Perceived integrity of managers affects employee attitudes. Yet its impact on employee behavior and organizational performance is unknown. Addressing this gap, we examine the effect of perceived integrity in leadership on both subjective firm performance and objective employee productivity. Applying dynamic capabilities theory, we propose that perceived integrity in leadership may not only directly affect the outcome variables but also moderate the effect of the firm’s multiple-strategy implementation on outcome variables. We test the hypotheses using multiple informants from a transitional (...) economy with an ineffective legal and incomplete institutional environment, which could seriously challenge the leader’s commitment to integrity. As hypothesized, perceived integrity is associated with manager’s perception of firm performance directly and objective employee productivity through its moderating role in the firm’s implementation process of dual strategies. The results illustrate that perceived integrity in leadership plays as an important driver for employee productivity in dual-strategy and non-strategy firms. We provide detailed discussions about the integrity challenge and call for additional future research on this topic. (shrink)

The study's goal was to examine the socially responsible power use in the context of ethical leadership as an explanatory mechanism of the ethical leadership-follower outcomes link. Drawing on the attachment theory (Bowlby, 1969/1982 ), we explored a power-based process model, which assumes that a leader's personal power is an intervening variable in the relationship between ethical leadership and follower outcomes, while incorporating the moderating role of followers' moral identity in this transformation process. The results of a two-wave field study (...) ( N = 235) that surveyed employees and a scenario experiment ( N = 169) fully supported the proposed (moderated) mediation models, as personal power mediated the positive relationship between ethical leadership and a broad range of tested follower outcomes (i.e., leader effectiveness, follower extra effort, organizational commitment, job satisfaction, and work engagement), as well as the interactive effects of ethical leadership and follower moral identity on these follower outcomes. Theoretical and practical implications are discussed. (shrink)

Background: Leadership style adopted by nursing managers is a key element in progress and development of nursing and quality of healthcare services received by the patients. In this regard, the role of ethical leadership is of utmost importance. Objectives: The objective of the study was to elaborate on the ethical leadership and its role in professional progress and growth of nurses in the light of work condition in health providing institutes. Methods: The study was carried out as a qualitative study (...) following conventional content analysis method. In total, 14 nursing faculty members and nursing managers at different levels were selected through purposive sampling method. Semi-structured interviews were used for data gathering. The data were analyzed using latent content analysis and constant comparison analysis. Ethical considerations: This study was conducted in accordance with ethical issues in research with human participants and national rules and regulations related to informed consent and confidentiality. The study was approved by the Committee of Ethics in Research at the Shahid Beheshti University of Medical Sciences in Tehran, Iran, under the code: sbmu.rec.1393.695 on 15 February 2015. Findings: Five subcategories were obtained based on the analysis, which constituted two main categories including “all-inclusive satisfaction” and “productivity.” Nursing leaders highlighted the point that their ethical behavior creates “inner satisfaction of the leader,” “employees’ job satisfaction,” and “patients’ satisfaction.” Improvement of productivity was another outcome of ethical behavior of the leaders. This kind of behavior resulted in “providing better services” and “inspiring ethical behavior in the employees.” It has great influence on progress and growth of the nursing profession. Conclusion: By creating an ethical climate, ethical leadership leads to positive and effective outcomes—for the patients as well as for the nurses and the leaders—and professional progress and development of the nursing profession. Therefore, an ethical work environment that supports nurses’ progress and development can be developed by paying more attention to moralities in recruitment, teaching ethical values to the leaders, and using a systematic and objective approach to assess morality in the environment. (shrink)

It is widely accepted that ethical leadership is beneficial for the organization, the leader, and followers. Yet, little has been said about potential limitations of ethical leadership, particularly boundary conditions involving the same person perceived to display ethical leadership. Drawing on conservation of resources theory, we argue that supervisor-induced hindrance stress and job hindrance stress are factors linked to the supervisor and work environment that may limit the positive impact of ethical leadership on employee deviance and turnover intentions. Specifically, we (...) expect that high levels of hindrance stress drain resources, specifically perceptions of social support, by inhibiting the completion of work, particularly in combination with the high expectations of ethical leaders. We test our model across two time-lagged field studies. Our results demonstrate that supervisor-induced hindrance stress mitigates some of the beneficial impact of ethical leadership and that job hindrance stress further strains these relationships. Overall, our results suggest that both forms of hindrance stress jointly impact the effectiveness of ethical leadership on important outcomes, and do so partly because of their influence on perceived social support. We discuss theoretical contributions to the ethical leadership and stress bodies of literature, as well as practical implications for managers and organizations wishing to develop ethical leaders. (shrink)

