Impact of Ethical Leadership and Leader–Member Exchange on Whistle Blowing: The Moderating Impact of the Moral Intensity of the Issue

Given the prevalence of corporate frauds and the significance of whistle blowing as a mechanism to report about the frauds, the present study explores the impact of ethical leadership and leader–member exchange (LMX) on whistle blowing. Additionally, the article also explores the moderating role of the moral intensity [studied as magnitude of consequences (MOC)] of the issue on this relationship. The article reports results of three experimental studies conducted on the postgraduate students of a premier technology institute in India. Ethical leadership, LMX, and moral intensity are manipulated through scenarios. Study one (n = 81) manipulates ethical leadership (ethical/unethical) and quality of LMX (low and high) as independent variables; study two (n = 80) manipulates ethical leadership and moral intensity (high and low MOC), and study three (n = 87) manipulates LMX and MOCs to assess their individual and joint effects on whistle blowing. Results show that not only do ethical leadership and LMX predict whistle blowing, but these relationships get moderated by the moral intensity of the issue as well.     

Authentic Leadership and Employee Voice Behavior: A Multi-Level Psychological Process

This study investigates the psychological process of how authentic leadership affects employee voice behaviors. The theoretical model of this study proposes that employee positive mood and leader–member exchange (LMX) quality mediate the relationship between authentic leadership and voice behavior, while the procedural justice climate moderates the mediation effects of positive mood and LMX quality. Multi-level data from 70 workgroups of a real estate agent company in Taiwan support all hypotheses. This study reveals the cross-level effects of authentic leadership, and provides practical suggestions to help employees express their opinions in organizations.     

Environmentally Responsible and Conventional Market Indices’ Reaction to Natural and Anthropogenic Adversity: A Comparative Analysis

Using data collected at two phases, this study examines why and how ethical leadership behavior influences employees’ evaluations of organization-focused justice, i.e., procedural justice and distributive justice. By proposing ethical leaders as moral agents of the organization, we build up the linkage between ethical leadership behavior and the above two types of organization-focused justice. We further suggest trust in organization as a key mediating mechanism in the linkage. Our findings indicate that ethical leadership behavior engenders employees’ trust in their employing organization, which in turn promotes their justice perceptions toward the organization. The theoretical and practical implications of these findings are discussed, and some directions for future research are suggested.     

The Leadership Archetype: A Jungian Analysis of Similarities between Modern Leadership Theory and the Abraham Myth in the Judaic–Christian Tradition

Archetypal psychology suggests the possibility of a leadership archetype representing the unconscious preferences of human beings as a species about the appropriate relationships between leaders and followers. Mythological analysis compared God’s leadership in the Abraham myth with modern visionary, ethical and situational leadership to find similarities reflecting continuities in human thinking about leadership over as long as 3600 years. God’s leadership behavior is very modern except that God is generally more relationship oriented. The leadership archetype that emerges is of a leader that develops his/her follower by reliably maintaining a vision, behaving according to firm ethical values even when it weakens the leader’s authority, accepting suffering when the follower is unreliable, and always forgiving even when the follower behaves with hubris in an attempt to overthrow the leader. If God’s leadership principles were mandatory in management, many dysfunctional leaders would be disqualified and many of the negative consequences of poor leadership might be averted. Neil Remington Abramson is an Associate Professor of Strategy, Specialist in building effective business relationships in comparative management contexts.     

Leading by example: Testing a moderated mediation model of ethical leadership,value congruence,and followers' openness to ethical influence

In this study, we investigate a key question of ethical leadership theory: Are ethical leaders able to gain followers' openness to their ethical influence? When describing ethical leadership, we distinguish between leaders’ moral person behavior (i.e., behaviors that are normatively appropriate) and moral management (i.e., using position power to reinforce ethical standards). We then draw on mechanisms of social learning and social exchange and test a moderated mediation model. It is predicted that the effect of leaders' moral person behavior on followers’ openness to ethical influence is mediated by leader‐follower ethical value congruence. Moreover, we examine whether moral management amplifies the effects of moral person behavior. For hypothesis testing, existing measures from the literature are integrated to operationalize four underlying normative reference points of leaders' moral person behavior: humane, justice, responsibility/sustainability, and moderation orientation. After establishing the psychometric properties of this integrative measure, the main hypotheses are tested in two separate studies. While results showed a positive effect of leaders' moral person behavior on followers' openness to ethical influence through ethical value congruence, the moderating effect of moral management was, contrary to our expectation, negative. With this, our study contributes to a better understanding of the mechanisms of ethical leadership.     

