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

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

Sustainable and ethical leadership in the financial industry expand in importance since the financial crisis of 2007–2009. This research examined the level of sustainable and ethical leadership of leaders in mortgage loan originator (MLO) organizations, as perceived by loan originators. The Perceived Leadership Survey (PLIS) developed by Craig and Gustafson (Leadersh Q 9(2):127–145, 1998) and the Sustainable Leadership Questionnaire (SLQ) developed by McCann and Holt (Int J Sustain Strat Manage 2(2):204–210, 2011) were utilized for this research. The survey results yielded (...) high levels of both ethical and sustainable leadership. Employees also felt their leadership was encouraging ethical and sustainable behavior. However, correlations between the PLIS and SLQ did not prove to be dependent or closely correlated. (shrink)

Business scholars have recently proposed that the virtue of personal wisdom may predict leadership behaviors and the quality of leader–follower relationships. This study investigated relationships among leaders’ personal wisdom—defined as the integration of advanced cognitive, reflective, and affective personality characteristics (Ardelt, Hum Dev 47:257–285, 2004)—transformational leadership behaviors, and leader–member exchange (LMX) quality. It was hypothesized that leaders’ personal wisdom positively predicts LMX quality and that intellectual stimulation and individualized consideration, two dimensions of transformational leadership, mediate this relationship. Data came from (...) 75 religious leaders and 1–3 employees of each leader (N = 158). Results showed that leaders’ personal wisdom had a positive indirect effect on follower ratings of LMX quality through individualized consideration, even after controlling for Big Five personality traits, emotional intelligence, and narcissism. In contrast, intellectual stimulation and the other two dimensions of transformational leadership (idealized influence and inspirational motivation) did not mediate the positive relationship between leaders’ personal wisdom and LMX quality. Implications for future research on personal wisdom and leadership are discussed, and some tentative suggestions for leadership development are outlined. (shrink)

Of recent time, there has been a concern about ethical leadership and ethics in business. Research on leadership did not pay a lot of attention to fairness and many authors have studied the relationship between leader fairness and factors such as outcome satisfaction and trust in leader for instance. For the moment, there is no study that focused on the direct relationship between transformational leadership and fairness. That’s why; in this paper our aim is to study the relationship between transformational (...) leadership and the employees’ perceptions of fairness, mainly the three types of fairness which are distributive, procedural, and interactional in French firms. A questionnaire survey was sent to employees working in the industry and service sectors. A sample of 100 respondents was collected. We found a partial relationship between employees’ perceptions of fairness and transformational leadership. More specifically, we found that procedural and interactional fairness are strongly associated with transformational leadership. (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)

The concept of integrity appears in many arguments and theories in business ethics and organizational behavior where it plays multiple roles. It has been shown to have desirable organizational outcomes and is held as important by the academic and practitioner alike. Yet despite its prominence there are a variety of approaches to defining and conceptualizing it and little existent theory to explain its nature. We offer integrative social contracts theory (ISCT) as a framework that can anchor integrity in ethical theory (...) and also encompass aspects of integrity such as wholeness, consistency, and authenticity. In addition we show how ISCT can resolve some of the challenges to definitions of integrity that have been raised in the literature and hence we provide some suggestions for future academic research and suggestions for the practitioner. (shrink)

This paper investigates the concept of behavioral integrity from three important foci in organizational settings: i.e., leader, organization, and follower. Drawing from theories of behavioral integrity, social learning, and social identity, we examine the effects of leader and organizational behavioral integrity on follower behavioral integrity and organizational citizenship behavior via follower identification with leader and with organization, respectively. To test our hypotheses, we used data from three studies. Studies 1 and 2 were online experiments in which behavioral integrity was manipulated (...) in written scenarios to explore the proposed causal relationships. Study 3 was a multisource field study that tested a mediation model using matched data collected from 280 employees and their co-workers from a Fire and Rescue Service in the United Kingdom. The findings provide partial support for our hypothesized model and highlight the importance of examining multiple foci of behavioral integrity as well as the role of follower identification as key mediating mechanisms of the relationship between leader and organizational behavioral integrity and follower behavioral outcomes. Theoretical and practical implications are discussed. (shrink)

While a large amount of work has been done to understand public good and to construct conceptual models explaining the antecedents of collective action, current literature is flawed in that most of them only examine the lower-level public good and attribute people's participation in collective action to external variables. It pays little to the developmental nature of collective action. Utilizing Ken Wilber's theory of integral psychology, this paper proposes a holistic definition of public good, emphasizing its different levels of development. (...) The paper also introduces an integral model of collective action that explains the antecedents of collective action in terms of not only the external individual behavior and social factors but also the internal aspects of individuals, organization, and society. (shrink)

