Impact of employees’ perceived threat of market competition on unethical marketing and selling practices: Moral disengagement and ethical leadership

This study draws on the social cognitive theory to examine the effect of perceived market competition on employees’ unethical marketing and selling practices. The boundary conditions associated with this relationship were examined, and we posit that perceived market competition is related to unethical marketing and selling practices through the mediating mechanism of moral disengagement. We further propose that ethical leadership moderates the relationship between the perceived threat of market competition, moral disengagement, and tendency toward unethical marketing and selling practices. We tested our hypotheses with a sample of 387 employees working in the banking sector in Pakistan. Our results suggest that moral disengagement had a full mediation effect between the perceived threat of market competition and tendency of employees toward unethical marketing and selling practices. Moreover, ethical leadership moderated the relationship between moral disengagement and the tendency of employees toward unethical marketing practices. The research findings indicate that when field employees encounter threat perceptions due to market competition, they have a propensity toward engaging in unethical marketing and selling practices when they can activate moral disengagement. This study also found that ethical leadership negatively moderates the relationship of moral disengagement with employees’ tendency toward unethical marketing and selling practices.     

Testing a Model of Behavioral Intentions in the Republic of Macedonia: Differences Between the Private and the Public Sectors

In this study, we developed a model of unethical behavior intentions, collected data from managers of the private (n = 208) and the public (n = 307) sectors in the Republic of Macedonia, and tested our model across these two sectors. Results suggested that for both sectors, unethical behavior intentions were not related to the love of money and corporate ethical values, whereas irritation was negatively related to life satisfaction. Moreover, corporate ethical values were related to life satisfaction for the private sector only, whereas the love of money and unethical behavior intentions were related to irritation for the public sector only. Managers in the private sector had higher corporate ethical values, lower unethical behavior intentions, lower irritation, and higher life satisfaction than those in the public sector. There was no difference in the love of money. There were more bad apples in the public sector (34.85%) than in the private sector (23.56%). The strongest factor of unethical behavior intentions in the private and the public sectors␣was theft and corruption, respectively. Finally, for the culture-free (etic) model, the love of money was positively related to irritation. Corporate ethical values had a positive “double-whammy” effect: reducing irritation and enhancing life satisfaction. Unethical behavior intentions were positively related to irritation (a mediator), which was negatively related to life satisfaction. Our theory provides new insights regarding doing business in the Republic of Macedonia.

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.     

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.     

Ethical Issues in Australian Marketing Research Services

Abstract

The study focuses on Australian marketing research professionals' perceptions toward ethics in the marketing research profession and research services. These perceptions are specifically related to the ethical environment, ethical guidance, and leadership responsibility, factors leading to unethical marketing research practices and ethical climate characteristics. Overall findings underscore the importance of the role of management in setting the ethical tone and developing an appropriate frame of reference for ethical conduct and guidance in Australian marketing research.     

A Scale to Assess Ethical Leadership of Indian Private and Public Sector Managers

Three hundred forty middle-level managers from two private and two public sector manufacturing companies in India rated their superiors on 22 items of ethical leadership. Factor analysis of the scores on such items yielded two dimensions of ethical leadership: (a) empowerment, and (b) motive and character. Items of the scale had high reliability, validity, and discriminative power. On two dimensions of ethical leadership, the superiors self-rated themselves more favorably than their subordinates rated them. This justified the proposal to consider the subordinates' ratings to their superiors in assessing ethical leadership. Subordinates perceived their superiors more ethical in private sector than in public sector. Subordinates' manipulative behavior, and cheating in performance and misuse of finance were less frequent in the presence of ethical superiors. Also, ethical superiors enhanced the job performance, job involvement and affective commitment of their subordinates but not their continuance commitment.     

The Relationship Between Ethical Leadership and Unethical Pro-Organizational Behavior: Linear or Curvilinear Effects?

In this study, we examine the nature of the relationship between ethical leadership and unethical pro-organizational behavior (UPB), defined as unethical behavior conducted by employees with the aim of benefiting their organization, and whether the strength of the relationship differs between subordinates experiencing high and low identification with supervisor. Based on three-wave survey data obtained from 239 public sector employees in China, we find that ethical leadership has an inverted u-shaped (curvilinear) relationship with UPB. As the level of ethical leadership increases from low to moderate, UPB increases; as the level of ethical leadership increases from moderate to high, UPB decreases. Further, we find that the strength of this inverted u-curve relationship differs between subordinates with high and low identification with supervisor. That is to say, the inverted u-shaped relationship between ethical leadership and UPB was stronger when subordinates experienced high levels of identification with supervisor. The theoretical and managerial implications of our findings for understanding how to manage UPB in an organizational context are discussed.     

What Ethical Leadership Means to Me: Asian,American, and European Perspectives

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.     

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.     