Over the past decade, ethical leadership has increasingly become one of the most popular topics in the areas of leadership and business ethics. As a result, there now exists a substantial body of empirical research addressing ethical leadership issues, but the findings reported by this body of research are highly fragmented. The topic has advanced to the stage where a review and synthesis of existing literature can provide great value and help move the scholarly conversation forward. The primary purposes of (...) this article are to review empirical findings from the ethical leadership literature utilizing a framework consisting of the antecedents, mediators, moderators and outcomes of ethical leadership, and suggest a set of interesting research opportunities, thereby facilitating future investigation. We base our synthesis on a review of 62 empirical studies on ethical leadership that were published between 2005 and mid-2015. (shrink)

In this article, we explore the implications of opposing domains theory for developing ethical leaders. Opposing domains theory highlights a neurological tension between analytic reasoning and socioemotional reasoning. Specifically, when we engage in analytic reasoning, we suppress our ability to engage in socioemotional reasoning and vice versa. In this article, we bring together the domains of neuroscience, psychology, and ethics, to inform our theorizing around ethical leadership. We propose that a key issue for ethical leadership is achieving a healthy balance (...) between analytic reasoning and socioemotional reasoning. We argue that organizational culture often encourages too heavy a reliance on nonemotional forms of reasoning to arrive at moral judgments. As a result, leaders run the risk of suppressing their ability to pay attention to the human side of moral dilemmas and, in doing so, dehumanize colleagues, particularly subordinates, and clients. (shrink)

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)

This study empirically investigated the impact of ethical leadership on employee burnout, deviant behavior and task performance through two psychological mechanisms: developing higher levels of employee trust in leaders and demonstrating lower levels of surface acting toward their leaders. Our theoretical model was tested using data collected from employees of a pharmaceutical retail chain company. Analyses of multisource time-lagged data from 45 team leaders and 247 employees showed that employees’ trust in leaders and surface acting significantly mediated the relationships between (...) ethical leadership and employee burnout, deviant behavior and task performance. We discuss the theoretical and practical implications of our findings for understanding how ethical leaders influence employees’ attitudes and behavior. (shrink)

This study empirically examined the propositions that ethical leadership is related to employees’ organizational citizenship behavior through two psychological mechanisms: a social learning mechanism, where employees emulate their supervisor’s behavior such as caring about their organization; and a social exchange mechanism that links ethical leadership to perceived procedural justice and employee’s organizational concern. Our theoretical model was tested using data collected from employees in a pharmaceutical retail chain company. Analyses of multisource time-lagged data from 93 team supervisors and 486 employees (...) showed that supervisors’ and employees’ organizational concern sequentially mediated the relationship between ethical leadership and employee OCB. It was also found that the link between ethical leadership and employee OCB was sequentially mediated by perceived procedural justice and employee’s organizational concern. Theoretical and practical implications of these findings are discussed. (shrink)

A growing body of research suggests that follower perceptions of ethical leadership are associated with beneficial follower outcomes. However, some empirical researchers have found contradictory results. In this study, we use social learning and social exchange theories to test the relationship between ethical leadership and follower work outcomes. Our results suggest that ethical leadership is related positively to numerous follower outcomes such as perceptions of leader interactional fairness and follower ethical behavior. Furthermore, we explore how ethical leadership relates to and (...) is different from other leadership styles such as transformational and transactional leadership. Results suggest that ethical leadership is positively associated with transformational leadership and the contingent reward dimension of transactional leadership. With respect to the moderators, our results show mixed evidence for publication bias. Finally, geographical locations of study samples moderated some of the relationships between ethical leadership and follower outcomes, and employee samples from public sector organizations showed stronger mean corrected correlations for ethical leadership–follower outcome relationships. (shrink)

Focusing on the supervisor–trainee relationship, this research set out to examine the impact of ethical leadership on two indicators of work-related well-being: work engagement and emotional exhaustion. Furthermore, this study sought to examine the mediating role of trust in supervisor in these relationships. Survey data were collected at two different points in time from 216 trainee accountants drawn from a variety of organisations. Structural equation modelling was used to test the research hypotheses. Results showed that, as hypothesised, trust in supervisor (...) fully mediated the effects of ethical leadership on work engagement and emotional exhaustion, respectively. The theoretical and practical implications of this research are discussed. (shrink)

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical (...) behavior. The theoretical and practical implications of the research findings are discussed. (shrink)

