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)

Thus far, we know much more about the significant outcomes of perceived ethical leadership than we do about its antecedents. In this study, we focus on multiple types of ethical role models as antecedents of perceived ethical leadership. According to social learning theory, role models facilitate the acquisition of moral and other types of behavior. Yet, we do not know whether having had ethical role models influences follower perceptions of one’s ethical leadership and, if so, what kinds of role models (...) are important. We conducted a field study, surveying supervisors and their subordinates to examine the relationship between three types of ethical role models and ethical leadership: the leader’s childhood role models, career mentors, and top managers. We found that having had an ethical role model during the leader’s career was positively related to subordinate-rated ethical leadership. As expected, this effect was moderated by leader age, such that the relationship between career mentoring and ethical leadership was stronger for older leaders. Leader age also moderated the relationship between childhood models and ethical leadership ratings, such that having had childhood ethical role models was more strongly and positively related to ethical leadership for younger leaders. We found no effect for top management ethical role models. Implications for research and practice are discussed. (shrink)

The paper describes and discusses unethical behavior in organizations, as a result of (interacting) disputable leadership and ethical climate. This paper presents and analyzes the well-known bond trading scandal at Salomon Brother to demonstrate the development of an unethical organizational culture under the leadership of John Gutfreund. The paper argues that leaders shape and reinforce an ethical or unethical organizational climate by what they pay attention to, how they react to crises, how they behave, how they allocate rewards, and how (...) they hire and fire individuals. (shrink)

Previous research indicates that the depletion of self-regulatory resources can promote unethical behavior that benefits the self. Extending this literature, we focus on norm-transgressing behavior that is intended to primarily benefit others. In particular, we predicted a differing effect of self-regulatory resource depletion on dishonesty that benefits one’s group, depending on the degree of identification with the group. Following a dual process approach, we argue that if identification with the group is strong, then people may have an automatic inclination to (...) benefit their group even perhaps by lying. In contrast, if identification with the group is weak, then the default, uncontrolled impulse may be to tell the truth. Accordingly, identification with the social group should interact with self-regulatory resource depletion in predicting group-benefiting dishonesty. Focusing on pro-organizational dishonesty, we tested our hypotheses in one field study with 1269 employees and in one experimental study with 71 university students. As predicted, the results revealed a highly significant interaction of organizational identification and self-control strength: Depletion of self-regulatory resources increased the level of pro-organizational dishonesty among those who identify highly with the organization, but decreased the level of such behavior among those who identify less. (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)

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)

Ethics is central to leadership because of the impact leaders have on establishing organizational values and engaging followers to accomplish mutual goals. The ethical concerns of leaders may influence ethical decision-making of their followers. This paper attempts to investigate the relationship between leaders and followers on moral judgment, and make a comparison between China and Taiwan on the leader–follower moral judgment relationship. Data were collected through a questionnaire survey on purchasing professionals in China and Taiwan. The development of moral judgment (...) was measured using the defining issues test. Research findings indicate that followers exhibit higher level of moral judgment while their leaders have higher level of moral judgment. A positive moral judgment relationship exists between leaders and followers. The comparative study between China and Taiwan reveals that Chinese purchasing professionals are more easily influenced by their workplace leaders than their Taiwanese counterparts. Power distance would strengthen the leader–follower moral judgment relationship. The present research makes contributions toward the ethics literature by providing empirical insight into the relationship between leader moral judgment and follower moral judgment. This paper also suggests implications and opportunities for future research. (shrink)

This study analyzes the relationship between CEO values, leadership style and ethical practices in organizations. The ethical practices of formal statement of ethics and diversity training are included in the study, as well as four categories of values based on Rokeach's (1973) typology including personal, social, competency-based and morality-based. Results indicate that all four types of values are positively and significantly related to transformational leadership, with transactional leadership positively related to morality-based and personal values, and laissez-faire leadership negatively related to (...) competency-based values. When size of company and values are controlled, transformational leadership explains a significant amount of change in formal statement of ethics, and transactional leadership explains a significant amount of change in diversity training. (shrink)

