Ethics training is commonly cited as a primary method for increasing employees ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

This longitudinal case study reports on a charity in the UK which gained a new CEO who was reported by two middle managers who worked in the charity, to embody all or most of the ten characteristics within a measure of corporate psychopathy. The leadership of this CEO with a high corporate psychopathy score was reported to be so poor that the organisation was described as being one without leadership and as a lost organisation with no direction. This paper outlines (...) the resultant characteristics of the ensuing aimlessness and lack of drive of the organisation involved. Comparisons are made to a previous CEO in the same organisation, who was reportedly an authentic, effective and transformational leader. Outcomes under the CEO with a high corporate psychopathy score were related to bullying, staff withdrawal and turnover as effective employees stayed away from and/or left the organisation. Outcomes also included a marked organisational decline in terms of revenue, employee commitment, creativity and organisational innovativeness. The paper makes a contribution to both leadership and to corporate psychopathy research as it appears to be the first reported study of a CEO with a high corporate psychopathy score. (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)

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)

Business ethics and firm economic performance have traditionally often been regarded as mutually exclusive ends. We challenge this “either-or” belief and analyze when and how ethical firm leadership and firm performance may harmonize well. In extension of earlier research on ethical leadership and performance at the individual and team level, we study the context–dependency of the organization level relationship between CEO ethical leadership and firm performance. We propose a moderated mediation model of the link between CEO ethical leadership and firm (...) performance, identifying mediating and moderating variables unique to the organization-level of analysis. CEO ethical leadership is argued to work through organizational ethical culture which promotes firm performance under the condition that there is a strong corporate ethics program in place. Results from a multisource cross-sectional study, in which we surveyed 145 participants from 32 organizations and validated organizational performance ratings by objective performance data, showed support for our conceptual model. (shrink)

This study explores the aspects of the relationship between possible indicators of CEO narcissism and fraud. Highly narcissistic CEOs undertake challenging or bold actions to obtain frequent praise and admiration. The pursuit of narcissistic supply may result in a stronger likelihood of a CEO to undertake bold actions with potential detrimental consequences for the organization. The sample consists of all S&P 500 CEOs from 1992 till 2008 with more than 3 years of tenure. The measurement of CEO narcissism is based (...) on 15 objective indicators and fits the main conceptualization of narcissism. This data collection provides a score for all S&P 500 CEOs according to their narcissistic tendencies. The Accounting and Auditing Enforcement Releases on the SEC’s website are the indicators of managerial fraud. The findings confirm the expected influence of plausible proxies for CEO narcissism on fraud by showing a positive relationship. This confirms the psychologic perspective of CEO narcissism as a potential cause of fraud. (shrink)

While previous research has established that employees who have a more conscientious leader are more likely to perceive that their leader is ethical, the underlying mechanisms and boundary conditions of this linkage remain unknown. In order to better understand the relationship between leader conscientiousness and ethical leadership, we examine the potential mediating role of leader moral reflectiveness, as well as the potential moderating role of decision-making autonomy. Drawing from social cognitive theory, results from two samples of workgroup leaders and their (...) immediate reports situated in Africa and Asia show that leader conscientiousness is positively related to leader moral reflectiveness, which in turn, is positively associated with employees’ assessment of ethical leadership. Furthermore, and consistent with our hypothesis, results from the two samples show that leader decision-making autonomy moderates the indirect path from leader conscientiousness to ethical leadership through moral reflectiveness, such that only morally reflective leaders who have high decision-making autonomy at work engage in ethical leadership behaviors. In our discussion, we highlight the theoretical and practical implications of our findings and suggest ways in which organizations can better foster ethical leadership. (shrink)

Ethics training is commonly cited as a primary method for increasing employees' ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees' perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion (...) that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies' ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees' attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research. (shrink)

This study examines a mediated model of ethical leadership on ethical climate, turnover intention, and affective commitment. It is suggested that managers are role models in their organizations. Specifically, through ethical leadership behavior, managers can influence perceptions of ethical climate, which in turn will positively influence organizational members’ turnover intention, and affective commitment. The results indicate that ethical leadership has both direct and indirect effect on affective commitment and turnover intention. The indirect effect of ethical leadership involves shaping perceptions of (...) ethical climate, which in turn, engenders greater affective organizational commitment and less turnover intention. (shrink)

Drawing upon the unfolding model of turnover and the dual-process theory of information processing, we examined the roles which ethical leadership and abusive supervision play in the turnover process. The central conclusion of this study is that ethical leadership influences job satisfaction, which then influences intentions to quit, which then impacts job search behaviors. Conversely, abusive supervision, which is the conceptual opposite of ethical leadership, has a negative influence on job satisfaction with corresponding impacts on intentions to quit and job (...) search behavior. But, unlike ethical leadership, which does not directly lead to job search behavior, abusive supervision can also directly make people so upset that they initiate job search behaviors. Moreover, findings indicate that even low levels of abusive supervision can neutralize high levels of ethical leadership. Implications for research and practice in human resource management are discussed. (shrink)