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Does Positive Social Exchange Relationship Always Motivate Ethical Acts?

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Abstract

Rooted in Social Exchange Theory, which assumes that the positive exchange relationship with the employee incurs positive results for the organization, the aim of the present study is to investigate the effect of perceived organizational support (POS) on unethical pro-organizational behavior (UPB)—unethical behaviors conducted by the employees with the intention of benefitting the organization. The study also intends to explore the moderating role of positive reciprocity beliefs (PRB) in the relation between POS and UPB. It was hypothesized that POS will have a positive relationship with UPB and that PRB would moderate and strengthen this relationship. The results based on the data collected from 306 executives through structured questionnaire confirm the fact that perceived organizational support indeed leads to the employees indulging in UPB. Further, this relationship was seen to be stronger for the employees holding positive reciprocity beliefs. Our findings suggest that positive social exchange relationships (POS), which are generally thought to evoke ethical and favorable behavior for the organization, may also encourage the employees to indulge in unethical behaviors with the intention of benefiting the organization. However, not all employees respond to perceived organizational support in a similar way. Employees holding positive reciprocity beliefs are more inclined toward displaying UBP given high POS. Theoretical and managerial implications of the results are discussed which will help in enhancing our understanding of unethical behaviors in the organization.

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Authors and Affiliations

  1. International Management Institute, Bhubaneswar, Odisha, India

    Bindu Chhabra

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  1. Bindu Chhabra
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Correspondence to Bindu Chhabra .

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  1. Tecnologico de Monterrey, EGADE Business School, Mexico, Mexico

    Rajagopal

  2. International Management Institute, Bhubaneswar, Odisha, India

    Ramesh Behl

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Chhabra, B. (2022). Does Positive Social Exchange Relationship Always Motivate Ethical Acts?. In: Rajagopal, Behl, R. (eds) Inclusive Businesses in Developing Economies. Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-12217-0_9

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  • DOI: https://doi.org/10.1007/978-3-031-12217-0_9

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  • Online ISBN: 978-3-031-12217-0

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