Remote Leadership,Communication Effectiveness and Leader Performance

As remote work arrangements have gained in popularity, workforce dispersion has become increasingly widespread. Little research to date has examined how physical distance influences leader–follower communication effectiveness or leader performance. Building on top of transformational leadership theory, this paper explores how perceived leader performance is influenced by leadership style, physical distance, and communication effectiveness between leaders and followers. A survey of 138 followers, reporting to a total of 41 leaders, was conducted and data were analyzed at the individual follower-level using the Partial Least Squares (PLS) technique. Our model explained 45% of the variance in communication effectiveness and 67% of the variance in perceived leader performance. Consistent with past empirical findings, transformational leadership was associated more strongly with perceived leader performance than transactional contingent reward leadership. Communication effectiveness was also a strong predictor of leader performance, and furthermore acted as a mediator of leadership behavior on performance. Surprisingly, distance had no influence on either communication effectiveness or perceived leader performance. Implications for theory and practice are discussed.     

A Discovery of Early Labor Organizations and the Women who Advocated Work–Life Balance: An Ethical Perspective

The relevance of leader ethicality has motivated ethical leadership theory. In this paper, we emphasize the importance of moral identity for the concept of ethical leadership. We relate ethical leadership incorporating an internalized moral identity to productive deviant workplace behavior. Using qualitative empirical data we illustrate the relevance of critical situations, i.e., situations in which hypernorms and organizational norms diverge, for the distinction of ethical leaders with or without internalized moral identities. Our paper takes a multidisciplinary approach integrating insight from management as well as humanities and social sciences toward a comprehensive sense of ethical leadership.     

An Empirical Study of Leader Ethical Values,Transformational and Transactional Leadership,and Follower Attitudes Toward Corporate Social Responsibility

Several leadership and ethics scholars suggest that the transformational leadership process is predicated on a divergent set of ethical values compared to transactional leadership. Theoretical accounts declare that deontological ethics should be associated with transformational leadership while transactional leadership is likely related to teleological ethics. However, very little empirical research supports these claims. Furthermore, despite calls for increasing attention as to how leaders influence their followers’ perceptions of the importance of ethics and corporate social responsibility (CSR) for organizational effectiveness, no empirical study to date has assessed the comparative impact of transformational and transactional leadership styles on follower CSR attitudes. Data from 122 organizational leaders and 458 of their followers indicated that leader deontological ethical values (altruism, universal rights, Kantian principles, etc.) were strongly associated with follower ratings of transformational leadership, while leader teleological ethical values (utilitarianism) were related to follower ratings of transactional leadership. As predicted, only transformational leadership was associated with follower beliefs in the stakeholder view of CSR. Implications for the study and practice of ethical leadership, future research directions, and management education are discussed.     

Leading with moral courage: The interplay of guilt and courage on perceived ethical leadership and group organizational citizenship behaviors

This study uses a moderated mediation model to investigate the role of leaders’ moral courage and guilt in promoting group‐level organizational citizenship behavior (OCB). Based on the idea that leaders model ethical behavior among followers, we examine whether leaders’ display of morally laden emotions weaken follower perceptions of ethical leadership, thus disrupting the influence of moral courage on followers. Two independent studies examined the proposed model. Study 1 used an experimental design to examine leaders’ moral displays, testing the interactive effects of leader moral courage, and guilt on follower perceptions of ethical leadership. Study 2 used a multisource field study with 100 leaders and 336 subordinates to explore how a leader displays of courage and guilt influenced group‐level OCB, mediated by ethical leadership. Consistent with our theoretical model, we find an indirect positive relationship between a leader’s moral courage and group OCB. However, we also find that this effect is weakened by displays of guilt by the leader.     

Do Role Models Matter? An Investigation of Role Modeling as an Antecedent of Perceived Ethical Leadership

Thus far, we know much more about the significant outcomes of perceived ethical leadership than we do about its antecedents. In this study, we focus on multiple types of ethical role models as antecedents of perceived ethical leadership. According to social learning theory, role models facilitate the acquisition of moral and other types of behavior. Yet, we do not know whether having had ethical role models influences follower perceptions of one’s ethical leadership and, if so, what kinds of role models are important. We conducted a field study, surveying supervisors and their subordinates to examine the relationship between three types of ethical role models and ethical leadership: the leader’s childhood role models, career mentors, and top managers. We found that having had an ethical role model during the leader’s career was positively related to subordinate-rated ethical leadership. As expected, this effect was moderated by leader age, such that the relationship between career mentoring and ethical leadership was stronger for older leaders. Leader age also moderated the relationship between childhood models and ethical leadership ratings, such that having had childhood ethical role models was more strongly and positively related to ethical leadership for younger leaders. We found no effect for top management ethical role models. Implications for research and practice are discussed.     

