Leadership which lacks ethical conduct can be dangerous, destructive, and even toxic. Ethical leadership, though well discussed in the literature, has been tested empirically as a construct in very few studies. An empirical investigation of ethical leadership in Singapore's construction industry is reported. It is found that ethical leadership is positively and significantly associated with transformational leadership, transformational culture of organization, contingent reward dimension of transactional leadership, leader effectiveness, employee willingness to put in extra effort, and employee satisfaction with the (...) leader. However, it is also found that ethical leadership bears no correlations with transactional leadership. Also, it is negatively correlated with laissez-faire leadership and transactional culture of the organization. The findings also reveal that ethical leadership plays a mediating role in the relationship between employee outcomes and organizational culture. Practical implications of these findings are discussed. Directions for future research are also suggested. (shrink)

The importance of ethical leadership in organizations has been increasingly recognized, especially as a shield against unethical employee behaviors and corporate misconducts. Ethical leadership has been theorized to include two aspects: “moral person” and “moral manager.” This conceptualization resonates well with Chinese teachings of Confucius on leadership and management—namely xiuji and anren. Based on the theoretical framework of ethical leadership, we develop and validate a new ethical leadership measure. Through qualitative studies and five quantitative studies, we establish the reliability and (...) convergent, discriminant, and predictive validities of the ELM in a Chinese context. In addition, using a US sample, we find that the ELM has partial measurement invariance across Chinese and American contexts. (shrink)

Whether, how and when do leaders engage in ethical leadership as a response to status threat? We propose that leaders facing status threat are likely to develop ethical leadership behaviors toward subordinates. Drawing on power dependence theory, we theorize that experiencing status threat augments leaders’ dependence on subordinates who can provide them with status-relevant resources. Dependence on subordinates further motivates leaders to absorb the resource constraints through displaying ethical leadership. However, if leaders are able to obtain alternative resources to cope (...) with status threat, their dependence on subordinates is weakened. We conducted two studies to test the predictions. Using a moderation-of-process design, Study 1 found that when participants experienced status threat, they displayed more ethical leadership behaviors, but particularly so when their reward structure was team- rather than individual-based. Study 2 was a field study using a sample of 104 teams from two Chinese firms listed in the “Top 500 private enterprises in China.” We found that leaders who experienced more status threat were perceived to be more ethical by their subordinates, which was mediated by leaders’ perceptions of dependence on subordinates. The mediated effect was stronger for leaders who were less skilled in networking. Implications for theory on the contextual factors of ethical leadership, dependence, and status threat are discussed. (shrink)

Research on ethical leadership in organizations has been largely based on Western philosophical traditions and has tended to focus on Western corporate experiences. Insights gained from such studies may however not be universally applicable in other cultural contexts. This paper examines the normative grounds for an alternative Confucian virtue-based ethics of leadership in China. As with Western corporations, organizational practices in China are profoundly shaped by their own cultural history and philosophical outlook. The ethical norms guiding both the practice and (...) theory of leadership in China are underpinned by indigenous Chinese wisdoms imbued in their own traditions and China’s collective psyche. Focusing on three fundamental aspects of Confucian virtue ethics: _ren_ (仁 benevolence), _yi_ (义 righteousness) and _li_(礼 ritual propriety), this paper proposes that an ideal Confucian leader regards self-cultivation as a first priority; status and material gain, whilst important, are not the foremost concern. S/he exemplifies the virtuous role model, exudes moral charisma and influences others by shaping an organization’s ethical culture through the process of ritualization. The paper concludes by claiming that amplifying the explicit discourse around Confucian virtue ethics will help contribute to the development of better ethical leadership in China. (shrink)

Drawing on the cognitive evaluation theory, we proposed a homologous multilevel model to explore how ethical leadership influenced employees’ innovative work behavior through the mediation of intrinsic motivation at both group and individual level. With questionnaires rated by 302 employees from 34 work units of two companies in the mainland of China, we conducted multilevel analysis to examine our hypotheses. The results showed that individual innovative work behavior was positively related to both individual perception of ethical leadership and group ethical (...) leadership, while individual intrinsic motivation mediated the two relationships. Moreover, group intrinsic motivation mediated the relationship between group ethical leadership and innovative work behavior. The theoretical and practical implications were further discussed. (shrink)