Society is increasing its demands for more ethical behaviour by managers of organizations. However, societal and workplace ethical attitudes are constantly evolving as generational differences and demographic diversity make the workplace more complex. While a number of studies have attempted to classify ethical attitudes into different categories, more work in this area is needed. This paper reports on a study that examined attitudes towards the acceptability of workplace behaviour that might be considered unethical. Graduate business students at an Australian university (...) were asked to indicate the ethicality of 17 different behaviours, drawn from the business ethics literature. Exploratory factor analysis identified distinct factors, consisting of misuse of company resources, self-serving deceit, and the giving or receiving favours for personal gain. The derived factor structure was then tested with confirmatory factor analysis. Descriptive statistics indicated that misuse was considered less unethical than exchanging favours for personal gain. Deceit was considered the most unethical type of behaviour. Implications for managers and directions for further research are discussed. (shrink)

In light of continuing corporate scandals, the study of ethical leadership remains an important area of research which helps to understand the antecedents and consequences of ethical behavior in organizations. The present study investigates how social distance influences ethical leadership evaluations, and how in turn ethical leadership evaluations affect leader-member exchange (LMX) after a leader's moral transgression. Based on construal level theory, we propose that higher social distance will lead to more severe evaluations of immoral behavior and therefore entail lower (...) ethical leadership ratings. Moreover, we hypothesize that ethical leadership will positively affect LMX. Participants read a scenario describing a moral situation in which a leader, who was presented in either high or low social distance, behaves unethically toward an employee. We tested our predictions using a structural equation modeling approach. As expected, participants in the high social distance condition judged leaders more harshly (i. e., they gave lower ethical leadership ratings) than in the low social distance condition. Thus, social distance moderated the extent to which leaders are perceived as ethical leaders after moral transgression. Moreover, in accordance with our proposition, ethical leadership ratings had a positive influence on LMX. (shrink)

This study investigates how business leaders dynamically narrate their aspirational ethical leadership identities. In doing so, it furthers understanding of ethical leadership as a process situated in time and place. The analysis focuses on the discursive strategies used to narrate identity and ethics by ethnic Chinese business leaders in Indonesia after their conversion to Pentecostal–charismatic Christianity. By exploring the use of metaphor, our study shows how these business leaders discursively deconstruct their ‘old’ identities and construct their ‘new’ aspirational identities as (...) ethical leaders. This leads to the following contributions. First, we show that ethical leadership is constructed in identity talk as the business leaders actively narrate aspirational identities. Second, the identity narratives of the business leaders suggest that ethical leadership is a context-bound and situated claim vis-à-vis unethical practice. Third, we propose a conceptual template, identifying processes of realisation and inspiration followed by significant shifts in understanding, for the study of aspirational ethical leadership. (shrink)

