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)

A new research area linked to ethics, virtues, and morality is servant leadership. Scholars are currently seeking publication outlets as critics debate whether this new leadership theory is significantly distinct, viable, and valuable for organizational success. The aim of this study was to identify empirical studies that explored servant leadership theory by engaging a sample population in order to assess and synthesize the mechanisms, outcomes, and impacts of servant leadership. Thus, we sought to provide an evidence-informed answer to how does (...) servant leadership work, and how can we apply it? We conducted a systematic literature review (SLR), a methodology adopted from the medical sciences to synthesize research in a systematic, transparent, and reproducible manner. A disciplined screening process resulted in a final sample population of 39 appropriate studies. The synthesis of these empirical studies revealed: (a) there is no consensus on the definition of servant leadership; (b) servant leadership theory is being investigated across a variety of contexts, cultures, and themes; (c) researchers are using multiple measures to explore servant leadership; and (d) servant leadership is a viable leadership theory that helps organizations and improves the well-being of followers. This study contributes to the development of servant leadership theory and practice. In addition, this study contributes to the methodology for conducting SLRs in the field of management, highlighting an effective method for mapping out thematically, and viewing holistically, new research topics. We conclude by offering suggestions for future research. (shrink)

The recent economic crisis as well as other disasters such as the oil spill in the Gulf of Mexico or the nuclear disaster in Japan has fanned calls for leaders who do not deny responsibility, hide information, and deceive others, but rather lead with authenticity and integrity. In this article, we empirically investigate the concept of authentic leadership. Specifically, we examine the antecedents and individual as well as group-level outcomes of authentic leadership in business (Study 1; n = 306) as (...) well as research organizations (Study 2; n = 105). Findings reveal leader self-knowledge and self-consistency as antecedents of authentic leadership and followers’ satisfaction with supervisor, organizational commitment, and extra-effort as well as perceived team effectiveness as outcomes. The relations between authentic leadership and followers’ work-related attitudes as well as perceived team effectiveness are mediated by perceived predictability of the leader, a particular facet of trust. We discuss the implications of our findings for theory and practice and provide suggestions for advancing theory and research on authentic leadership in the future. (shrink)

The ethical nature of transformational leadership has been hotly debated. This debate is demonstrated in the range of descriptors that have been used to label transformational leaders including narcissistic, manipulative, and self-centred, but also ethical, just and effective. Therefore, the purpose of the present research was to address this issue directly by assessing the statistical relationship between perceived leader integrity and transformational leadership using the Perceived Leader Integrity Scale (PLIS) and the Multi-Factor Leadership Questionnaire (MLQ). In a national sample of (...) 1354 managers a moderate to strong positive relationship was found between perceived integrity and the demonstration of transformational leadership behaviours. A similar relationship was found between perceived integrity and developmental exchange leadership. A systematic leniency bias was identified when respondents rated subordinates vis-à-vis peer ratings. In support of previous findings, perceived integrity was also found to correlate positively with leader and organisational effectiveness measures. (shrink)

Using data collected at two phases, this study examines why and how ethical leadership behavior influences employees’ evaluations of organization-focused justice, i.e., procedural justice and distributive justice. By proposing ethical leaders as moral agents of the organization, we build up the linkage between ethical leadership behavior and the above two types of organization-focused justice. We further suggest trust in organization as a key mediating mechanism in the linkage. Our findings indicate that ethical leadership behavior engenders employees’ trust in their employing (...) organization, which in turn promotes their justice perceptions toward the organization. The theoretical and practical implications of these findings are discussed, and some directions for future research are suggested. (shrink)

Virtue-based research in business ethics has increased over the last two decades, but most of the research has focused on the actions of an individual person. In this article, we examine the associations among team-level virtues using data from two studies. Specifically, we investigate whether transparency (usually thought to be an organizational-or collective-level construct), behavioral integrity (usually thought to be an individuallevel construct), and trust (usually thought to be an individual-level construct) can be conceptualized and operate at the team level (...) of analysis and, if so, what their relationships are to team performance. Using Partial Least Squares (PLS) analysis, we found in both studies that team transparency was positively related to team behavioral integrity, which in turn was positively related to team trust. We also found evidence of a positive relationship between team trust and team performance. Implications of these findings for future teams and ethics research are discussed. (shrink)

Scholarly research largely converges on the argument that trust is of paramount importance to drive economic agents toward mutually satisfactory, fair, and ethically compliant behaviors. There is, however, little agreement on the meaning of trust, whose conceptualizations differ with respect to actors, relationships, behaviors, and contexts. At present, we know much better what trust does than what trust is. In this article, we present an extensive review and analysis of the most prominent articles on trust in market relationships. Using computer-aided (...) content analysis and network analysis methods, we identify key, recurring dimensions that guided the conceptualization of trust in past research, and show how trust can be developed as a multifaceted and layered construct. Our results are an important contribution to a convergence of research toward a shared and common view of the meaning of trust. This process is important to ensure the body of trust research’s internal theoretical consistency, and to provide reliable and common principles for the management of business relationships – a context in which opportunism and imperfect information may induce economic actors to cheat and stray from fair and ethically compliant behaviors. (shrink)

Scholarly research largely converges on the argument that trust is of paramount importance to drive economic agents toward mutually satisfactory, fair, and ethically compliant behaviors. There is, however, little agreement on the meaning of trust, whose conceptualizations differ with respect to actors, relationships, behaviors, and contexts. At present, we know much better what trust does than what trust is. In this article, we present an extensive review and analysis of the most prominent articles on trust in market relationships. Using computer-aided (...) content analysis and network analysis methods, we identify key, recurring dimensions that guided the conceptualization of trust in past research, and show how trust can be developed as a multifaceted and layered construct. Our results are an important contribution to a convergence of research toward a shared and common view of the meaning of trust. This process is important to ensure the body of trust research's internal theoretical consistency, and to provide reliable and common principles for the management of business relationships — a context in which opportunism and imperfect information may induce economic actors to cheat and stray from fair and ethically compliant behaviors. (shrink)

This paper documents that business ethics has positive impacts upon the development of intellectual capital. Knowledge has become the most important asset of modern businesses, and this study argues that business ethics is associated with the development of intangible knowledge resources—intellectual capital. Businesses with ethical values at the core reinforce ethical conducts and successfully build trust with their various stakeholders, leading to the formation of an ethical and trustworthy corporate culture and a positive corporate environment. Thus, in this reasoning, an (...) ethical approach to business can encourage open communication, problems solving, knowledge sharing and creativity among employees to increase organisational capital; enhance interactions and relationships with suppliers, customers and other stakeholders to increase social capital; attract and retain good talent to increase human capital. Questionnaire survey is adopted as the research method with businesses in the electronic and information technology industries in Taiwan as sample. The results suggest that business ethics is associated with increased intellectual capital. Thus, this study demonstrates that the development of intellectual capital is in line with strengthened ethics. It contributes to the literature through combining research on business ethics with intellectual capital theories and extends the extant intellectual capital literature. (shrink)

Concerns regarding corporate ethics have grown steadily throughout the past decade. In order to remain competitive, many organizational leaders are faced with the challenge of creating an ethical environment within their organization. A model is presented showing the process and elements necessary for the institutionalization of organizational ethics. The transformational leadership style lends itself well to the creation of an ethical environment and is suggested as a means to facilitate the institutionalization of corporate ethics. Finally, the benefits of using transformational (...) leadership are demonstrated through the components of a psychological contract, organizational commitment, and ethical culture to institutionalize organizational ethics. (shrink)