The field of behavioral ethics has seen considerable growth over the last few decades. One of the most significant concerns facing this interdisciplinary field of research is the moral judgment-action gap. The moral judgment-action gap is the inconsistency people display when they know what is right but do what they know is wrong. Much of the research in the field of behavioral ethics is based on early work in moral psychology and American psychologist Lawrence Kohlberg’s foundational cognitive model of moral (...) development. However, Kohlberg’s model of moral development lacks a compelling explanation for the judgment-action gap. Yet, it continues to influence theory, research, teaching, and practice in business ethics today. As such, this paper presents a critical review and analysis of the pertinent literature. This paper also reviews modern theories of ethical decision making in business ethics. Gaps in our current understanding and directions for future research in behavioral business ethics are presented. By providing this important theoretical background information, targeted critical analysis, and directions for future research, this paper assists management scholars as they begin to seek a more unified approach, develop newer models of ethical decision making, and conduct business ethics research that examines the moral judgment-action gap. (shrink)

Pride has rarely been explored in the context of moral disengagement and unethical decision-making. Although some research has examined the associations between “authentic” and “hubristic” pride and unethical behaviour, little attention has been paid to potential mechanisms. Across two correlational studies (N = 379), we explore the associations between two facets of pride rooted on comparisons – social comparison-based pride, and self-based pride, moral disengagement, and unethical decision-making. Results show that social comparison-based pride consistently (positively) relates to moral disengagement, and (...) that moral disengagement accounts for the association between social comparison-based pride and unethical decision-making. In sum, our findings contribute in novel ways to the understanding of how pride based in different comparison frames may lead to antisocial decision-making. (shrink)

Recent literature suggests that ethical leadership helps to inhibit followers’ unethical behavior, largely built on the premise that followers view ethical leaders as ethical role models and socially learn from them, thereby engaging in more ethical conduct. This premise, however, has not been adequately tested, leaving insufficient understanding concerning the conditions under which this social learning process occurs. In this study, we revisit this premise, theorizing that not all followers will equally regard the same ethical leader as being a personal (...) ethical role model, thereby bounding the leader’s effects in reducing followers’ unethical behavior. We integrate the role of follower self-concepts into social learning theory, hypothesizing that the extent followers emulate their ethical leaders is contingent on how they identify with ethics as well as the particular leader. We test our hypotheses with three-wave survey data collected from 214 employees, finding that ethical leaders are viewed as being role models only amongst followers higher in moral identity and leader identification, and that followers’ perceptions that the leader is an ethical role model mediated the effect of ethical leadership on followers’ unethical behavior. Interestingly, results for the full-model tests show that ethical leadership evokes unethical behavior amongst followers lower in both moral identity and leader identification. These results suggest that ethical leadership is not a universally useful practice to decrease unethical behavior and that a more nuanced understanding of its contingent effects needs to be better understood. (shrink)

Recent instances of corporate misconduct and examples of blatant leader self-serving behavior have rekindled interest in leader personality traits as antecedents of negative leader behavior. The current research builds upon that work, and examines the relationship between leader psychopathy and leader self-serving behavior. Moreover, we investigate whether follower self-esteem affects the occurrence of self-serving behavior in leaders with psychopathic tendencies. We predict that self-serving behaviors by psychopathic leaders are more likely to occur in the interaction with followers low in self-esteem. (...) We first conducted an experimental study (N = 156), in which we manipulated follower self-esteem, measured leader psychopathy, and assessed their combined effect on leader self-serving behavior using an ultimatum game. We then conducted a multi-source field study (N = 124 leader-follower dyads) using questionnaires to assess leader psychopathy, follower self-esteem, and perceived leader self-serving behavior. Across both studies, we found that leader psychopathy was positively related to their self-serving behavior, but only when followers had low rather than high self-esteem. As expected, our studies showed that the degree to which (perceived) psychopathic traits of leaders are reflected in their behavior depends on the characteristics of their followers. Apparently, the behavioral expression of negative leader traits is not only a matter of the trait strength, but instead is the result of the interplay between leader and follower in a certain context. (shrink)

Setting out to understand the effects of positive moral emotions in leadership, this research examines the consequences of leaders’ expressions of gratitude and pride for their followers. In two experimental vignette studies and a field study, leaders’ gratitude expressions showed a positive effect and leaders’ pride expressions showed a negative effect on followers’ ascriptions of leader selfishness. Thereby, leaders’ gratitude expression indirectly led to higher follower satisfaction with and OCB towards the leader, while leaders’ pride expressions indirectly reduced satisfaction with (...) and OCB towards the leader. Furthermore, leaders’ expressions of gratitude indirectly reduced followers’ intentions to leave the leader, while leaders’ expressions of pride indirectly fuelled them. Although ascriptions of selfishness consistently influenced these leader outcomes more strongly than comparable organizational outcomes, results on organizational outcomes were mixed. While leaders’ expressions of gratitude led, as expected, to higher job satisfaction and lower turnover intentions, leaders’ expressions of pride showed positive relations with both OCB towards the organization and intentions to leave the organization. We discuss the theoretical implications of leaders’ expressions of positive moral emotions as signals of outcome attributions, as well as leaders’ selfishness and practical implications that help leaders build followers’ satisfaction and positive leader–follower relationships. (shrink)

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

AbstractExtant research has demonstrated that underdog expectations—individuals’ perceptions that others view them as unlikely to succeed—can have positive implications for motivating performance. In this paper, we draw on self-determination theory to examine how and when underdog expectations can have detrimental consequences for both the employee and the organization. Specifically, we propose that underdog expectations can decrease employees’ need fulfillment, which in turn leads to more cheating behavior. Furthermore, we theorize that the indirect effect of underdog expectations on cheating behavior via (...) need fulfillment is weaker when general self-efficacy is high than when it is low. Results from two studies using complementary designs support our predictions. Overall, our research demonstrates a potential dark side to underdog expectations and also contributes to the behavioral ethics literature. (shrink)

Moral identity and moral dissonance in business ethics have explored tensions relating to moral self-identity and the pressures for identity compartmentalization in the workplace. Yet, the connection between these streams of scholarship, spirituality at work, and business ethics is under-theorized. In this paper, we examine the Quaker tradition to explore how Quakers’ interpret moral identity and negotiate the moral dissonance associated with a divided self in work organizations. Specifically, our study illuminates that while Quakers’ share a tradition-specific conception of “Quaker (...) morality” grounded in Quaker theology and the Quaker testimonies to truth, integrity, peace, equality, and simplicity, they often foreground the pursuit of an undivided self through seeking work that enables an expression of Quaker moral identity, or by resigning from work organizations that do not. In most cases, however, Quakers’ face moral dissonance at work and engage in either identity compartmentalization and draw upon the metaphor of a ‘spiritual journey’ as a form of self-justification, or reframe, compartmentalize and engage in work tasks that are both subjectively moral and meaningful. We present a model that elaborates these negotiation processes and invite further research that examines how the spiritual traditions influence moral identity construction at work. (shrink)