Purpose – With the growing demand for ethical standards in the prevailing business environment, ethical leadership has been under increasingly more focus. Based on the social exchange theory and social learning theory, this study scrutinized the impact of ethical leadership on the presentation of ethical conduct by employees through the ethical climate. Notably, this study scrutinized the moderating function of the person organization fit (P-O fit) in relation to ethical climate and the ethical conduct of employees. -/- Design/methodology/approach – To (...) evaluate the research hypotheses, two-wave data were collected from 295 individuals who are currently employed in various Iraqi organizations (i.e. manufacturing, medical, and insurance industries). -/- Findings – In line with the hypotheses, the outcomes from a sample of 295 workers working in different Iraqi entities exhibited a positive relationship between the ethical behavior of leaders and the ethical conduct of employees in the ethical climate. Moreover, it was observed that the P-O fit of employees moderated the relationship between ethical climate and the ethical conduct of employees such that the relationship was more robust for those with a high P-O fit in comparison to those with a low P-O fit. -/- Research limitations/implications – The primary limitation of this study is in the data, which was obtained from a single source. Although the study conducted two surveys and utilized a mediation and moderation variables model that was less likely to be influenced by common method bias (CMB) (Podsakoff et al., 2012), one cannot completely rule out CMB. Apart from the potential effects of the CMB, the consistency of the empirical findings could have also been compromised since self-reported data were utilized in measuring ethical behavior, which can be a very complex and sensitive issue. For this reason, the social desirability response bias cannot be ruled out completely. When possible, future studies must gather data from multiple sources. Furthermore, supervisors must evaluate the ethical behavior of employees. Another limitation was that the findings of this study were based on a sample in a Middle Eastern cultural context such as in Iraq. Perhaps, the particular cultural features of this context, which encompassed, among other things, strong adherence to religious values (Moaddel, 2010), could have influenced the findings of this study. It is true that the effects of differences (P–O fit) are highly likely to replicate across cultural contexts (Triandis et al., 1988). However, it can be seen that further studies are needed to evaluate the context-sensitivity of these findings (Whetten, 2009) by analyzing other cultures, where the importance of religiosity is on the decline (i.e. in Western countries, Ribberink et al., 2018) or where the cultural features are very much different from those that apply to Iraq. Lastly, other external factors were not taken into account by this study as it tried to explain ethical behavior. Ethics is a highly complex subject and is influenced by numerous variables at the organizational, individual, and external environment levels. Thus, caution must be observed when making inferences from the present study which, to a certain degree, offered a simplified version of ethical behavior by concentrating on a few variables such as the Arab culture’s traditional ideology, which dominates even science (Abu Khalil, 1992). In addition, there are political conflicts in the Middle Eastern cultural context such as what is happening in Iraq (Harff, 2018). Thus, it is important to include such aspects in future researches. -/- Practical implications – In terms of management, the findings send a clear signal to those in the upper echelon that, without ignoring the issue of ethics in organizations, employees are a critical aspect to be taken into account to encourage ethical behavior at the workplace. This study has important practical implications. First, this study determined that ethical leadership (here, of the supervisors) positively influences the behavior of subordinates (refers to the supervisors here); this, in turn, further improves the ethical behavior of employees. It is vital that managers or supervisors are motivated to practice ethical leadership because they directly influence the employees. It has been suggested that top managers, especially chief executive officers, have the ability to shape the ethical climate, which also influences the ethical behavior of employees further. This study offered several feasible ways that managers can apply to achieve that. In particular, top managers may utilize the ethical climate as a way of communicating the ethical values that they have to their subordinates, thereby serving as a motivation for the subordinates to adopt ethical behavior. It was also suggested by this study that ethical climate and the P–O fit may, to some degree, substitute each other as they influence the ethical behavior of employees. Therefore, firms that were identified to have a low level of ethical standards, practices, and policies, at least from the employees’ perspective, are better poised to conduct ethical issues in order to construct the ethical behavior of their subordinates. More importantly, it is highly essential that the value congruence between an organization and its followers be considered. -/- Social implications – This study highlighted the notion of ethics and how it’s essential for society. Ethics refers to the norms, standards, and values that direct the behavior of an individual. Ethical behavior is vital in society because we need to be treated with respect as human beings. -/- Originality/value – This study responds to recent calls for more research to identify factors that may strengthen or mitigate the influence of ethical behavior in the workplace such as ethical leadership, ethical climate, and Person–Organization. (shrink)

Little is known about how ethical organizational contexts influence employees’ perceived stress levels and well-being. This study used two theoretical lenses, ethical impact theory (Promislo et al. in Handbook of Unethical Work Behavior, M.E. Sharpe, Armonk, 2013) and ethical decision-making theory (Schwartz in J Bus Ethics 139(4): 755–776, 2016), to investigate the relationships among perceived organizational ethics (comprised of ethical climate, leader/manager ethics, and corporate social responsibility), work-related stress, and employee well-being (comprised of vitality, life satisfaction, personal growth initiative, flourishing, (...) positive mental health, and self-actualization). Findings across two studies indicated that organizational ethics was negatively related to work-related stress, and that work-related stress was negatively related to employee well-being. Perceived organizational ethics is positively related to employee well-being, with post hoc mediation tests indicating that work-related stress partially mediates this relationship. Our findings suggest that organizations should be proactive in improving their ethical climate, such as choosing ethical leaders, developing a robust and well-communicated code of ethics, and actively practicing CSR. These measures should reduce excessive work-related stress and improve employee well-being. (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)

The popular press is often fraught with high-profile illustrations of leader unethical conduct within corporations. Leader unethical conduct is undesirable for many reasons, but in terms of managing subordinates, it is particularly problematic because leaders directly influence the ethics of their followers. Yet, we know relatively little about why leaders fail to apply ethical leadership practices. We argue that some leaders cognitively remove the personal sanctions associated with misconduct, which provides them with the “freedom” to ignore ethical shortcomings. Drawing on (...) moral disengagement theory, we examine the relationship between supervisor moral disengagement and employee perceptions of ethical leadership. We then examine the moderating role of employee moral disengagement, such that the negative relationship between supervisor moral disengagement and employee perceptions of ethical leadership is stronger when employee moral disengagement is low versus high. Finally, we examine ethical leadership as a conditional mediator that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior. Results from a multi-source field survey provide general support for our theoretical model. (shrink)

