According to deontic justice theory, individuals often feel principled moral obligations to uphold norms of justice. That is, standards of justice can be valued for their own sake, even apart from serving self-interested goals. While a growing body of evidence in business ethics supports the notion of deontic justice, skepticism remains. This hesitation results, at least in part, from the absence of a coherent framework for explaining how individuals produce and experience deontic justice. To address this need, we argue that (...) a compelling, yet still missing, step is to gain further understanding into the underlying neural and psychological mechanisms of deontic justice. Here, we advance a theoretical model that disentangles three key processes of deontic justice: The use of justice rules to assess events, cognitive empathy, and affective empathy. Together with reviewing neural systems supporting these processes, broader implications of our model for business ethics scholarship are discussed. (shrink)

Two studies tested the relationship between three facets of personality—conscientiousness, agreeableness, and openness to experience—as well as moral identity, on individuals’ ethical ideology. Study 1 showed that moral personality and the centralityof moral identity to the self were associated with a more principled (versus expedient) ethical ideology in a sample of female speech therapists. Study 2 replicated these findings in a sample of male and female college students, and showed that ideology mediated therelationship between personality, moral identity, and two organizationally (...) relevant outcomes: organizational citizenship behavior and the propensity to morally disengage. Implications for business ethics are discussed. (shrink)

ABSTRACT:Legal scholars and business ethicists are interested in many of the same core issues regarding human and firm behavior. The vast amount of legal research being generated by nearly 10,000 law school and business law scholars will inevitably influence business ethics research. This paper describes some of the recent trends in legal scholarship and explores its implications for three significant aspects of business ethics research—methodology, theory, and policy.

ABSTRACT:The purpose of this article is to review literature that is relevant to the social scientific study of ethics and leadership, as well as outline areas for future study. We first discuss ethical leadership and then draw from emerging research on “dark side” organizational behavior to widen the boundaries of the review to includeunethical leadership. Next, three emerging trends within the organizational behavior literature are proposed for a leadership and ethics research agenda: 1) emotions, 2) fit/congruence, and 3) identity/identification. We (...) believe each shows promise in extending current thinking. The review closes with discussion of important issues that are relevant to the advancement of research on leadership and ethics. (shrink)

To be and to remain ethical requires struggle from organizations. Struggling is necessary due to the pressures and temptations management and employees encounter in and around organizations. As the relevance of struggle for business ethics has not yet been analyzed systematically in the scientific literature, this paper develops a theory of struggle that elaborates on the meaning and dimensions of struggle in organizations, why and when it is needed, and what its antecedents and consequences are. An important conclusion is that (...) the greater the ethics gap and opposing forces, the greater the struggle required. Viewing business ethics as struggle has several implications for theory and practice. (shrink)

Deontology and utilitarianism are two competing principles that guide our moral judgment. Recently, deontology is thought to be intuitive and is based on an error-prone and biased approach, whereas utilitarianism is relatively reflective and a suitable framework for making decision. In this research, the authors explored the relationship among moral identity, moral decision, and moral behavior to see how a preference for the deontological solution can lead to moral behavior. In study 1, a Web-based survey demonstrated that when making decisions, (...) individuals who viewed themselves as moral people preferred deontological ideals to the utilitarian framework. In study 2, the authors investigated the effect of moral identity and moral decision on moral behavior in an experimental study. The results showed that when deontology was coupled with the motivational power of moral identity, individuals were most likely to behave morally. (shrink)

The relevance of leader ethicality has moti- vated ethical leadership theory. In this paper, we emphasize the importance of moral identity for the concept of ethical leadership. We relate ethical leadership incorporating an internalized moral identity to productive deviant workplace behavior. Using qualitative empirical data we illustrate the relevance of critical situations, i.e., situations in which hypernorms and organizational norms diverge, for the distinction of ethical leaders with or without internalized moral identities. Our paper takes a multidisciplinary approach integrating insight (...) from management as well as humanities and social sciences toward a comprehensive sense of ethical leadership. (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)

