This study examined the relationship between CEO ethical leadership and corporate social responsibility by focusing on the mediating role of organizational ethical culture and the moderating role of managerial discretion. Based on a sample of 242 domestic Chinese firms, we found that CEO ethical leadership positively influences corporate social responsibility via organizational ethical culture. In addition, moderated path analysis indicated that CEO founder status strengthens while firm size weakens the direct effect of CEO ethical leadership on organizational ethical culture and (...) its indirect effect on corporate social responsibility. Theoretical and managerial implications of these results are discussed. (shrink)

This study investigates whether employees attribute different motives to their organization's corporate social responsibility efforts and if these motives influence employee performance. Specifically, we investigate whether employees could distinguish between intrinsic and extrinsic CSR motives by surveying 229 employee–supervisor dyads from various industries , and the impact of these perceptions on in-role and extra-role performance of subordinates. We found that employee task performance increases when employees attribute both intrinsic and extrinsic motives for CSR. Moreover, when employees perceive that their organization (...) invests in a CSR practice that is both intrinsic and extrinsic, they also tend to exert extra effort in their work. Theoretical and practical implications are also discussed alongside future research directions. (shrink)

Transparency is an underpinning of workplace ethics. However, most of the existing research has focused on the relationship between leader transparency and its consequences. Drawing on social and self-regulation theory research, we examine the antecedents of followers’ transparency. Specifically, we propose that followers have higher levels of transparency when they are working with peers who have a high level of transparency. We further suggest that followers’ conscientiousness and agreeableness moderate the relationship between peer transparency and followers’ transparency. Using a time-lagged (...) design, we provide support for the proposed theoretical model. We found that follower conscientiousness substitutes the social regulation effect, while follower agreeableness enhances this social regulation effect. Theoretical and practical implications of these findings are also discussed. (shrink)

This study proposes and tests a model of the relations among corporate accountants’ perceptions of the ethical climate in their organization, the perceived importance of corporate ethics and social responsibility, and earnings management decisions. Based on a field survey of professional accountants employed by private industry in Hong Kong, we found that perceptions of the organizational ethical climate were significantly associated with belief in the importance of corporate ethics and responsibility. Belief in the importance of ethics and social responsibility was (...) also significantly associated with accountants’ ethical judgments and behavioral intentions regarding accounting and operating earnings manipulation. These findings suggest that perceptions of ethical climate, usually presumed to reflect the “tone at the top” in the organization, lead accounting professionals to rationalize earnings management decisions by adjusting their attitudes toward the importance of corporate ethics and social responsibility. This is the first study to document a relationship between organizational ethical climate and professional accountants’ support for corporate ethics and social responsibility, and also the first study to document that industry accountants’ views toward corporate ethics and social responsibility are associated with their willingness to manipulate earnings. The findings have important implications, suggesting that organizational efforts to enhance the ethical climate and emphasize the importance of corporate ethics and social responsibility could reduce the prevalence of earnings manipulation. (shrink)

Although the ethical aspects of transformational leadership have attracted considerable attention, very little is known about followers’ reactions to the moral and immoral conduct of transformational leaders. Against this background, this study examined whether and how transformational leadership interacts with moral and authoritarian leadership behaviors in predicting followers’ in-role and extra-role efforts. Building on attribution theory, we hypothesized that the positive and negative effects of these leadership behaviors would be particularly pronounced for highly transformational leaders given that this leadership style (...) elicits strong attention and sense-making efforts among followers. We tested our model in a sample of 228 individuals comprising 114 leader–follower dyads from a wide range of organizations and industries. In line with our hypotheses, results revealed that for highly transformational leaders, moral leadership behaviors related positively to employees’ in-role and extra-role efforts whereas authoritarian leadership behaviors related negatively to employees’ in-role and extra-role efforts. In contrast, moral and authoritarian leadership behaviors did not significantly affect followers’ reactions to leaders low in transformational leadership. Taken together, these findings suggest that transformational leadership, contrary to its largely positive perception in the literature, can be a rather mixed blessing. Implications for theory, future research, and managerial practice are discussed. (shrink)