Despite urgent calls for more research on the integration of business ethics and the meaning of work, to date, there have been few corresponding efforts, and we know surprisingly little about this relationship. In this study, we address this issue by examining when and for whom ethical leadership is more effective in promoting a sense of work meaningfulness among employees, and their subsequent work attitudes. Drawing on the contingency theories of leadership and work meaningfulness literature, we speculate that both employees’ (...) core self-evaluation and perceived organizational support moderate the relationship, but in different ways, and these associations carry over to employees’ subsequent work attitudes in terms of job satisfaction, organizational commitment and turnover intention. We test our hypotheses with two-wave survey data collected from 377 employees. Results indicate that ethical leadership is effective in eliciting work meaningfulness and attitudes for employees higher in CSE or when POS is lower, and ineffective for those lower in CSE or when POS is higher. A supplementary analysis reveals a three-way interaction between ethical leadership, CSE and POS in predicting a sense of work meaningfulness and subsequent work attitudes. Our research cautions that ethical leadership is not a universally positive practice; it can be ineffective or even have a negative impact under some circumstances. (shrink)

Despite a long history in eastern and western culture of defining leadership in terms of virtues and character, their significance for guiding leader behavior has largely been confined to the ethics literature. As such, agreement concerning the defining elements of virtuous leadership and their measurement is lacking. Drawing on both Confucian and Aristotelian concepts, we define virtuous leadership and distinguish it conceptually from several related perspectives, including virtues-based leadership in the Positive organizational behavior literature, and from ethical and value-laden leadership. (...) Then, two empirical studies are presented that develop and validate the Virtuous Leadership Questionnaire, an 18-item behaviorally based assessment of the construct. Among other findings, we show that the VLQ accounts for variance in several outcome variables, even after self-assessed leader virtue and subordinate-rated social and personalized leader charisma are controlled. (shrink)

Burnout has important ramifications for employees and organizations and preventing burnout forms an ethical issue for managers. However, the role of the leader and especially the role of ethical aspects of leadership have received relatively little attention in relation to burnout to date. We conducted a survey among employees (N = 386) of a Dutch retail organization, nested in 122 teams with a leader. Our first contribution is that we empirically show the hypothesized opposing relationships of ethical and passive leadership (...) behavior with follower burnout. Furthermore, we examined two job characteristics as mechanisms that link these forms of leadership and burnout. Lastly, we show that the positive relationship of ethical leadership with burnout via role clarity (but not overload) is dependent on the degree of passive leadership the leader is perceived to display. Our results suggest that organizations should promote ethical leadership behaviors and limit passive leadership behaviors by stimulating leaders to be active in their role and use their social influence to promote ethical conduct. (shrink)

Research suggests that ethical leadership influences employees’ behavior and organizational functioning. Thus, the purpose of this study is to investigate the role of ethical leadership in the improvement of employees’ innovative performance. Specifically, this research developed and tested a framework about the intermediating mechanism of social capital in the relationship between ethical leadership and employees’ innovative performance. The current study integrated assumptions of social learning and social exchange theories, which postulate that the leadership has a direct effect on the employees’ (...) conduct, principally through role modeling and the reciprocal landscape. Data were collected through in-person administered questionnaire-based survey from 297 employees working in the manufacturing sectors of Pakistan. The conceptual model of our research was analyzed applying Structural Equation Modeling (SEM). The results exhibited that the ethical leadership plays an important role in fostering employees’ innovative performance. The present study also found that social capital plays an intermediating role between the ethical leadership and employees’ innovative performance relationship. The current study contributed to the leadership and innovation literature and provided insights in examining the ethical leadership-employees’ innovative performance relationship through the intermediating mechanism of social capital. (shrink)

Despite the prevailing discourses on the importance of top management ethical leadership, related theoretical and empirical developments are lacking. Drawing on institutional theory, we propose that top management ethical leadership contributes to organizational outcomes by promoting firm-level ethical and procedural justice climates. This theoretical framework was empirically tested using multi-source data obtained from 4,468 employees of 147 Korean companies from various industries. The firm-level analysis shows that top management ethical leadership significantly predicts ethical climate, which then results in procedural justice (...) climate that fully mediates the effects of top management ethical leadership on two organizational outcomes, namely, firm-level organizational citizenship behavior and firm financial performance. The present study provides a plausible theoretical account and empirical validation of a mechanism through which top management ethical leadership enhances organizational performance. (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)

