The literatures on both authentic leadership and behavioral integrity have argued that leader integrity drives follower performance. Yet, despite overlap in conceptualization and mechanisms, no research has investigated how authentic leadership and behavioral integrity relate to one another in driving follower performance. In this study, we propose and test the notion that authentic leadership behavior is an antecedent to perceptions of leader behavioral integrity, which in turn affects follower affective organizational commitment and follower work role performance. Analysis of a survey (...) of 49 teams in the service industry supports the proposition that authentic leadership is related to follower affective organizational commitment, fully mediated through leader behavioral integrity. Next, we found that authentic leadership and leader behavioral integrity are related to follower work role performance, fully mediated through follower affective organizational commitment. These relationships hold when controlling for ethical organizational culture. (shrink)

This paper seeks to establish whether the categories of MacIntyrean virtue ethics as applied to business organizations are meaningful in a non-western business context. It does so by building on research reported in Moore : 363–387, 2012) in which the application of virtue ethics to business organizations was investigated empirically in the UK, based on a conceptual framework drawn from MacIntyre’s work. Comparing these results with an equivalent study in Sri Lanka, the paper finds that the categories are meaningful but (...) that there are both similarities to and considerable differences in the content of these categories from the UK study. The paper draws on aspects of institutional theory to explore and explain these findings. Overall, there is supportive evidence that the categories of MacIntyrean virtue ethics are generalizable, and so can be used to characterize problems of organizational virtue and vice around the world, while providing evidence that there may be polities which are more conducive to the ‘practice-like conduct of production’ : 77–91, 2008). (shrink)

How can firms mitigate the impact of moral violations on consumer evaluations? This question has pervaded the business ethics literature. Though prior research has identified decoupling as a moral reasoning strategy where consumers separate moral judgments from evaluations, it is unclear what motivates individuals to decouple. It is the objective of this research to explore regulatory focus theory as a motivating factor for moral decoupling. Three experiments are undertaken. Study one demonstrates that with a prevention mindset as opposed to promotion (...) mindset, moral decoupling can be achieved. Specifically, those in a prevention mindset report more favorable evaluations when information about a violation explicitly lowers consequences of moral violations. However, when the violation is related to the business functionality of the brand, those in a prevention mindset report less favorable evaluations, except when consequences are lowered. This indicates an inability to decouple, and results in negative emotions. The research shows that inability to decouple for those in a prevention mindset leads to negative emotions, lowering evaluations. These results contribute to the moral reasoning literature by linking regulatory focus to decoupling strategies. Further, the research bridges literature on norm activation, moral foundation, regulatory focus, and moral decoupling to reconcile theoretical differences in judgment styles. Implications for businesses and brands are discussed. (shrink)

Substantial research examines the follower consequences of leader alignment of words and deeds, but no research has quantitatively reviewed these effects. This study examines extant research on behavioral integrity and contrasts it with two other constructs that focus on alignment: moral integrity and psychological contract breaches. We compare effect sizes between the three constructs, and find that BI has stronger effects on trust, in-role task performance and citizenship behavior than moral integrity and stronger effects on commitment and OCB than psychological (...) contract breach. These stronger attitudinal consequences run counter to our initial expectations, but they provide evidence of important conceptual distinctions and mechanisms that we articulate. BI theory suggests that BI’s greater performance impact is due to the notion that BI affects communication clarity in addition to attitudes. Results of meta-analytic structural equation modeling are consistent with this proposed dual path of BI’s impact. We highlight avenues for future research on BI and discuss how our findings inform the broader research on leader alignment. (shrink)

This paper introduces ‘Virtue and Virtuousness: When will the twain ever meet?’ a special edition of Business Ethics: A European Review. The Call for Papers invited contributions that could inform the relationship between organisational virtuousness, as conceptualised by positive organisation studies, and the classical conception of virtues pertaining to individual women and men. While the resources of particular virtue traditions – Aristotelian, Catholic, Confucian, and the like – could inform their own debates as to whether virtue extends beyond individuals, the (...) debate between virtue traditions and positive organisation studies has a different dimension. The question is whether the claims of positive social sciences as such are compatible with those of any virtue tradition. We argue that positive social science and virtue traditions are indeed rivals such that adherence to the claims of the one precludes adherence to the other. Resolution to such conflicts requires that one tradition is able to resolve questions that exhaust the resources of the other. This paper suggests that at least one area of incoherence in the findings of positive social sciences can be resolved by virtue traditions, and introduces the remaining papers in the special edition. (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)