Various studies have recognized the importance of humility as a foundational aspect of virtuous leadership and have revealed the beneficial effects of leader humility on employee moral attitudes and behaviors. However, these findings may overestimate the benefits of leader humility and overlook its potential costs. Integrating person–supervisor fit theory and balance theory with the humility literature, we employ a dyadic approach to consider supervisor and employee humility simultaneously. We investigate whether and how the congruence of supervisor and employee humility influences (...) employee citizenship and deviance behaviors. We conducted a multilevel, multiphase, and multisource field study to test our hypotheses. The results of cross-level polynomial regression analyses revealed that when supervisors and employees were incongruent in humility, employees experienced higher levels of negative affect toward supervisors. Also, compared to those in low–low congruent dyads, employee negative affect toward supervisors was lower in high–high congruent dyads. The results further revealed asymmetric incongruence effects: employees experienced the highest levels of negative affect toward supervisors when their own humility was lower than their supervisors’. In addition, we found that employee negative affect toward supervisors mediated the impacts of supervisor–employee congruence in humility on employee organizational citizenship behavior and counterproductive work behavior. (shrink)

Organizations and their leaders are challenged to assume a responsible behavior given the increase of corporate scandals and the deterioration of employee commitment. However, relatively few studies have investigated the impact of responsible leadership on employee commitment and the effect of corporate social responsibility in this relationship. Using the social identity theory this article examined the mediating effect of CSR practices in the relationship between RL and affective organizational commitment. Data collection was done through a paper survey completed by 309 (...) full-time Colombian employees. Structural equation modeling was used to analyze the data. The results showed that CSR fully mediated the influence of RL on AOC. Thus, RL is an effective mechanism to develop CSR practices that in turn increase the levels of AOC of employees. (shrink)

In this article we evaluate Jesus Centered Leadership, a new concept that has emerged in the realm of spirituality and business management. JCL questions the “Christianity” of Christian business leadership, and proposes principles for ethical leadership that provide a truer representation of the teachings and traits of Jesus. We consider these principles and contribute principles of our own, thereby providing an alternative approach to JCL that remains consistent with the JCL message of morality but addresses issues that offer greater opportunities (...) for adoption within existing business and institutional models. (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)

This study empirically examined the propositions that ethical leadership is related to employees’ organizational citizenship behavior through two psychological mechanisms: a social learning mechanism, where employees emulate their supervisor’s behavior such as caring about their organization; and a social exchange mechanism that links ethical leadership to perceived procedural justice and employee’s organizational concern. Our theoretical model was tested using data collected from employees in a pharmaceutical retail chain company. Analyses of multisource time-lagged data from 93 team supervisors and 486 employees (...) showed that supervisors’ and employees’ organizational concern sequentially mediated the relationship between ethical leadership and employee OCB. It was also found that the link between ethical leadership and employee OCB was sequentially mediated by perceived procedural justice and employee’s organizational concern. Theoretical and practical implications of these findings are discussed. (shrink)

Using the behavioral agency model, we analyze how two compensation design characteristics, pay-performance sensitivity and duration of CEO compensation, affect corporate social performance. We find that the performance sensitivity of CEO pay is negatively associated with poor social performance but also negatively affects strong social performance. These results suggest that pay-performance sensitivity increases the relevance of potential negative consequences of poor social performance. However, the ‘insurance’ benefits of strong social performance may also become less relevant. With respect to the duration (...) of CEO compensation, we find that it reduces poor social performance. This finding confirms arguments that a long-term compensation time horizon increases the perceived threat that the negative effects of poor social performance will become visible. With our findings, we integrate behavioral agency theory with the traditional stakeholder views. (shrink)

This paper summarized the findings of a qualitative study that examines the perceptions of ethical leadership held by those who perceived themselves to be ethical leaders, and how life experiences shaped the values called upon when making ethical decisions. The experiences of 28 business executives were shared with the researcher, beginning with the recollection of a critical incident that detailed an ethical issue with which each executive had been involved. With the critical incident in mind, each executive told the personal (...) story that explained the development of the values he or she called upon when resolving the ethical issue described. The stories were analyzed through the use of constant comparison, which resulted in the development of two models: (1) a framework for ethical leadership illuminating valued aspects of ethical leaderships and the value perspectives called upon when making ethical decisions, and (2) a model explaining how the executives’ ethical frameworks developed. The paper concludes with a brief discussion on virtue ethics, experiential learning, and human resource development. (shrink)

