The Relationship of Leadership Style and CEO Values to Ethical Practices in Organizations

This study analyzes the relationship between CEO values, leadership style and ethical practices in organizations. The ethical practices of formal statement of ethics and diversity training are included in the study, as well as four categories of values based on Rokeach's (1973) typology including personal, social, competency-based and morality-based. Results indicate that all four types of values are positively and significantly related to transformational leadership, with transactional leadership positively related to morality-based and personal values, and laissez-faire leadership negatively related to competency-based values. When size of company and values are controlled, transformational leadership explains a significant amount of change in formal statement of ethics, and transactional leadership explains a significant amount of change in diversity training.     

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.     

A New Scale to Measure Executive Servant Leadership: Development,Analysis, and Implications for Research

This article introduces a new scale to measure executive servant leadership, situating the need for this scale within the context of ethical leadership and its impacts on followers, organizations and the greater society. The literature on servant leadership is reviewed and servant leadership is compared to other concepts that share dimensions of ethical leadership (e.g., transformational, authentic, and spiritual leadership). Next, the Executive Servant Leadership Scale (ESLS) is introduced, and its contributions and limitations discussed. We conclude with an agenda for future research, describing ways the measure can be used to test hypotheses about organizational moral climate, ethical organizational culture, corporate responsibility, and institutional theory.     

MNC Strategic Responses to Ethical Pressure: An Institutional Logic Perspective

In this study, we aim to investigate how multinational corporations (MNCs) balance ethical pressures from both the home and host countries. Drawing on theories from institutional theory, international business, and business ethics, we build a theoretical framework to explain the ethical behavior of MNCs. We apply the institutional logic concept to examine how MNCs with established logics and principles that have grown in the home country respond to local ethical expectations in the host country. We differentiate the core values from the peripheral components of a MNC’s institutional logic and propose that a MNC will pursue distinctive ethical strategies under different scenarios and choose the “right” configuration of core values and peripheral components that align with institutional environment in host countries.     

Transformational Leadership and Follower’s Unethical Behavior for the Benefit of the Company: A Two-Study Investigation

Although the ethical dimension of transformational leadership has frequently been discussed over the last years, there is little empirical research on employees’ ethical behavior as an outcome of transformational leadership. This two-study investigation examined the relationship between transformational leadership and unethical yet pro-organizational follower behavior (UPB). Moreover, mediating and moderating processes were addressed. Our research yielded a positive relationship between transformational leadership and employees’ willingness to engage in UPB. Furthermore, both studies showed employees’ organizational identification to function as a mediating mechanism and employees’ personal disposition toward ethical/unethical behavior to moderate the relationship between organizational identification and willingness to engage in UPB. Altogether, results indicate transformational leadership to entail a certain risk of encouraging followers to contribute to their company’s success in ways that are generally considered to be unethical. Implications regarding the ethical dimension of transformational leadership are discussed.     

The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-of-a-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisor-subordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-ofa-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisorsubordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

The Relationship Between Transformational Leadership and Followers’ Perceptions of Fairness

Of recent time, there has been a concern about ethical leadership and ethics in business. Research on leadership did not pay a lot of attention to fairness and many authors have studied the relationship between leader fairness and factors such as outcome satisfaction and trust in leader for instance. For the moment, there is no study that focused on the direct relationship between transformational leadership and fairness. That’s why; in this paper our aim is to study the relationship between transformational leadership and the employees’ perceptions of fairness, mainly the three types of fairness which are distributive, procedural, and interactional in French firms. A questionnaire survey was sent to employees working in the industry and service sectors. A sample of 100 respondents was collected. We found a partial relationship between employees’ perceptions of fairness and transformational leadership. More specifically, we found that procedural and interactional fairness are strongly associated with transformational leadership.     

