Recent literature suggests that ethical leadership helps to inhibit followers’ unethical behavior, largely built on the premise that followers view ethical leaders as ethical role models and socially learn from them, thereby engaging in more ethical conduct. This premise, however, has not been adequately tested, leaving insufficient understanding concerning the conditions under which this social learning process occurs. In this study, we revisit this premise, theorizing that not all followers will equally regard the same ethical leader as being a personal (...) ethical role model, thereby bounding the leader’s effects in reducing followers’ unethical behavior. We integrate the role of follower self-concepts into social learning theory, hypothesizing that the extent followers emulate their ethical leaders is contingent on how they identify with ethics as well as the particular leader. We test our hypotheses with three-wave survey data collected from 214 employees, finding that ethical leaders are viewed as being role models only amongst followers higher in moral identity and leader identification, and that followers’ perceptions that the leader is an ethical role model mediated the effect of ethical leadership on followers’ unethical behavior. Interestingly, results for the full-model tests show that ethical leadership evokes unethical behavior amongst followers lower in both moral identity and leader identification. These results suggest that ethical leadership is not a universally useful practice to decrease unethical behavior and that a more nuanced understanding of its contingent effects needs to be better understood. (shrink)

The role of board secretaries is a unique institutional feature in China. Individuals in this senior executive role are responsible for coordinating information disclosure. We study the impact of board secretaries on management earnings forecasts and find that their legal expertise, accounting expertise and foreign experience help improve management earnings forecast quality. The quality of forecasts, as indicated by their occurrence, frequency, precision and accuracy, is also positively associated with the role duality and equity holdings of board secretaries and negatively (...) associated with their political connection. The quality of forecasts is found to increase the compensation of board secretaries. Finally, we show that the equity holding of board secretaries reduces litigation risks and increases corporate philanthropic giving. (shrink)

Business Ethics: A European Review, EarlyView.

Drawing from the grounded theory of work engagement, this research aims to explore three essential yet previously unexamined pathways—work meaningfulness, emotion regulation, and job competence in simultaneously transmitting the effects of mindfulness training to employee experience of work engagement. We employed a six-wave quasi-experimental design and recruited 129 employees to participate in the quasi-experiment, and tested our simultaneous mediating models using the structural equation modeling. Results showed that mindfulness facilitated employees’ work meaningfulness, emotion regulation, and job competence, which in turn (...) enhanced employee work engagement. By doing so, we add to the mindfulness literature by showing that the three essential psychological states are important machanims that link mindfulness to work engagement. Practicially, this research reveals that mindfulness training is an effective tool to influence employees’ psychological states, which ultimately develop their work engagement in the workplace. (shrink)