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 popular press is often fraught with high-profile illustrations of leader unethical conduct within corporations. Leader unethical conduct is undesirable for many reasons, but in terms of managing subordinates, it is particularly problematic because leaders directly influence the ethics of their followers. Yet, we know relatively little about why leaders fail to apply ethical leadership practices. We argue that some leaders cognitively remove the personal sanctions associated with misconduct, which provides them with the “freedom” to ignore ethical shortcomings. Drawing on (...) moral disengagement theory, we examine the relationship between supervisor moral disengagement and employee perceptions of ethical leadership. We then examine the moderating role of employee moral disengagement, such that the negative relationship between supervisor moral disengagement and employee perceptions of ethical leadership is stronger when employee moral disengagement is low versus high. Finally, we examine ethical leadership as a conditional mediator that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior. Results from a multi-source field survey provide general support for our theoretical model. (shrink)

Drawing on social comparison theory, we investigate employees’ ethical and performance comparisons relative to a similar coworker and subsequent emotional and behavioral responses. We test our theoretically driven hypotheses across two studies. Study 1, a cross-sectional field study, reveals that employees who perceive they are more ethical than their coworkers experience negative emotions toward the comparison coworkers and those feelings are even stronger when the employees perceive they are lower performers than their coworkers. Results also reveal that negative emotions mediate (...) the indirect relationship between being more ethical than a coworker, but also being a lower performer than that coworker onto social undermining and ostracism. Study 2, a 2 × 2 between-subjects experimental design, provides further support for our moderated mediation model. Results reveal that participants experience negative emotions when they receive information that they are more ethical than a comparison participant. Negative emotions are amplified if the participant is told they were a lower performer than the comparison participant. Those participants indicate their desire to mistreat and ignore the comparison participant if given the opportunity. Thus, we find support for our hypotheses using a multi-method design. (shrink)

Drawing on theoretical arguments from the psychology discipline, we investigate the implications of employee entitlement in organizational settings. Specifically, we utilize workplace engagement theory to suggest that due to their skewed sense of deservingness, employees high in entitlement are less likely to experience workplace engagement. Furthermore, the negative relationship between employee entitlement and workplace engagement is strengthened when ethical leadership is low, yet mitigated when ethical leadership is high. Finally, we predict that under conditions of low ethical leadership, reductions in (...) engagement explain why employee entitlement results in hindered job performance. This mediated effect does not hold when ethical leadership is high. We tested our theoretical model utilizing field data from employees and their direct supervisors in the financial services industry. Our results support our theoretical model. Theoretical and practical implications are discussed. (shrink)

Drawing on conservation of resources theory, we contribute to the behavioral ethics literature by examining how and why organizational socialization processes can affect newcomers’ adoption of unethical behaviors. Specifically, we contend that quality peer coaching provides newcomers with enhanced self-resources that diminishes emotional exhaustion and thus indirectly reduces newcomer unethical conduct. Conversely, peer coach unethical conduct increases newcomers’ emotional exhaustion, and thus indirectly increases newcomers’ own unethical acts. Our research also identifies newcomers’ goal orientations as important individual differences that moderate (...) the proposed mediation effects. Newcomers with high mastery orientations respond to high emotional exhaustion by harnessing more resources and identifying new work strategies, thereby engaging in less unethical conduct. Conversely, newcomers with high performance orientations give into emotional exhaustion and engage in unethical conduct as a way of outperforming others while conserving resources. We tested our theoretical model using a sample of peer coaches and newcomers from the Real Estate industry, using objective reporting of peer coaches’ and newcomers’ unethical conduct over a nine-month period. (shrink)

Drawing on theoretical work on humans’ adaptive capacity, we propose that supervisors’ perception of top management’s high bottom-line mentality (BLM) has a dysfunctional effect on their ethical leadership practices. Specifically, we suggest that these perceptions hinder supervisors’ empathy, which eventuates in less ethical leadership practices. We also investigate, in a first-stage moderated mediation model, how supervisors high in trait mindfulness are resistant to the ill effects of perceptions of top management’s high BLM. Supervisors high (versus low) in this trait are (...) less likely to respond to perceptions of top management’s high BLM with reduced empathy that then hinders ethical leadership. Results from a multi-wave, multi-source sample of working adults from the Chinese high technology industry provide general support for our theoretical model. Theoretical and practical implications are discussed. (shrink)

Drawing on theoretical work on humans’ adaptive capacity, we propose that supervisors’ perception of top management’s high bottom-line mentality (BLM) has a dysfunctional effect on their ethical leadership practices. Specifically, we suggest that these perceptions hinder supervisors’ empathy, which eventuates in less ethical leadership practices. We also investigate, in a first-stage moderated mediation model, how supervisors high in trait mindfulness are resistant to the ill effects of perceptions of top management’s high BLM. Supervisors high (versus low) in this trait are (...) less likely to respond to perceptions of top management’s high BLM with reduced empathy that then hinders ethical leadership. Results from a multi-wave, multi-source sample of working adults from the Chinese high technology industry provide general support for our theoretical model. Theoretical and practical implications are discussed. (shrink)

The name of the first author was incorrect in the initial online publication. The original article has been corrected.