Ethical theory in business ethics: A critical assessment

How is ethical theory used in contemporary teaching in business ethics? To answer this question, we undertook a survey of twenty-five of the leading business ethics texts. Our purpose was to examine the ways in which normative moral theory is introduced and applied to cases and issues. We focused especially on the authors' views of the conflicts and tensions posed by basic theoretical debates. How can these theories be made useful if fundamental tensions are acknowledged? Our analysis resulted in a typology, presented here, of the ways in which normative theory, and the difficulties within it, are handled in business ethics texts. We conclude that there is a serious lack of clarity about how to apply the theories to cases and a persistent unwillingness to grapple with tensions between theories of ethical reasoning. These deficiencies hamper teaching and ethical decision-making.     

Institutionalization of organizational ethics through transformational leadership

Concerns regarding corporate ethics have grown steadily throughout the past decade. In order to remain competitive, many organizational leaders are faced with the challenge of creating an ethical environment within their organization. A model is presented showing the process and elements necessary for the institutionalization of organizational ethics. The transformational leadership style lends itself well to the creation of an ethical environment and is suggested as a means to facilitate the institutionalization of corporate ethics. Finally, the benefits of using transformational leadership are demonstrated through the components of a psychological contract, organizational commitment, and ethical culture to institutionalize organizational ethics.Dawn S. Carlson is a doctoral candidate in Organizational Behavior at the Florida State University. She teaches and conducts research in the areas of Organization Behavior, Ethics, and Human Resource Management. Dawn continues to be active in the Academy of Management and Southern Management Association. She recently presented a paper at the National Academy Meetings on Work/Nonwork Conflict.Dr. Pamela L. Perrewe is Associate Professor and Chairman of the Management Department in the College of Business at Florida State University. She teaches and conducts research in the areas of Organizational Behavior and Human Resource Management. Pam has recently co-authored a textbook entitled,Strategic Human Resource Management. She is a member of the Academy of Management, American Psychological Association, Decision Sciences Institute and the Southern Management Association (SMA). Recently, she was elected to the Board of Governors for SMA.     

Exploring the Interface Between Strategy-Making and Responsible Leadership

Theorists have long argued that a process of individualisation is inherent in conditions of late modernity. Whilst individualisation has been acknowledged in the business ethics literature, studies have often overlooked the processes by which individuals are given greater responsibility for ethical decision making and the personal and institutional effects of this responsibility. This article develops a notion of ‘ethical individualisation’ to help one understand and explore how and why ethical responsibility is being devolved to employees in the UK consulting industry. The article argues that an individualised ethics is incapable of preventing malpractice in the face of institutional conflicts of interest.     

A Cross-Cultural Examination of the Endorsement of Ethical Leadership

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. Christian J. Resick is Assistant Professor of Industrial and Organizational Psychology at Florida International University. His research is aimed at understanding how people interact with and influence various aspects of their work environments, including cultures, climates, leaders, and teammates along with the implications for various aspects of organizational behavior. A particular focus of Christian’s work examines ethical leadership and the critical linkages between leadership and organizational ethics. He received his Ph.D. from Wayne State University. Paul J. Hanges is a professor in the Department of Psychology at the University of Maryland and the head of the Industrial/Organizational Psychology program in the department. He is an affiliate of the Cognitive Psychology program and the R. H. Smith School of Business. Paul’s research focuses on three topics (a) social cognition, leadership, and cross-cultural issues; (b) personnel selection, test fairness, and racial/gender discrimination; and (c) research methodology. He is on the editorial board of the Journal of Applied Psychology and The Leadership Quarterly and is a fellow of the Society of Industrial and Organizational Psychology and the American Psychological Association. Marcus W. Dickson is Associate Professor of I/O Psychology at Wayne State University in Detroit. His research generally focuses on issues of leadership and culture (both organizational and societal), and the interaction of those constructs. He is a former Co-Principal Investigator of the GLOBE Project, and his work has appeared in Journal of Applied Psychology, Applied Psychology: An International Review, and The Leadership Quarterly, among others. Jacqueline K. Mitchelson is a doctoral candidate in Industrial and Organizational Psychology at Wayne State University. Her current research areas are leadership, organizational culture, individual differences and work-family conflict.     

