Skip to main content

Do ethical leaders enhance employee ethical behaviors?

Organizational justice and ethical climate as dual mediators and leader moral attentiveness as a moderator--Evidence from Iraq's emerging market

Abstract

Corruption devours profits, people, and the planet. Ethical leaders promote ethical behaviors. We develop a first-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership (member rated, Time 1) and employee ethical behaviors (leader rated, Time 3), and treat ethical climate and organizational justice (member rated, Time 2) as dual mediators and leaders’ moral attentiveness (leader rated, Time 3) as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: These dual mediation mechanisms are more robust for high moral leaders than low moral leaders. Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifically, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only influences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our findings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers (subordinates) apply their values (ethical leadership) as a lens to frame their concerns in the immediate (organizational justice and ethical climate) and omnibus (leader moral attentiveness) contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange (LMX), business ethics, and economic potentials in the global competitive markets.

This is a preview of subscription content, access via your institution.

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Notes

  1. We thank Editor Allan K. K. Chan, Associate Editor Morgan Yang, and two anonymous reviewers for their constructive feedback and suggestions.

  2. For Christians, see the Holy Bible (1 Timothy 6: 9–10). For Muslims, see the Holy Quran (2: 188; 2: 60; 4: 29).

References

  • Abdullah, S. M. (2019). Corruption protection: Fractionalization and the corruption of anti-corruption efforts in Iraq after 2003. British Journal of Middle Eastern Studies, 46(3), 358–374.

    Article  Google Scholar 

  • Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38, 932–968.

    Article  Google Scholar 

  • Aguinis, H., Gottfredson, R. K., & Culpepper, S. A. (2013). Best-practice recommendations for estimating cross-level interaction effects using multilevel modeling. Journal of Management, 39(6), 1490–1528.

    Article  Google Scholar 

  • Al Halbusi, H., & Tehseen, S. (2017). Corporate social responsibility (CSR): A literature review. Malaysian Journal of Business and Economics, 4(2), 30–48.

    Google Scholar 

  • Al Halbusi, H. A., Ismail, M. N., & Omar, S. (2019). Examining the impact of ethical leadership on employees’ ethical behavior: The role of organizational justice and employees’ moral identity. Journal of Technology Management and Business, 6(2), 30–48.

    Article  Google Scholar 

  • Al Halbusi, H., Williams, K. A., Mansoor, H. O., Hassan, M. S., & Hamid, F. A. H. (2020a). Examining the impact of ethical leadership and organizational justice on employees’ ethical behavior: Does person–organization fit play a role? Ethics & Behavior, 30(7), 514–532.

    Article  Google Scholar 

  • Al Halbusi, H., Williams, K. A., Ramayah, T., Aldieri, L., & Vinci, C. P. (2020b). Linking ethical leadership and ethical climate to employees’ ethical behavior: The moderating role of person–organization fit. Personnel Review, 50(1), 159–185.

    Article  Google Scholar 

  • Al Halbusi, H., Ruiz-Palomino, P., Jimenez-Estevez, P., & Gutiérrez-Broncano, S. (2021a). How upper/middle managers’ ethical leadership activates employee ethical behavior? The role of organizational justice perceptions among employees. Frontiers in Psychology, 12, 719.

    Article  Google Scholar 

  • Al Halbusi, H., Ruiz-Palomino, P., Morales-Sánchez, R., & Abdel Fattah, F. A. M. (2021b). Managerial ethical leadership, ethical climate and employee ethical behavior: Does moral attentiveness matter? Ethics & Behavior, 1–24.

  • Ali, A. J., & Al-Owaihan, A. (2008). Islamic work ethic: A critical review. Cross Cultural Management: An International Journal, 15(1), 5–19.

    Article  Google Scholar 

  • Arab, H. R., & Atan, T. (2018). Organizational justice and work outcomes in the Kurdistan Region of Iraq. Management Decision, 56(4), 808–827.

    Article  Google Scholar 

  • Arraf, J. (2019). They have stolen everything from us: Iraq’s anti-government protests continue. NPR News. https://www.npr.org/2019/11/05/776051741/they-have-stolen-everything-from-us-iraqs-anti-government-protests-continue.

  • Babalola, M. T., Stouten, J., Camps, J., & Euwema, M. (2019). When do ethical leaders become less effective? The moderating role of perceived leader ethical conviction on employee discretionary reactions to ethical leadership. Journal of Business Ethics, 154(1), 85–102.