We report the results of two studies that evaluated the perceptions of supervisor and top leader ethics. In our first study, we re-analyzed data from Pelletier and Bligh (J Bus Ethics 67:359–374, 2006) and found that the Perceptions of Ethical Leadership Scale from that study could be used to differentiate perceptions of supervisor and top leader ethics. In a second study with a different sample, we examined the relationships between (1) individual employees’ perceptions of top managers’ and immediate supervisors’ ethical (...) tendencies, and (2) organizational climate, confidence in top leadership direction, commitment, and citizenship behavior. Results indicated that employee perceptions of top managers’ and supervisors’ ethics were significantly related to climate, top leadership direction, organizational commitment and the OCB dimension, civic virtue. (shrink)

Leaders who express an ethical identity are proposed to affect followers’ attitudes and work behaviors. In two multi-source studies, we first test a model suggesting that work engagement acts as a mediator in the relationships between ethical leadership and employee initiative (a form of organizational citizenship behavior) as well as counterproductive work behavior. Next, we focus on whether ethical leadership always forms an authentic expression of an ethical identity, thus in the second study, we add leader Machiavellianism to the model. (...) For Machiavellian leaders, the publicly expressed identity of ethical leadership is inconsistent with the privately held unethical Machiavellian norms. Literature on surface acting suggests people can at least to some extent pick up on such inauthentic displays, making the effects less strong. We thus argue that the positive effects of ethical leader behavior are likely to be suppressed when leaders are highly Machiavellian. Support for this moderated mediation model was found: The effects of ethical leader behavior on engagement are less strong when ethical leaders are high as opposed to low on Machiavellianism. (shrink)

The raging cynicism felt toward businesses and business leaders is a by-product of perceived violations in the social contracts owed to the public. Business schools have a unique opportunity to make a significant impact on present and future business leaders, but ‘practicing what we teach’ is a critical condition precedent. This paper presents frameworks for ethical practices for assessing the social contracts owed by business schools in their role as citizens in the larger community. We identify the ethical implications of (...) business school practices to guide the development of tools for self-assessment and to focus on delivering the implied duties owed to the stakeholders of business schools. (shrink)

Ethics is a significant issue among those in leadership positions, especially since the ethical corporate scandals of the 1970s followed by corporate scandals in the 1980s and the S&L scandals of the 1980s and 1990s and most recently the global financial crisis of 2006–2009. The purpose of this research was to measure the perceived leadership integrity in today’s manufacturing environment, since the global financial crisis, as perceived by their employees. This study included 7,233 manufacturing employees in the United States. A (...) total of 66 surveys were used to calculate data for this study. The Perceived Leader Integrity Scale (PLIS) was used to collect data from respondents that included demographic questions. The research addressed the following question: To what degree are leaders in the manufacturing industry considered “low ethical,” “moderate ethical,” and “high ethical” on the PLIS? (shrink)

Leaders who express an ethical identity are proposed to affect followers’ attitudes and work behaviors. In two multi-source studies, we first test a model suggesting that work engagement acts as a mediator in the relationships between ethical leadership and employee initiative (a form of organizational citizenship behavior) as well as counterproductive work behavior. Next, we focus on whether ethical leadership always forms an authentic expression of an ethical identity, thus in the second study, we add leader Machiavellianism to the model. (...) For Machiavellian leaders, the publicly expressed identity of ethical leadership is inconsistent with the privately held unethical Machiavellian norms. Literature on surface acting suggests people can at least to some extent pick up on such inauthentic displays, making the effects less strong. We thus argue that the positive effects of ethical leader behavior are likely to be suppressed when leaders are highly Machiavellian. Support for this moderated mediation model was found: The effects of ethical leader behavior on engagement are less strong when ethical leaders are high as opposed to low on Machiavellianism. (shrink)

This exploratory study examines how managers and professionals regard the ethical and social responsibility reputations of 60 well-known Australian and International companies, and how this in turn influences their attitudes and behaviour towards these organisations. More than 350 MBA, other postgraduate business students, and participants in Australian Institute of Management management education programmes were surveyed to evaluate how ethical and socially responsible they believed the 60 organisations to be. The survey sought to determine what these participants considered 'ethical' and 'socially (...) responsible' behaviour in organisations to be. The survey also examined how the participants' beliefs influenced their attitudes and intended behaviours towards these organisations. The results of this survey indicate that many managers and professionals have clear views about the ethical and social responsibility reputations of companies. This affects their attitudes towards these organisations which in turn has an impact on their intended behaviour towards them. These findings support the view in other research studies that well-educated managers and professionals are, to some extent, taking into account the ethical and social responsibility reputations of companies when deciding whether to work for them, use their services or buy shares in their companies. (shrink)

