Despite the prevailing discourses on the importance of top management ethical leadership, related theoretical and empirical developments are lacking. Drawing on institutional theory, we propose that top management ethical leadership contributes to organizational outcomes by promoting firm-level ethical and procedural justice climates. This theoretical framework was empirically tested using multi-source data obtained from 4,468 employees of 147 Korean companies from various industries. The firm-level analysis shows that top management ethical leadership significantly predicts ethical climate, which then results in procedural justice (...) climate that fully mediates the effects of top management ethical leadership on two organizational outcomes, namely, firm-level organizational citizenship behavior and firm financial performance. The present study provides a plausible theoretical account and empirical validation of a mechanism through which top management ethical leadership enhances organizational performance. (shrink)

In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 (...) CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs' self-rated ethical leadership was positively associated with employees' aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein. (shrink)

Drawing on strategic choice theory, we investigate the influence of CEO leadership styles and personal attributes on the implementation of organizational diversity management practices. Specifically, we examined CEO transformational and transactional leadership in relation to organizational diversity practices and whether CEO social values and age may moderate these relationships. Our results suggest that transformational leadership is most strongly associated with the implementation of diversity practices. Transactional leadership is also related to the implementation of diversity management practices when either CEO social (...) values or age are relatively high. These findings extend previous work examining predictors of diversity management in organizations and highlight the central role that organizational leaders may play in the successful implementation of these practices. (shrink)

Several leadership and ethics scholars suggest that the transformational leadership process is predicated on a divergent set of ethical values compared to transactional leadership. Theoretical accounts declare that deontological ethics should be associated with transformational leadership while transactional leadership is likely related to teleological ethics. However, very little empirical research supports these claims. Furthermore, despite calls for increasing attention as to how leaders influence their followers’ perceptions of the importance of ethics and corporate social responsibility (CSR) for organizational effectiveness, no (...) empirical study to date has assessed the comparative impact of transformational and transactional leadership styles on follower CSR attitudes. Data from 122 organizational leaders and 458 of their followers indicated that leader deontological ethical values (altruism, universal rights, Kantian principles, etc.) were strongly associated with follower ratings of transformational leadership, while leader teleological ethical values (utilitarianism) were related to follower ratings of transactional leadership. As predicted, only transformational leadership was associated with follower beliefs in the stakeholder view of CSR. Implications for the study and practice of ethical leadership, future research directions, and management education are discussed. (shrink)

A values-centered leadership model comprised of leader stakeholder and economic values, follower values congruence, and responsible leadership outcomes was tested using data from 122 organizational leaders and 458 of their direct reports. Alleviating same-source bias concerns in leadership survey research, follower ratings of leadership style and follower ratings of values congruence and responsible leadership outcomes were collected from separate sources via the split-sample methodology. Results of structural equation modeling analyses demonstrated that leader stakeholder values predicted transformational leadership, whereas leader economic (...) values were associated with transactional leadership. Follower values congruence was strongly associated with transformational leadership, unrelated to transactional leadership, and partially mediated the relationships between transformational leadership and both follower organizational citizenship behaviors and follower beliefs in the stakeholder view of corporate social responsibility. Implications for responsible leadership and transformational leadership theory, practice, and future research are discussed. (shrink)

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as ‚business ethics’ and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model (...) consists of three principal components (i.e. expectations, perceptions and evaluations) that are interconnected by five sub-components (i.e. society expects; organizational values, norms and beliefs; outcomes; society evaluates; and reconnection). The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics. (shrink)

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

This study identifies and describes the values espoused by the 62 companies that have consistently appeared on the “Fortune 100 Best Companies to Work For” list. We identify 24 separate values and offer an analysis of the keywords and phrases used to promote them. We confirm that these values fall within the categories of four well-accepted theoretical frameworks of corporate values and culture. We then provide evidence for three underlying dimensions transcending all four models. They are values that guide relationships (...) and self-regulation; values that describe desired outcomes and performance; and values that inform learning and change. Next, we present the results of a qualitative study describing how these companies put their values into practice. Finally, using publicly available information from the Great Place to Work® Institute, we show how the espoused values we identified relate to: what employees report about their experiences and company self-descriptions. Our findings highlight connections between leadership and values and they offer guidance to those seeking to understand keys to values-based cultures. (shrink)