    Article  Google Scholar 

  • Bandura, A. (1977). Social Learning Theory. Prentice-Hall.

  • Bargh, J. A. (1989). Conditional automaticity: Varieties of automatic influence in social perception and cognition. In J. S. Uleman & J. A. Bargh (Eds.), Unintended thought (pp. 3–51). Guilford Press.

    Google Scholar 

  • Bargh, J. A., & Thein, R. D. (1985). Individual construct accessibility, person memory, and the recall-judgment link: The case of information overload. Journal of Personality and Social Psychology, 49(5), 1129.

    Article  Google Scholar 

  • Bedi, A., Alpaslan, C. M., & Green, S. (2016). A meta-analytic review of ethical leadership outcomes and moderators. Journal of Business Ethics, 139(3), 517–536.

    Article  Google Scholar 

  • Blau, P. M. (1964). Exchange and power in social life. Wiley.

    Google Scholar 

  • Brislin, R. W. (1980). Translation and content analysis of oral and written materials. In H. C. Triandis & J. W. Berry (Eds.), Handbook of cross-cultural psychology: Methodology (pp. 389–444). Allyn & Bacon.

    Google Scholar 

  • Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616.

    Article  Google Scholar 

  • Brown, M. E., & Treviño, L. K. (2014). Do role models matter? An investigation of role modeling as an antecedent of perceived ethical leadership. Journal of Business Ethics, 122(4), 587–598.

    Article  Google Scholar 

  • Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97(2), 117–134.

    Article  Google Scholar 

  • Budur, T., & Demir, A. (2019). Leadership effects on employee perception about CSR in Kurdistan Region of Iraq. International Journal of Social Sciences & Educational Studies, 5(4), 184–192.

    Google Scholar 

  • C4ADS. (2018). Annual Report 2018. https://c4ads.org/about-us.

  • Chen, J. Q., Tang, T. L. P., & Tang, N. Y. (2014). Temptation, monetary intelligence (love of money), and environmental context on unethical intentions and cheating. Journal of Business Ethics, 123(2), 197–219.

    Article  Google Scholar 

  • Chen, Y., Friedman, R., Yu, E., & Sun, F. (2011). Examining the positive and negative effects of guanxi practices: A multi-level analysis of guanxi practices and procedural justice perceptions. Asia Pacific Journal of Management, 28(4), 715–735.

    Article  Google Scholar 

  • Chen, Y. J., & Tang, T. L. P. (2013). The bright and dark sides of religiosity among university students: Do gender, college major, and income matter? Journal of Business Ethics, 115(3), 531–553.

    Article  Google Scholar 

  • Chin, M. K., Zhang, S. X., Jahanshahi, A. A., & Nadkarni, S. (2021). Unpacking political ideology: CEO social and economic ideologies, strategic decision-making process, and corporate entrepreneurship. Academy of Management Journal, 64(4), 1213–1235.

    Article  Google Scholar 

  • Choi, S. B., Ullah, S., & Kwak, W. J. (2015). Ethical leadership and followers’ attitudes toward corporate social responsibility: The role of perceived ethical work climate. Social Behavior and Personality: An International Journal, 43(3), 353–365.

    Article  Google Scholar 

  • Cohen, J. (1992). Statistical power analysis. Current Directions in Psychological Sciences, 1, 98–101. https://doi.org/10.1111/1467-8721.ep10768783.

    Article  Google Scholar 

  • Colquitt, J. A. (2001). On the dimensionality of organizational justice: A construct validation of a measure. Journal of Applied Psychology, 86(3), 386.

    Article  Google Scholar 

  • Colquitt, J. A. (2012). Organizational justice. In S. W. J. Kozlowski (Ed.). The Oxford Handbook of Organizational Psychology, (1). Oxford University Press.

  • Colquitt, J. A., & Greenberg, J. (2003). Organizational justice: A fair assessment of the state of the literature. Organizational Behavior: The State of the Science, 159–200.

  • Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425.

    Article  Google Scholar 

  • Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social exchange theory: A critical review with theoretical remedies. Academy of Management Annals, 11(1), 479–516.

    Article  Google Scholar 

  • Cropanzano, R., Byrne, Z. S., Bobocel, D. R., & Rupp, D. E. (2001). Moral virtues, fairness heuristics, social entities, and other denizens of organizational justice. Journal of Vocational Behavior, 58(2), 164–209.