Behavioral integrity (BI) is the alignment pattern between an actor’s words and deeds as perceived by another person. Employees’ perception that their leader’s actions and words are consistent leads to desirable workplace outcomes. Although BI is a powerful concept, the role of leader referents, the relationship between perceived BI of different referents, and the process by which BI affects outcomes are unclear. Our purpose is to elaborate upon this process and clarify the role of different leader referents in determining various (...) outcomes. To understand the impact of referents, we explicitly compared the BIs of two leader referents: senior management and supervisor. In contrast to previous research findings where supervisory BI was found to have a stronger relationship with outcomes than senior management, we find that both referents are important. However, their impact varies based upon the outcome studied. Only senior management BI predicted organizational commitment, while senior management BI, supervisory BI and supervisory trust predicted organizational cynicism. Only trust in supervisor, and not supervisory BI, impacted organizational citizenship behaviors. When senior management is the referent, trust and not BI might play an important role for outcomes that require extensive employee investments, such as organizational commitment. In contrast, when the outcome measured does not require employee investments, BI might have a direct impact on the outcome. We also uncovered that trust in supervisor substantially influences the trust employees have in their senior management. (shrink)

Ethics has been identified as a significant issue among those in leadership positions. The purpose of this research was to assess the ethics and integrity of leaders in today's manufacturing environment as perceived by their employees. This study included a total of 10 manufacturing companies in the United States. A total of 59 surveys were used to calculate data for this study. A demographic survey and the Perceived Leader Integrity Scale (PLIS) were used to collect data from respondents. The research (...) addressed the following question: To what degree are leaders in the manufacturing industry considered "low ethical," "moderate ethical," and "high ethical" on the PLIS? It was determined through descriptive data analysis that the majority of supervisors in this study, as rated by their employees were highly ethical. Male and female employees equally rated their supervisors as highly ethical. Employees in the age category (18-25) rated their supervisors higher ethically than other age groups in the study. However, considering ethnicity categories, African-Americans scored their supervisors lower ethically than the European-American category. The education level of the employees did not provide any significant findings in rating their supervisors. (shrink)

Perceived behavioral integrity involves the employee’s perception of the alignment of the manager’s words and deeds. This meta-analysis examined the relationship between perceived behavioral integrity of managers and the employee attitudes of job satisfaction, organizational commitment, satisfaction with the leader and affect toward the organization. Results indicate a strong positive relationship overall (average r = 0.48, p<0.01). With only 12 studies included, exploration of moderators was limited, but preliminary analysis suggested that the gender of the employees and the number of (...) levels between the employee and the manager are potential moderators of the relationship. In the current sample of studies, country where the research was conducted did not seem to have any moderating effects. In addition to suggesting further investigation of potential moderators, we call for research that examines the relationship between behavioral integrity and outcomes that include individual behavior and organizational performance. (shrink)

Over the last decade, the increased use of work teams within organizations has been one of the most influential and far-reaching trends to shape the business world. At the same time, corporations have continued to struggle with increased unethical employee behavior. Very little research has been conducted that specifically examines the developmental aspects of employee ethical decision-making in a team environment. This study examines the impact of a team leader’s perceived integrity on his or her subordinates’ behavior. The results, which (...) came from a survey of 245 MBA students functioning for 2 years in a work team environment, indicate an interaction between leader integrity and team member ethical intentions. (shrink)

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher (...) integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions. (shrink)

Our study examines whether gender-diverse engagement partners constrain unethical earnings management behavior in a French mandatory joint audit setting. The investigation of the joint audit setting, by raising concerns about audit team organization and management, provides new insights into how gender-diverse audit partners contribute to the effectiveness of audit decision-making, resulting in reduced earnings management. The need for effective collaboration and communication between joint auditors may foster a transformational leadership style on the part of audit engagement partners. In this regard, (...) we argue that better interaction between male and female lead audit partners confers a comparative advantage on gender-diverse audit partners compared to all-male audit partners. In line with our expectation, our empirical results show that gender-diverse audit partners are negatively associated with discretionary accruals of client firms. Gender-diverse audit partners are also found to constrain earnings management irrespective of whether clients hire one or two brand-name audit firms. Finally, we find that the pervasiveness of earnings management declines when client firms switch from all-male audit partners to gender-diverse audit partners. Our findings underline the importance of considering audit partner gender by policy makers in contexts where joint audits are required or in countries that are considering introducing joint audits. (shrink)

