This study investigated the impact of supervisors’ servant leadership on supervisees’ moral identity and subsequent in-role performance. Data from 226 supervisor–supervisee dyads were collected from several domestic and multinational companies operating in the Kingdom of Saudi Arabia. Confirmatory factor analysis was conducted to confirm the factorial validity of the measures that were employed in this study. The hypothesized moderated mediation model was tested using hierarchical multiple regression analysis. Based on social learning theory, the results showed that supervisees’ moral identity served (...) as the psychological mediating mechanism through which supervisors’ servant leadership led to supervisees’ increased in-role performance. Furthermore, the results also supported supervisees’ avoidance orientation as the dispositional boundary condition of this mediating effect. This study contributes to both the servant leadership and moral identity literatures by addressing questions with useful theoretical and managerial implications. (shrink)

Why do otherwise well-intentioned managers make decisions that have negative social or environmental consequences? To answer this question, the authors combine the literature on construal level theory with the compromise effect to explore the circumstances that lead to seemingly unethical decision-making. The results of two studies suggest that the degree to which managers make high-risk tradeoffs is highly influenced by how they mentally represent the decision context. The authors find that managers are more likely to make seemingly unethical tradeoffs when (...) psychological distance is high (rather than low) and when they are forced to choose between competing alternatives. However, when given the option not to choose, managers better reflect on the consequences of each alternative, and thus become more likely to choose options with less risk of negative consequences. The results suggest that simply offering managers the option not to choose may reduce psychological distance and help organizations avoid seemingly unethical decision-making. (shrink)

Generation Y is a cohort of the population larger than the baby boom generation. Consisting of approximately 80 million people born between 1981 and 2000, Generation Y is the most recent cohort to enter the workforce. Workplaces are being redefined and organizations are being pressed to adapt as this new wave of workers is infused into business environments. One critical aspect of this phenomenon not receiving sufficient research attention is the impact of Gen Y ethical beliefs and ethical conduct in (...) workplace contexts. It is widely accepted that distinct generational experiences shape ethical ideologies and ethical ideologies in turn affect the way people function in the workplace. Thus, Gen Y’s unique cohort experiences are likely to shape their ethical ideologies and consequent workplace judgments and actions. In this article, we examine Gen Y’s ethical ideology and study its impact on workplace functioning regarding leadership style, teamwork, and judgments about ethical violations. Our analyses indicate that Gen Y’ers tend toward situationalism (high idealism and high relativism), and their socially connected orientation produces more lenient judgments of collaborative vs. unilateral ethical violations. However, Gen Y’ers do exhibit individual variation. Relativist Gen Y’ers are more tolerant of ethical violations, whereas, Gen Y Idealists are less tolerant of ethical violations. High Idealists also show stronger teamwork and leadership characteristics. In addition, Gen Y’ers possessing servant leader traits exhibit incrementally better teamwork, and greater perceived unacceptability of ethical violations. We conclude by discussing implications of these findings for managing ethical climates and conduct. (shrink)

This paper presents a comparative analysis of three American and three European corporate failures. The first part of the analysis is based on a theoretical framework including six areas of ethical climate; tone at the top; bubble economy and market pressure; fraudulent financial reporting; accountability, control, auditing, and governance; and management compensation. The second and third parts consider the analysis of these cases from fraud perspective and in terms of firm-specific characteristics and environmental context. The research analyses shed light on (...) the fact that, despite major differences between Europe and U.S. in terms of political institutions, laws and regulations as well as managerial practices, there are significant similarities between six groups. The analysis also demonstrates that, the ethical dilemma has been coupled with ineffective boards, inefficient corporate governance and control mechanisms, distorted incentive schemes, accounting irregularities, failure of auditors, dominant CEOs, dysfunctional management behavior and the lack of a sound ethical tone at the top. Significant similarities were also observed in the analysis from the fraud triangle perspective. However, there are several major differences between the six corporate failure cases particularly with regard to ownership structure, coverage in media, and legal, regulatory and governance frameworks. This research study may have several academic and practical contributions, particularly because of multidisciplinary, international features, and comparative analyses used in the paper. (shrink)