Although personal attributes have gained recognition as an important area of effective corporate governance, scholarship has largely overlooked the value and implications of individual virtue in governance practice. We explore how authenticity—a personal and morally significant virtue—affects the primary monitoring and strategy functions of the board of directors as well as core processes concerning director selection, cultivation, and enactment by the board. While the predominant focus in corporate governance research has been on structural factors that influence firm financial outcomes, this (...) paper shifts attention to the role of authenticity and its relationship to individual board member qualities and collective board activities. We explore how authenticity has the potential to influence board dynamics and decision making and to enhance transparency and accountability. (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)

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward (...) and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice. (shrink)

We examined the relationship between leader behavioral integrity and leader behavioral courage using data from two studies. Results from Study 1, an online experiment, indicated that behavioral manifestations of leader behavioral integrity and situational adversity both have direct main effects on behavioral manifestations of leader courage. Results from Study 2, a multisource field study with practicing executives, indicated that leader behavioral courage fully mediates the effects of leader behavioral integrity on leader performance and leader executive image. Implications of these findings (...) and future directions are discussed. (shrink)

Sixty-eight stores of a retail chain were used for testing a model in which perceived authentic leadership predicts stores’ sales achievement through the mediating role of perceived store virtuousness and perceived store potency. Employees reported AL, store virtuousness, and store potency. Sales achievement over a period of four consecutive months subsequent to data collection was considered as dependent variable . The main findings are the following: AL predicts store potency through the mediating role of store virtuousness; store virtuousness predicts sales (...) achievement through the mediating role of store potency; AL predicts sales achievement via the mediating role of both store virtuousness and store potency. By focusing on three positive constructs, whose interrelations have scarcely been explored, and relating them to store performance, the study enriches the Positive Organizational Scholarship movement, and suggests that AL and virtuousness are good in themselves and also potential facilitators of group success. (shrink)

How leaders and managers respond to not knowing is highly relevant given the complex, ambiguous, and chaotic business environment of the twenty-first century. Drawing on the literature from a variety of disciplines, the paper explores the dominant, unfavorable conceptualization of not knowing. The authors present some potential ethical implications of a negative view of not knowing and suggest how organizations would benefit from identifying any unhelpful aspects of the culture that may encourage unethical, undesirable, and/or hasty actions in situations of (...) not knowing. The paper specifically illustrates how patience, courage, honesty, integrity, and humility are integral to negative capability in the contexts of not knowing. Finally, the paper calls for deeper inquiry into the role of virtue ethics in preparing managers and leaders for not knowing and urges organizations to embrace negative capability in not knowing rather than engaging in damaging delusion. (shrink)

The coronavirus pandemic (COVID-19) has badly affected the social, physical, and emotional health of workers, especially those working in the healthcare sectors. Drawing on social exchange theory, we investigated the effects of participative leadership on employees’ workplace thriving and helping behaviors among frontline workers during the COVID-19 pandemic. In addition, we examined the moderating role of a leader’s behavioral integrity in strengthening the relationship between participative leadership, and employees’ workplace thriving and helping behaviors. By using a two-wave time-lagged design and (...) data collected from 244 healthcare workers, a moderated hierarchal regression was implemented to test the proposed hypotheses. As hypothesized, participative leadership predicted employees’ workplace thriving and helping behaviors. The leader’s behavioral integrity strengthened the relationship between participative leadership and employees’ thriving and moderated the relationship between participative leadership helping behaviors. Implications for research, theory, and practice are discussed. (shrink)

In this paper, we analyze the relationship between the logic of gift and team performance. We explore this connection empirically, using a detailed data set from the National Basketball Association. In particular, we use the NBA Cares Community Assist Award as a way to measure gift-giving to the community. We explore the response of an entire team after one if its members has been recognized for his gift-giving behavior. Using two winners, we show that after a player has received the (...) award there is an increase in the number of assists given by each member of the team, and that there is also an increase in the number of wins. Therefore, our results show that the team’s performance would improve after a player has been recognized because of his gift-giving attitude. This finding to management implies that managers’ incentivization of a sharing and giving philosophy would not only improve their relationship bond but it would also help them increase their performance. (shrink)