<Emphasis Type="Italic">The Sound of Silence – A Space for Morality?</Emphasis> The Role of Solitude for Ethical Decision Making

Building on research and measures on solitude, ethical leadership theories, and decision making literatures, we propose a conceptual model to better understand processes enabling ethical leadership neglected in the literature. The role of solitude as antecedent is explored in this model, whereby its selective utilization focuses inner directionality toward growing authentic executive awareness as a moral person and a moral manager and allows an integration between inner and outer directionality toward ethical leadership and resulting decision-making processes that will have an impact on others’ perceptions of leader authentic ethical leadership. Thus it is proposed that utilization of solitude positively predicts executive-level authentic ethical leadership action and in turn, ethical decision making perceived fairness and integrity. We also propose two moderators, strengthening the hypothesized (positive) association between solitude and ethical leadership; these are the executive’s ability for moral reasoning and a motivation for socialized (as opposed to personalized) power.     

Spanish and American Executives' Ethical Judgments and Intentions

This study explores differences between executives in the U.S. and Spain in their perceptions of ethical issues in pricing, specifically comparing a domestic firm's actions affecting a foreign market versus a foreign firm's actions affecting the domestic market. Overall, Spanish and American executives provided somewhat different responses to the scenarios. Findings indicate that ethical judgments and intentions among Spanish executives did not vary based on which country was harmed. U.S. executives generally perceived that a morally questionable act directed at a foreign country was more unethical than a morally questionable act directed at the United States. Possible explanations for these findings are suggested.     

The Influence of Business School’s Ethical Climate on Students’ Unethical Behavior

Business schools play an instrumental role in laying the foundations for ethical behavior and socially responsible actions in the business community. Drawing on social learning and identity theories and using data collected from undergraduate business students (n = 318), we found that ethical climate was a significant predictor of unethical behavior, such that students with positive perceptions about their business school’s ethical climate were more likely to refrain from unethical behaviors. Moreover, we found that high moral and institutional identities strengthened the effect of ethical climate on unethical behavior. In addition to novel theoretical contributions to the business ethics and socio-psychology literature, this study offers practical pathways through which business schools can nurture and instill the values and behaviors that ultimately help shape positive organizational ethics. Directions for future research are provided.     

Managerial and Public Attitudes Toward Ethics in Marketing Research

This research updates and significantly extends Akaah and Riordon’s (J Market Res 26:112–120, 1989) evaluation of ethical perceptions of marketing research misconduct among marketing research professionals. In addition to examining changes in perceptions toward key marketing research practices over time, we assess professionals’ judgments on the ethicality, importance, and occurrence of a variety of new marketing research ethics situations in both online and offline contexts. In a second study, we assess ethical judgments of the public at large using a representative sample of US consumers—key stakeholders ignored in prior research on unethical marketing research practices. Generally speaking, disapproval of unethical research conduct has grown across the board in the last 20?years for both managers and marketing researchers. The same misconduct elicits a stronger disapproval in the online environment compared to the offline environment. Compared to marketing researchers, managers tend to think that unethical research conduct occurs more frequently. Those who conduct marketing research or use its findings (i.e., marketing researchers and managers) are less tolerant of unethical research conduct than the general public.     

Influence of Personal Values and Value Congruence on Unethical Practices and Work Behavior

The study examines whether (a) personal and organizational values differ in private and public sectors, and (b) personal values and value congruence – the extent of matching between personal and organizational values – influence unethical practices and work behavior. Three hundred and forty middle-level managers from four manufacturing organizations rated 22 values as guiding principles to them to identify their personal values. In order to index organizational values, 56 top-level managers of the same organizations rated how important such values were to the organization. Results revealed that the important shared values among managers of private and public sectors are product quality and customer service. Congruence between personal and organizational values is found to be higher in the private sector compared to the public sector. Middle-level managers in the private sector shared the organizational values more than the managers in the public sector. Irrespective of the type of organizations and age of managers, personal values more potently and consistently decreased unethical practices and increased work behavior compared to value congruence. Hiring managers emphasizing personal values can demote unethical practices and promote work behavior.     

The Normative Foundations of Unethical Supervision in Organizations

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.     

Responsible Leadership in a Stakeholder Society – A Relational Perspective

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following Bass and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society.     

(Un)Ethical Behavior and Performance Appraisal: The Role of Affect,Support, and Organizational Justice

Performance appraisals are widely used as an HR instrument. This study among 332 police officers examines the effects of performance appraisals from a behavioral ethics perspective. A mediation model relating justice perceptions of police officers’ last performance appraisal to their work affect, perceived supervisor and organizational support and, in turn, their ethical (pro-organizational proactive) and unethical (counterproductive) work behavior was tested empirically. The relationship between justice perceptions and both, ethical and unethical behavior was mediated by perceived support and work affect. Hence, a singular yearly performance appraisal was linked to both ethical and unethical behaviors at work. The finding that ethical and unethical aspects of employee behavior share several of the same organizational antecedents, namely organizational justice perceptions, has strong practical implications which are discussed as well.     

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.     

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.     

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.