    Article  Google Scholar 

  • Culiberg, B., & Mihelič, K. K. (2016). Three ethical frames of reference: Insights into Millennials’ ethical judgements and intentions in the workplace. Business Ethics: A European Review, 25(1), 94–111.

    Article  Google Scholar 

  • Dane, E. (2021). Attention, please: How the attention-related stories we tell our students in class influence their performance at work. Academy of Management Learning & Education, 20(1), 73–88.

    Article  Google Scholar 

  • De Cremer, D. (2016). 6 traits that predict ethical behavior at work. Harvard Business Review, December 22. https://hbr.org/2016/12/6-traits-that-predict-ethical-behavior-at-work.

  • De Hoogh, A. H. B., & Den Hartog, D. N. (2008). Ethical and despotic leadership, relationships with leader’s social responsibility, top management team effectivnesss and subodrinates’ optimism: A multi-method study. Leadership Quarterly, 19(3), 297–311.

    Article  Google Scholar 

  • Decoster, S., Stouten, J., & Tripp, T. M. (2019). When employees retaliate against self-serving leaders: The influence of the ethical climate. Journal of Business Ethics, 1–19.

  • Demirtas, O. (2015). Ethical leadership influence at organizations: Evidence from the field. Journal of Business Ethics, 126(2), 273–284.

    Article  Google Scholar 

  • Doh, J. P., Littell, B., & Quigley, N. R. (2015). CSR and sustainability in emerging markets: Societal, institutional, and organizational influences. Organizational Dynamics, 2(44), 112–120.

    Article  Google Scholar 

  • Edmans, A. (2011). Does the stock market fully value intangibles? Employee satisfaction and equity price. Journal of Financial Economics, 101, 621–640.

    Article  Google Scholar 

  • Elkington, J. (1998). Cannibals with forks: The triple bottom line of the 21st century. New Society Publishers.

    Google Scholar 

  • Engelbrecht, A. S., Van Aswegen, A. S., & Theron, C. C. (2005). The effect of ethical values on transformational leadership and ethical climate in organizations. South African Journal of Business Management, 36(2), 19–26.

    Article  Google Scholar 

  • Enwereuzor, I. K., Onyishi, I. E., Albi-Oparaocha, F. C., & Amaeshi, K. (2020). Perceived leader integrity as a mediator between ethical leadership and ethical climate in a teaching context. BMC Psychology, 8(1), 1–11.

    Article  Google Scholar 

  • Ethisphere. (2018). Leading practices and trends from the 2018 World’s Most Ethical Companies. https://bela.ethisphere.com/wp-content/uploads/leading-practices-and-trends-from-the-2018-wmec.pdf.

  • Eva, N., Bobin, M., Sendjaya, S., van Dierendonck, D., & Liden, R. C. (2018). Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), 111–132.

    Article  Google Scholar 

  • Fatima, Z. (2020). Exploring the organizational factors affecting salesforce ethical behavior: A review-based article. Asian Journal of Business Ethics, 9(1), 29–45.

    Article  Google Scholar 

  • Faul, F., Erdfelder, E., Lang, A. G., & Buchner, A. (2007). G* Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175–191.

    Article  Google Scholar 

  • Ferrell, O. C., & Weaver, M. (1978). Ethical beliefs of marketing managers. Journal of Marketing, 42(3), 69–73.

    Google Scholar 

  • Fiske, S. T., & Taylor, S. E. (1991). Social cognition (2nd ed.). McGraw-Hill.

    Google Scholar 

  • Flintoff, C. (2007). Report reveals corruption in Iraqi Government. NPR News. https://www.npr.org/templates/story/story.php?storyId=14117853.

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Gentina, E., & Tang, T. L. P. (2018). Does adolescent popularity mediate relationships between both theory of mind and love of money and consumer ethics? Applied Psychology: An International Review, 67(4), 723–767.

    Article  Google Scholar 

  • Gentina, E., Daniel, C., & Tang, T. L. P. (2021). Mindfulness reduces avaricious monetary attitudes and enhances ethical consumer beliefs: Mindfulness training, timing, and practicing matter. Journal of Business Ethics, 173, 301–323.

    Article  Google Scholar 

  • Giessner, S., & Van Quaquebeke, N. (2010). Using a relational model’s perspective to understand normatively appropriate conduct in ethical leadership. Journal of Business Ethics, 95(1), 43–55.

    Article  Google Scholar 

  • Gino, F., & Pierce, L. (2009). Dishonesty in the name of equity. Psychological Science, 20, 1153–1160.