Although stockholders may benefit from information regarding the frequently substantial charitable and political contributions of the corporations they own, US corporations are typically not required to disclose any information about such payments in annual financial statements or information submitted periodically to regulatory agencies. This lack of transparency is confounded by disclosure requirements of private foundations, which a corporation may choose to establish for the purposes of administering charitable giving for the corporation. The resulting disclosure fog engendered by extant regulations may (...) be confusing to those corporation owners who would like to know what corporation contributions are being made to charities and politicians. This article enumerates the magnitude of the charitable and political gifts of 40 of the most generous public corporations in the USA, the current disclosure requirements for public companies, the role of foundations, rationales for withholding relevant information from owners, and ethically questionable strategies that corporations may use to manage those disclosures for their benefit. (shrink)

The desire to control how others see us is a ubiquitous phenomenon. Decades of research have suggested that the results associated with how others see us are too great an influence to ignore. The tactics we use and behaviors we engage in to control how others see us is known as impression management. This study examines the relationship between regulatory focus and the use of exemplification or supplication impression management tactics. We use regulatory focus theory to examine this phenomenon. First, (...) we investigate the main effects that occur between prevention-focused individuals and exemplification, and between promotion-focused individuals and exemplification and supplication. We then introduce supervisor behavioral integrity as a moderator between regulatory focus and impression management. Our findings suggest a positive relationship between prevention-focused and exemplification, and between promotion-focused and exemplification and supplication. We also find that behavioral integrity strengthens the relationship between prevention-focused and exemplification and promotion-focused and supplication, but not promotion-focused and exemplification. Implications and future research directions are discussed. (shrink)

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

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)

Using two experiments, I examine how apologizing for fraud influences investor's avoidance and revenge behavior. Investors in experiment one report how many shares they would sell and how likely they would be to pursue legal punishment after discovering fraud has occurred in an organization they are currently invested in and subsequently reading about management's response to the fraud. I manipulate the nature of fraud as fraudulent financial reporting or asset misappropriation. I also manipulate whether management apologizes, scapegoats responsibility, or remains (...) silent after the fraud. Results show avoidance and revenge behavior is more negative after misreporting fraud. Data suggest that this difference may be partially attributable to the underlying moral norm that is violated. Specifically, misreporting is primarily a moral violation of deception, whereas embezzlement is primarily a moral violation of stealing. Results also show differential investor reactions depending on the type of fraud and management's response. For misreporting, revenge behavior is higher when management apologizes, but there is no effect on avoidance behavior. For embezzlement, avoidance behavior is reduced when the organization apologizes, but revenge behavior is unaffected. In experiment two, I replicate the misreporting condition from experiment one and manipulate apology sincerity. Results show that apology sincerity is positively associated with revenge behavior. Results of these two experiments extend both accounting and trust repair research by emphasizing the importance of disentangling moral integrity-based trust violations and that the adage of "just say you're sorry" is helpful in some situations and harmful in others. (shrink)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most (...) cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials. (shrink)

What can be learned from a small scale study of managerial work in a highly marginal and under-researched working community? This article uses the ‘goods–virtues–practices–institutions’ framework to examine the managerial work of owner–directors of traditional circuses. Inspired by MacIntyre’s arguments for the necessity of a narrative understanding of the virtues, interviews explored how British and Irish circus directors accounted for their working lives. A purposive sample was used to select subjects who had owned and managed traditional touring circuses for at (...) least 15 years, a period in which the economic and reputational fortunes of traditional circuses have suffered badly. This sample enabled the research to examine the self-understanding of people who had, at least on the face of it, exhibited the virtue of constancy. The research contributes to our understanding of the role of the virtues in organizations by presenting evidence of an intimate relationship between the virtue of constancy and a ‘calling’ work orientation. This enhances our understanding of the virtues that are required if management is exercised as a domain-related practice. (shrink)

The issue of trust has increasingly attracted attention in the business ethics literature. Our aim is to contribute further to this literature by examining how the use of the carbon copy function in email communication influences felt trust. We develop the argument that the use of cc enhances transparency—representing an important characteristic of workplace ethics—and hence promotes trust. We further argue that a downside of the cc option may be that it can also be experienced as a control mechanism, which (...) may therefore negatively affect trust. The results of our first study showed that the use of cc indeed enhances perceived transparency, but at the same time also leads to the experience of increased control. Building upon this insight, the findings of five subsequent studies consistently revealed that the use of cc negatively influences felt trust. More precisely, employees felt trusted the least when the supervisor was always included in cc. This effect on felt trust also negatively influenced how trustworthy the organizational climate was perceived. We further replicated these results in two field surveys, which showed that the negative effect of cc on felt trust lowered perceptions of psychological safety and contributed to a culture of fear. Taken together, our findings suggest that when transparency in email communications is experienced as a control mechanism, its use is perceived as unethical, rather than as ethical. Implications and recommendations for future business ethics research are discussed. (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 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)

