applying a two wave sampling design that consist 258 employees and their leaders, we found that employee creativity improved as ethical leadership increased from low to moderate levels. However, the employee creativity improvement was attenuated when ethical (...) leadership increased from moderate to high levels. Furthermore, the study also revealed that employee intrinsic motivation partially mediated this curvilinear relationship. The theoretical and managerial implications are discussed. (shrink)

Most of the previous literature has focused on the positive effects of ethical leadership on organizations and employees, but some studies have unexpectedly found that ethical leadership is negatively related to employees' well-being at work. Based on the theory of workplace anxiety, this research explored whether ethical leadership can reduce employees' well-being at work by causing them to feel anxious about organizational citizenship behavior and whether organizational concern motivation moderates this mechanism. We collected 227 three-stage time-crossed data samples from 12 (...) institutions in Hainan China, then tested our research hypotheses to confirm that ethical leadership has a negative impact on employees' well-being at work under certain conditions. We found that: (1) ethical leadership is significantly and positively correlated with the organizational citizenship anxiety perceived by employees, (2) organizational citizenship anxiety perceived by employees plays a completely mediating role between ethical leadership and employee well-being at work, and (3) organizational concern motivation not only negatively moderates the negative correlation between employees’ organizational citizenship anxiety and well-being at work, but also further moderates the indirect negative effect of ethical leadership on employee well-being at work through organizational citizenship anxiety. (shrink)