In this study, we examine the nature of the relationship between ethical leadership and unethical pro-organizational behavior (UPB), defined as unethical behavior conducted by employees with the aim of benefiting their organization, and whether the strength of the relationship differs between subordinates experiencing high and low identification with supervisor. Based on three-wave survey data obtained from 239 public sector employees in China, we find that ethical leadership has an inverted u-shaped (curvilinear) relationship with UPB. As the level of ethical leadership (...) increases from low to moderate, UPB increases; as the level of ethical leadership increases from moderate to high, UPB decreases. Further, we find that the strength of this inverted u-curve relationship differs between subordinates with high and low identification with supervisor. That is to say, the inverted u-shaped relationship between ethical leadership and UPB was stronger when subordinates experienced high levels of identification with supervisor. The theoretical and managerial implications of our findings for understanding how to manage UPB in an organizational context are discussed. (shrink)

We build on limited research concerning the mediation processes associated with the relationship between ethical culture and employee outcomes. A multidimensional measure of ethical culture was examined for its relationship to overall Person-Organization (P–O) fit and employee response, using a sample of 436 employees from social economy and commercial banks in Spain. In line with previous research involving unidimensional measures, ethical culture was found to relate positively to employee job satisfaction, affective commitment, and intention to stay. New to the literature, (...) ethical culture was also found to be associated positively with employee willingness to recommend the organization to others. These effects were observed even when perceptions of P–O fit were controlled. Importantly, ethical culture was also positively related to overall P–O fit, which in turn, partially mediated the relationship between ethical culture and employee outcomes. Our findings add to studies that focus on the importance of the degree of ethical congruence between the individual employee and the organization. They suggest that ethical culture, with its expected impact on virtuousness and emotional well-being, will positively influence outcomes independently of the degree to which there is a match between employee and organizational values. (shrink)

Based on social exchange and customer relationship marketing theory, this study examines how ethical leadership contributes to inter-organizational conflict management (task conflict (TC) and relationship conflict), and the moderating role of task interdependence in these relationships. Data was collected from 81 suppliers and 45 corresponding managers of a large group company in China. Results show that ethical leadership is negatively associated with the levels of inter-organizational conflict, whether task or relationship. Task interdependence significantly moderates the relationship between ethical leadership and (...) TC. Managerial implication in terms of creating sound buyer–supplier relationship through an ethical perspective is discussed. (shrink)

Although servant leadership may be equipped to provide a leadership model that addresses the issues of the modern workforce, little literature is available regarding the relationship between servant leadership and employee brand-based equity. This study contends to address this gap for which data have been collected from the service industry under a cross-sectional research design by distributing 410 questionnaires among the participants, out of which 337 were received back. After discarding the partially filled and incomplete responses, the useable responses were (...) 314. Data were analyzed via the Smart PLS approach by applying the structural equation modeling technique. Results indicate that servant leadership directly increased the employee-based brand equity by the mediating role of interpersonal trust. However, this study has not established the moderating role of an ethical work climate. (shrink)

The aim of this article is to undertake a systematic literature review (SLR) of empirical research that uses multi‐source methods for collecting data about Ethical Leadership (EL). Research on this sensitive subject benefits from the inclusion of data from more than one source, in order to be better supported, and thus contribute to a deeper understanding of leadership and business ethics issues. The search strategy retrieved a total of 50 multi‐source empirical studies on the topic of EL, published until December (...) 2017. This SLR shows that (a) research on EL has focused mostly on the perceptions of followers, possibly because they are the most accessible target of its outcomes, thus restricting the scope of this body of research; (b) EL is studied mainly through consideration of its consequences, a restriction that hinders explanation of the causal processes involved in ethical leadership, which remains a research arena in need of development. The systematic inclusion of other stakeholders in multi‐source methods is advanced as a way to further develop the field. (shrink)

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility, empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the interaction (...) between ethical leadership and CSR and, in addition, investigates organic organizational cultures as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior. (shrink)

With the increasing demand for ethical standards in the current business environment, ethical leadership has received particular attention. Drawing on self-verification theory and social exchange theory, this study investigated the effect of leaders’ core self-evaluation on the display of ethical leadership and the moderating role of employees’ exchange ideology in the relationship between ethical leadership and employees’ job performance. Consistent with the hypotheses, the results from a sample of 225 dyads of employees and their immediate leaders showed a positive relationship (...) between leaders’ core self-evaluation and ethical leadership. Moreover, the results showed that ethical leadership mediates the effects of leaders’ core self-evaluation on employees’ job performance. Furthermore, we found that employees’ exchange ideology moderates the relationship between ethical leadership and job performance. The theoretical and practical implications of these findings are discussed. (shrink)