The aim of this article is to undertake a systematic literature review (SLR) of empirical research that uses multi‐source methods for collecting data about Ethical Leadership (EL). Research on this sensitive subject benefits from the inclusion of data from more than one source, in order to be better supported, and thus contribute to a deeper understanding of leadership and business ethics issues. The search strategy retrieved a total of 50 multi‐source empirical studies on the topic of EL, published until December (...) 2017. This SLR shows that (a) research on EL has focused mostly on the perceptions of followers, possibly because they are the most accessible target of its outcomes, thus restricting the scope of this body of research; (b) EL is studied mainly through consideration of its consequences, a restriction that hinders explanation of the causal processes involved in ethical leadership, which remains a research arena in need of development. The systematic inclusion of other stakeholders in multi‐source methods is advanced as a way to further develop the field. (shrink)

The aim of this research is to explore the process linking participative leadership to organizational identification. The study examines the relationship between participative leadership and internal CSR perceptions of employees and also investigates the role that pride in membership plays in the affiliation of CSR perceptions with organizational identification. By studying these relationships, the paper aspires to contemplate new presumed mediators in the association of participative leadership with organizational identification as well as determine a possible novel antecedent of employee CSR (...) perceptions. Empirical evidence is provided from data that was collected through a survey distributed to employees working for small- and medium-sized enterprises in three countries in the Middle East and North Africa regions, particularly the United Arab Emirates, Lebanon, and Tunisia. Findings show that participative leadership leads to positive internal CSR perceptions of employees and that these CSR perceptions lead to pride in membership which, in turn, results in organizational identification. Implications of these findings are also discussed. (shrink)

This study examines the relationship among the employees–organization pro-environmental values fit, supervisors’ PEVs and employees’ pro-environmental behaviors. Informed by the PEB, organizational values and employee–organization fit literature, we propose and test hypotheses that under egoistic, altruistic and biosphere-value orientations, E–O PEVs fit versus non-fit have significant effects on employees’ private-sphere PEB and public-sphere PEB, identifying supervisors’ PEVs as a moderator. An empirical investigation indicates that the effect of E–O PEVs fit on employees’ private-sphere PEB and public-sphere PEB varies as the (...) value orientation differs. More specifically, under the context of altruistic and biosphere-value orientations, if the organizational PEVs do not match the employees’ PEVs, especially when the former exceeds the latter, employees’ PEB will rise as the organizational PEVs increase. As for egoistic value orientation, when organizational PEVs exceed employees’ PEVs, not only will public-sphere PEB stop decreasing and tend to stabilize, but also private-sphere PEB will rise to a slight degree. Furthermore, compared with altruistic and biospheric values dimensions, supervisors who promote egoistic PEVs will have a more significant effect on the relationship between global E–O PEVs fit and employees’ PEB. Finally, we suggest that the goals of an organization and its supervisors need to be combined within the actual situation of Chinese corporations to truly implement corporate green practices by balancing the profit goal and the environmental goal. (shrink)

Based on attribution theory, this research defines pseudo-transformational leadership to be driven by the interaction between transformational leadership and the subordinates’ perception of their supervisor’s manipulative intention. We investigate the effects of pseudo-transformational leadership on contextual performance through organizational identification. The results of hierarchical linear modeling using a sample of 214 subordinates reporting to 66 supervisors show that when subordinates perceive that their supervisor has a high level of manipulative intention, the impact of group-level transformational leadership on the subordinates will (...) be reduced. More specifically, when subordinates perceive the manipulative intention of transformational leadership, they are less likely to identify with the organization, which ultimately limits their willingness to demonstrate contextual performance activities. The implications of these findings for theory as well as managerial practice are discussed. (shrink)

This study seeks effective ways for managing employees with a high Machiavellian personality in organizations by identifying how to enhance their pro-organizational attitudes and behaviors [organizational citizenship behavior ] through transformational leadership. Drawing upon the dual-focused model of TFL, we suggest that exerting TFL upon employees high in Machiavellianism involves ethical dilemmas in that individual-focused and group-focused TFL have contrasting effects on leading pro-organizational attitudes/behaviors among these pro-individual employees. Analysis of data from 184 employees working in South Korea shows that (...) Machiavellianism negatively relates to affective commitment, OCB toward the organization, and OCB toward individuals, but positively to continuance commitment. More importantly, the results reveal that group-focused TFL can effectively manage employees high in Machiavellianism by mitigating the negative relations between Machiavellianism and affective commitment and between Machiavellianism and OCB-O. However, individual-focused TFL strengthens these negative relations as well as the negative relation between Machiavellianism and OCB-I. This study thus shows that to lead employees high in Machiavellianism in a pro-organizational direction, group-focused TFL rather than individual-focused TFL needs to be employed. (shrink)