    Article  Google Scholar 

  • Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American Sociological Review, 161–178.

  • Greenberg, J. (1993). Stealing in the name of justice: Informational and interpersonal moderators of theft reactions to underpayment inequity. Organizational Behavior and Human Decision Processes, 54, 81–103.

    Article  Google Scholar 

  • Gu, Q. X., Tang, T. L. P., & Jiang, W. (2015). Does moral leadership enhance employee creativity? Employee identification with leader and leader-member exchange (LMX) in the Chinese context. Journal of Business Ethics, 126(3), 513–529.

    Article  Google Scholar 

  • Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks.

    Google Scholar 

  • Hair, J. F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least squares. European Journal of Marketing, 53(4), 566–584.

    Article  Google Scholar 

  • Hannah, S. T., Avolio, B. J., & May, D. R. (2011). Moral maturation and moral conation: A capacity approach to explaining moral thought and action. Academy of Management Review, 36(4), 663–685.

    Google Scholar 

  • Harff, B. (2018). Ethnic conflict in world politics. Routledge.

    Book  Google Scholar 

  • Harman, H. H. (1967). Modern factor analysis. Chicago, IL: University of Chicago Press.

    Google Scholar 

  • Hayes, A. F. (2015). An index and test of linear moderated mediation. Multivariate Behavioral Research, 50(1), 1–22.

    Article  Google Scholar 

  • Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Publications.

  • Hayes, A. F., & Rockwood, N. J. (2017). Regression-based statistical mediation and moderation analysis in clinical research: Observations, recommendations, and implementation. Behaviour Research and Therapy, 98, 39–57.

    Article  Google Scholar 

  • Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

    Article  Google Scholar 

  • Hofstede Center (1967–2010). Geert Hofstede cultural dimensions. Retrieved February 10, 2021 from https://geert-hofstede.com/, https://doi.org/10.1007/978-3-319-23514-1_1205-1.

  • Hulland, J., Baumgartner, H., & Smith, K. M. (2018). Marketing survey research best practices: Evidence and recommendations from a review of JAMS articles. Journal of the Academy of Marketing Science, 46(1), 92–108.

    Article  Google Scholar 

  • Husted, B. W., & Allen, D. B. (2008). Toward a model of cross-cultural business ethics: The impact of individualism and collectivism on the ethical decision-making process. Journal of Business Ethics, 82(2), 293–305.

    Article  Google Scholar 

  • Jain, T., Aguilera, R. V., & Jamali, D. (2017). Corporate stakeholder orientation in an emerging country context: A longitudinal cross industry analysis. Journal of Business Ethics, 143(4), 701–719.

    Article  Google Scholar 

  • Jamali, D., & Karam, C. (2018). Corporate social responsibility in developing countries as an emerging field of study. International Journal of Management Reviews, 20(1), 32–61.

    Article  Google Scholar 

  • Jamali, D., Barkemeyer, R., Leigh, J. S. A., & Samara, G. (2021). Editorial: Chaos as opportunity. Business Ethics, Environment and Responsibility, 30, 1–3.

    Google Scholar 

  • Jamali, D., Leigh, J. S. A., Barkemeyer, R., & Samara, G. (2020). Want to get your paper published? Please follow this virtuous guidance! Business Ethics: A European Review, 29(2), 245–247.

    Article  Google Scholar 

  • Jones, T. M., & Ryan, L. V. (1998). The effect of organizational forces on individual morality: Judgment, moral approbation, and behavior. Business Ethics Quarterly, 8(3), 431–445.

    Article  Google Scholar 

  • Karam, E. P., Hu, J., Davison, R. B., Juravich, M., Nahrgang, J. D., Humphrey, S. E., & Scott DeRue, D. (2019). Illuminating the ‘face’ of justice: A meta-analytic examination of leadership and organizational justice. Journal of Management Studies, 56(1), 134–171.

    Article  Google Scholar 

  • Kohlberg, L. (1981). Essays on moral development. The Philosophy of Moral Development, Vol. I. Harper & Row.

  • Koo, H., & Park, C. (2018). Foundation of leadership in Asia: Leader characteristics and leadership style review and research agenda. Asia Pacific Journal of Management, 35(3), 697–718.

    Article  Google Scholar 

  • Kuenzi, M., Mayer, D. M., & Greenbaum, R. L. (2020). Creating an ethical organizational environment: The relationship between ethical leadership, ethical organizational climate, and unethical behavior. Personnel Psychology, 73(1), 43–71.