In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 (...) CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs' self-rated ethical leadership was positively associated with employees' aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein. (shrink)

Ethical leadership has become a thriving research field. However, on reviewing previous research, we argue that several fundamental questions remain unclear and need further investigation. Ethical leaders are defined as behaving ‘normatively appropriate[ly]’ :117–134, 2005), but it remains unclear what this entails. What specific behaviours does an ethical leader show? To date, ethical leadership has focused primarily on leader behaviour towards employees. Which stakeholders apart from employees are important to the ethical leader, and what kind of ethical behaviour does the (...) ethical leader show towards them? What are further antecedents and consequences of ethical leadership? We addressed these questions by qualitatively analysing interviews with 17, mostly Swiss, executive ethical leaders. The results indicate that executive ethical leaders care not only about employees but also about other stakeholders, such as customers, suppliers, owners of companies, the natural environment and society. Additionally, this study identified a broad range of executive ethical leaders’ behaviours towards these stakeholders, and, therefore, may function as a useful resource for future quantitative studies. Furthermore, we identified several antecedents of executive ethical leadership, for example ethical role models, business strategy and owner’s values, and consequences such as effects on other stakeholders than employees. Finally, our results shed more light on the processes of ethical guidance of employees. Managerial implications and avenues for further research are discussed. (shrink)

This paper posits that ethical leadership increases important organizational and individual outcomes by reducing politics in the workplace. Specifically, we propose that perceptions of organizational politics serve as a mechanism through which ethical leadership affects outcomes. We further argue that the modeled relationships are moderated by political skill. By means of data from 136 matched pairs of supervisors and subordinates employed by a state agency in the southern US, we found support for our predictions. Specifically, we found that perceptions of (...) organizational politics fully mediated the relationship between perceptions of ethical leadership and helping and promotability ratings. In addition, political skill was found to moderate the direct and indirect effects. (shrink)

We propose a three-way interaction model based on substitutes for leadership theory to explore the relationship among ethical leadership, moral personality, and moral ideology on two types of employee voluntary behaviors. Results from a sample of 218 supervisor–subordinate dyads indicate that moral personality attenuates the relationship between ethical leadership and employee voluntary behaviors. Idealism serves as the boundary condition for the moderating effect of moral personality. However, relativism only serves as the boundary condition for the moderating effect of moral personality (...) when predicting workplace deviant behavior. (shrink)

In this paper, we investigate the trust-based mechanisms underlying the relationship between ethical leadership and followers’ organisational citizenship behaviours (OCBs). Based on three-wave survey data obtained from 184 employees and their supervisors, we find that ethical leadership leads to higher levels of both affective and cognitive trust. In addition, we find support for a three-path mediational model, where cognitive trust and affective trust, in turn, mediate the relationship between ethical leadership and follower OCBs. That is to say, we found that (...) ethical leadership leads to the development of cognitive trust, which subsequently influences the development of affective trust. Affective trust, in turn, induces followers to exhibit OCBs as a means of reciprocating the leader’s favourable behaviour. Our findings suggest that both affective and cognitive trust plays an important role in the social exchange processes that underlie the relationship between ethical leadership and the discretionary behaviour of followers. (shrink)

Business ethics and leadership play an increasingly important role for contemporary organizations as employers and employees search for new ways to cope with ongoing changes in organizational environments. Research attention to date has focused upon how to improve process and structural configurations, while there has been scant attention devoted to an examination of the ethical and leadership perspective. This article breaks new ground by exploring the applicability of the Rule of St. Benedict (RSB) to modern employment relationships. A significant proportion (...) of the RSB is directly relevant for today's leaders, as it contains crucial lessons dealing with leadership issues such as ethics, cultivating a consultative climate, encouraging the virtues of humility, obedience ("servant" leadership), justice, discretion, prudence, discernment, and personnel-related issues such as discipline and termination. (shrink)

