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)

Thus far, we know much more about the significant outcomes of perceived ethical leadership than we do about its antecedents. In this study, we focus on multiple types of ethical role models as antecedents of perceived ethical leadership. According to social learning theory, role models facilitate the acquisition of moral and other types of behavior. Yet, we do not know whether having had ethical role models influences follower perceptions of one’s ethical leadership and, if so, what kinds of role models (...) are important. We conducted a field study, surveying supervisors and their subordinates to examine the relationship between three types of ethical role models and ethical leadership: the leader’s childhood role models, career mentors, and top managers. We found that having had an ethical role model during the leader’s career was positively related to subordinate-rated ethical leadership. As expected, this effect was moderated by leader age, such that the relationship between career mentoring and ethical leadership was stronger for older leaders. Leader age also moderated the relationship between childhood models and ethical leadership ratings, such that having had childhood ethical role models was more strongly and positively related to ethical leadership for younger leaders. We found no effect for top management ethical role models. Implications for research and practice are discussed. (shrink)

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

Using a social exchange perspective of narcissism as the foundation for study hypotheses, this study explored the relationship between leaders’ narcissism and the well-being of both leaders and subordinates at the individual and group levels. Results from a sample of 1017 subordinates working under 424 leaders generally support the hypothesized models finding leaders’ narcissism negatively relates to leader-member exchange, and that LMX subsequently relates to subordinates’ job satisfaction and emotional exhaustion. At the group level, leaders’ narcissism also negatively relates to (...) three forms of leaders’ personal well-being but these relationships go through average LMX. Elaboration on theoretical and empirical implications for business ethics is offered to provide a clearer direction for future research in this area. (shrink)

This paper is about the relationship between leadership, organisational morals, and temporality. We argue that engaging with questions of time and temporality may help us overcome the overly agentic view of organisational morals and leadership ethics that dominates extant literature. Our analysis of the role of time in organizational morals and leadership ethics starts from a virtue-based approach to leading large-scale moral endeavours. We ask: how can we account for organizational morality across generations and independently of the leader? To address (...) this question, we studied the leadership model of the Jesuits, a Catholic Religious Order. Our case reveals that a virtue-based model of leadership does not necessarily imply that those who are selected to lead the organization are themselves virtuous, but that the processes underpinning the exercise of leadership are cyclical and repeated as truthfully as possible. Virtuous leadership, for the Jesuits, is therefore about the construction of an ideal type of leadership against which the processes which sustain it were designed. Our theoretical contribution is twofold. First, we propose an habitual understanding of moral forms of leadership, in which the procedural is constitutive of moral forms of organising; second, we explain how “timelessness”, understood as the quality of not changing as years go by, allowed the Jesuits to centre the processes which sustain their ethical model on the repetition, across space and time, of said processes, rather than on their outcome. We conclude that the search for virtue might be more relevant for large-scale moral endeavours than virtue itself. (shrink)

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

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)

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)

Business Ethics: A European Review, EarlyView.

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)

We investigated how employees’ perceptions of ethical leadership affects different facets of work behavior. We also explored the effects of psychological ownership on this relationship. Data were collected from 456 workers from various industries in Taiwan over three time periods. Ethical leadership positively related to both psychological ownership of the job and organization. Specifically, we found that psychological ownership of the job positively predicted contextual performance and was negatively associated with counterproductive work behavior. Additionally we found psychological ownership for the (...) organization to be negatively associated with counterproductive work behavior for the organization. (shrink)

This study examines to what extent perceived corporate social responsibility reduces employee cynicism, and whether trust plays a mediating role in the relationship between CSR and employee cynicism. Three distinct contributions beyond the existing literature are offered. First, the relationship between perceived CSR and employee cynicism is explored in greater detail than has previously been the case. Second, trust in the company leaders is positioned as a mediator of the relationship between CSR and employee cynicism. Third, we disaggregate the measure (...) of CSR and explore the links between this and with employee cynicism. Our findings illustrate that the four distinct dimensions of CSR of Carroll are indirectly linked to employee cynicism via organizational trust. In general terms, our findings will help company leaders to understand employees’ counterproductive reactions to an organization, the importance of CSR for internal stakeholders, and the need to engage in trust recovery. (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)