    Article  Google Scholar 

  • Lin, X. W., Che, H. S., & Leung, K. (2009). The role of leader morality in the interaction effect of procedural justice and outcome favorability. Journal of Applied Social Psychology, 39(7), 1536–1561.

    Article  Google Scholar 

  • Lu, C. S., & Lin, C. C. (2014). The effects of ethical leadership and ethical climate on employee ethical behavior in the international port context. Journal of Business Ethics, 124(2), 209–223.

    Article  Google Scholar 

  • Martin, K. D., & Cullen, J. B. (2006). Continuities and extensions of ethical climate theory: A meta-analytic review. Journal of Business Ethics, 69(2), 175–194.

    Article  Google Scholar 

  • Mayer, D. M., Aquino, K., Greenbaum, R. L., & Kuenzi, M. (2012). Who displays ethical leadership, and why does it matter? An examination of antecedents and consequences of ethical leadership. Academy of Management Journal, 55(1), 151–171.

    Article  Google Scholar 

  • Mayer, D. M., Kuenzi, M., Greenbaum, R., Bardes, M., & Salvador, R. B. (2009). How low does ethical leadership flow? Test of a trickle-down model. Organizational Behavior and Human Decision Processes, 108(1), 1–13.

    Article  Google Scholar 

  • Miao, Q., Eva, N., Newman, A., Nielsen, I., & Herbert, K. (2020). Ethical leadership and unethical pro-organisational behaviour: The mediating mechanism of reflective moral attentiveness. Applied Psychology: An International Review, 69(3), 834–853.

    Article  Google Scholar 

  • Mitchell, M. S., Cropanzano, R. S., & Quisenberry, D. M. (2012). Social exchange theory, exchange resources, and interpersonal relationships: A modest resolution of theoretical difficulties. In Handbook of social resource theory (pp. 99–118). Springer.

  • Mitchell, M. S., Reynolds, S. J., & Treviño, L. K. (2017). The study of behavioral ethics within organizations. Personnel Psychology, 70(2), 313–314.

    Article  Google Scholar 

  • Moaddel, M., & Karabenik, S. A. (2010). Religious fundamentalism in eight Muslim-majority countries: Reconceptualization and assessment. Journal for the Scientific Study of Religion, 57(4), 676–706.

    Article  Google Scholar 

  • Moore, J. W. (Ed.) (2016). Anthropocene or capitalocene? Nature, history, and the crisis of capitalism : Pm Press.

  • Nelissen, R. M., Dijker, A. J., & de Vries, N. K. (2007). Emotions and goals: Assessing relations between values and emotions. Cognition and Emotion, 21(4), 902–911.

    Article  Google Scholar 

  • Newstrom, J. W. & Ruch, W. A. (1975). The ethics of management and the management of ethics. MSU Business Topics (Winter), 29–37.

  • O’Keefe, D. F., Howell, G. T., & Squires, E. C. (2020). Ethical leadership begets ethical leadership: Exploring situational moderators of the trickle-down effect. Ethics & Behavior, 30, 581–600.

    Article  Google Scholar 

  • Osswald, S., Greitemeyer, T., Fischer, P., & Frey, D. (2010). What is moral courage? Definition, explication, and classification of a complex construct. The Psychology of Courage: Modern Research on an Ancient Virtue, 149, 164.

    Google Scholar 

  • Özbek, M. F., Yoldash, M. A., & Tang, T. L. P. (2016). Theory of justice, OCB, and individualism: Kyrgyz citizens. Journal of Business Ethics, 137(2), 365–382.

    Article  Google Scholar 

  • Palanski, M., Newman, A., Leroy, H., Moore, C., Hannah, S., & Den Hartog, D. (2021). Quantitative research on leadership and business ethics: Examining the state of the field and an agenda for future research. Journal of Business Ethics, 168, 109–119.

    Article  Google Scholar 

  • Pan, X., Chen, M., Hao, Z., & Bi, W. (2018). The effects of organizational justice on positive organizational behavior: Evidence from a large-sample survey and a situational experiment. Frontiers in Psychology, 8, 2315.

    Article  Google Scholar 

  • Parboteeah, K. P., Weiss, M., & Hoegl, M. (2018). Ethical climates across national contexts: A meta-analysis. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 12840). Academy of Management.

  • Peng, H., & Wei, F. (2020). How and when does leader behavioral integrity influence employee voice? The roles of team independence climate and corporate ethical values. Journal of Business Ethics, 166(3), 505–521.