The research described here contributes to the extant empirical research on business ethics education by examining outcomes drawn from the literature on positive organizational scholarship (POS). The general research question explored is whether a course on ethical decision-making in business could positively influence students’ confidence in their abilities to handle ethical problems at work (i.e., moral efficacy), boost the relative importance of ethics in their work lives (i.e., moral meaningfulness), and encourage them to be more courageous in raising ethical problems (...) at work even if it is unpopular (i.e., moral courage). Specifically, the study used a rigorous quasi-experimental pretest–posttest research design with a treatment (N = 30) and control group (N = 30) to investigate whether a graduate-level course in business ethics could influence students’ levels of moral efficacy, meaningfulness, and courage. Findings revealed that participants in the business ethics treatment course experienced significant positive increases in each of the three outcome variables as compared to the control group. The largest increase was in moral efficacy, followed by moral courage, and finally, moral meaningfulness. These findings are discussed in the context of the current research on business ethics education and POS. Implications for future research are discussed. (shrink)

Aristotle considered moral beauty to be the telos of the human virtues. Displays of moral beauty have been shown to elicit the moral emotion of elevation and cause a desire to become a better person and to engage in prosocial behavior. Study 1 (N = 5380) shows engagement with moral beauty is related to several psychological constructs relevant to moral education, and structural models reveal that the story of engagement with moral beauty may be considered a story of love and (...) connectedness; it is uniquely predictive of caring for, being empathic of, loving, and valuing benevolence toward others. Study 2 (N = 542) demonstrates that the personality trait of engaging with moral beauty moderates susceptibility to elevation. These studies suggest that encouraging students to engage with moral beauty might increase their desire to become better persons and to do good. Convergent with other research showing that moral emotions motivate moral behavior, we suggest that moral education programs increase their focus on developing engagement with moral beauty. (shrink)

Based on social-cognitive theory, this article proposes a model that seeks to explain why high status organizational members engage in unethical behavior. We argue that status differentiation in organizations creates social isolation which initiates activation of high status group identity and a deactivation of moral identity. We further argue that high status group identity results in insensitivity to the needs of out-group members which, in turn, results in lessened motivation to selfregulate ethical decision making. As a result of this identity (...) activation, we demonstrate how high status individuals will be more vulnerable to engaging in unethical activities. Individual-level moderators of the relationships are also discussed. (shrink)

Unethical research practices are prevalent in China, but little research has focused on the causes of these practices. Drawing on the criminology literature on organisational deviance, as well as the concept of cengceng jiama, which illustrates the increase of pressure in the process of policy implementation within a top-down bureaucratic hierarchy, this article develops an institutional analysis of research misconduct in Chinese universities. It examines both universities and the policy environment of Chinese universities as contexts for research misconduct. Specifically, this (...) article focuses on China’s Double First-Class University Initiative and its impact on elite universities that respond to the policy by generating new incentive structures to promote research quality and productivity as well as granting faculties and departments greater flexibility in terms of setting high promotion criteria concerning research productivity. This generates enormous institutional tensions and strains, encouraging and sometimes even compelling individual researchers who wish to survive to decouple their daily research activities from ethical research norms. This article is written based on empirical data collected from three elite universities as well as a review of policy documents, universities’ internal documents, and news articles. (shrink)

The existing literature provides conflicting evidence of whether a collectivistic value orientation is associated with ethical or unethical behavior. To address this confusion, we integrate collectivism theory and research with prior work on social identity, moral boundedness, group morality, and moral identity to develop a model of the double-edged effects of collectivism on employee conduct. We argue that collectivism is morally bounded depending on who the other is, and thus it inhibits employees’ motivation to engage in unethical pro-self behavior, yet (...) strengthens their motivation to engage in unethical pro-organization behavior. We further predict that these effects are mediated by the psychological mechanism of organizational goal commitment and moderated by a person’s strength of moral identity. Results of three studies conducted in China and the United States and involving both field and experimental data offer strong support for our hypotheses. Theoretical and practical implications of the research are discussed. (shrink)

The literature on ethical behavior has called for studies that investigate the interaction between individual and contextual factors. This study examined whether moral identity interacts with ethical culture to predict unethical behavior at work and whether implicit and explicit moral identity affects unethical behavior distinctively. Our sample consisted of 238 participants who took part in an experiment involving an in-basket exercise that measured unethical behavior. Ethical culture was manipulated via a cover letter from a fictitious company’s CEO, and moral identity (...) was measured through a self-report scale and the Implicit Association Test (IAT). Findings indicate that implicit and explicit moral identity were negatively associated with unethical behavior and that organizational culture moderated the relationship between moral identity and unethical behavior. The results have theoretical and practical implications for understanding the interaction of predictors of unethical behavior by combining automatic and deliberate measures of moral identity with ethical culture. (shrink)

