This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

In a field dominated by research on moral prescription and moral prediction, there is poor understanding of the place of moral perceptions in organizations alongside philosophical ethics and causal models of ethical outcomes. As leadership failures continue to plague organizational health and firms recognize the wide-ranging impact of subjective bias, scholars and practitioners need a renewed frame of reference from which to reconceptualize their current understanding of ethics as perceived in individuals. Based on an assessment and selection perspective from the (...) field of human resource management, an alternative to conventional deductive-prescriptive approaches is proposed based on a pluralistic concept referred to as moral goodness. An inductive-descriptive theory-building framework is constructed based on three interrelated streams of inquiry to yield insight concerning both formal and informal instances of assessment. Recommendations are proposed for the application of the framework to future research and practice. (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)

Drawing from the group engagement model and the moral conviction literature, we propose that perceived leader ethical conviction moderates the relationship between ethical leadership and employee OCB as well as deviance. In a field study of employees from various industries and a scenario-based experiment, we revealed that both the positive relation between ethical leadership and employee OCB and the negative relation between ethical leadership and employee deviance are more pronounced when leaders are perceived to have weak rather than strong ethical (...) convictions. Further, we argued and showed that employees’ feelings of personal control and perceived voice opportunity mediated the interactive effect of ethical leadership and perceived leader ethical conviction on OCB and deviance. Implications of these findings for theory and practice are discussed. (shrink)

In two studies, we examined how expressions of guilt and shame affected person perception. In the first study, participants read an autobiographical vignette in which the writer did something wrong and reported feeling either guilt, shame, or no emotion. The participants then rated the writer's motivations, beliefs, and traits, as well as their own feelings toward the writer. The person expressing feelings of guilt or shame was perceived more positively on a number of attributes, including moral motivation and social attunement, (...) than the person who reported feeling no emotion. In the second study, the writer of the vignette reported experiencing (or not experiencing) cognitive and motivational aspects of guilt or shame. Expressing a desire to apologise (guilt) or feelings of worthlessness (private shame) resulted in more positive impressions than did reputational concerns (public shame) or a lack of any of these feelings. Our results indicate that verbal expressions of moral emotions such as guilt and shame influence perception of moral character as well as likeability. (shrink)

ABSTRACT:In the expanding field of ethical leadership research, little attention has been paid to the association between ethical leaders’ ethical characteristics and perceived ethical leadership, and, more importantly, the potential influence of ethical leadership on followers’ ethical characteristics. In this study, we tested a theoretical model based upon social cognitive theory to examine leaders’ moral identity and moral attentiveness as antecedents of perceived ethical leadership, and follower moral identity and moral attentiveness as outcomes of ethical leadership. Based upon data from (...) 89 leaders and 460 followers in China, collected at two points in time, we found that leaders’ moral identity and moral attentiveness are associated with follower’s perceptions of ethical leadership. Ethical leadership is, in turn, associated with their followers’ moral identity and moral attentiveness. We found furthermore that ethical leadership mediates the effect of leaders’ moral identity on followers’ moral identity, but not the effect of leaders’ moral attentiveness on followers’ moral attentiveness. We discuss the findings, theoretical contributions, practical implications, and future research. (shrink)

This study examined the relationships of perceived ethical leadership, workplace jealousy, and organizational citizenship behaviors directed at individuals and organizations. Survey responses were collected from 491 employee-coworker pairs from 33 hospitals in Taiwan. The employees provided assessments of their perceived ethical leadership and the workplace jealousy they experienced, while the coworkers provided information about the employees’ OCBI and OCBO. In the hypotheses testing, perceived ethical leadership was found to be negatively related to employees’ workplace jealousy and jealousy was negatively related (...) to their OCBI and OCBO. Workplace jealousy partially mediated the effect of ethical leadership on OCBI and OCBO. In addition, perceived ethical leadership was found to have a moderation effect on the jealousy-OCBI/ocbo relationship. This study contributes to the literature of ethical leadership as well as to the literature of OCB by relating workplace jealousy to OCB and by making sense of the effects of ethical leadership on OCB through the mediation of jealousy and through the moderation of ethical leadership on the jealousy-OCB relationship. (shrink)

Evidence from a growing number of studies suggests leader character as a means to advance leadership knowledge and practice. Based on this evidence, we propose a process model depicting how leader character manifests in ethical leadership that has positive psychological and performance outcomes for leaders, along with the moderating effect of leaders’ self-control on the character strength–ethical leadership–outcomes relationships. We tested this model using multisource data from 218 U.S. Air Force officers and their subordinates and superiors. Findings provide initial support (...) for leader character as a mechanism triggering positive outcomes such that only when officers reported a high level of self-control did their honesty/humility, empathy, and moral courage manifest in ethical leadership, associated with higher levels of psychological flourishing and in-role performance. We discuss the implications of these results for future theory development, research, and practice. (shrink)

The purpose of this article is to explore a critical paradox related to the expression of moral courage in organizations, which is that although morally courageous acts are aimed at fostering collective growth, vitality, and virtue, their initial result is typically one of collective unease, preoccupation, or lapse, reflected in the social ostracism and censure of the courageous member and message. Therefore, this article addresses the questions of why many organizational groups suffer stagnation or decline rather than growth and vitality (...) following acts of moral courage, and what can be done to ameliorate this outcome. A general system, relational psychodynamic perspective through which organizational group members might receive and respond to acts of moral courage is offered, and seven insights emerging from this perspective for fostering collective growth and vitality following acts of moral courage are provided. (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)