    Article  Google Scholar 

  • Pircher Verdorfer, A., & Peus, C. (2020). Leading by example: Testing a moderated mediation model of ethical leadership, value congruence, and followers’ openness to ethical influence. Business Ethics: A European Review, 29(2), 314–332.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539–569.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, & Computers, 36(4), 717–731.

    Article  Google Scholar 

  • Preacher, K., & Hayes, A. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behaviour Research Methods, 40(3), 879–891.

    Article  Google Scholar 

  • Presbitero, A., & Teng-Calleja, M. (2019). Ethical leadership, team leader’s cultural intelligence and ethical behavior of team members: Implications for managing human resources in global teams. Personnel Review, 48(5), 1381–1392.

    Article  Google Scholar 

  • Research and Markets (2018). Assessment of opportunities in Iraq, 2018: Untapped market-from war, to reconstruction and economic recovery. https://www.globenewswire.com/news-release/2018/10/02/1588405/0/en/Assessment-of-Opportunities-in-Iraq-2018-Untapped-Market-From-War-to-Reconstruction-and-Economic-Recovery.html.

  • Reynolds, M. (1998). Reflection and critical reflection in management learning. Management Learning, 29(2), 183–200.

    Article  Google Scholar 

  • Reynolds, S. J. (2006). Moral awareness and ethical predispositions: Investigating the role of individual differences in the recognition of moral issues. Journal of Applied Psychology, 91(1), 233.

    Article  Google Scholar 

  • Reynolds, S. J. (2008). Moral attentiveness: Who pays attention to the moral aspects of life? Journal of Applied Psychology, 93(5), 1027–1041.

    Article  Google Scholar 

  • Reynolds, S. J., & Ceranic, T. L. (2009). On the causes and conditions of moral behavior; why is this all we know? In D. De Cremer (Ed.), Psychological perspectives on ethical behavior and decision making (pp. 17–35). Information Age Publishing.

    Google Scholar 

  • Ribberink, E., Achterberg, P., & Houtman, D. (2018). Religious polarization: Contesting religion in secularized Western European countries. Journal of Contemporary Religion, 33(2), 209–227.

    Article  Google Scholar 

  • Ringle, C.M., Wende, S., & Becker, J.M., (2015). SmartPLS 3. Bonningstedt: SmartPLS. Retrieved December 30, 2018, from http://www.smartpls.com.

  • Robinson, P. (2016). The fall of the warrior king: Situational ethics in Iraq. In Ethics Education for Irregular Warfare (pp. 75–86). Routledge.

  • Ryan, C. (2020). Refereeing articles including SEM: What should referees look for? Tourism Critiques, 1(1), 47–61.

    Article  Google Scholar 

  • Schaubroeck, J., Walumbwa, F. O., Ganster, D. C., & Kepes, S. (2007). Destructive leader traits and the neutralizing influence of an “enriched” job. The Leadership Quarterly, 18(3), 236–251.

    Article  Google Scholar 

  • Schminke, M., Ambrose, M. L., & Neubaum, D. O. (2005). The effect of leader moral development on ethical climate and employee attitudes. Organizational Behavior and Human Decision Processes, 97(2), 135–151.

    Article  Google Scholar 

  • Shah, N., Anwar, S., & Irani, Z. (2017). The impact of organisational justice on ethical behaviour. International Journal of Business Innovation and Research, 12(2), 240–258.

    Article  Google Scholar 

  • Simons, T. (2002). Behavioral integrity: The perceived alignment between managers’ words and deeds as a research focus. Organization Science, 13, 18–35.

    Article  Google Scholar 

  • Smith, A., & Hume, E. C. (2005). Linking culture and ethics: A comparison of accountants’ ethical belief systems in the individualism/collectivism and power distance contexts. Journal of Business Ethics, 62(3), 209–220.

    Article  Google Scholar 

  • Srivastava, R. V., & Tang, T. L. P. (2021). The Matthew Effect in talent management strategy: Reducing exhaustion, increasing satisfaction, and inspiring commission among boundary spanning employees. Journal of Business and Industrial Marketing, 37(3), 477–496.

    Article  Google Scholar 

  • Sulaiman, R. B., Toulson, P. K., Brougham, D., Lempp, F. D., & Khan, M. (2021). Why religiosity is not enough in workplace ethical decision-making. Asian Journal of Business Ethics, 10(1), 37–60.