Previous studies suggested that parenting is critically important in the development of both moral identity and compassion, but more research is needed concerning the stability of these effects and whether they carry over into adulthood. The present study addressed this issue by examining the link between a specific dimension of perceived parental style and compassion and the mediating role of moral identity in this relationship. The research sample comprised 208 adults aged 18 to 60 (M = 25.44, SD = 7.09, (...) 82.2% females). The participants completed self-report scales measuring perceived parental emotional warmth, compassion, and moral identity (i.e. moral self and moral integrity). Correlation analysis suggested that compassion was positively associated with all the measured variables. Mediation analysis results suggested that both facets of moral identity mediated the link between perceived parental emotional warmth and compassion. We discuss these results considering their importance for cultivating moral identity and compassion and the important role of parents in this regard. (shrink)

When should a company introduce a new ethical norm? This article uses the value-belief-norm theory to argue that the more an ethical issue threatens a company's ethical value and the more the company has an ethical responsibility to protect such value against such threat, then the more desirable it is for a company to establish ethical norms to protect said value. Distinguishing seven characteristics of an ethical issue and four conditions for a company's ethical responsibility helps identify the situations in (...) which a company should introduce a new ethical norm. The resulting framework, with corresponding guidelines, specifies two accelerators and one inhibitor that influence the desirable speed for introducing new norms. (shrink)

Firms usually need to attract debt to form and grow, but increasing financial leverage also entails increased risks and costs for stakeholders, such as customers and employees. Accordingly, past research suggests that for common commercial firms (CCFs), which prioritize profits, higher leverage leads to lower sales growth and higher employment costs. However, Certified B Corporations (CBCs) distinguish themselves by having a credible prosocial mission and, therefore, might be better insulated against the adverse effects of higher leverage. Using a European multi-country (...) matched sample of 136 CBCs and 136 CCFs, we find that the negative relationship between leverage and sales growth and the positive relationship between leverage and employment costs are weaker for CBCs than CCFs. Taken together, due to their certified prosocial mission, CBCs enjoy an advantage in debt financing compared to CCFs. (shrink)

AbstractSpirituality continues to exert a strong influence in people’s lives both in work and beyond. However, given that spirituality is often non-formalized and personal, we continue to know little about how moral reasoning is strategized. In this paper, we examine how Buddhist leader-practitioners interpret and operationalize a process of self-decentralization based upon Buddhist emptiness theory as a form of moral reasoning. We find that Buddhist leader-practitioners share a common understanding of a self-decentralized identity and operationalize self-decentralization through two practices in (...) Buddhist philosophy—skillful means and the middle way—to foreground social outcomes. However, we also find that practitioners face tensions and challenges in moral reasoning relates to agency—the ‘re-centering’ of the self as an enlightened self and the use of karmic reasoning to justify (un)ethical behavior—and contextual constraints that lead to feelings of vulnerability and exclusion. We present a model that elaborates these processes and invite further research that examines novel approaches and dynamic interpretations of the self in moral reasoning. (shrink)

Inconsistent information between an organization’s corporate social responsibility (CSR) commitments and perceived CSR (in-)action is a big challenge for organizations because this is typically associated with perceptions of corporate hypocrisy and related negative stakeholder reactions. However, in contrast to the prevailing corporate hypocrisy literature we argue that inconsistent CSR information does not always correspond to perceptions of corporate hypocrisy; rather, responses depend on individual predispositions in processing CSR-related information. In this study, we investigate how an individual’s moral identity shapes reactions (...) to inconsistent CSR information. The results of our three studies show that individuals who symbolize—i.e., display—their moral identity to the public more than they internalize moral values react less negatively to inconsistent CSR information. We also show that this weakens their anger and willingness to change company behavior. Furthermore, we find that this effect is amplified for extraverted but weakened for neurotic individuals. Our findings underline the importance of individual predispositions in processing CSR information. (shrink)