The growing body of literature on partnerships has paid most attention to their implications at the macro level, for society, as well as the meso level, for the partnering organisations. While generating many valuable insights, what has remained underexposed is the micro level, i.e. the role of managers and employees in partnerships, and how their actions and interactions can have an effect on the spread and potential effectiveness of collaborative efforts. This article uses a case-study approach to empirically explore the (...) patterns and potential boundary conditions of so-called ‘trickle effects’ of partnerships among individual actors within and outside partnering companies, which have thus far only been proposed conceptually. Based on interviews with employees from three different companies, we found an evidence of trickle-down and trickle-up effects with higher and lower management, as well as trickle-round effects with colleagues, family, friends and customers. The article discusses several partnership characteristics that seem to play a role, and notes implications for research and practice. (shrink)

In the period since the 2008 Wall Street crash, little consensus has emerged on its causes or actions to prevent a recurrence. Our capability for rational decision making was overwhelmed. Viewing the entire financial system as a huge, richly interconnected organization suggests that its structure and associated management practices are suited for a far simpler environment. An organization that is large relative to its environment and sufficiently complex to require the coordination of specialized expertise cannot function by enabling decision makers (...) to respond only to local demands. The resulting inability to recognize critical interdependencies and the nature of their risk makes periodic catastrophic failure likely. Specifically, compartmentalization of information, influence, and reward creates a myopic decision environment in which individual decision makers are unlikely to make effective or ethical decisions. Useful criteria for evaluating solutions can be suggested by considering the interaction of two factors: limited human information processing capability and the effect of motivation on information processing. Taken together, they suggest that human information processing is both limited and opportunistic. We cannot process all information available and the information selected for processing narrows to that needed to achieve salient rewards. Because of this, the organization's reward practices and their effect on motivation are a critical variable. Large financial rewards contingent upon short term, local, simplistic measures inevitably narrow the focus of decision maker's attention to a small part of the system. In contrast, dominant intrinsic motivation is rooted in awareness of, and responsibility for, broader outcomes. Each type of motivation differs in its requirements for sharing of information, influence, and reward. These, in turn, determine the adaptability of the organization to complexity and change. While this has significant ethical implications, its logic rests on the limitations of human information processing and motivation. Aligning human motivation and information flow to the demands of a complex, turbulent financial environment is the challenge we must meet to prevent further cataclysms. (shrink)

Corporate social responsibility has been linked with numerous organizational advantages, including recruitment, retention, productivity, and morale, which relate specifically to employees. However, despite specific benefits of CSR relating to employees and their importance as a stakeholder group, it is noteworthy that a lack of attention has been paid to the individual level of analysis with CSR primarily being studied at the organizational level. Both research and practice of CSR have largely treated the individual organization as a “black box,” failing to (...) account for individual differences amongst employees and the resulting variations in antecedents to CSR engagement or disengagement. This is further exacerbated by the tendency in stakeholder theory to homogenize priorities within a single stakeholder group. In response, utilizing case study data drawn from three multinational tourism and hospitality organizations, combined with extensive interview data collected from CSR leaders, industry professionals, engaged, and disengaged employees, this exploratory research produces a finer-grained understanding of employees as a stakeholder group, identifying a number of opportunities and barriers for individual employee engagement in CSR interventions. This research proposes that employees are situated along a spectrum of engagement from actively engaged to actively disengaged. While there are some common drivers of engagement across the entire spectrum of employees, differences also exist depending on the degree to which employees, rather than senior management, support corporate responsibility within their organizations. Key antecedents to CSR engagement that vary depending on employees’ existing level of broader engagement include organizational culture, CSR intervention design, employee CSR perceptions, and the observed benefits of participation. (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...

The goal of the present research was to examine the way in which organisational identity orientation and corporate social responsibility interact to produce affective attachment and related beneficial behaviours among organisational members. Using a questionnaire administered in Poland, it was shown that when CSR activity was viewed as authentic by employees, it led to affective attachment to the organisation's CSR stance, while an instrumental evaluation was correlated with a negative attachment to the CSR stance. The results suggest that CSR motives (...) were particularly important for organisations with relational and collectivistic identity orientations because of the focus of these organisations on mutual or collective good that could be demonstrated through CSR. The results contributed to social identity literature by establishing a clear relationship between the concepts of identity orientation and CSR and showing that only authentic CSR produces affective attachment and behaviours that benefit the organisation. (shrink)