Constructive deviance describes acts that benefit the organization by deviating from outdated organizational norms. Despite emerging interest in this behavior, questions remain about why and how constructive deviance occurs. This paper integrates social learning and uncertainty reduction theories, and develops a multilevel model linking team-level ethical leadership to employee constructive deviance. Surveying 313 subordinates and 52 supervisors from 15 different companies in eastern China, we find that team-level ethical leadership has a positive impact on employee constructive deviance, and that both (...) psychological safety climate and employee moral self-efficacy partially mediate this relationship. In addition, we find a positive cross-level moderating effect of psychological safety climate. These findings contribute to understanding employees’ constructive deviance in the workplace, and provide valuable implications for managerial practices. (shrink)

Little is known about how ethical organizational contexts influence employees’ perceived stress levels and well-being. This study used two theoretical lenses, ethical impact theory (Promislo et al. in Handbook of Unethical Work Behavior, M.E. Sharpe, Armonk, 2013) and ethical decision-making theory (Schwartz in J Bus Ethics 139(4): 755–776, 2016), to investigate the relationships among perceived organizational ethics (comprised of ethical climate, leader/manager ethics, and corporate social responsibility), work-related stress, and employee well-being (comprised of vitality, life satisfaction, personal growth initiative, flourishing, (...) positive mental health, and self-actualization). Findings across two studies indicated that organizational ethics was negatively related to work-related stress, and that work-related stress was negatively related to employee well-being. Perceived organizational ethics is positively related to employee well-being, with post hoc mediation tests indicating that work-related stress partially mediates this relationship. Our findings suggest that organizations should be proactive in improving their ethical climate, such as choosing ethical leaders, developing a robust and well-communicated code of ethics, and actively practicing CSR. These measures should reduce excessive work-related stress and improve employee well-being. (shrink)

This study examines the cultural roots of ethical conflicts in the global business environment. It begins with a brief look at worldviews on ethical behavior in general. Based on this, it is argued that an in-depth understanding of ethical conflicts has been hampered by an overreliance on Western models and viewpoints. Three common sources, or bases, of ethical conflicts are discussed as they relate to business practices, including conflicts over tastes and preferences, the relative importance of moral imperatives compared to (...) legal requirements, and people’s level of tolerance for different values among others. It is then argued that an understanding of ethical conflicts can be facilitated through different levels of understanding, including the meaning of universal values, the relationship between values and practices, and the existence of multiple levels of conflict within the same organizations or industries. These specific and interrelated ingredients in cross-cultural ethical conflicts form the basis for a broader discussion of the meaning of truth as it relates to such conflicts. The paper concludes with the need for more research that is cross-cultural and multidisciplinary in order to improve theory building and managerial practice. (shrink)

ABSTRACT:The purpose of the present research was to investigate if and when leaders’ trait-like tendency to experience contempt would result in a lack of constructive attitudes and behaviors towards subordinates and an increase in destructive attitudes and behaviors towards subordinates. Previous research shows that increased power aligns individuals’ behavior with their trait-like tendencies. Accordingly, we hypothesized that leader contempt and power will interact to predict leaders’ people orientation, ethical leadership, dehumanization, and self-serving behavior. Across three studies, we indeed found that (...) contempt was more negatively associated with leaders’ people orientation and ethical leadership, and more positively associated with dehumanization and leaders’ self-serving behavior, when the leader had higher levels of power rather than lower levels of power. These results are discussed in the context of corporate ethical scandals demonstrating leaders’ focus on personal gain to the detriment of the needs of their subordinates. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)