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)

Current sophisticated technologies in the workplace offer inexpensive and user-friendly devices and the means to control ‘on-the-job’ behaviour. This promises high profitability, productivity and liability alleviation. Yet, it also gives rise to a socio-ethical crisis of incessant surveillance that often overrules its anticipated benefits and motives of control and care. The dilemma is twofold: First, scholarly studies undertaken on this issue from a principally administrative and legal point of view tend to lack a moral framework and so prove unable to (...) offer an integral understanding. Second, a majority of scholars tend to focus exclusively on individual rights, such as privacy, even at the risk of overlooking its social impact and consequences. This paper thus aims to unravel these forgotten moral and social concerns. It analyses the surveillance frameworks and the arguments for and against it; scrutinises critically the technological devices most often implemented in the workplace; examines both its individual effects (privacy) and social effects (categorising); and proposes an ethics of workplace surveillance in a framework of trust and transparency. It argues, in all these ways, for an alteration or modification of traditional organisational behaviour within a new frame of reference, situated within and going beyond questions of moral duty, principles and legal compliance. (shrink)

This paper signifies the inevitability of the responsible practices of leadership into the relation with the subordinates in the Indian organizations. The theme of this study revolves around the responsibility and ethical approach of the top management which directly or indirectly influence the job-related attitudinal behavior of employees. To analyze it empirically, a questionnaire is designed and 138 middle-level managers from four private sector telecom companies in India rated their superiors on 11 items of leadership scale. This study used internal (...) consistency reliability, Pearson correlation, and exploratory factor analysis as statistical techniques. Factor analysis of the scores on such items yielded two dimensions. The paper examines the impact of leadership of managers upon their subordinates in the context of enhancing job satisfaction, affective commitment, and knowledge performance. The results of the study are not completely substantiating empirically to the theory that ethical attitude of leaders enhance commitment and satisfaction of subordinates in Indian context. (shrink)

We evaluate the relationship between the appointment of women to CEO or Chair positions and firm performance, and shed light on the differences between family and nonfamily firms. By using a propensity score matching approach on a sample of 394 French firms over the period 2001–2010, we find major discordances between women’s leadership style and family business expectations relative to firm performance, as measured by return on assets and Tobin’s q. Notably, our results support the conjecture that family firms, which (...) are more conducive to transformational leadership, offer women a more appropriate climate for exercising the function of Chair than that of CEO. In contrast, women CEOs perform better in nonfamily firms. Our findings move away from the predominant focus on barriers and stereotypes images about the female leadership and support the contingency theory of leadership, which states that the effectiveness of a leadership style depends on the organization and culture in which leaders operate, and on task-related positions. (shrink)

Although CEO commitment is recognized as being crucial to organizational diversity efforts, we know little about how CEOs signal their priorities and mobilize key organizational actors to implement diversity management. We tested an integrative model in which CEO beliefs about diversity were theorized to predict the implementation of organizational diversity practices through two consecutive mediating steps—via greater CEO engagement in pro-diversity behavior, and in turn, higher perceived CEO commitment by their HR manager. In this model, we also proposed a moderating (...) effect such that when CEOs have less positive beliefs about diversity, CEOs espousing higher moral values will display greater pro-diversity behavior. Results supported the proposed model. Taken together, our findings indicate that a CEO’s words and actions alone are not sufficient for the implementation of diversity management practices. HR managers must view their CEOs as being committed to workplace diversity in order for diversity management practices to be implemented. (shrink)

The importance of cultural enterprises to the creation of jobs, generating incomes, alleviating poverty and distributing development has long been recognized. Based on empirical research, this article adopts the convergent parallel mixed design to assess extent of influence of cultural values on the type of cultural industry established in Ghana, taking a case of the kente textile industry in Adanwomase. Adanwomase is argued to be a prominent traditional community in the printing of kente cloths in Ghana. Primary data were obtained (...) from 210 weavers and relevant bodies, such as the Business Advisory Council and traditional leaders through direct interviews, observation and focus group discussions. Findings show that the craft industry in Adanwomase is informal and small-scale in nature. Six key cultural values were identified to statistically have significant influence on the establishment of the textile craft industry. Strongest among them were the festival celebrations and customary law/traditional customs. There was strong correlation between the identified cultural values and the establishment of the textile industry in Adanwomase. Urgent policy and creation of the enabling environment to promote entrepreneurship and create employment through support for research and development (R&D) of cultural industries are needed. (shrink)