Implementing New Institutional Logics in Pioneering Organizations: The Burden of Justifying Ethical Appropriateness and rustworthiness

This mixed-methods case study describes the experiences of a rural health organization in Canada that was a pioneer in undergoing institutionally driven radical change. This change was advocated by senior managers and physicians with the strong backing of the government. The senior managers and physicians made a strong case for the radical change and argued that a focus on efficiency and wellness would lead to improved service and quality of patient-care. However, this radical change initiative was resisted by nurses and support staff who perceived that these changes were being driven by market-based institutional logics and questioned their ethical appropriateness in a public system. They also expressed a lack of trust given the large-scale layoffs in a prior restructuring. These findings run counter to extant theory by highlighting the role of agency despite institutional pressures. Specifically, change implementers not only face the burden of justifying ethical appropriateness of institutional logics, but also are required to engage in persuasive discourse that these institutional logics protect the interests of the members.     

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.     

Leadership and Change: The Case for Greater Ethical Clarity

This article addresses the relationship between the ethics underpinning leadership and change. It examines the developments in leadership and change over the last three decades and their ethical implications. It adopts a consequentialist perspective on ethics and uses this to explore different approaches to leadership and change. In particular, the article focuses on individual (egoistic) consequentialism and utilitarian consequentialism. The article argues that all leadership styles and all approaches to change are rooted in a set of values, some of which are more likely to lead to ethical outcomes than others. It also argues that all stakeholders in an organisation have a role to play in ensuring ethical outcomes. It concludes that in order to achieve sustainable and beneficial change, those who promote and adopt particular approaches to leadership and change must provide greater ethical clarity about the approaches they are championing.     

Transformational Leadership and Leaders’ Mode of Care Reasoning

Previous research on the moral foundations of transformational leadership has focused primarily on stage of justice reasoning; this study focuses on developmental mode of care reasoning. Multilevel regression analyses were conducted on data coded from interviews with a sample of Canadian public sector managers (N?=?58) and survey responses from their subordinates (N?=?119). Results indicated that managers?? developmental mode of care reasoning significantly and positively predicted subordinates?? reports of transformational (but not transactional) leadership, with significant differences in follower reports of transformational leadership between those using more versus less advanced modes of care reasoning. Conceptual implications for understanding transformational leadership and the ethics of leadership, directions for future research, and suggestions for leadership interventions are discussed.     

Two sides of the same personality coin: An opportunity to refocus (un)ethical analysis

Prior ethics studies highlight the importance of understanding positive or negative leader personality characteristics to improve organizational outcomes. However, few studies combine both positive and negative leader personality characteristics, to unpack and guide ethics theorizations. This lack of methodological balance restricts how we perceive leader ethics, our understandings of organizational experiences, and therefore, our awareness of governance approaches. This study challenges the dominant ethics scholarly orthodoxy—which focuses on positive or negative leader characteristics—by combining self-determination theory and the Dark Triad perspective, to explore the plurality of ethical dimensions within organizational leadership. A case example is provided to highlight the need for this methodological awareness and four avenues of engagement are discussed to improve future organizational governance and ethics scholarship.     

How institutional logics shape fairness in crowdsourcing: The case of Threadless

Fairness is essential for successful crowdsourcing. Without it, companies run the risk of consumers not participating, or worse, sabotaging the crowdsourcing initiative. Yet little is known about how consumers determine what is fair in crowdsourcing. Building on theories of organizational justice and institutional logics, and using a longitudinal netnography of Threadless, a popular crowdsourcing platform, this paper shows how experiences of fairness stem from the interaction between two conflicting crowdsourcing logics: the logic of renewal and the logic of community. The two logics inform notions of fairness in crowdsourcing contests across procedural, distributive, and interactional justice dimensions. A balance between the two logics is ideal for maintaining fairness among a crowdsourcing community. We show the conditions in which crowdsourcing participants tolerate transgressions to each justice dimension, consequently emphasizing one logic over the other. Overall, our study advances theory on crowdsourcing logics and how they guide notions of procedural, distributive, and interactional fairness in crowdsourcing. Our study also offers new guidance on how to manage fairness in crowdsourcing.