Ethical Leader Behavior and Big Five Factors of Personality

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 uni-dimensional 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.     

Identity Talk of Aspirational Ethical Leaders

This study investigates how business leaders dynamically narrate their aspirational ethical leadership identities. In doing so, it furthers understanding of ethical leadership as a process situated in time and place. The analysis focuses on the discursive strategies used to narrate identity and ethics by ethnic Chinese business leaders in Indonesia after their conversion to Pentecostal–charismatic Christianity. By exploring the use of metaphor, our study shows how these business leaders discursively deconstruct their ‘old’ identities and construct their ‘new’ aspirational identities as ethical leaders. This leads to the following contributions. First, we show that ethical leadership is constructed in identity talk as the business leaders actively narrate aspirational identities. Second, the identity narratives of the business leaders suggest that ethical leadership is a context-bound and situated claim vis-à-vis unethical practice. Third, we propose a conceptual template, identifying processes of realisation and inspiration followed by significant shifts in understanding, for the study of aspirational ethical leadership.     

Work Engagement and Machiavellianism in the Ethical Leadership Process

Leaders who express an ethical identity are proposed to affect followers’ attitudes and work behaviors. In two multi-source studies, we first test a model suggesting that work engagement acts as a mediator in the relationships between ethical leadership and employee initiative (a form of organizational citizenship behavior) as well as counterproductive work behavior. Next, we focus on whether ethical leadership always forms an authentic expression of an ethical identity, thus in the second study, we add leader Machiavellianism to the model. For Machiavellian leaders, the publicly expressed identity of ethical leadership is inconsistent with the privately held unethical Machiavellian norms. Literature on surface acting suggests people can at least to some extent pick up on such inauthentic displays, making the effects less strong. We thus argue that the positive effects of ethical leader behavior are likely to be suppressed when leaders are highly Machiavellian. Support for this moderated mediation model was found: The effects of ethical leader behavior on engagement are less strong when ethical leaders are high as opposed to low on Machiavellianism.     

My Boss is Morally Disengaged: The Role of Ethical Leadership in Explaining the Interactive Effect of Supervisor and Employee Moral Disengagement on Employee Behaviors

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 (Bandura 1986, 1999), 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 (based on employee moral disengagement) that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior (OCB). Results from a multi-source field survey provide general support for our theoretical model.     

How Servant Leadership Influences Organizational Citizenship Behavior: The Roles of LMX,Empowerment, and Proactive Personality

While the link between servant leadership and organizational citizenship behavior (OCB) has been established, the individual-level mechanisms underlying this relationship and its boundary conditions remain poorly understood. In this study, we investigate the salience of the mediating mechanisms of leader–member exchange (LMX) and psychological empowerment in explaining the process by which servant leaders elicit discretionary OCB among followers. We also examine the role of followers’ proactive personality in moderating the indirect effects of servant leadership on OCB through LMX and psychological empowerment. Analysis of survey data collected from 446 supervisor–subordinate dyads in a large Chinese state-owned enterprise suggests that while servant leadership is positively related to subordinate OCB through LMX, psychological empowerment does not explain any additional variance in OCB above that accounted for by LMX. Moderated mediation tests confirm the moderating effect of proactive personality through LMX. By providing a nuanced understanding of how and when servant leadership leads followers to go above and beyond their job role, our study assists organizations in deciding how to develop and utilize servant leaders in their organizations.     

Does ethical leadership enhance group learning behavior? Examining the mediating influence of group ethical conduct,justice climate,and peer justice

The link between ethical leadership and employees' ethical behaviors is well established, but are ethical leadership's benefits confined to ethical behaviors? This study aimed to address this question by examining the extent to which ethical leaders create an environment conducive to cultivating a broader set of desirable behaviors such as group learning behavior. We drew upon and integrated insights from social learning theory and the social marketplace model to develop and test a model that illuminates how ethical leadership enhances group learning behavior. We propose that group ethical conduct, justice climate, and peer justice are three contextual mechanisms through which ethical leadership improves group learning. Using data collected over two time periods from 95 supervisors and 323 work group members from a large financial institution in the United States, we found that ethical leadership significantly relates to group learning behavior, and that this relationship is partially explained by group ethical conduct and peer justice, but not justice climate. Implications for future research and practice are discussed.     