This study examines the relationship between cognitive moral development (CMD), productivity features of information technology (IT) and unethical behavior or misconduct. Using an experimental design that randomly assigns subjects to one of four unique technology conditions, we assess the relationship between a subjects' predominant level of CMD and ethical misconduct on IT-oriented work tasks. Our results show that both higher levels of CMD and increased levels of IT productivity features at one's disposal have a significant role to play in explaining (...) observed behavior in our sample. We find that CMD as measured by the Defining Issues Test's P-score is negatively related to task misconduct. Conversely, IT productivity features such as copy-and-paste are positively related to task misconduct. In addition, the CMD—misconduct relationship is significantly diminished by the introduction of IT productivity features. Lastly, a series of hazard analyses are conducted to explore the boundaries of our principal findings. These results demonstrate the significant role of technology in enabling negative behavior and the relative inability of subjects' use of principled moral reasoning to overcome it. Implications of these findings for academics and business managers are offered, as well as recommendations for mitigating misconduct in both academic and workplace environments. (shrink)

Despite its central position in the history of European and Christian thought on the protection of human dignity, the virtue of mercy is currently a problematic and under-developed concept in business ethics, compared to related ideas of care, compassion or philanthropy. The aim of this article is to argue for its revival as a core principle of ethical business practice. The article is conceptual in method. An overview is provided of the scope of contemporary business ethics research on related topics (...) and clarifies some of the similarities and differences between mercy and popular terms, such as compassion and prosocial behaviour. The question is then explored as to why mercy has so little traction in business ethics. Some of the history of the idea of mercy in European and Anglophone philosophy is discussed, from Anselm and Aquinas to the present day, showing how discourse on mercy came to be split into a wider concept of the prevention and alleviation of suffering (_misericordia_) and a narrower one of clemency or leniency. Aquinas’s wide concept of the virtue of _misericordia_ is developed as the basis for a principle of mercy, which is applicable directly to corporations. The practical implications of this for standards of corporate behaviour towards employees and other stakeholders are then considered through the introduction of a ‘vulnerability grid’. The grid offers a critical contrast to other analysis tools, such as stakeholder power-interest matrices. Cases drawn from empirical studies are used to illustrate application of the grid and to challenge some common assumptions of stakeholder theory. (shrink)

Despite the increasingly multinational nature of the workplace, there have been few studies of the convergence and divergence in beliefs about ethics-based leadership across cultures. This study examines the meaning of ethical and unethical leadership held by managers in six societies with the goal of identifying areas of convergence and divergence across cultures. More specifically, qualitative research methods were used to identify the attributes and behaviors that managers from the People’s Republic of China (the PRC), Hong Kong, the Republic of (...) China (Taiwan), the United States (the U.S.), Ireland, and Germany attribute to ethical and unethical leaders. Across societies, six ethical leadership themes and six unethical leadership themes emerged from a thematic analysis of the open-ended responses. Dominant themes for ethical and unethical leadership for each society are identified and examined within the context of the core cultural values and practices of that society. Implications for theory, research, and management practice are discussed. (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)

In this conceptual article, we look at the impact of culture on ethical decision making from a Douglasian Cultural Theory (CT) perspective. We aim to show how CT can be used to explain the diversity and dynamicity of ethical beliefs and behaviours found in every social system, be it a corporation, a nation or even an individual. We introduce CT in the context of ethical decision making and then use it to discuss examples of business ethics in the Indian business (...) context. We argue that the use of CT allows for a theoretically more sophisticated treatment of culture in ethical decision making and thus the avoidance of some common problems with existing cross-cultural studies of business ethics. In our discussion, we raise questions about the compatibility between management systems and processes created in one context and ethical behaviours in another. (shrink)

Business ethics have become an important topic globally for both policy-makers and businesses. This paper first discusses the conceptual framework for business ethics followed by ethical management and corporate social responsibility as well as relevant theories. Within this conceptual framework, Korea is used as a country context as to the development of EM and CSR. An important example of an ethical scandal is the major steel manufacturer, POSCO as it was held up as an exemplar and role model of ethical (...) management. However, in 2015, it faced allegations that the engineering and construction overseas unit chief of its Vietnamese subsidiary created a slush fund by overstating payments to Vietnamese contractors. This conceptual paper discusses the factors that created this situation referring to the theory of connection. It locates the case in the EM and CSR literature and analyses what went wrong and what the parent company could have done to prevent this from happening. (shrink)

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility, empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the interaction (...) between ethical leadership and CSR and, in addition, investigates organic organizational cultures as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior. (shrink)