Although the ethical dimension of transformational leadership has frequently been discussed over the last years, there is little empirical research on employees’ ethical behavior as an outcome of transformational leadership. This two-study investigation examined the relationship between transformational leadership and unethical yet pro-organizational follower behavior. Moreover, mediating and moderating processes were addressed. Our research yielded a positive relationship between transformational leadership and employees’ willingness to engage in UPB. Furthermore, both studies showed employees’ organizational identification to function as a mediating mechanism (...) and employees’ personal disposition toward ethical/unethical behavior to moderate the relationship between organizational identification and willingness to engage in UPB. Altogether, results indicate transformational leadership to entail a certain risk of encouraging followers to contribute to their company’s success in ways that are generally considered to be unethical. Implications regarding the ethical dimension of transformational leadership are discussed. (shrink)

To further the debate on the ethical dimension of transformational leadership from a virtue ethics perspective, this study focused on leaders’ in-group orientation as well as their in-group versus out-group orientation in situations of conflict between organizational interests and broader ethical values. More precisely, the current study captured leaders’ organizational identification as well as their willingness to engage in unethical pro-organizational behavior and tested the relations between these attitudes and follower-perceived TFL behavior. In total, the leadership behaviors of 112 middle- (...) and top-level managers were evaluated by 900 direct-reports. Results showed leaders’ organizational identification to be positively related to TFL. However, we found no relation between leaders’ willingness to engage in unethical pro-organizational behavior and TFL. Implications regarding the ethical dimension of TFL are discussed. (shrink)

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights (...) the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice. (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)

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue impacts on moral attentiveness and the perceived role of ethics and social responsibility in creating organisational effectiveness. It is argued that people who operate in more virtuous organisational contexts will be (...) expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research. (shrink)

This paper argues that Shanahan and Hyman’s Virtue Ethics Scale should be abandoned and that work should begin to develop better-grounded measures for identifying individual business virtue in context. It comes to this conclusion despite the VES being the only existing measure of individuals’ virtues that focuses on business people in general, rather than those who hold specific leadership or audit roles. The paper presents a study that, in attempting to validate the VES, raises significant concerns about its construction. In (...) particular, investigation of the VES items leads to adjustments in the language used and examines participants’ understanding of the virtue terms and their descriptors. Confirmatory factor analysis of data collected from a sample of 137 HR practitioners establishes that the 6-factor solution identified by Shanahan and Hyman is not appropriate for the sample under examination. Rather, exploratory factor analysis results in three dimensions based in 13 items focusing on the individuals’ reliability, resourcefulness, and leadership. Finally, multiple regression establishes that these dimensions do not on the whole show associations with MA or PRESOR, two measures through which it would be expected to establish convergent and divergent validity. The paper concludes by suggesting guidelines for the development of future measures of IBV. (shrink)

The ongoing cynicism about leaders and organizations calls for a new standard of ethical leadership that we have labeled “transformative leadership.” This new leadership model integrates ethically-based features of six other well-regarded leadership perspectives and combines key normative and instrumental elements of each of those six perspectives. Transformative leadership honors the governance obligations of leaders by demonstrating a commitment to the welfare of all stakeholders and by seeking to optimize long-term wealth creation. Citing the scholarly literature about leadership theory, we (...) identify key elements of the six leadership perspectives that make up transformative leadership, suggest leaders who exemplify each perspective, describe the ethical foundations and message of each perspective, and offer ten propositions that scholars and practitioners can use to test the dimensions of this new transformative leadership model. (shrink)

It is important to understand the processes behind how and why individuals emerge as leaders, so that the best and most capable individuals may occupy leadership positions. So far, most literature in this area has focused on individual characteristics, such as personality or cognitive ability. While interactions between individuals and context do get research attention, we still lack a comprehensive understanding of how the social context at work may help individuals to emerge as leaders. Such knowledge could make an important (...) contribution toward getting the most capable, rather than the most dominant or narcissistic individuals, into leadership positions. In the present work, we contribute toward closing this gap by testing a mediation chain linking a leader's leader self-awareness to a follower's leadership emergence with two time-lagged studies (nstudy1 = 449, nstudy2 = 355). We found that the leader's leader self-awareness was positively related to (a) the follower's leadership emergence and (b) the follower's nomination for promotion and that both relationships were serially mediated by the follower's self-leadership and the follower's leader self-efficacy. We critically discuss our findings and provide ideas for future research. (shrink)