Although performance pressure has desirable consequences, there is evidence that it can produce unintended outcomes as employees tend to engage in dysfunctional and unethical behaviors to meet performance goals. Thus, the process through which employees think and behave unethically under performance pressure deserves more research attention. This study goes beyond the stress-appraisal perspective and investigates whether and when performance pressure influences individual work mindsets and behaviors from a moral reasoning perspective. Specifically, we contend that performance pressure is related to employee (...) expediency through moral decoupling. We further hypothesize dialectical thinking and moral identity to be the boundary conditions of the proposed relationships. Analyses of data from a field study in three waves provide support for most of the hypotheses. In particular, we find that moral decoupling accounts for additional variance after we control for the stress-appraisal effect of performance pressure on employee expediency. The study offers several contributions to the literature on performance pressure and unethical behavior. (shrink)

Drawing upon the General Learning Model, the present study developed a moderated mediation model to provide an in-depth understanding of whether and how adolescents’ reading prosocial content in books predicts their prosocial behavior. The target population in this study is Chinese adolescents, and we adopted a paper-based survey to collect data. The age range of the sample was from 12 to 19. Among all participants, 49.3% were female, and 50.7% were male. PROCESS SPSS Macro was used to analyze the proposed (...) moderated mediation model. The results showed that prosocial content reading was positively associated with adolescents’ prosocial behavior. The positive association included a direct relationship and an indirect relationship through the mediation of moral identity. Furthermore, this study revealed the moderation effect of age on the relationships among prosocial content reading, moral identity, and prosocial behavior. Specifically, as age increases, the effects of prosocial content reading on moral identity and prosocial behavior attenuate, and the mediation effect of moral identity also decreases. The study adds to the body of knowledge on the prosocial media effect by extending it to book reading. (shrink)

Punishment and forgiveness are two very different responses to a moral transgression that both have been argued to restore perceptions of moral order within an organization. Unfortunately, it is currently unclear what motivates organizational actors to punish or forgive a norm transgressor. We build on social cognitive theory to argue that punishment and forgiveness of a transgressor are both rooted in self-regulatory processes. Specifically, we argue that organizational actors are more likely to respond to intentional transgressions with punishment, and to (...) unintentional transgressions with forgiveness. However, these effects of transgressor intentionality should be found in particular among actors for whom moral identity is central. We find support for these predictions in a laboratory experiment and a field study among organizational leaders. By simultaneously studying punishment and forgiveness in organizational settings, we provide crucial insight in their shared motivational bases, as well as into important differences between the two. (shrink)

One of the critical crises observed in human society, especially in the so-called advanced and industrial societies, is the spiritual crisis. Spirituality in various types of cultural and religious concepts is considered a spiritual path one in which can achieve something like a high level of consciousness, wisdom or union with God. In addition, self-esteem is a sense of worth. This feeling comes from the sum of our thoughts, feelings, emotions and experiences throughout life. Dignity also means honour and pride, (...) which has been mentioned many times in the Qur'an. In contrast to dignity, there is humiliation, which means lack of dignity in which one simply accepts defeat. Religious teachings, especially Islamic teachings, do not summarise dignity as wealth, luxury and the enjoyment of material possibilities, but interprets dignity as spirituality, and liberation from the shackles of worldliness, which give Muslims a moral identity. The main purpose of this study is to investigate the mediating role of moral identity between spiritual intelligence and self-esteem of Muslims. The statistical population includes 834 Muslim employees working in 20 branches of one Iranian university. Necessary data were collected by standard questionnaires. Pearson's correlation coefficient and regression analysis in SPSS software (Statistical Package for the Social Sciences) were used to analyse the data. According to the results of the analysis, there is a positive relationship between spiritual intelligence and self-esteem of Muslims. There is also a positive relationship between moral identity and self-esteem. Furthermore, moral identity plays a mediating role in the relationship between spiritual intelligence and self-esteem, and it strengthens this relationship. CONTRIBUTION: The present study proves the mediating role of ethical identity on the relationship between spiritual intelligence and self-esteem in an Islamic society. (shrink)