Ethics has recently gained prominence in debates surrounding social capital creation. Despite the significant theoretical progress in this field, it still lacks empirical research. The goal of this study is to empirically explore the ethical leadership of supervisors as an antecedent of the firm’s social capital. We build on social learning theory to argue that employees can learn standards of appropriate behavior by observing the behavior of role models. By displaying and enforcing ethical behavior, supervisors can facilitate the process through (...) which employees learn to feel empathy toward others and establish profound affective relationships with them. Data were collected from 408 Spanish, French, and Portuguese part-time MBA students. Using structural equation modeling techniques, we show that the ethical leadership of supervisors exerts a significant influence on the structural, relational, and cognitive dimensions of social capital. (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)

As research in the areas of unethical and ethical leadership grows, we note the need for more consideration of the normative assumptions in the development of constructs. Here, we focus on a subset of this literature, the “dark side” of supervisory behavior. We assert that, in the absence of a normative grounding, scholars have implicitly adopted different intuitive ethical criteria, which has contributed to confusion regarding unethical and ethical supervisory behaviors as well as the proliferation of overlapping terms and fragmentation (...) of research. Accordingly, we offer a definition of unethical supervision grounded in the normative theories and develop a framework of unethical supervision by analyzing the constructs associated with unethical supervision from a normative perspective. Our analysis suggests a heavy emphasis on violations of the right to dignity. We also note that utilitarianism and certain forms of rights as well as justice have been largely overlooked in the unethical supervision literature. We conclude by considering the implications of our conceptualization for theory on the antecedents and consequences of unethical supervision and by explaining how our approach extends to the larger literature on unethical and ethical leadership. (shrink)

This paper examines beliefs about four aspects of ethical leadership – Character/Integrity, Altruism, Collective Motivation and Encouragement – in Germany and the United States using data from Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) and a supplemental analysis. Within the context of a push toward convergence driven by the demands of globalization and the pull toward divergence underpinned by different cultural values and philosophies in the two countries, we focus on two questions: Do middle managers from the United States (...) and Germany differ in their beliefs about ethical leadership? And, do individuals from these two countries attribute different characteristics to ethical leaders? Results provide evidence that while German and US middle managers, on average, differed in the degree of endorsement for each aspect, they each endorsed Character/Integrity, Collective Motivation and Encouragement as important for effective leadership and had a more neutral view of the importance of Altruism . The findings are reviewed within the social-cultural context of each country. (shrink)

This paper examines beliefs about four aspects of ethical leadership –Character/Integrity, Altruism, Collective Motivation and Encouragement– in Germany and the United States using data from Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) and a supplemental analysis. Within the context of a push toward convergence driven by the demands of globalization and the pull toward divergence underpinned by different cultural values and philosophies in the two countries, we focus on two questions: Do middle managers from the United States and Germany (...) differ in their beliefs about ethical leadership? And, do individuals from these two countries attribute different characteristics to ethical leaders? Results provide evidence that while German and US middle managers, on average, differed in the degree of endorsement for each aspect, they each endorsed Character/Integrity, Collective Motivation and Encouragement as important for effective leadership and had a more neutral view of the importance of Altruism. The findings are reviewed within the social-cultural context of each country. (shrink)

The aim of this article is to undertake a systematic literature review (SLR) of empirical research that uses multi‐source methods for collecting data about Ethical Leadership (EL). Research on this sensitive subject benefits from the inclusion of data from more than one source, in order to be better supported, and thus contribute to a deeper understanding of leadership and business ethics issues. The search strategy retrieved a total of 50 multi‐source empirical studies on the topic of EL, published until December (...) 2017. This SLR shows that (a) research on EL has focused mostly on the perceptions of followers, possibly because they are the most accessible target of its outcomes, thus restricting the scope of this body of research; (b) EL is studied mainly through consideration of its consequences, a restriction that hinders explanation of the causal processes involved in ethical leadership, which remains a research arena in need of development. The systematic inclusion of other stakeholders in multi‐source methods is advanced as a way to further develop the field. (shrink)