Background: Nursing errors endanger patient safety, and error reporting helps identify errors and system vulnerabilities. Nursing managers play a key role in preventing nursing errors by using leadership skills. One of the leadership approaches is ethical leadership. Aim: This study determined the level of ethical leadership from the nurses’ perspective and its effect on nursing error and error reporting in teaching hospitals affiliated to Shahid Sadoughi University of Medical Sciences, Yazd, Iran. Research design: This was a cross-sectional descriptive study. Participants (...) and research context: A total of 171 nurses working in medical-surgical wards were selected through random sampling. Data collection was carried out using “ethical leadership in nursing, nursing errors and error reporting” questionnaires. Data were analyzed with SPSS20 using descriptive and analytical statistics. Ethical considerations: This study was approved by the Ethics Committee for Medical Research. Ethical considerations such as completing informed consent form, ensuring confidentiality of information, explaining research objectives, and voluntary participation were observed in the present study. Findings: The results showed that the level of nursing managers’ ethical leadership was moderate from the nurses’ point of view. The highest and the lowest levels were related to the power-sharing and task-oriented dimensions, respectively. There was a significant relationship between nursing managers’ level of ethical leadership with error rates and error reporting. Conclusion: The development of ethical leadership approach in nursing managers reduces error rate and increases error reporting. Programs designed to promote such approach in nursing managers at all levels can help reduce the level of error rate and maintain patient safety. (shrink)

We investigated how employees’ perceptions of ethical leadership affects different facets of work behavior. We also explored the effects of psychological ownership on this relationship. Data were collected from 456 workers from various industries in Taiwan over three time periods. Ethical leadership positively related to both psychological ownership of the job and organization. Specifically, we found that psychological ownership of the job positively predicted contextual performance and was negatively associated with counterproductive work behavior. Additionally we found psychological ownership for the (...) organization to be negatively associated with counterproductive work behavior for the organization. (shrink)

Since time immemorial, the phenomenon of leadership and its understanding has attracted the attention of the business world because of its important role in human groups. Nevertheless, for years efforts to understand this concept have only been centred on people in leadership roles, thus overlooking an important aspect in its understanding: the necessary moral dimension which is implicit in the relationship between leader and follower. As an illustrative example of the importance of considering good morality in leadership, an empirical study (...) is conducted in which a good performance of the "leader-follower" relationship is reflected when individuals perceive ethical leadership in higher hierarchical managerial levels. To be precise, findings of this study demonstrate that follower job response is improved through an ethics trickle-down partial effect from the Top Manager to the immediate supervisor, and also reveal both key aspects and managerial level on which the practice of ethical leadership should rest upon to have a stronger effect on the follower positive job response. Practical implications of these findings and directions for future research are finally presented. (shrink)

Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote an organizational ethical (...) culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership. (shrink)

Drawing from research on ethical leadership, psychological capital, and social learning theory, this study investigated the mediating effects of goal congruence and psychological capital in the link between supervisors’ ethical leadership style and followers’ in-role job performance. Data captured from 171 employees and 24 supervisors showed that ethical leadership has a positive effect on followers’ in-role job performance, yet this effect is explained through the role of psychological capital and follower–leader goal congruence, providing evidence of mediation. These findings have significant (...) implications for research and practice. (shrink)

Ethics has recently gained prominence in debates surrounding social capital creation. Despite the significant theoretical progress in this field, it still lacks empirical research. The goal of this study is to empirically explore the ethical leadership of supervisors as an antecedent of the firm’s social capital. We build on social learning theory to argue that employees can learn standards of appropriate behavior by observing the behavior of role models. By displaying and enforcing ethical behavior, supervisors can facilitate the process through (...) which employees learn to feel empathy toward others and establish profound affective relationships with them. Data were collected from 408 Spanish, French, and Portuguese part-time MBA students. Using structural equation modeling techniques, we show that the ethical leadership of supervisors exerts a significant influence on the structural, relational, and cognitive dimensions of social capital. (shrink)

A two stage model was developed and tested to explain how ethical leadership relates to followers’ ethical judgment in an organizational context. Drawing on social learning theory, ethical leadership was hypothesized to promote followers’ self-leadership focused on ethics. It was found that followers’ perceived accountability fully accounts for this relationship. In stage two, the relationship between self-leadership focused on ethics and moral judgment in a dual decision-making system was described and tested. Self-leadership focused on ethics was only related to moral (...) judgment when followers use active judgment as opposed to their intuition. This provides support that a deliberate application of self-leadership focused on ethics leads to higher moral judgment. Theoretical and practical implications as well as future research opportunities are discussed. (shrink)

