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 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)

The western-based leadership and ethics literatures were reviewed to identify the key characteristics that conceptually define what it means to be an ethical leader. Data from the Global Leadership and Organizational Effectiveness (GLOBE) project were then used to analyze the degree to which four aspects of ethical leadership – Character/Integrity, Altruism, Collective Motivation, and Encouragement – were endorsed as important for effective leadership across cultures. First, using multi-group confirmatory factor analyses measurement equivalence of the ethical leadership scales was found, which (...) provides indication that the four dimensions have similar meaning across cultures. Then, using analysis of variance (ANOVA) tests each of the four dimensions were found to be universally endorsed as important for effective leadership. However, cultures also varied significantly in the degree of endorsement for each dimension. In the increasingly global business environment, these findings have implications for organizations implementing ethics programs across cultures and preparing leaders for expatriate assignments. (shrink)

ABSTRACT:We analyze corporate ethics programs as control systems, arguing that how control is exercised may have pernicious consequences and be morally problematic. In particular, the control cultivated by ethics programs may weaken employees’ ability and motivation to exercise their own moral judgment, especially in novel situations. We develop this argument first by examining how organization theorists analyze control as an instrument of management coordination, and by addressing the political implications of control. We discuss coercive and enabling control as variations that (...) help account for the distinction between compliance-based ethics programs and values-based ethics programs. We then explore three potential drawbacks of ethics programs: the specter of indoctrination, a politicization of ethics, and an atrophy of competence. Ethics programs that rely on coercive control may undermine their own effectiveness at stemming misbehavior. (shrink)

This paper is an essay based on many years of reviewing journal submissions and discussions with business ethics scholars on a range of themes regarding methods. To some extent, it contains condensed thoughts from two experienced scholars in the field, which we hope will be useful, especially to emerging scholars who, to some extent, may still be wrestling with some of the issues raised in the paper. The validity and reliability of research methods in business ethics research is discussed in (...) terms of legitimate methods to employ in the discipline, the epistemic challenges in the discipline, the debate between qualitative and quantitative methods, and some considered comments on ‘researching well’ in this discipline. Within each theme, we attempt to convey our distilled thoughts in the hope that methods employed in future studies will avoid some of the failures we have observed in the past. (shrink)

Most research studying the corporate social performance –corporate financial performance link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors – such as controversial industries – have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an (...) exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market-level forces play a major role in shaping this relationship. (shrink)

This study explores the research paradigms of contemporary business ethics research in 2001–2008. With citation data from the top two business ethics journals included in the Social Sciences Citation Index, this study conducts citation and co‐citation analysis to identify the most important publications, scholars, and research themes in the business ethics area and then maps the intellectual structure of business ethics studies between 2001 and 2008. The results show that current business ethics studies cluster around four major research themes, including (...) morality and social contract theory, ethical decision making, corporate social responsibility, and stakeholder theory. This study helps profile the invisible network of knowledge production in business ethics and provides important insights on current research paradigms of business ethics studies. (shrink)

A multiphase study tested a proposed mediated moderation model for the joint effects of ethical pressure and power distance orientation on accountants’ ethical judgments of earnings management. Results based on a sample of 354 accountants from China indicated that the relationship between ethical pressure and ethical judgments of earnings management is contingent on the accountants’ power distance orientation. That is, the relationship between ethical pressure and ethical judgments of earnings management was stronger for accountants with a high power distance orientation. (...) The results also demonstrated that ethical beliefs in support of the company serve as a mediator for the interaction effect of ethical pressure and power distance orientation on the outcome. These results are discussed in terms of viewing earnings management as a form of unethical pro-organizational behavior which can be effectively investigated within the framework of the person-situation interactionist model. (shrink)

Three hundred forty middle-level managers from two private and two public sector manufacturing companies in India rated their superiors on 22 items of ethical leadership. Factor analysis of the scores on such items yielded two dimensions of ethical leadership: (a) empowerment, and (b) motive and character. Items of the scale had high reliability, validity, and discriminative power. On two dimensions of ethical leadership, the superiors self-rated themselves more favorably than their subordinates rated them. This justified the proposal to consider the (...) subordinates' ratings to their superiors in assessing ethical leadership. Subordinates perceived their superiors more ethical in private sector than in public sector. Subordinates' manipulative behavior, and cheating in performance and misuse of finance were less frequent in the presence of ethical superiors. Also, ethical superiors enhanced the job performance, job involvement and affective commitment of their subordinates but not their continuance commitment. (shrink)

This study focuses on the cultural context of ethical decision making by considering the relationship between power distance and ethical judgment. Specifically, we propose that this relationship exists because of the influence of peers on ethical judgment and perceptions of justice. Considering the importance of peers in stage three of Kohlberg's model of moral development, we argue that peers are the basis for social comparisons, social cues and social identification and, hence, are critical to an individual's beliefs about justice. Using (...) scenarios developed by Reidenbach and Robin, data were collected from German and Italian graduate business students. Germany and Italy differ substantially in power distance, but not in the three other cultural dimensions of Hofstede. Results show that the ethical assessment of the respondents from the two countries differs when justice criteria are used. Theoretical and practical implications of the results are discussed. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational (...) and egocentric utility‐maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

If managerial leadership means deciding responsibly in a complex situation, the ethical dimension of leadership — besides its analytical and instrumental aspects — has to be clarified. I present and discuss several essential aspects of managerial ethical leadership: (a) some major presuppositions (the concepts of leadership and responsibility), (b) three normative-ethical tasks of the activity of leadership (perceiving, interpreting and creating reality — being responsible for the effect of one's decisions on the human beings concerned — being responsible for the (...) implementation of corporate goals) and (c) some claims on the leader as a subject responsible for his or her own activities. I shall conclude by adding some reflections on the limits of managerial ethical leadership. (shrink)

In this article, the author lists three problems that make any serious discussion about the ethics of leadership a very difficult undertaking. He then proposes a new, postindustrial paradigm of leadership. Using that understanding of leadership, two different sets of ethical analyses of leadership are possible: (I) those concerned with the process of leadership and (2) those concerned with the content of leadership (the changes proposed by the leaders and collaborators). In the end, the author suggests that the industrial paradigm (...) of ethics (the 18th century liberal philosophy) is inadequate to deal with the ethical decision making that leaders and collaborators must do in the 21 st century. Thus, a postindustrial paradigm of ethics must be developed to enable leaders and collaborators to make the tough ethical choices that will be demanded in the new millennium. (shrink)

Drawing on theory and research on ethical leadership and ethical climate, we examine ethical climate as a mediator of the relationship between ethical leadership and employee misconduct. Using a sample of 1,525 employees and their supervisors in 300 units in different organizations, we find support for our hypothesized model. We discuss theoretical and practical implications of these findings.

The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical (...) leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article. (shrink)