    Article  Google Scholar 

  • Tang, N. Y., Chen, J. Q., Zhang, K. L., & Tang, T. L. P. (2018). Monetary wisdom: How do investors use love of money to frame stock volatility and enhance stock happiness? Journal of Happiness Studies, 19(6), 1831–1862.

    Article  Google Scholar 

  • Tang, T. L. P. (1992). The meaning of money revisited. Journal of Organizational Behavior, 13, 197–202.

    Article  Google Scholar 

  • Tang, T. L. P. (2016). Theory of Monetary Intelligence: Money attitudes—religious values, making money, making ethical decisions, and making the grade. Journal of Business Ethics, 133, 583–603.

    Article  Google Scholar 

  • Tang, T. L. P. (2020a). Monetary wisdom: A measure of attitude toward money—constructs and items. In D. Poff & A. Michalos (Eds.), Encyclopedia of Business and Professional Ethics. Cham: Springer.

    Google Scholar 

  • Tang, T. L. P. (2020b). Monetary wisdom: Intelligence vs. wisdom. In: Poff, D., Michalos, A. (Eds.) Encyclopedia of Business and Professional Ethics. Springer, Cham. https://doi.org/10.1007/978-3-319-23514-1_1206-1.

  • Tang, T. L. P. (2021a). The Matthew Effect in monetary wisdom. Asian Journal of Business Ethics. https://doi.org/10.1007/s13520-021-00126-x.

  • Tang, T. L. P. (2021b). Monetary wisdom: From the Holy Bible to a management theory. In G. R. Ferris, P. L. Perrewé, & A. Akande (Eds.), Emerging trends in global organizational science phenomena: Critical roles of politics, leadership, stress, and context (pp. 149–170). Nova Science Publishers.

  • Tang, T. L. P., & Chen, Y. J. (2008). Intelligence vs. wisdom: The love of money, Machiavellianism, and unethical behavior across college major and gender. Journal of Business Ethics, 82, 1–26.

    Article  Google Scholar 

  • Tang, T. L. P., & Chiu, R. K. (2003). Income, money ethic, pay satisfaction, commitment, and unethical behavior: Is the love of money the root of evil for Hong Kong employees? Journal of Business Ethics, 46(1), 13–30.

    Article  Google Scholar 

  • Tang, T. L. P., & Ibrahim, A. H. S. (1998). Importance of human needs during retrospective peacetime and the Persian Gulf War: Mideastern employees. International Journal of Stress Management, 5(1), 25–37.

    Article  Google Scholar 

  • Tang, T. L. P., & Liu, H. (2012). Love of money and unethical behavior intention: Does an authentic supervisor’s personal integrity and character (ASPIRE) make a difference? Journal of Business Ethics, 107(3), 295–312.

    Article  Google Scholar 

  • Tang, T. L. P., & West, W. B. (1997). The importance of human needs during peacetime, retrospective peacetime, and the Persian Gulf War. International Journal of Stress Management, 4(1), 47–62.

    Google Scholar 

  • Tang, T. L. P., Ibrahim, A. H. S., & West, W. B. (2002). Effects of war-related stress on the satisfaction of human needs: The United States and the Middle East. International Journal of Management Theory and Practices, 3(1), 35–53.

    Google Scholar 

  • Tang, T. L. P., Kim, J. K., & Tang, D. S. H. (2000). Does attitude toward money moderate the relationship between intrinsic job satisfaction and voluntary turnover? Human Relations, 53(2), 213–245.

    Article  Google Scholar 

  • Tang, T. L. P., Sutarso, T., Ansari, M. A., Lim, V. K. G., Teo, T. S. H., Arias-Galicia, F., et al. (2018). Monetary intelligence and behavioral economics: The Enron Effect—Love of money, corporate ethical values, Corruption Perceptions Index (CPI), and dishonesty across 31 geopolitical entities. Journal of Business Ethics, 148(4), 919–937.

    Article  Google Scholar 

  • Tarip, I. (2020). Organizational moral learning by spiritual hearts: A synthesis of organizational learning, Islamic and critical realist perspectives. Asian Journal of Business Ethics, 9(2), 323–347.

    Article  Google Scholar 

  • Tenbrunsel, A. E., & Smith-Crowe, K. (2008). 13 ethical decision making: Where we’ve been and where we’re going. The Academy of Management Annals, 2(1), 545–607.

    Article  Google Scholar 

  • Tice, D. M. (1992). Self-concept change and self-presentation: The looking glass self is also a magnifying glass. Journal of Personality and Social Psychology, 63(3), 435.