This study examined individual difference characteristics as predictors of business students’ attitudes toward sustainable business practices. Three types of predictors were considered: personal values, individualism–collectivism, and leadership styles. Data were collected from 248 business students attending a mid-sized university in western United States using self-reported questionnaires. Few gender differences were present. Hierarchical regression analyses, controlling for personal demographic characteristics, indicated that business students scoring higher on Rokeach’s social value scale, collectivism, and transformational leadership also reported more positive attitudes toward sustainable (...) business practices. Implications for research and practice are discussed. (shrink)

In this paper, we outline some of the connections between the literatures of organizational storytelling, spirituality in the workplace, organizational culture, and authentic leadership. We suggest that leader storytelling that integrates a moral and spiritual component can transform an organizational culture so members of the organization begin to feel connected to a larger community and a higher purpose. We specifically discuss how leader role modeling in authentic storytelling is essential in developing an ethically and spiritually based organizational culture. However, we (...) also acknowledge a potential dark side to leader storytelling. Implications for authentic storytelling research and practice are discussed. (shrink)

We examine the perceived importance of three organizational preconditions theorized to be critical for ethics program effectiveness. In addition, we examine the importance of ethical leadership and congruence between formal ethics codes and informal ethical norms in influencing employee perceptions. Participants from a large southern California government agency completed a survey on the perceived effectiveness of the organization’s ethics program. Results suggest that employee perceptions of organizational preconditions, ethical leadership and informal ethical norms were related to perceptions of ethics program (...) effectiveness. Based on these findings, organizations should evaluate the presence of essential preconditions and take steps to ensure that leaders model espoused organizational values to foster perceptions of effective ethics programs. (shrink)

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

Little is known and understood about ethics management or the development of formal, systematic, and goal-directed initiatives to improve ethics in the public relations workplace. This study found little ethics training and written guidelines in the public relations workplace. Organizational ethics initiatives are poorly communicated to practitioners and rely mostly on punitive restraints with little reward for ethical behavior. For many practitioners, ethics is not learned through workplace ethics initiatives but rather is mostly informed by external influences including personal values, (...) family upbringing, and professional work experiences. (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)

This study examines the antecedents of corporate scandals. Corporate scandals are defined as rare events occurring at the apex of corporate fame when managerial fraud suddenly emerges in conjunction with a significant gap between perceived corporate success and actual economic conditions. Previous studies on managerial fraud have examined the antecedents of illegal acts in isolation from strategic decisions and in terms of CEOs’ individual responses to the external context. This study frames the antecedents of corporate scandals in terms of the (...) interplay of CEOs’ personal traits with corporate strategy and stakeholders’ cohesion. With this aim, this study builds on extant theory to examine the case of Banca Popolare di Lodi, an Italian bank involved in a corporate scandal in year 2005. The model contributes to advance understanding of the complex dynamics underlying the emergence of corporate scandals. (shrink)

This study examined individual difference characteristics as predictors of business students' attitudes toward sustainable business practices. Three types of predictors were considered: personal values, individualism—collectivism, and leadership styles. Data were collected from 248 business students attending a mid-sized university in western United States using self-reported questionnaires. Few gender differences were present.Hierarchical regression analyses, controlling for personal demographic characteristics, indicated that business students scoring higher on Rokeach's social value scale, collectivism, and transformational leadership also reported more positive attitudes toward sustainable business (...) practices.Implications for research and practice are discussed. (shrink)

Previous studies have consistently argued that employees' perception of their leaders as charismatic will positively influence their willingness to commit themselves to the ethical and philanthropic objectives of the organization. However, the empirical relationship between charisma and employee work effort is only modestly explored. This study hypothesizes that in decentralized, professional, and normative organizations characterized by demanding and philanthropic tasks, group belonging, in its capacity to socially and professionally support employees, is better suited to explain employee work effort than leadership (...) charisma. Hierarchical regression analyses based on data from a bishopric supported this assumption. Practical and theoretical consequences are discussed. (shrink)