This paper examines the effects of employees’ sense that they work for a purpose-driven company on their workplace sustainability behaviors. Conceptualizing corporate purpose as an overarching, relevant, shared ethical vision of why a company exists and where it needs to go, we argue that it is particularly suited for driving employee sustainability behaviors, which are more ethically complex than the types of employee ethical behaviors typically examined by prior research. Through four studies, two involving the actual employees of construction companies, (...) we demonstrate that purpose drives the sustainability behaviors of employees by causing them to take psychological ownership of sustainability. In addition, we show that the sustainability-enhancing effect of purpose is stronger when employees perceive that they have higher autonomy in enacting their sustainability actions and for those employees for whom being moral is more central to their sense of self. (shrink)

Purpose – With the growing demand for ethical standards in the prevailing business environment, ethical leadership has been under increasingly more focus. Based on the social exchange theory and social learning theory, this study scrutinized the impact of ethical leadership on the presentation of ethical conduct by employees through the ethical climate. Notably, this study scrutinized the moderating function of the person organization fit (P-O fit) in relation to ethical climate and the ethical conduct of employees. -/- Design/methodology/approach – To (...) evaluate the research hypotheses, two-wave data were collected from 295 individuals who are currently employed in various Iraqi organizations (i.e. manufacturing, medical, and insurance industries). -/- Findings – In line with the hypotheses, the outcomes from a sample of 295 workers working in different Iraqi entities exhibited a positive relationship between the ethical behavior of leaders and the ethical conduct of employees in the ethical climate. Moreover, it was observed that the P-O fit of employees moderated the relationship between ethical climate and the ethical conduct of employees such that the relationship was more robust for those with a high P-O fit in comparison to those with a low P-O fit. -/- Research limitations/implications – The primary limitation of this study is in the data, which was obtained from a single source. Although the study conducted two surveys and utilized a mediation and moderation variables model that was less likely to be influenced by common method bias (CMB) (Podsakoff et al., 2012), one cannot completely rule out CMB. Apart from the potential effects of the CMB, the consistency of the empirical findings could have also been compromised since self-reported data were utilized in measuring ethical behavior, which can be a very complex and sensitive issue. For this reason, the social desirability response bias cannot be ruled out completely. When possible, future studies must gather data from multiple sources. Furthermore, supervisors must evaluate the ethical behavior of employees. Another limitation was that the findings of this study were based on a sample in a Middle Eastern cultural context such as in Iraq. Perhaps, the particular cultural features of this context, which encompassed, among other things, strong adherence to religious values (Moaddel, 2010), could have influenced the findings of this study. It is true that the effects of differences (P–O fit) are highly likely to replicate across cultural contexts (Triandis et al., 1988). However, it can be seen that further studies are needed to evaluate the context-sensitivity of these findings (Whetten, 2009) by analyzing other cultures, where the importance of religiosity is on the decline (i.e. in Western countries, Ribberink et al., 2018) or where the cultural features are very much different from those that apply to Iraq. Lastly, other external factors were not taken into account by this study as it tried to explain ethical behavior. Ethics is a highly complex subject and is influenced by numerous variables at the organizational, individual, and external environment levels. Thus, caution must be observed when making inferences from the present study which, to a certain degree, offered a simplified version of ethical behavior by concentrating on a few variables such as the Arab culture’s traditional ideology, which dominates even science (Abu Khalil, 1992). In addition, there are political conflicts in the Middle Eastern cultural context such as what is happening in Iraq (Harff, 2018). Thus, it is important to include such aspects in future researches. -/- Practical implications – In terms of management, the findings send a clear signal to those in the upper echelon that, without ignoring the issue of ethics in organizations, employees are a critical aspect to be taken into account to encourage ethical behavior at the workplace. This study has important practical implications. First, this study determined that ethical leadership (here, of the supervisors) positively influences the behavior of subordinates (refers to the supervisors here); this, in turn, further improves the ethical behavior of employees. It is vital that managers or supervisors are motivated to practice ethical leadership because they directly influence the employees. It has been suggested that top managers, especially chief executive officers, have the ability to shape the ethical climate, which also influences the ethical behavior of employees further. This study offered several feasible ways that managers can apply to achieve that. In particular, top managers may utilize the ethical climate as a way of communicating the ethical values that they have to their subordinates, thereby serving as a motivation for the subordinates to adopt ethical behavior. It was also suggested by this study that ethical climate and the P–O fit may, to some degree, substitute each other as they influence the ethical behavior of employees. Therefore, firms that were identified to have a low level of ethical standards, practices, and policies, at least from the employees’ perspective, are better poised to conduct ethical issues in order to construct the ethical behavior of their subordinates. More importantly, it is highly essential that the value congruence between an organization and its followers be considered. -/- Social implications – This study highlighted the notion of ethics and how it’s essential for society. Ethics refers to the norms, standards, and values that direct the behavior of an individual. Ethical behavior is vital in society because we need to be treated with respect as human beings. -/- Originality/value – This study responds to recent calls for more research to identify factors that may strengthen or mitigate the influence of ethical behavior in the workplace such as ethical leadership, ethical climate, and Person–Organization. (shrink)