    Article  Google Scholar 

  • Treviño, L. K., den Nieuwenboer, N. A., & Kish-Gephart, J. J. (2014). (Un)ethical behavior in organizations. Annual Review of Psychology, 65, 635–660.

    Article  Google Scholar 

  • Tversky, A., & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5(2), 207–232.

    Article  Google Scholar 

  • van Gils, S., Van Quaquebeke, N., van Knippenberg, D., van Dijke, M., & De Cremer, D. (2015). Ethical leadership and follower organizational deviance: The moderating role of follower moral attentiveness. The Leadership Quarterly, 26(2), 190–203.

    Article  Google Scholar 

  • Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101–125.

    Article  Google Scholar 

  • Vitell, S. J., & Davis, D. L. (1990). The relationship between ethics and job satisfaction: An empirical investigation. Journal of Business Ethics, 9(6), 489–494.

    Article  Google Scholar 

  • Walker, L. J., & Hennig, K. H. (2004). Differing conceptions of moral exemplarity: Just, brave, and caring. Journal of Personality and Social Psychology, 86(4), 629.

    Article  Google Scholar 

  • Wang, R., Liu, H. & Jiang, J. (2020). Does socioeconomic status matter? Materialism and self-esteem: Longitudinal evidence from China. Current Psychology. https://doi.org/10.1007/s12144-020-00695-3.

  • Whitaker, B. G., & Godwin, L. N. (2013). The antecedents of moral imagination in the workplace: A social cognitive theory perspective. Journal of Business Ethics, 114(1), 61–73.

    Article  Google Scholar 

  • Wurthmann, K. (2013). A social cognitive perspective on the relationships between ethics education, moral attentiveness, and PRESOR. Journal of Business Ethics, 114(1), 131–153.

    Article  Google Scholar 

  • Xu, D., Zhou, K. Z., & Chen, S. (2021). The impact of Maoist Communist ideology on patent applications and infringement. Academy of Management Journal. https://doi.org/10.5465/amj.2020.0810.

    Article  Google Scholar 

  • Zhang, Y., Guo, Y., Zhang, M., Xu, S., Liu, X., & Newman, A. (2021). Antecedents and outcomes of authentic leadership across cultures: A meta-analytic review. Asia Pacific Journal of Management. https://doi.org/10.1007/s10490-021-09762-0.

    Article  Google Scholar 

  • Zhou, Z. C., Luo, B. N. F., & Tang, T. L. P. (2018). Corporate social responsibility excites “exponential” employee attitudes: The Matthew Effect in CSR and sustainable policy. Corporate Social Responsibility and Environmental Management, 25, 339–354.

    Article  Google Scholar 

  • Zhu, W., Treviño, L. K., & Zheng, X. (2016). Ethical leaders and their followers: The transmission of moral identity and moral attentiveness. Business Ethics Quarterly, 26(1), 95–115.

    Article  Google Scholar 

  • Zhu, Y., Sun, L. Y., & Leung, A. S. M. (2021). Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership. Asia Pacific Journal of Management, 31(4), 925–947.

    Article  Google Scholar 

Download references

Acknowledgements

We thank Editor Allan K. K. Chan, Associate Editor Morgan Yang, and two anonymous reviewers for their constructive feedback and suggestions, Bin Ling, Brian Walsh, Herschel Paulk, and Alex Sherrod, for their assistance.

Author information

Authors and Affiliations

Authors

Corresponding authors

Correspondence to Hussam Al Halbusi or Thomas Li-Ping Tang.

Ethics declarations

Ethics approval

Researchers conduct studies involving human participants per institutional and national research committee’s ethical standards and the 1964 Helsinki Declaration and its later amendments or comparable ethical standards.

Consent to participate

We obtained informed consent from participants.

Conflict of interest

The authors declare no competing interests.

Additional information

Publisher's note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Al Halbusi, H., Tang, T.LP., Williams, K.A. et al. Do ethical leaders enhance employee ethical behaviors?. Asian J Bus Ethics 11, 105–135 (2022). https://doi.org/10.1007/s13520-022-00143-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13520-022-00143-4

Keywords

  • Ethical leadership
  • Organizational Justice
  • Ethical Climate
  • Moral attentiveness
  • Ethical behavior/Behavioral Ethics
  • Leader-member (follower/collaborator) exchange/LMX
  • Contextualization/Culture
  • Muslim
  • Monetary wisdom
  • CSR