This study examines the varying roles of power, status, and national culture in unethical decision-making. Most research on unethical behavior in organizations is grounded in Western societies; empirical comparative studies of the antecedents of unethical behavior across nations are rare. The authors conduct this comparative study using scenario studies with four conditions in both China and Canada. The results demonstrate that power is positively related to unethical decision-making in both countries. Status has a positive effect on unethical decision-making and facilitates (...) the unethical decisions of Canadian participants who have high power but not Chinese participants who have high power. To explicate participants’ unethical decision-making rationales, the authors ask participants to justify their unethical decisions; the results reveal that Chinese participants are more likely to cite position differences, whereas Canadian participants are more likely to cite work effort and personal abilities. These findings expand theoretical research on the relationship between social hierarchy and unethical decision-making and provide practical insights on unethical behavior in organizations. (shrink)

The impact of integrity on organizational and/or interpersonal relationships is well documented in the literature but its influence on customer relationships such as consumer trust and relationship commitment has been largely overlooked. The present study attempts to fill this research gap by examining the effect of integrity on consumer relationship commitment in a cross-cultural setting. Survey data from the United States and China were used to test the hypothesized relationships. The results show that integrity has significant impacts on both consumer (...) trust and relationship commitment, and culture significantly moderates the effect of integrity on consumer commitment. Specifically, integrity was found to affect American respondents’ relationship commitment both directly and indirectly with the direct effect being greater and the indirect effect being smaller relative to those of Chinese respondents. In contrast, integrity had only indirect effect on relationship commitment with Chinese consumers, highlighting the importance of consumer trust in the integrity-commitment relationship. The implications for research and business practice were discussed. (shrink)

This study provides an attributional perspective to the ethical leadership literature by examining the role of attributed altruistic motives and perceptions of organizational politics in a moderated mediation model. Path analytic tests from two field studies were used for analyses. The results support our hypotheses that attributed altruistic motives would mediate the relationship between perceived ethical leadership and affective organizational commitment. Moreover, the relationship between perceived ethical leadership and attributed altruistic motives was stronger when perceptions of organizational politics were high (...) but weaker when these perceptions were low. The study concludes with a discussion of future research implications as well as managerial implications. (shrink)

Substantial research demonstrates that ethical leaders improve a broad range of outcomes for their employees, but considerably less attention has been devoted to the performance and success of the leaders themselves. The present study explores the extent to which being ethical relates to leaders’ performance and promotability. We address this question by examining ethical leadership from the two ethical perspectives most common in Western traditions—i.e., the “right” and the “good”—and whether one might be more closely associated than the other with (...) performance and promotability evaluations. Results from 117 employee-supervisor-manager triads show that supervisors with a deontological outlook are more likely to be seen as ethical leaders and that utilitarian leaders are more likely to earn higher performance evaluations. We discuss the implications of these findings for research on ethical leadership. (shrink)

Despite the general expectation that ethical leadership fosters employees’ ethical behaviors, surprisingly little empirical effort has been made to verify this expected effect of ethical leadership. To address this research gap, we examine the role of ethical leadership in relation to a direct ethical outcome of employees: moral voice. Focusing on how and when ethical leadership motivates employees to speak up about ethical issues, we propose that moral efficacy serves as a psychological mechanism underlying the relationship, and that leader–follower value (...) congruence serves as a boundary condition for the effect of ethical leadership on moral efficacy. We tested the proposed relationships with matched reports from 154 Korean white-collar employees and their immediate supervisors, collected at two different points in time. The results revealed that ethical leadership was positively related to moral voice, and moral efficacy mediated the relationship. Importantly, as the relationship between ethical leadership and moral efficacy depended on leader–follower value congruence, the mediated relationship was effective only under high leader–follower value congruence. Theoretical and practical implications are discussed. (shrink)

Interest in ethical leadership from academics and practitioners has grown enormously in recent years. This article addresses this literature through a framework that identifies three interlocking questions. First, who are ethical leaders and what are their characteristics? Second, how do ethical leaders do what they do? Third, why do leaders do as they do and what are the outcomes of ethical leadership? Different dimensions to ethical leadership are examined and presented as three interlocking circles; Virtues, Purposes and Practices. This framework (...) presents an integrated approach to ethical leadership and argues that future research take this holistic framework and apply it to different sectors or contexts. (shrink)