Scholars have shown renewed interest in the construct of courage. Recent studies have explored its theoretical underpinnings and measurement. Yet courage is generally discussed in its broad form to include physical, psychological, and moral features. To understand a more practical form of moral courage, research is needed to uncover how ethical challenges are effectively managed in organizational settings. We argue that professional moral courage (PMC) is a managerial competency. To describe it and derive items for scale development, we studied managers (...) in the U.S. military and examined prior work on moral courage. Two methods were used to measure PMC producing a five dimensional scale that organized under a single second-order factor, which we termed overall PMC. The five dimensions are moral agency, multiple values, endurance of threats, going beyond compliance, and moral goals. Convergent and discriminant validity are analyzed by use of confirmatory factor analysis procedures. We conclude by presenting a framework for proactive organizational ethics, which reflects how to support PMC as a management practice. (shrink)

Following Yik and Russell (1999) a judgement paradigm was used to examine to what extent differential accuracy of recognition of facial expressions allows evaluation of the well-foundedness of different theoretical views on emotional expression. Observers judged photos showing facial expressions of seven emotions on the basis of: (1) discrete emotion categories; (2) social message types; (3) appraisal results; or (4) action tendencies, and rated their confidence in making choices. Emotion categories and appraisals were judged significantly more accurately and confidently than (...) messages or action tendencies. These results do not support claims of primacy for message or action tendency views of facial expression. Based on a componential model of emotion it is suggested that judges can infer components from categories and vice versa. (shrink)

Promoting ethical decisions and behaviors is challenging for any organization. Yet managers are still required to make ethical decisions under conditions which deplete their self-control resources, such as high stress and long hours. This study examines the relationships among symbolic and internal moral identity, self-control, and ethical behavior, and investigates whether self-control acts as the mechanism through which moral identity leads to ethical behavior. Findings indicate that internal moral identity overrides symbolic moral identity in the relationship with self-control and that (...) self-control fully mediates the relationship between internal moral identity and ethical behavior. The implications for organizations is that while rules, procedures, and ethics training are useful, managers with a strong moral compass will be more likely to practice self-control leading to more ethical behaviors. (shrink)

Using a sample of 124 managers and 248 subordinates, this study examines the mediating effect of subordinates’ job satisfaction in the relationship between ethical leadership and subordinate organizational citizenship and counter-productive work behaviour in the Colombian context. We additionally analyse the effect of ethical leadership on subordinates’ perception of leaders’ performance. Factor analyses of the ethical leadership scale revealed two factors, ethical person and ethical guidance, which were differentially associated to the outcomes. We offer an explanation from three cultural dimensions (...) by which Colombian employees seem to be more willing to follow leaders’ ethical example as a way to strengthen their membership to the leader's group, than leaders ethical disciplining by which norms are imposed. These findings have a number of implications for organizations and managers who aim to improve their employees’ behaviour. Our advice to them is that leaders’ deeds have a greater impact than their ethical words. (shrink)

We examined the relationship between leader behavioral integrity and leader behavioral courage using data from two studies. Results from Study 1, an online experiment, indicated that behavioral manifestations of leader behavioral integrity and situational adversity both have direct main effects on behavioral manifestations of leader courage. Results from Study 2, a multisource field study with practicing executives, indicated that leader behavioral courage fully mediates the effects of leader behavioral integrity on leader performance and leader executive image. Implications of these findings (...) and future directions are discussed. (shrink)

In recent years, character traits in general and virtue-related concepts in particular have been of considerable interest to philosophers, psychological researchers, and practitioners in the business ethics field. Three approaches to character traits can be used to incorporate ethics into organizations: virtues, character strengths, and competencies. The aim of this article is to clarify the concept of character traits, or virtues, and provide a unified operational version of it for incorporation into management. To this end, we first discuss the analogy (...) among virtues, character strengths, and competencies. Then, we propose a list of moral competencies that can be implemented in competency-based human resource management. (shrink)

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

There is growing interest in the positive organizational literature in the complex interplay between the positive and negative facets of organizations, individuals, and situations. The concept of courage provides fertile ground to study this interplay, since it is generally understood to be a positive quality that is manifested in challenging situations. The empirical study presented here looks at courage in a strategic decision-making context and takes an interpretive perspective; it focuses on the cognitive structures and subjective understandings of managers and (...) administrators involved in merger projects as a way to understand the dynamics surrounding managerial courage. Our study makes several contributions: it shows that managers consider courage to have a moral dimension, e.g., to be a positive and ethical response to a risky or difficult situation in which there is an interplay between organizational and personal interests; it identifies two kinds of managerial moral courage; it proposes a conceptual model with which to understand how evaluations of what is courageous and what is not are made; and finally, it offers four schemas developed from the data that add to our understanding of moral courage in management. (shrink)

Drawing on social exchange theory, the present study seeks to understand how ethical leaders channel followers’ responses to positive treatment from the organization into a dutiful mindset, resulting in in-role and extra-role performance. Specifically, it examines the influence of perceived organizational support on both followers’ job performance and organizational citizenship behaviors, and the mediating effects of duty orientation on such relationships. In addition, it examines whether the mediated effects are contingent on the ethical leadership exhibited by the team leader. Based (...) on multi-source, multi-level data obtained from 233 employees in 60 teams from the Chinese public sector, we found that ethical leadership moderated the mediated relationship between perceived organizational support and follower work behaviors through duty orientation, such that this relationship was stronger in the presence of higher ethical leadership. (shrink)