Business Ethics: A European Review, EarlyView.

Research on justice climate demonstrates a consistent effect on workgroup outcomes such as job satisfaction, commitment, and performance. However, little research considers how justice climate affects these outcomes and when the relationship is stronger or weaker. In an effort to extend the literature on justice climate, we draw on research on other types of organizational climate to suggest justice climate influences the fair behavior of coworkers. Specifically, we propose fair coworker behavior mediates the relationship between justice climate and outcomes. Further, (...) we examine the influence of workgroup structure on this mediated relationship. We examine these relationships in two studies and find support for the mediating effect of fair coworker behavior and the proposed moderated mediation model. Implications of these results for justice and climate research are considered. (shrink)

Management literature has repeatedly shown that an absence of voice can have serious negative influences on team and organization performance. However, employees often withhold suggestions or advices when they have ideas, concerns, or opinions. The present study proposes leader behavioral integrity as a key antecedent of employee voice, and investigates how and when leader behavioral integrity influences employee voice. Specifically, we argue that leader behavioral integrity affects employee voice via team independence climate. In addition, we propose a moderating effect of (...) corporate ethical values. The results from a study of 134 managers and 408 employees provide support for this moderated mediation model. Leader behavioral integrity positively affects employee voice via team independence climate, but only when ethical values are emphasized in organizations. These results suggest that leader behavioral integrity, along with team independence climate and corporate ethical values, is very important for fostering employee voice. (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)

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)

This study examines the mediating role of felt accountability and cost–benefit consideration in the relationship between implicit ethics institutionalization and ethical selling intention. The research hypotheses are developed and tested with data collected using a scenario‐based questionnaire. The research design proposes two types of ethical dilemmas. In the first dilemma, the insurance salespeople are told that the dishonest selling behavior will lead to a profitable outcome. In the second dilemma, the insurance salespeople are informed that the honest selling behavior will (...) lead to an unprofitable outcome. The findings show that implicit ethics institutionalization is positively related to felt accountability, cost–benefit consideration and ethical selling intention, while felt accountability and cost–benefit consideration could partially mediate the relationship between implicit ethics institutionalization and the insurance salespeople’s ethical selling intention. The study highlights the importance of implicit ethics institutionalization in sales ethics and helps researchers and practitioners to better understand the mediators of felt accountability and cost–benefit consideration through which implicit ethics institutionalization benefits ethical selling intention. (shrink)

This study investigates the association of a broad set of variables with the ethical decision making of management accountants in Libya. Adopting a cross-sectional methodology, a questionnaire including four different ethical scenarios was used to gather data from 229 participants. For each scenario, ethical decision making was examined in terms of the recognition, judgment and intention stages of Rest’s model. A significant relationship was found between ethical recognition and ethical judgment and also between ethical judgment and ethical intention, but ethical (...) recognition did not significantly predict ethical intention—thus providing support for Rest’s model. Organizational variables, age and educational level yielded few significant results. The lack of significance for codes of ethics might reflect their relative lack of development in Libya, in which case Libyan companies should pay attention to their content and how they are supported, especially in the light of the under-development of the accounting profession in Libya. Few significant results were also found for gender, but where they were found, males showed more ethical characteristics than females. This unusual result reinforces the dangers of gender stereotyping in business. Personal moral philosophy and moral intensity dimensions were generally found to be significant predictors of the three stages of ethical decision making studied. One implication of this is to give more attention to ethics in accounting education, making the connections between accounting practice and Islam. Overall, this study not only adds to the available empirical evidence on factors affecting ethical decision making, notably examining three stages of Rest’s model, but also offers rare insights into the ethical views of practising management accountants and provides a benchmark for future studies of ethical decision making in Muslim majority countries and other parts of the developing world. (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)