By showing disapproval of unethical follower behavior (UFB), leaders help creating an ethical climate in their organization in which it is clear what is morally acceptable or not. In this research, we examine factors influencing whether leaders consistently show such disapproval. Specifically, we argue that holding leaders accountable for their actions should motivate them to disapprove of UFB. However, this effect of accountability should be inhibited when leaders personally benefit from UFB. This prediction was supported in a lab experiment. Furthermore, (...) a follow-up study showed that followers in fact accurately predict when leaders will most likely disapprove of UFB. These findings imply that followers can thus get away with unethical behavior in some situations and they are capable of accurately predicting such situations. (shrink)

We present a theoretical rationale and supporting studies revealing how unethical leader behavior fosters an unethical climate within workgroups that increases member turnover intentions and malfeasance. Drawing on the attraction–selection–attrition model of organizational behavior, we propose a selective attrition effect whereby unethical leader behavior results in the retention of group members who are more comfortable with dishonesty and, consequently, more likely to engage in unethical behavior toward their group. In two experiments, exposure to unethical leader behavior increased group members’ likelihood (...) of choosing to leave the group. Members who chose to remain in a group with an unethical leader were more likely than those who chose to leave to cheat their group in a subsequent task. A two time-period survey replicated these findings and identified psychological distress as the mechanism driving group members’ turnover intentions. This research extends our understanding of the complex relationships between unethical leadership and follower turnover intentions, psychological distress, and malfeasance. We contribute to the behavioral ethics literature by identifying a previously underappreciated form of selective attrition that produces internal costs to groups and organizations, independent of reputational consequences and whether the unethicality is publicized. (shrink)

This study examines a moderated/mediated model of ethical leadership on follower job satisfaction and affective organizational commitment. We proposed that managers have the potential to be agents of virtue or vice within organizations. Specifically, through ethical leadership behavior we argued that managers can virtuously influence perceptions of ethical climate, which in turn will positively impact organizational members’ flourishing as measured by job satisfaction and affective commitment to the organization. We also hypothesized that perceptions of interactional justice would moderate the ethical (...) leadership-to-climate relationship. Our results indicate that ethical leadership has both a direct and indirect influence on follower job satisfaction and affective commitment. The indirect effect of ethical leadership involves shaping perceptions of ethical climate, which in turn, engender greater job satisfaction and affective organizational commitment. Furthermore, when interactional justice is perceived to be high, this strengthens the ethical leadership-to-climate relationship. (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)

The recent accounting scandals at Enron, WorldCom, and other corporations have helped to fuel a massive loss of confidence in the integrity of American business and have contributed to a very sharp decline in the U.S. stock market. Inasmuch as these events have brought ethical questions about business to the forefront in the media and public consciousness as never before, they are of signal importance for the field of business ethics. I offer some observations and conjectures about the bearing of (...) the recent scandals on the literature on business ethics. I defend the following contentions: 1. Recent events reveal serious weaknesses of the stakeholder theory about the social responsibilities of business which lacks prohibitions against fraud and deception. This is a glaring deficiency of standard versions of the stakeholder theory, but it is easily remedied by adding explicit prohibitions against fraud and deception. In addition, recent events highlight the stakeholder theory's very naive and unrealistic hopes and expectations for business executives as moral arbiters and agents of social improvement. 2. Recent events do not constitute an objection to the shareholder theory about the social responsibilities of business, however, these events make evident the implausibility of strong versions of the invisible hand theory. 3. Schemes of payment and reward often create perverse incentives for individuals to engage in unethical conduct. 4. Both the shareholder theory and the stakeholder theory need to add a constraint that requires executives to respect the professional obligations of employees. (shrink)

Bullying is one of the most impactful deviant actions that affects workers' personal health and work experience. Bullying is a quite distinctive deviant behavior as targets are subjected to transgressions that could last for months or longer. Even though a number of actions can be taken to resolve bullying between all parties, from the viewpoint of the target it is hard to resolve the situation. As a result, hierarchical influence may be necessary to prevent bullying in the first place. A (...) possible solution, therefore, is focusing on how leaders can impact the bullying behavior. This research argued and showed that ethical leadership is negatively associated with being bullied through tackling one of its most important antecedents of bullying: the design of the work environment. That is, ethical leaders could be shown to improve employees' workload (quantitative work environment) and poor working conditions (qualitative work environment), which was related to decreased bullying. (shrink)