When subordinates have suffered an unfairness, managers sometimes try to compensate them by allocating something extra that belongs to the organization. These reactions, which we label as managerial Robin Hood behaviors, are undertaken without the consent of senior leadership. In four studies, we present and test a theory of managerial Robin Hoodism. In study 1, we found that managers themselves reported engaging in Robin Hoodism for various reasons, including a moral concern with restoring justice. Study 2 results suggested that managerial (...) Robin Hoodism is more likely to occur when the justice violations involve distributive and interpersonal justice rather than procedural justice violations. In studies 3 and 4, when moral identity was low, both distributive and interpersonal justice violations showed similar relationships to managerial Robin Hoodism. However, when moral identity was high, interpersonal justice violations showed a strong relationship to managerial Robin Hoodism regardless of the level of distributive justice. (shrink)

Given the paradoxical nature of unethical pro-organizational behavior (UPB), that it simultaneously involves sincere extraordinary efforts to help the organization but violates ethical norms, we examined its paradoxical psychological and behavioral outcomes in the workplace. We hypothesized that UPB generates simultaneous but conflicting feelings: On one hand, guilt (for having behaved unethically) and on the other, psychological entitlement (for having done something positive for the organization). In turn, these conflicting psychological states differentially affect two conflicting behaviors. Feelings of guilt motivate (...) customer service behavior but reduce self-serving cheating, whereas psychological entitlement does the opposite. We further hypothesized that moral identity centrality moderates the paradoxical effects of UPB. Data from three studies using experimental and field methodologies demonstrated support for all hypotheses. We discuss the theoretical and managerial implications of these findings. (shrink)

Integrating research on empowering leadership with the literature on power in social psychology, we examine how empowering leaders affect the propensity of followers to engage in deviance. Across a multi-source, multi-wave field study and a controlled laboratory experiment, we find that, compared to the followers of less-empowering leaders, the followers of more empowering leaders feel subjectively more powerful and engage in more deviant behaviors. Moreover, we find that the propensity of empowered followers to engage in more deviance depends on their (...) prosocial attributes. Specifically, empowered followers engage in the highest levels of deviance when they have a weak moral identity and a strong desire for dominance. We further find that empowering leadership does not increase follower deviance when followers either have a strong moral identity or a weak desire for dominance. In sum, although past research suggests that empowering leadership may facilitate productivity and employee engagement, our work demonstrates that it can also cultivate harmful effects, such as increased deviance among certain types of followers. We discuss our theoretical contributions as well as practical implications for practicing empowering leadership. (shrink)

Employee reporting dishonesty is a significant area of concern for firms. In this study, we investigate how providing information about their prosocial actions, such as organizational citizenship behaviors, affects the extent of employee reporting dishonesty. We distinguish prosocial actions whose welfare effects are mutually beneficial (i.e., that help others and the employee), which are common in business practice, from those that are selfless in nature (i.e., that help others at a personal cost to the employee). In addition to examining the (...) effect of the type of prosocial action on the extent of employee reporting dishonesty, we also examine the effect of construal (the manner in which individuals perceive and interpret the action). Using an experiment, we find that participants with high moral identity are less dishonest when they describe their selfless prosocial actions than when they describe their mutually beneficial prosocial actions, but only when they abstractly construe this information. However, we do not find evidence that the reporting dishonesty of participants with low moral identity is influenced by the type of prosocial action they provide information about or the construal of that information. We discuss implications of these results for theory and practice. (shrink)

Constructive deviance, rule-breaking to benefit the organization, is an emerging topic in the scholarly research and is considered to be an ethical decision. Despite the value of guiding constructive deviance in organizations, the effect of ethics-oriented leadership on employees’ constructive deviance remains unclear. This research identifies leader moral humility as a new antecedent of constructive deviance and examines how and when leader moral humility influences employee constructive deviance. Drawing on social–cognitive theory, we propose that leader moral humility fosters employee moral (...) identity, which in turn triggers employees to exhibit constructive deviance. Moreover, the mediating effect of moral identity is more pronounced when normative conflict with organizational rules is high, as this conflict inspires identity-driven behavior. Two studies with scenario-based experimental and time-lagged field methods provided general support for our hypotheses. Study 1 reveals that leader moral humility positively affects constructive deviance via employee moral identity. Study 2 replicates and extends Study 1 to support the moderating role of normative conflict. These findings enrich the understanding of constructive deviance by shedding light on the moral cognitive process in the relationship between leader moral humility and employee constructive deviance and by identifying the boundary condition for the relationship. (shrink)