Over the past decade, ethical leadership has increasingly become one of the most popular topics in the areas of leadership and business ethics. As a result, there now exists a substantial body of empirical research addressing ethical leadership issues, but the findings reported by this body of research are highly fragmented. The topic has advanced to the stage where a review and synthesis of existing literature can provide great value and help move the scholarly conversation forward. The primary purposes of (...) this article are to review empirical findings from the ethical leadership literature utilizing a framework consisting of the antecedents, mediators, moderators and outcomes of ethical leadership, and suggest a set of interesting research opportunities, thereby facilitating future investigation. We base our synthesis on a review of 62 empirical studies on ethical leadership that were published between 2005 and mid-2015. (shrink)

In recent times, international comparative studies on managers’ beliefs regarding ethical/unethical leadership have increased in number. These studies focus on both Eastern and Western countries. However, although these previous studies focused on the effects of national culture, they did not pay sufficient attention to the effects of institutions. Moreover, these studies covered only a few countries. Despite Japan’s strong influence on the world economy, it has not been included in previous studies on ethical leadership. Thus, to reveal unexplored factors—particularly cultural (...) and institutional factors—and to determine the generalizability of previous findings, this study used a qualitative research method to examine Japanese business managers’ beliefs about ethical/unethical leadership. The data revealed the convergence and divergence in beliefs regarding ethical/unethical leadership between managers in Japan and in other countries. The analysis identified mostly the same themes of ethical/unethical leadership as found in other countries albeit with different distributions. In addition, We identified new themes that may be specific to Japan or that were neglected in previous studies. Moreover, this study suggests the necessity of considering each society’s history of business ethics and current ethics-related institutional contexts in ethical/unethical leadership studies. (shrink)

In the aftermath of various corporate scandals, management research and practice have taken great interest in ethical leadership. Ethical leadership is referred to as “normatively appropriate conduct” (Brown et al. in Organ Behav Hum Decis Process 97(2):117–134, 2005), but the prescriptive norms that actually underlie this understanding constitute an open question. We address this research gap by turning to relational models theory (Fiske in Structures of social life: the four elementary forms of human relations, Free Press, New York, 1991), which (...) contextualizes four distinct moralities in four distinct interactional norms (i.e., the relational models). We expect that the norms inherent in each model dictate the type of leader relationship that followers deem ethical. Specifically, we hypothesize that, for each norm, followers will perceive leaders as less ethical the more discrepant, i.e., the more incongruent, followers’ ideal relational norm is with the perceived norm that they attribute to their actual leader–follower interaction. We tested the respective incongruence hypothesis in a cross-sectional survey of 101 Dutch employees. Polynomial regression and surface response analyses provide support for the hypothesized incongruence effects in each of the four relational models, suggesting that normatively appropriate conduct should not be limited to caring (i.e., community-oriented) behaviors. Indeed, all four relational models can predict ethical leadership perceptions. We discuss the implications in the context of ethical leadership research and managerial practice. (shrink)

This study extends earlier findings on ethical leadership by testing the relationship of the seven dimensions of ethical leadership with job satisfaction, organization commitment, job embeddedness, and cynicism. It uses time-lagged data from 585 employees in Pakistan. Using confirmatory factor analysis and structural equation modeling, the study supports the concept of multidimensional ethical leadership in the Eastern setting and indicates that the dimensions of people orientation, fairness, power sharing, ethical guidance, and role clarification are associated with the majority of outcomes, (...) as suggested by social exchange theory. However, the concern for sustainability and integrity dimensions had a limited effect. (shrink)

Ethical leadership has become a popular subject of empirical research in recent years. Most studies follow Brown et al.’s definition of ethical leadership, which consists of two components: the moral person and the moral manager. In this paper, I argue for a third relevant component: i.e., the moral entrepreneur who creates a new ethical norm. Viewing moral entrepreneurship as a new component of ethical leadership opens up avenues for studying various antecedents and outcomes of ethical leadership that have not been (...) acknowledged so far, or at least, not adequately. (shrink)