The value of a company’s ethical reputation has become a focal point for management researchers. We seek to join this conversation and extend the research centered on a firm’s ethical reputation. We accomplish this by shifting our focus away from its impact on external stakeholders to its impact on internal stakeholders. To this end, we rely on signaling theory to explain why a firm’s ethical reputation matters to its employees in an effort to bridge the macro–micro research gap. Across two (...) studies, we propose and demonstrate that a firm’s ethical reputation impacts employee subjective career success in form of career opportunities and work–life balance. Given our signaling theory framework, we also identify and explain when two industry-level characteristics operate as boundary conditions that distort a firm’s ethical reputation signaling properties. Specifically, the results demonstrate that a firm’s ethical reputation is positively related to employees’ perceptions of career opportunities and work–life balance. The results of our studies also demonstrate that the relatively high levels of industry competition and industry regulation weaken the positive impact of a firm’s ethical reputation on career opportunities and work–life balance. Theoretical and practical implications are discussed. (shrink)

This study extends earlier findings on ethical leadership by testing the relationship of the seven dimensions of ethical leadership with job satisfaction, organization commitment, job embeddedness, and cynicism. It uses time-lagged data from 585 employees in Pakistan. Using confirmatory factor analysis and structural equation modeling, the study supports the concept of multidimensional ethical leadership in the Eastern setting and indicates that the dimensions of people orientation, fairness, power sharing, ethical guidance, and role clarification are associated with the majority of outcomes, (...) as suggested by social exchange theory. However, the concern for sustainability and integrity dimensions had a limited effect. (shrink)

Workplace incivility is experienced ubiquitously by immigrants. While a growing body of literature has sought to identify the causes and the outcomes of this phenomenon, what remains largely underexplored is the role of legal status in configuring how workplace incivility manifests in the immigrant experience. To advance the extant literature, in this article we investigate the question: How does legal status inform the ways in which immigrants exercise agency in response to workplace incivility? In addressing this question, we draw on (...) the methodological resources provided by duoethnography and develop vignettes to make visible the dynamics with workplace incivility that we have individually encountered in the academic organizations in which we have been located—based in the UK and Canada. In juxtaposing the vignettes against one another, we are offered a glimpse into how legal status shapes the forms and the depth of agency available to immigrants to respond to incidents of workplace incivility. In light of our findings, we problematize the nexus between an immigrant’s agency and workplace incivility as well as consider the implications this nexus has to ongoing debates in business ethics. (shrink)

Recent studies have documented the relationship of leadership behavior with employee performance and workplace behaviors. Yet, little attention has been directed at the impact of leadership behavior on the aspects of workplace behaviors such as value congruence and relationship conflict. The goal of this study is to examine the influence of leader-member exchange (LMX) regarding the outcomes of relationship conflict, organizational commitment, and citizenship behavior among employees with value congruence as a moderator. Data was collected using an online questionnaire with (...) a total of 429 valid responses. The results of our study showed that relationship conflict had a mediating effect between LMX and organizational commitment. Employees working with supportive supervisors had relatively good relationships with coworkers as well. The research results of this study offer significant findings for the meaning of leadership behavior in the Chinese culture. Discussion focusing on the influence of collectivism culture and the forces in reshaping Taiwan’s culture is also included. (shrink)

Significant research attention has been devoted to understanding the ethical behavior of leaders (i.e., the moral person) and how leaders’ expectations influence their followers’ ethical behavior (...

Business ethics has been emphasized throughout the past decade and organizations are aware of the influence it has on the organization’s performance. As a result, ethical leadership is important as it influences the employees profoundly. This study aims to address this issue and explore the influence ethical leadership has on employees by examining job satisfaction, subjective well-being at work, and life satisfaction. Two groups of independent data were collected and a multi-group analysis was conducted before pooling together for a two-step (...) structural equation modeling test. The results revealed that ethical leadership has a negative direct effect on employee well-being which offers significant findings for the meaning of ethical leadership in the Chinese culture. Useful managerial implications are provided for managers and supervisors at the end of this study. (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 research expands what is currently known in the organizational sciences about the causes, consequences and unique role of ethical leadership in the workplace. In two different studies and two independent samples of approximately 1,500 workers each in field settings, ethical leadership was positioned as an antecedent, mediator and outcome of variables of pragmatic importance to the workplace. Ethical leadership was the central concept modelled across both studies. Social cognitive theory, social identity theory and leadership categorization theory were used to (...) support a model of how follower rank influences workplace outcomes through the mediating effect of ethical leadership. In addressing the ethical imperative of the employment relationship, these studies contribute to ethical leadership research in two ways. First, findings indicated that a follower’s rank was positively associated with perceptions of ethical leadership, and second, that ethical leadership functioned as a partial mediator between rank/status and desirable workplace outcomes such as organizational fairness climate, career satisfaction and follower affective commitment. Implications for theory and practice are discussed. (shrink)