Hypothesized relationships among reports by employees of moral distress, their perceptions of their manager’s behavioral integrity (BI), and employee reports of job satisfaction, stress, job engagement, turnover likelihood, absenteeism, work-to-family conflict, health, and life satisfaction were tested using data from the 2008 National Study of the Changing Workforce (n = 2,679). BI was positively related to job satisfaction, job engagement, health, and life satisfaction and negatively to stress, turnover likelihood, and work-to-family conflict, while moral distress was inversely related to those (...) outcomes. The magnitudes of relationships with job satisfaction, job engagement, and life satisfaction were greater with BI than with moral distress. Moral distress mediated the relationships between BI and the employee outcomes, supporting the view that employee’s perceptions of their manager’s BI might influence the employee’s behaviors as well as their attitudes. (shrink)

The discussion about the relationship between tone at the top and financial reporting practices has been primarily focused on the oversight role played by the board of directors and other structural elements of corporate governance. Another relevant determinant of tone at the top is the corporate narrative language, since it is a fundamental way in which the chief executive officer enacts leadership. In this study, we empirically explore the association between financial reporting aggressiveness and five thematic indicators capturing different traits (...) of ethical leadership from 535 annual letters to shareholders. We find that aggressive financial reporting is positively associated with CEO letters using a language which is resolute, complex, and not engaging. Our empirical findings highlight the importance of examining discretionary corporate narratives for the auditing process and the role of tone at the top in influencing accounting practices. (shrink)

While the link between servant leadership and organizational citizenship behavior has been established, the individual-level mechanisms underlying this relationship and its boundary conditions remain poorly understood. In this study, we investigate the salience of the mediating mechanisms of leader–member exchange and psychological empowerment in explaining the process by which servant leaders elicit discretionary OCB among followers. We also examine the role of followers’ proactive personality in moderating the indirect effects of servant leadership on OCB through LMX and psychological empowerment. Analysis (...) of survey data collected from 446 supervisor–subordinate dyads in a large Chinese state-owned enterprise suggests that while servant leadership is positively related to subordinate OCB through LMX, psychological empowerment does not explain any additional variance in OCB above that accounted for by LMX. Moderated mediation tests confirm the moderating effect of proactive personality through LMX. By providing a nuanced understanding of how and when servant leadership leads followers to go above and beyond their job role, our study assists organizations in deciding how to develop and utilize servant leaders in their organizations. (shrink)

We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing (...) the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house. (shrink)

Business Ethics: A European Review, Volume 30, Issue 2, Page 231-243, April 2021.

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)

In the present research, we qualitatively document the process by which spiritual leader and leadership emerge in religion-based organizations. Data from 26 participants in three religion-based organizations revealed three cardinal themes that depict the development of spiritual leader and spiritual leadership, the process of developing a spiritual leader and spiritual leadership, and outcomes of spiritual leader and leadership development. Based on the results, we propose a model that depicts the phases involved in the development of spiritual leader/leadership in the religion-based (...) workplace. These phases are proposed to impact the outcomes for the leader, followers, and the organization. The implications of our results are discussed. (shrink)

Servant leadership offers a compelling ideal of self-sacrificing individuals who put the needs of others before their own and cultivate a culture of growth in their organisations. Although the theory’s attempts to emphasise the moral, emotional and relational dimensions of leadership are laudable, it has primarily assumed a decontextualised view of leadership untouched by power. This article aims to problematise servant leadership by undertaking an intersectional analysis of an Asian cis-male heterosexual senior manager in Australia. Through in-depth interviews with the (...) manager and his staff, the article shows how his attempts to practice servant leadership were informed by intersecting power dynamics of race, gender, sexuality, age and class that subordinated him to white power. The findings demonstrate the ways servant leadership is necessarily embedded in wider power structures that shape who gets to be a “servant leader” and who remains merely a “servant”. (shrink)

Recently, various studies have suggested that ethical leadership offers an important antecedent of fluid internal workplace relationships, which are conducive of internal social capital. Yet existing research has neither inquired into potential mediators of this relationship nor addressed the role of other distinct leadership strategies in encouraging such a valuable capital. This study advances previous research by examining if servant leadership, which seeks to put followers’ interests and needs first, can account for social capital variance within the work group, which (...) is the building block of organizations. New to the literature, we also investigate whether group citizenship behavior mediates this relationship. A sample of 352 work groups, spanning 187 hotels located in Spain, reveal that group citizenship behavior partially mediates the positive influence of servant leadership on group social capital. Managers can use these findings to lead their businesses in a more socially friendly direction while also building group social capital, which can improve the competitiveness of their work groups, and the entire business. (shrink)