Most research on ethical leadership to date investigates the consequences of ethical leadership rather than its antecedents. Here, we aim to contribute to this field by studying leader personality as a potential antecedent of ethical leader behavior. In two multisource studies, we investigated the relationships between personality traits and ethical leader behavior. Leader personality was measured through self-ratings using the five-factor personality framework. Two subordinates rated their leaders' ethical behavior. Study 1 used a unidimensional Ethical Leadership Scale (ELS). In study (...) 2 we used this scale as well as an instrument distinguishing three different ethical leader behaviors, namely, fairness, role clarification, and power sharing. Further, in study 2 we controlled for the influence of the relationship between leader and followers (LMX). As expected, conscientiousness and agreeableness were most consistently related to ethical leadership. In study 1, after controlling for the other personality traits, conscientiousness related positively with ethical leadership. In study 2, after controlling for other traits and LMX, conscientiousness related positively with ethical leadership and the behavior role clarification, and agreeableness with power sharing and fairness. Also, emotional stability related positively with ethical leadership and role clarification after controlling for LMX. As expected, openness to experience and extraversion were unrelated to ethical leader behaviors. (shrink)

The study of voice behavior examines the inclination of staff and team members to speak up and contribute ideas to the team. In this article, we investigate how factors such as leader-member exchange (LMX), psychological safety and psychological empowerment influence such behavior. Our findings, which are based on a sample of 308 employees working for a state-owned telecommunications company on the Chinese mainland, indicate that ethical leadership promotes employees’ voice behavior through enhanced leader-member exchange, which also leads to greater feelings (...) of psychological safety and psychological empowerment. The theoretical and practical implications of these results are discussed. (shrink)

From a simple idea to unite asset owners in their quest for responsible investment at its launch in April 2006, the United Nations supported Principles for Responsible Investment have grown in just one decade into an initiative with more than 1500 fee-paying signatories. Jointly, the PRI’s signatories hold assets worth more than $80 trillion, making it one of the more prevalent not-for-profit organizations worldwide. Furthermore, the PRI’s ambitious mission to transform the financial system at large into a more sustainable one (...) makes it a worthwhile subject of inquiry from an institutional perspective. We undertake an empirical investigation of the adoption of the PRI by asset owners during five crucial years of the association’s emergence: 2007–2011. Following a tripartite view of institutional theory proposed by Scott, we explore if regulative, normative, and cultural–cognitive factors influence an asset owner’s decision to subscribe to the PRI. Applying both parametric and non-parametric survival analysis, we find that asset owners are indeed significantly affected by normative, cultural–cognitive, and regulative aspects. In particular, public service employee and labor union pension funds from social backgrounds more culturally aligned with values represented by the RI movement with historically more voluntary legislation on environmental, social, and governance issues are most likely to sign the PRI. In contrast, institutional environments with a higher number of pre-existing mandatory ESG regulation decrease the likelihood of signing the PRI. Our results indicate that normative and cultural–cognitive factors were crucial contributors to the PRI’s growth. With respect to the regulative environments, our results imply that some asset owners may use the PRI as a collective industry initiative to substitute for mandatory legislation. Conversely, a high level of historical mandatory legislation may constrain organizational resources that could otherwise be dedicated to voluntary initiatives such as PRI. Our findings are robust to relevant controls and econometric concerns. (shrink)

The need for ethical leadership in navigating today’s complex, global and competitive organisations has been established. While research has confirmed the importance of ethical leaders in promoting positive organisational and employee outcomes, scant research has examined the antecedents of ethical leadership. Furthermore, there has been a call for further examination of leadership models, particularly indigenous leadership models. Responding to these issues, this study suggests Māori leaders’ values add insights into enhancing ethical leadership. Three studies confirm the role of Māori values (...) and ethical leadership. Study one, based on kaupapa Māori research methods, is an exploratory 22-interview study of Māori leaders and identifies five values, as common to successful indigenous leaders. In study two, 249 employees rate their leaders on these five dimensions in relation to their ethical leadership and exchange relationships. Structural equation modelling shows strong support for the distinct nature of the five values and their positive influence on ethical leadership perceptions and quality exchange relationships. Study three, on 122 employees, reinforces the findings of study two—and demonstrates that LMX predicts job outcomes both indirectly and directly, with humility and collectivism also directly predicting outcomes. Our findings suggest that indigenous leaders’ values enhance perceptions and outcomes of ethical leadership for employees. (shrink)

The study of ethical behavior in the field of leadership began in the 1990s when Murphy et al. (1992) responded to a call by Randall and Gibson (1990) to develop more rigorous methodologies in empi...