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)

Leadership studies on corporate ethical behavior and practices have grown considerably, contributing significant knowledge on ethical leadership challenges that are organizational and industry focused. However, complex socio-ecological systems are placing pressure on organizational culture and old patterns of leadership behavior that play a role in organizational justice. In this study, we argue that scholars of business ethics must consider the role of organizational justice and use person-organization fit (P–O fit). To address this, our study investigates the mediating effect of organizational (...) justice on the relationship between ethical leadership and employees’ ethical behavior. We also examine the moderating role of P–O fit on the relationship between organizational justice and employee’s ethical behavior. The study survey focused on 295 employees belonging to organizations in Iraq. We show that ethical leadership positively influences employees’ ethical behavior, and this relationship is shaped by organizational justice. The findings reflect the positive impact of organizational justice on ethical behavior, and this relationship is more pronounced in employees with high rather than low P–O fit. This study clarifies the importance of employee’s P–O fit and its impact on organizational processes for creating a positive impact on ethical behavior in the workplace. We also share practical implications of the study and recommend systemic research that explores this area. (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)

Any professional or scientific discipline has a responsibility to do what it can to ensure ethical behavior on the part of its members. In this context, this paper outlines and explores the criticism that to date the emphasis in ethics training in professional psychology, as with other disciplines, has been on the rational elements of ethical decision making, with insufficient attention to the role of emotions and other nonrational elements. After a brief outline of some of the historical background to (...) the development and understanding of ethical decision making, relevant theoretical and empirical literature on the influence of emotional and other nonrational factors on our ethical decisions is reviewed. The implications of this literature for ethics education and training are outlined, particularly with respect to the use of case studies. An integrative approach is proposed, and conclusions and recommendations are offered with respect to such an approach. (shrink)

The criticality of ethical practices in B2B service delivery is increasingly recognised for its substantial impact on firm performance. However, there remains a gap in understanding how ethicality at managerial and staff levels translates into tangible business outcomes in B2B contexts. This study aims to bridge this gap, focusing on the impact of ethicality on perceived service delivery performance and firm performance, mainly through ethical leadership and climate lenses. The research objectives include unravelling the dynamics between staff-level ethical perceptions and (...) managerial-level ethical practices and their collective impact on service delivery and firm performance. Employing a multilevel data collection and analytical framework, the study collected data from 5500 employees and 110 managers, providing a comprehensive view of ethical influences across different organisational strata. This approach facilitated a nuanced examination of how ethical perceptions and behaviours permeate through the organisational hierarchy. Major findings reveal that individual-level ethical perceptions enhance service delivery through positive citizenship behaviour of the employees and reduced opportunism. A culture of shared ethical values, reinforced by robust ethical leadership and a supportive climate, significantly bolstered firm performance at the organisational level. These insights contribute significantly to B2B theory by elucidating the mechanisms through which ethicality at various levels influences firm outcomes. The study underscores the importance of fostering an ethical culture at the individual level and holistically across the organisation to enhance service delivery and achieve superior firm performance. (shrink)

ABSTRACT The purpose of this research is to examine ethical climate as a mediator iin the relationship between ethical leadership and workplace bullying. An online questionnaire was answered by 223 Portuguese employees, who had worked for at least 6 consecutive months at the same organization. Results support the mediating role of ethical climate on the relationship between ethical leadership and bullying at work, suggesting that ethical leaders can contribute to the minimization of bullying through their impact on ethical climate and (...) employees’ behavior. Drawing on the social learning theory and the social information processing theory, this study clarifies the mediating role of ethical climate. (shrink)