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

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

Prior research has demonstrated a strong relationship between team performance and team members’ team efficacy beliefs and perceptions of social integration. Performing well increases the feelings of collective ability that comprise team efficacy and the feelings of psychological connectedness that make up social integration, while performing poorly erodes them. In this article, we draw from the social cognitive base of ethical leadership theory to argue that ethical leadership moderates the relationship between team performance and team efficacy beliefs, and between team (...) performance and social integration, such that these important team attitudes are buffered against the negative effects of poor performance when leaders act ethically. Alternatively, when leaders act less ethically, team efficacy and social integration break down following poor performance. We test our hypotheses in a field study of U.S. military teams actively engaged in competition. The data support our arguments. We find that ethical leadership weakens the relationships among team performance and team efficacy and social integration, respectively, such that ethical leaders preserve team efficacy and social integration when their teams do not perform well. (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)

Research that examines unethical interpersonal treatment has received a great deal of attention from scholars and practitioners in recent years due to the remarkable impact of mistreatment in the workplace. However, the literature is incomplete because we have an inadequate understanding of insubordination, which we define as “subordinates’ disobedient behaviors that intentionally exhibit a defiant refusal of their supervisors’ authority.” In our study, we integrate social exchange theory and the advantageous comparison component of moral disengagement within the integrative model of (...) experiencing and responding to mistreatment at work. Then, we explain why subordinates disengage from moral control as they balance experiencing abusive supervision with perpetrating insubordination within negative supervisor–subordinate social exchange relationships. In Studies 1–4, we validate a five-item measure of insubordination and demonstrate its content, convergent, discriminant, criterion-related, and predictive validity. In Study 5, we demonstrate that there is a positive indirect effect of abusive supervision on insubordination through negative social exchange relationship quality that strengthens for subordinates who perceive higher levels of supervisors’ task performance than others. Overall, our study advances the conversation in the business ethics literature by creating a solid conceptual, empirical, and theoretical foundation for a cohesive program of insubordination research that meaningfully builds on prior findings in unethical interpersonal treatment research. (shrink)

This study provides an attributional perspective to the ethical leadership literature by examining the role of attributed altruistic motives and perceptions of organizational politics in a moderated mediation model. Path analytic tests from two field studies were used for analyses. The results support our hypotheses that attributed altruistic motives would mediate the relationship between perceived ethical leadership and affective organizational commitment. Moreover, the relationship between perceived ethical leadership and attributed altruistic motives was stronger when perceptions of organizational politics were high (...) but weaker when these perceptions were low. The study concludes with a discussion of future research implications as well as managerial implications. (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)

The study of voice behavior examines the inclination of staff and team members to speak up and contribute ideas to the team. In this article, we investigate how factors such as leader-member exchange (LMX), psychological safety and psychological empowerment influence such behavior. Our findings, which are based on a sample of 308 employees working for a state-owned telecommunications company on the Chinese mainland, indicate that ethical leadership promotes employees’ voice behavior through enhanced leader-member exchange, which also leads to greater feelings (...) of psychological safety and psychological empowerment. The theoretical and practical implications of these results are discussed. (shrink)

At a time when some are questioning the relevancy of business education in general, others are now asking whether MBA programs should be blamed for society’s declining trust in business and the numerous corporate ethical failures of recent decades. Whether the full blame lies with business schools or not, MBA instructors are actively seeking more effective ways to help students adopt more practical and ethical managerial paradigms. Because trust theory is simple and robust and outlines the basic mental processes that (...) drive economic exchange while simultaneously prioritizing ethical behavior, in this article, we argue that it is distinctively suited to operationalize stakeholder theory in the classroom, providing MBA students with both a principled and a practical foundation or thematic platform for their MBA coursework and subsequent careers. We also discuss potential challenges and limitations and provide recommendations for future research. (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)

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

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)

Existing research on the formation of employee ethical climate perceptions focuses mainly on organization characteristics as antecedents, and although other constructs have been considered, these constructs have typically been studied in isolation. Thus, our understanding of the context in which ethical climate perceptions develop is incomplete. To address this limitation, we build upon the work of Rupp to develop and test a multi-experience model of ethical climate which links aspects of the corporate social responsibility, ethics, justice, and trust literatures and (...) helps to explain how employees’ ethical climate perceptions form. We argue that in forming ethical climate perceptions, employees consider the actions or characteristics of a complex web of actors. Specifically, we propose that employees look outward at how communities are impacted by their organization’s actions, upward to make inferences about the ethicality of leaders in their organizations, and inward at their own propensity to trust others as they form their perceptions. Using a multiple-wave field study conducted at a privately held US corporation, we find substantial evidence in support of our model. (shrink)