Employees’ may view prohibitive voice—that is, expressing concerns about harmful practices in the workplace—as a moral yet interpersonally risky behavior. We, thus, predict that prohibitive voice is likely to be influenced by variables associated with moral and relational qualities. Specifically, we hypothesize that employees’ moral identity internalization—i.e., the centrality of moral traits in their self-concept—is positively associated with their use of prohibitive voice. Furthermore, we hypothesize that this association is stronger when employees enjoy a higher quality relationship with their leader. (...) In addition, drawing on the literature on moral symbolism, we hypothesize that workgroup moral identity symbolization—i.e., the extent to which workgroup members symbolically display moral traits—moderates the relationship between moral identity internalization and prohibitive voice in a compensatory manner. That is, workgroup moral identity symbolization enhances employees’ use of prohibitive voice when employees’ moral identity internalization is low. Data collected from hospital employees and their supervisors and coworkers support these hypotheses. These findings suggest new ways to promote prohibitive voice and, thereby, protect organizational stakeholders from harmful behaviors. (shrink)

Substantial literature has investigated the relationship between religiosity and ethical decision-making (the what), while lesser consideration has been given to exploring why decisions are made. As part of a larger study, this paper aims to delve beyond the descriptive relationship between religiosity and ethical decision-making of Muslim employees in Malaysia. We analyse the qualitative data received from 160 employees by using thematic analysis. Our results reveal that, while religious values are important for Muslims in Malaysia, there are other factors that (...) are also pertinent when making decisions at work, namely the organization’s interest and the context of the decision. We also found that individuals’ reasoning based on Islamic teachings is embedded in rules and regulations, which suggests lower levels of ethical reasoning. This study extends the current understanding of the processes of ethical reasoning in highly religious contexts by individuals at their workplace. Implications and suggestions for future research are discussed. (shrink)

The purpose of this research is to examine the notion of salesperson moral identity as a prosocial individual trait and its associated effects on customer and coworker relationships. In addition, this study examines the underlying processes in which these effects occur as well as the moderating role of internal competitive climate. Our empirical investigation of business-to-business (B2B) sales professionals reveals that moral identity has both direct and indirect effects on a salesperson’s customer- and team-directed outcomes. Specifically, our results demonstrate that (...) salesperson moral identity positively affects both salesperson-customer identification and organizational identification, which, in turn, impact customer service provision and teamwork. Our findings also indicate that internal competitive climate exacerbates the positive effects of salesperson moral identity on customer service provision and teamwork. (shrink)

Unfortunately, business is often associated with unethical behavior. While research has offered a number of explanations for why business might encourage unethical behavior, we argue that how a person frames a situation may provide important insight. Drawing on the decision frame literature, the goal of the current research is to identify the differences in cognitive processing associated with two decision frames dominant in the business ethics literature—business and ethical—and, with that knowledge, examine ways to mitigate the detrimental influence of frame (...) on unethical behavior. We first demonstrate the causal link between frame and misrepresentation, and then identify several differences in cognitive processing—cost–benefit analyses, concern for others, and construal level—that distinguish business and ethical frames, and investigate their effects on misrepresentation. In our final set of studies, we demonstrate that the influence of these frames on misrepresentation can be altered by manipulating these cognitive processes, both mitigating and exacerbating a decision maker’s engagement in misrepresentation. We conclude by summarizing our findings and their potential impact on unethical behavior more broadly. (shrink)

Building from an interactionist view of ethics, this study sought to integrate individual and contextual factors for understanding ethical perceptions in teams. Given the proximal nature of team members, this study specifically explored how individuals comparatively evaluate their own ethical behaviors and team members’ ethical behaviors to arrive at a perception of ethical person–group fit within a team. Grounding our theoretical arguments in relational schemas theory, we demonstrate that interpersonal ethical perceptions can have distal impacts on perceptions of team functioning. (...) The results support the hypotheses that a perceived ethical incongruence between the self and other team members negatively influenced perceptions of relationship conflict and ultimately information sharing. By exploring individual and team level aspects of ethics concurrently, we contribute to a deeper understanding of contextual forces in ethics through an interactionist approach. (shrink)

Business Ethics: A European Review, EarlyView.