Organizations increasingly rely on algorithm-based HR decision-making to monitor their employees. This trend is reinforced by the technology industry claiming that its decision-making tools are efficient and objective, downplaying their potential biases. In our manuscript, we identify an important challenge arising from the efficiency-driven logic of algorithm-based HR decision-making, namely that it may shift the delicate balance between employees’ personal integrity and compliance more in the direction of compliance. We suggest that critical data literacy, ethical awareness, the use of participatory (...) design methods, and private regulatory regimes within civil society can help overcome these challenges. Our paper contributes to literature on workplace monitoring, critical data studies, personal integrity, and literature at the intersection between HR management and corporate responsibility. (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)

Traditionally, research focused on determining the causes of employee pay satisfaction has investigated the influence of job-related inputs, both extrinsic and intrinsic to the job itself. Together with these inputs, pay-related fairness issues have played an important role in explaining the phenomenon. However, few studies consider the factors linked to fairness issues, such as ethical leadership. Because ethical leadership necessarily entails the concept of fairness, it seemingly should have a positive effect. Furthermore, because the presence of supervisor ethical leadership (SEL) (...) offers strong chances for employees to achieve moral accomplishments and excel in the practice of their jobs, SEL should enhance the effects of intrinsic job inputs. Whereas high job motivating potential (JMP) makes it easier for employees be self-actualized, moral fulfillment is necessary for them to obtain authentic self-actualization at work and minimize the impact of pay deficiencies. Along with SEL, JMP should be shaped to increase positive experiences of job meaningfulness, responsibility for job outcomes, and knowledge of results at work, which can lead to enjoyment in doing the job in itself, not just for compensation-related motives. Hierarchical regression analysis with a sample of 151 employees in a diverse set of Spanish organizations supports the direct effects of JMP and SEL and shows that higher levels of SEL increase the positive effects of JMP on pay satisfaction. The practical implications of these findings and further research directions conclude this article. (shrink)

This article concerns the importance of teaching moral reasoning and ethical leadership to all undergraduate students and in particular makes the case that students in business especially need familiarity with these capacities and theories given the complex world in which they will find themselves. The corollary to this analysis is the claim that content on moral reasoning and ethical leadership be mandatory for all business majors and that all degrees require course material on these subjects.

Archival research reports that managers often use the FIN 48 uncertain tax liability accrual to manage earnings. To assess solutions to this problem, we deconstruct the ethical and psychological reasoning that leads to FIN 48 opportunistic behavior. Hence, we employ a survey of seasoned accounting managers to assess the influences of cynicism, two measures of moral disengagement, and pressure from a CFO on the propensity to engage in FIN 48 earnings management. Specifically, we manipulate the influence of the study scenario (...) supervisory CFO as either a latent bully or a transformational leader. While the CFO bully main effect condition enhances FIN 48 earnings management, the CFO transformational leader condition interacts with less cynical accounting managers to reduce FIN 48 earnings management. We also find that both dispositional trait and situational state moral disengagement factors independently mediate the relationship between the cynicism model antecedent and FIN 48 earnings management. Collectively, study findings provide implications for both theory and practice. (shrink)

ABSTRACTThis article discusses the concept of integrity. Often, integrity is used as a characteristic of individuals showing a high fidelity to generally praised norms. Here, a more independent meaning is suggested so that the concept implies a clear distance to integration instead of mixing up the two concepts. Integrity implies integration within the individual of beliefs, statements, and action. To what degree can society and companies accommodate a pluralism created by individuals with integrity? Here, it is argued that integrity is (...) a useful virtue and that a more integrity‐friendly environment in companies would be beneficial by stimulating the empowered employee to make improved contributions. The concept is central for business ethics and crucial for the company's choice of such policies. A priority of integrity also affects organizational theory and the practical organizing of the company. Integrity is also vital for society at large for both citizens and companies, providing an ideological support for pluralism and a check on demands for conformism. The article also discusses how a virtue such as integrity can function as guidance for the individual operating in a complex world. (shrink)

Relationships between the behavioral integrity of managers as perceived by employees and employee attitudes (job satisfaction and life satisfaction), well-being (stress and health), and behaviors (absenteeism) were tested using data from the 2002 National Study of the Changing Workforce (n = 2,820). Using multivariate and univariate analysis, perceived behavioral integrity (PBI) was positively related to job and life satisfaction and negatively related to stress, poor health, and absenteeism. The effect size for the relationship with job satisfaction was medium-to-large while the (...) effect sizes with respect to the other variables were small-to-medium. There was no support for the hypotheses that women would perceive lower levels of behavioral integrity and that the strength of the relationships between PBI and the outcomes variables would be stronger among women than among men. (shrink)