Responsible Leadership,Stakeholder Engagement,and the Emergence of Social Capital

I argue in this article that responsible leadership (Maak and Pless, 2006) contributes to building social capital and ultimately to both a sustainable business and the common good. I show, first, that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader–follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness. Business leaders have to deal with moral complexity resulting from a multitude of stakeholder claims and have to build enduring and mutually beneficial relationships with all relevant stakeholders. I contend, second, that in doing so leaders bundle the energy of␣different constituencies and enable social capital building. Social capital can be understood as actual or potential resources inherent to more or less institutionalized relationships of mutual recognition (Bourdieu 1980). By drawing on network analysis I suggest, third, that responsible leaders weave durable relational structures and ultimately networks of relationships which are rich in ties to otherwise unconnected individuals or groups. Against this background I argue, fourth, that responsible leadership may result in the creation of value networks (Lord and Brown, 2001) of multiple stakeholders, which enhance social capital and thereby contribute to both a sustainable business and the common good.

Improving the “Leader–Follower” Relationship: Top Manager or Supervisor? The Ethical Leadership Trickle-Down Effect on Follower Job Response

Since time immemorial, the phenomenon of leadership and its understanding has attracted the attention of the business world because of its important role in human groups. Nevertheless, for years efforts to understand this concept have only been centred on people in leadership roles, thus overlooking an important aspect in its understanding: the necessary moral dimension which is implicit in the relationship between leader and follower. As an illustrative example of the importance of considering good morality in leadership, an empirical study is conducted in which a good performance of the “leader–follower” relationship is reflected when individuals perceive ethical leadership in higher hierarchical managerial levels. To be precise, findings of this study demonstrate that follower job response is improved through an ethics trickle-down partial effect from the Top Manager to the immediate supervisor, and also reveal both key aspects and managerial level on which the practice of ethical leadership should rest upon to have a stronger effect on the follower positive job response. Practical implications of these findings and directions for future research are finally presented.     

Leaders’ Personal Wisdom and Leader–Member Exchange Quality: The Role of Individualized Consideration

Business scholars have recently proposed that the virtue of personal wisdom may predict leadership behaviors and the quality of leader–follower relationships. This study investigated relationships among leaders’ personal wisdom—defined as the integration of advanced cognitive, reflective, and affective personality characteristics (Ardelt, Hum Dev 47:257–285, 2004)—transformational leadership behaviors, and leader–member exchange (LMX) quality. It was hypothesized that leaders’ personal wisdom positively predicts LMX quality and that intellectual stimulation and individualized consideration, two dimensions of transformational leadership, mediate this relationship. Data came from 75 religious leaders and 1–3 employees of each leader (N = 158). Results showed that leaders’ personal wisdom had a positive indirect effect on follower ratings of LMX quality through individualized consideration, even after controlling for Big Five personality traits, emotional intelligence, and narcissism. In contrast, intellectual stimulation and the other two dimensions of transformational leadership (idealized influence and inspirational motivation) did not mediate the positive relationship between leaders’ personal wisdom and LMX quality. Implications for future research on personal wisdom and leadership are discussed, and some tentative suggestions for leadership development are outlined.     

For the Good or the Bad? Interactive Effects of Transformational Leadership with Moral and Authoritarian Leadership Behaviors

Although the ethical aspects of transformational leadership have attracted considerable attention, very little is known about followers’ reactions to the moral and immoral conduct of transformational leaders. Against this background, this study examined whether and how transformational leadership interacts with moral and authoritarian leadership behaviors in predicting followers’ in-role and extra-role efforts. Building on attribution theory, we hypothesized that the positive and negative effects of these leadership behaviors would be particularly pronounced for highly transformational leaders given that this leadership style elicits strong attention and sense-making efforts among followers. We tested our model in a sample of 228 individuals comprising 114 leader–follower dyads from a wide range of organizations and industries. In line with our hypotheses, results revealed that for highly transformational leaders, moral leadership behaviors related positively to employees’ in-role and extra-role efforts whereas authoritarian leadership behaviors related negatively to employees’ in-role and extra-role efforts. In contrast, moral and authoritarian leadership behaviors did not significantly affect followers’ reactions to leaders low in transformational leadership. Taken together, these findings suggest that transformational leadership, contrary to its largely positive perception in the literature, can be a rather mixed blessing. Implications for theory, future research, and managerial practice are discussed.