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)

This qualitative study explores how business leaders narrate their personal ways of recognizing, reasoning, and resolving moral conflicts and what these stories reveal about their moral identity processes within organizational contexts. Based on interviews with 25 business leaders, 4 moral identity statuses were identified: achievement, moratorium, foreclosure, and diffusion. The moral identity statuses were based on how leaders approached and interpreted moral conflicts and what the influence of the organizational context was in their moral decision-making processes. Some remained steadfast in (...) adhering to their previous value commitments, while others tried to avoid taking any clear moral standpoint. Still others experienced moral conflicts as disequilibrating events that triggered reflective processes and developmental cycles of moral identity change. These moral identity statuses hold implications for facilitating moral identity development among business leaders in the context of work. (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)

This study introduces the concept of deviant behavior in a moderated-mediation framework of incentives and organizational justice perception. The proposed relationships in the theoretical framework were tested with a sample of 311 academics, using simple random sampling, via causal models and structural equation modeling. The findings suggest that incentives might boost the apparent performance, but not necessarily the intended performance. The results confirm that employees’ affection for incentives has direct, indirect, and conditional indirect effects on their deviant behavior likelihood. The (...) relationship between employee deviant behavior likelihood and affection for incentives was moderated by organizational justice perception and partially mediated by reward expectancy, thus having significant contributions toward the extant literature of deviant behavior and incentives. The findings have important implications for managers, academicians, and policy makers for mitigating adverse behavior in professional employees through proper use of incentives. (shrink)

The most popular measure of corporate reputation is the ranking of the most admired companies. But what exactly do we admire in people and firms of good reputation? This article is about the ethical dimension of corporate reputation. It integrates the trait approach in personality psychology and philosophical ethics to the study of reputation and related concepts as a way to account for the discontinuities between reputation at the individual and corporate levels under conditions of uncertainty. Through an examination of (...) the distinction between perceptions and grounding of reputation, the article also sheds light on the explanatory power of reputation concepts and critically appraises the possibility of character and organizational virtue. (shrink)

Unethical pro-organizational behaviors are unethical, but prosocially-motivated, acts intended to benefit one’s organization. This study examines the extent to which employees are willing to perform UPB to benefit a liked leader. Based on social exchange theory, we hypothesized that LMX would mediate the association of interpersonal justice with UPB willingness. Moral identity and positive reciprocity beliefs were examined as moderators. Higher LMX was significantly and positively related to UPB willingness, and the indirect effect of interpersonal justice on UPB via LMX (...) was significant and positive. These findings suggest that LMX and interpersonal justice could have a previously-unexplored dark side. Moral identity had a negative direct relationship with UPB, but it did not moderate the relationship of LMX with UPB. Thus, LMX facilitates UPB willingness even when employees are high in moral identity. LMX is associated with many positive outcomes, but our results show that high LMX may also increase willingness to perform unethical behaviors to benefit one’s leader. These results contribute to the literature by identifying a potential negative outcome associated with high LMX. (shrink)

Despite the proliferation of research on ethical leadership, there remains a limited understanding of how specifically the assumingly moral component of this leadership style affects employee behavior. Taking an identity perspective, we integrate the ethical leadership literature with research on the dynamics of the moral self-concept to posit that ethical leadership will foster a sense of moral identity among employees, which then inspires followers to adopt more ethical actions, such as increased organization citizenship behavior. We further argue that these identity (...) effects should be more pronounced when leaders are perceived to be group prototypical, as their actions then speak louder to followers’ sense of identity. Two studies—a scenario experiment with 138 participants and a field study with 225 employees—provided support for our hypothesized moderated mediation model. Perceived ethical leadership positively affected OCB via followers’ moral identity but only under conditions of high perceived leader group prototypicality. We discuss how the identity pathway of ethical leadership can facilitate novel theorizing about moral transference. Our findings also suggest that, when hiring external ethical leaders or training internal managers, practitioners are well advised to consider that these individuals may only be effective in morally transforming followers when they are perceived as prototypical for the group. (shrink)

Research has shown that corporate social responsibility (CSR) can have a positive impact on the firm’s reputation and financial performance. Moreover, CSR activities can have a positive impact on employees’ workplace experience. Consistent with past research, we argue that perceived organizational CSR value can have a positive impact on job satisfaction. We also argue that employees’ moral identity can play an important moderating role on the perceived CSR effect. Specifically, the current study was designed to test the predictive effects of (...) perceived organizational CSR value on job satisfaction. In addition, the study was designed to test the moderating roles of two moral identity dimensions, internalized and symbolic moral identity, on the effect of perceived organizational CSR value on job satisfaction. The study results were generally supportive of the hypotheses. Managerial implications of the study findings were also discussed. (shrink)