Intra-organization and inter-organization collaboration and governance are becoming increasingly important for megaprojects. Different stakeholders form intricate links in a network structure. This study explores the role and effect of hybrid governance on complex network projects, such as urban rail transit projects. This included conducting a questionnaire survey with 116 professionals from organizations involved in urban rail transit projects and adopting structural equation modelling to analyze the data. The results analyzed the levels of intra-organization and inter-organization trust under the conditions of (...) power asymmetry and power sharing. A higher level of power asymmetry was associated with lower hybrid governance performance. In contrast, a higher level of power sharing is associated with better hybrid governance performance. The results are generalizable to other projects with complicated organizational and network relationships. (shrink)

Organizational integrity is a key concept with and through which a company can assume its responsibility for ethical and societal issues. It is a basic premise for sustainable corporate success, as ethical risks ultimately become economic risks for a company. Recent research shows the potential of integrity‐based governance models to reduce corporate risks and to improve business performance. However, companies are not yet able to assess nor evaluate their level of organizational integrity in a sound and systematic way. We aim (...) to develop a theoretical model as a basis for the measurement of organizational integrity by conceptualizing the construct and sizing the theoretical model's scope. We suggest that the theoretical model follows a holistic approach and involves three types of dimensions: prerequisite dimensions, independent dimensions, and dependent dimensions. The organizational integrity triad—consisting of active commitments to self‐imposed norms and principles, their transparent institutionalization into corporate processes and structures, and their implementation into action—plays a key role in this context. (shrink)

In Britain, substantial cuts in police budgets alongside controversial handling of incidents such as politically sensitive enquiries, public disorder and relations with the media have recently triggered much debate about public knowledge and trust in the police. To date, however, little academic research has investigated how knowledge of police performance impacts citizens’ trust. We address this long-standing lacuna by exploring citizens’ trust before and after exposure to real performance data in the context of a British police force. The results reveal (...) that being informed of performance data affects citizens’ trust significantly. Furthermore, direction and degree of change in trust are related to variations across the different elements of the reported performance criteria. Interestingly, the volatility of citizens’ trust is related to initial performance perceptions, and citizens’ intentions to support the police do not always correlate with their cognitive and affective trust towards the police. In discussing our findings, we explore the implications of how being transparent with performance data can both hinder and be helpful in developing citizens’ trust towards a public organisation such as the police. From our study, we pose a number of ethical challenges that practitioners face when deciding what data to highlight, to whom, and for what purpose. (shrink)

Accountability is of universal interest to the business ethics community, but the emphasis to date has been primarily at the level of the industry, organization, or key individuals. This paper unites concepts from relational and felt accountability and team dynamics to provide an initial explanatory framework that emphasizes the importance of social interactions to team accountability. We develop a measure of team accountability using participants in the USA and Europe and then use it to study a cohort of 65 teams (...) of Irish business students over three months as they complete a complex simulation. Our hypotheses test the origins of team accountability and its effects on subsequent team performance and attitudinal states. Results indicate that initial team accountability is strongly related to team trust, commitment, efficacy, and identifying with the team emotionally. In established teams, accountability increases effort and willingness to continue to collaborate but did not significantly improve task performance in this investigation. (shrink)

Transparency in business and society is one of the challenges raised in the encyclical Caritas in Veritate by Benedict XVI. This paper focuses on the issue by extending the literature on business ethics, corporate social responsibility, and corporate transparency in two dimensions. First, it reviews the understanding and framing of the transparency issue in Caritas in Veritate and in a selection of relevant Catholic Social Teaching (CST) publications. Second, this paper provides normative indications for corporate transparency decisions which reflect four (...) permanent principles of CST, that is, the common good, solidarity, subsidiarity, and respect for the human being. Inasmuch as human beings are worthy of love for their own sakes, the dimension of gift should always be present in relationships among them. This paper also provides insights for further studies on corporate transparency and the impact of religion on business ethics and corporate social responsibility. (shrink)