As a rapidly growing field of study, social entrepreneurship is increasingly receiving attention from scholars and practitioners because social ventures have the potential to contribute to economic growth and social innovation. Surprisingly, the role of leadership in social venture growth has received very limited attention. One reason for this omission may be that entrepreneurship and leadership evolved as separate domains. Applying leadership theory to social ventures can help scholars and managers understand how social entrepreneurs can manage the environmental risks, dual (...) mission, and legitimacy issues of social ventures. Our goal for this conceptual paper is to describe how social entrepreneurs can align employees with the seemingly inconsistent goals of social and economic value creation to improve venture performance. We do so by concentrating on a leadership style applicable to their dual mission—servant leadership. Drawing from theoretical underpinnings and examples from single case studies, we offer a research framework and related propositions that delineate how servant leadership style affects social venture performance through the perception of work meaningfulness, well-being, and job engagement. We contribute to theory building by uncovering how social entrepreneurs can share their personal passions, values, and obligations with their employees and inspire them to meet their dual mission, paying attention to the context of social ventures and the attributes of the employees they attract. We also discuss theoretical and practical implications for social entrepreneurship and offer future research directions. (shrink)

This article presents the ethical concept of service as a way of specifying higher ethical principles in business practice. We set out from the work of a number of scholars who have found some shared ethical principles for doing business in a context of cultural diversity. Love, benevolence, consideration, and other related concepts are considered to be important guiding concepts for business but it is not clear how they are to be operationalized. We argue that the ethical concept of service (...) can act as a bridge for bringing those higher principles into business practice. The article explains and refines the ethical concept of service, which has received little attention. In particular, we address the ethical ambiguity implicit in the common meaning of service, explain how service shows love in business, and offer an account of how service provides ethical growth through virtue. Finally, this work presents a variety of examples from business which illustrate how the ethical concept of service can be put into practice. To achieve the aim of this study we draw inspiration from Catholic social teaching. This source provides useful insights into service and can be understood and accepted without requiring that particular faith. (shrink)

Servant leadership is increasingly gaining interest inside and outside academia. This article builds and extends current theorizing by describing the process that introduces compassionate love as a practical translation for the need to serve, which was positioned by Greenleaf as the core of servant leadership. This article takes a virtues perspective and shows how servant leadership may encourage a more meaningful and optimal human functioning with a strong sense of community to current-day organizations. In essence, we propose that a leader’s (...) propensity for compassionate love will encourage a virtuous attitude in terms of humility, gratitude, forgiveness and altruism. This virtuous attitude will give rise to servant leadership behavior in terms of empowerment, authenticity, stewardship and providing direction. (shrink)

Ethically questionable leader conduct continues to garner headlines. It has prompted the leadership field to renew their focus on research regarding the ethical dimensions of leadership. Empirical emphases have focused on understanding negative leader behaviour, with the typical leadership study reliant upon positivist approaches. I critique these studies as not having produced meaningful, practicable or wholly relevant insights regarding the challenges and support mechanisms required to lead ethically. Few studies have in fact examined leadership in not-for-profit organisations where decisions might (...) reasonably be expected to possess elevated moral capital. To test this, my study interviewed leaders from professional sectors in both the USA and the UK, to offer a more holistic interpretation of what underpins and directs leader moral disposition. As corollary, this research explicates issues of practicability and how other sectors might learn from leaders who perpetually practise their ethicality. To gain insights that develop the field of leadership research, my thesis centres on the experiences of ten high-level, elite and specialised leaders. Although not selected as ethical, they were found to be principled, ethical decision-makers. A specific type of in-depth, qualitative interviewing was conducted and justified to more readily reflect the status of the leaders. Elite and specialised interviewing has not been widely used as a data collection tool, but it offered a unique opportunity to garner specialised data, once access issues had been overcome. The findings reveal unique insights into the underexplored ethical leader mindset and highlight the complex processes of leader decision-making in situ by demonstrating what underpins leaders’ behaviour, with reference to how they understand experiences for themselves. This study uncovers the symbiotic and interconnected nature of the variety of ideological frameworks at play, positing theological concepts alongside sociological and philosophical counterparts. Ethical awareness, the notions of trust and responsibility are shown as bedrock and explicit. This research presents a new ethical leadership, a typology that shows how ethical leaders are created through experience, sustained and developed over time, and nourished by awareness beyond the self. Current conceptions have done little to inform ethical leadership development, whereas I offer a more practical and holistic way to use the unexpected, traumatic, and intense crucibles of leadership experience to explicate and consolidate ethical foundations. This thesis presents a vision of a welfare driven leadership originating from the self, in the service of others, and for society; an ethical leadership for all. (shrink)