According to deontic justice theory, individuals often feel principled moral obligations to uphold norms of justice. That is, standards of justice can be valued for their own sake, even apart from serving self-interested goals. While a growing body of evidence in business ethics supports the notion of deontic justice, skepticism remains. This hesitation results, at least in part, from the absence of a coherent framework for explaining how individuals produce and experience deontic justice. To address this need, we argue that (...) a compelling, yet still missing, step is to gain further understanding into the underlying neural and psychological mechanisms of deontic justice. Here, we advance a theoretical model that disentangles three key processes of deontic justice: The use of justice rules to assess events, cognitive empathy, and affective empathy. Together with reviewing neural systems supporting these processes, broader implications of our model for business ethics scholarship are discussed. (shrink)

The popular media has repeatedly pointed to pride as one of the key factors motivating leaders to behave unethically. However, given the devastating consequences that leader unethical behavior may have, a more scientific account of the role of pride is warranted. The present study differentiates between authentic and hubristic pride and assesses its impact on leader ethical behavior, while taking into consideration the extent to which leaders find it important to their self-concept to be a moral person. In two experiments (...) we found that with higher levels of moral identity, authentically proud leaders are more likely to engage in ethical behavior than hubristically proud leaders, and that this effect is mediated by leaders’ motivation to act selflessly. A field survey among organizational leaders corroborated that moral identity may bring the positive effect of authentic pride and the negative effect of hubristic pride on leader ethical behavior to the forefront. (shrink)

Arguing that psychology and business ethics are best brought together through a multi-level, broad-based agenda, this essay articulates a vision of psychology and business ethics to frame a future research agenda. The essay draws upon work published in JBE, but also identifies gaps where published research is needed, to build upon psychological conceptions of business ethics. Psychological concepts, notably, are not restricted to phenomena “in the head”, but are discussed at the intra-psychic, relational, and contextual levels of analysis. On the (...) basis of this presentation, I discuss future directions for development in psychology and business ethics, including but not limited to studies of personality, emotion, decision making, motivation, and the biological bases of psychology and business ethics. An inclusive approach to these and related areas, it is argued, will both bring about depth of understanding on the psychological bases of business ethics, and allow dialogue across disciplinary areas within JBE. (shrink)

Extant research provides compelling conceptual and empirical arguments that company-external as well as company-internal CSR efforts positively affect employees, but does so largely in studies assessing effects from the two CSR types independently of each other. In contrast, this paper investigates external–internal CSR jointly, examining the effects of consistent external–internal CSR strategies on employee attitudes, intentions, and behaviors. The research takes a social and moral identification theory view and advances the core hypothesis that inconsistent CSR strategies, defined as favoring external (...) over internal stakeholders, trigger employees’ perceptions of corporate hypocrisy which, in turn, lead to emotional exhaustion and turnover. In Study 1, a cross-industry employee survey indicates that inconsistent CSR strategies with larger external than internal efforts increase employees’ turnover intentions via perceived corporate hypocrisy and emotional exhaustion. In Study 2, a multi-source secondary dataset demonstrates that inconsistent CSR strategies increase firms’ actual employee turnover. Combined, the two studies demonstrate the importance of taking into account the interests of both external and internal stakeholders of the firm when researching and managing CSR. (shrink)

In this article, we demonstrate that individuals use motivated reasoning to convince themselves that their self-serving behavior is justified, which in turn affects the distribution of resources in business situations. Specifically, we explore how ambiguous contextual cues and individual beliefs can jointly form motivated reasoning. Across two experimental studies, we find that whereas individual ideologies that endorse status hierarchies can strengthen the relationship between contextual ambiguity and motivated reasoning, individual beliefs rooted in fairness and equality can weaken it. Our findings (...) contribute to person–situation theories of business ethics and provide evidence that two ubiquitous factors in business organizations—contextual ambiguity and social dominance orientation—give rise to motivated reasoning, enabling decision makers to engage in self-serving distributions of resources. (shrink)