. In this post-Enron era, we have heard much talk about the need for integrity. Today’s employees perceive it as being in short supply. A recent survey by the Walker Consulting Firm found that less than half of workers polled thought their senior leaders were people of high integrity. To combat the perceived lack of corporate integrity, companies are stressing their probity. This stress is problematic because executives tend to instrumentalize the value of integrity. This paper argues that integrity needs (...) to be better defined because the current mode of talking about the subject is misleading. The paper considers three traditions’ understanding of the idea of integrity, argues that integrity is intrinsically valuable, and concludes with some reflections on the way in which integrity, properly understood, functions as a business asset. (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)

The present study examined how ethical beliefs and external factors affecting ethical beliefs are related to age and gender of business professionals. The results indicated that business professionals in the younger age group exhibited a lower standard of ethical beliefs. In the younger age groups, the females demonstrated a higher level of ethical beliefs, while in the older age group, the results suggested that the males had a slightly higher level of ethical beliefs. With regards to the influence of external (...) factors on ethical beliefs, the results yielded a significant interaction between age and gender. The younger age groups, males in particular, were more susceptible to external factors. People at home had the most influence on beliefs about ethics, while the individual''s supervisor had the least impact. The results were discussed in terms of theories of moral development. (shrink)

The social scientific study of ethical-unethical behavior in work organizations is in an early stage of development. This paper discusses some of the problems of conducting social scientific research in this area and explores the potential contribution of experimental research approaches. Both laboratory and field experimentation allow the investigator to test theory-based hypotheses and to study causal relations. Examples are provided of investigations that have applied these methods to the study of business ethics.

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

The authors examined the effects of ethical leadership on follower organizational citizenship behavior (OCB) and deviant behavior. Drawing upon research related to the behavioral plasticity hypothesis, the authors examined a moderating role of follower self-esteem in these relationships. Results from a field study revealed that ethical leadership is positively related to follower OCB and negatively related to deviance. We found that these relationships are moderated by followers' self-esteem, such that the relationships between ethical leadership and OCB as well as between (...) ethical leadership and deviant behavior are weaker when followers' self-esteem is high than low. Implications of these findings for research and practice are discussed. (shrink)

The purpose of this article is to highlight and comment on the key findings emerging from the collective efforts of the special issue on leadership, ethics, and identity. Highlights include definitional advancements, processes comprising ethical leadership, as well as outcomes and moderating factors. In addition, I attempt to synthesize work across authors by identifying common themes as well as conflicting elements in the article. I conclude with a discussion on emerging areas in need of future research investigation in the leadership (...) and ethics arena. (shrink)

The role of followers in financial statement fraud has not been widely examined, even though these frauds typically involve collusion between followers and destructive leaders. In a study with 140 MBA students in the role of followers, we examined whether two follower personality traits were associated with behavioral intentions to comply with the demands of an unethical chief executive officer to be complicit in committing financial statement fraud. These personality traits are self-sacrificing self-enhancement, a form of maladaptive narcissism characterized by (...) seemingly altruistic behaviors that are actually intended to boost self-esteem and proactivity, a trait characterized by behaviors reflecting efforts to positively change one’s environment. As predicted, follower SSSE was positively associated with follower behavioral intentions to comply with CEO pressure to commit fraud, while follower proactivity was negatively associated with fraud compliance intentions. Also as predicted, follower SSSE interacted with follower proactivity, such that followers high in SSSE and high in proactivity reported greater intentions to resist pressure from the unethical CEO to commit fraud compared to low-SSSE followers. Implications for future research and corporate governance are discussed. (shrink)

Ethical leadership research has primarily relied on social learning and social exchange theories. Although these theories have been generative, additional theoretical perspectives hold the potential to broaden scholars’ understanding of ethical leadership’s effects. In this paper, we examine moral typecasting theory and its unique implications for followers’ leader-directed citizenship behavior. Across two studies employing both survey-based and experimental methods, we offer support for three key predictions consistent with this theory. First, the effect of ethical leadership on leader-directed citizenship behavior is (...) curvilinear, with followers helping highly ethical and highly unethical leaders the least. Second, this effect only emerges in morally intense contexts. Third, this effect is mediated by the follower’s belief in the potential for prosocial impact. Our findings suggest that a follower’s belief that his or her leader is ethical has meaningful, often counterintuitive effects that are not predicted by dominant theories of ethical leadership. These results highlight the potential importance of moral typecasting theory to better understand the dynamics of ethical leadership. (shrink)