WHO DISPLAYS ETHICAL LEADERSHIP, AND WHY DOES IT MATTER? AN EXAMINATION OF ANTECEDENTS AND CONSEQUENCES OF ETHICAL LEADERSHIP

1. Human Capital Management
JOURNAL ARTICLE GROUP PRESENTATION :
WHO DISPLAYS ETHICAL LEADERSHIP, AND
WHY DOES IT MATTER?
AN EXAMINATION OF ANTECEDENTS AND
CONSEQUENCES OF ETHICAL LEADERSHIP
By David M. Mayer, Karl Aquino, Rebecca L. Greenbaum, Maribeth Kuenzi
Prepared by:
Alireza Khosroyar

2. ETHICAL LEADERSHIP
PRESENTATION OUTLINE
•
Introduction & Theoretical Background
•
Research Findings
•
Practical Managerial Implications
•
Case Study : Ethical Leadership in Microsoft
CSGB 6101 - Human Capital Management

3. ETHICAL LEADERSHIP
INTRODUCTION & THEORETICAL BACKGROUND

Prior research : Effect of “Leadership” on follower behavior
This research : Effect of “Ethical Leadership” ( new )

New Conceptualization of Ethical Leadership (Brown et al., 2005)

3 key building blocks of Ethical Leadership
Moral person
Moral manager
CSGB 6101 - Human Capital Management

4. INTRODUCTION &
THEORETICAL BACKGROUND
•
Why Ethical Leadership matters
•
Who engages in Ethical Leadership
•
Whether Ethical Leadership represents a distinct aspect of leadership
not captured by other leadership constructs
Research Theoretical Constructs
Antecedents
Moral Identity
Leadership Construct
Ethical Leadership
Consequences
( unit-level outcome )
Unethical Behavior
Relationship Conflict
Idealized influence
Related Leadership
Constructs
Interpersonal Justice
Informational Justice

5. INTRODUCTION &
THEORETICAL BACKGROUND
Antecedents
•
Moral Identity Influences Moral Behavior
Moral Identity
Hypothesis 1a. : Leader moral identity symbolization
is positively related to ethical leadership
Hypothesis 1b. : Leader moral identity internalization
is positively related to ethical leadership

6. ETHICAL LEADERSHIP
THEORETICAL BACKGROUND
Social Learning Theory
CSGB 6101 - Human Capital Management

7. THEORETICAL
BACKGROUND
Unit-Level Outcomes
• Unethical Behavior
- Ethical leader influence their employees to engage in desired behavior.
- Group norms for acceptable behavior are formed.
Hypothesis 2 : Ethical Leadership is negatively related to
unit unethical behavior
•
Relationship Conflict
- More willing to allow coworkers to express their opinions.
- Employees demonstrate Respect and consideration for coworkers’
needs.
Hypothesis 3 : Ethical Leadership is negatively related to
unit relationship conflict

8. ETHICAL LEADERSHIP
Theoretical Background
Unit-Level Outcomes
•
Ethical Leadership as a partial mediator
•
Is there any possibility of the existence of other mechanisms
that could also explain this relationship.
Hypothesis 4 : Ethical Leadership partially mediates the
relationship between leader moral identity and
unit unethical behavior and unit relationship
confilict.
CSGB 6101 - Human Capital Management

9. ETHICAL LEADERSHIP
CONCEPTUAL FRAMEWORK
Antecedents
Independent
Variables
Leader Moral
Identity
Symbolization
Consequences
( unit-level outcome )
Leadership Construct
H4
Mediator
H1a
H4
H2
Dependent
Variables
Unit Unethical
Behavior
Ethical
Leadership
Leader Moral
Identity
Internalization
H1b
H3
Unit
Relationship
Conflict
CSGB 6101 - Human Capital Management

10. ETHICAL LEADERSHIP
RESEARCH FINDINGS
Leader Moral
Identity
Symbolization
 H1a
 H2
Unit Unethical
Behavior
Ethical
Leadership
Leader Moral
Identity
Internalization
 H1b
 H3
Unit
Relationship
Conflict
 H1a,H1b: Leader moral identity are positively related to ethical leadership
 H2, H3: Ethical Leadership is negatively related to unit unethical behavior and unit relationship conflict
 H4: Negative direct relationship between Leader Moral Identity Internalization and unit outcomes
BUT no relashionship between Leader Moral Identity Symbolization and unit outcomes.
CSGB 6101 - Human Capital Management

11. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Ethical Leadership
How
Effects
Rewards and
Punishments
↓
↓
Unethical Behaviours
Relationship Conflicts
CSGB 6101 - Human Capital Management

12. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Utilize H.R practices
How
Effects
Selection Methods: Assessing
managerial candidates' integrity and
moral development
↑ Level of Ethical Leadership
CSGB 6101 - Human Capital Management

13. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Ethics Training
How
Effects
Educating about behaviours in
ethical leaders
Employees get consistent norms
for appropriate behaviours
ONLY a subset of
unethical behaviours
are examined!
CSGB 6101 - Human Capital Management

14. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Activating moral identies
How
Effects
Use CUES. e.g. Posters, slogans,
material symbols which able to
construct moral and concern salient.
Increasing level of awareness of
appropriate behaviours
CSGB 6101 - Human Capital Management

15. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Being Good to feel Good
To be motivated to uphold moral
How
Effects
identities.
Demonstrations of Ehtical Leadership
Counter-intuitive Effects:
Resist competing pressure
CSGB 6101 - Human Capital Management

16. ETHICAL LEADERSHIP
PRACTICAL MANAGERIAL IMPLICATIONS
Selecting leaders WHO committed to
MORAL GOALS
How
Effects
Moral identity is central to their
self-definition.
Employees learn as they
demonstrate ethical
behaviours
CSGB 6101 - Human Capital Management

17. ETHICAL LEADERSHIP
What is required for effective ethical
leadership?
•
•
•
•
What you do
what you say
Systems
culture
CSGB 6101 - Human Capital Management

18. ETHICAL LEADERSHIP
The most critical factor in creating
ethical organizations
• (1) Ethical leadership,
• (2) Ethical practices,
• (3) Ethical climate.
CSGB 6101 - Human Capital Management

19. Ethical aspects of Bill Gates leadership
“Humanity’s greatest advances are not
in its discoveries, but in how those
discoveries are applied to reduce
inequity.” – Bill Gates.

20. ETHICAL LEADERSHIP
Bill Gates Leadership
 Who is He?
• Predominate and
manipulative leader
CSGB 6101 - Human Capital Management

21. ETHICAL LEADERSHIP
Et
e
l a sp
hica
a
ill G
B
ts of
c
t
r sh i p
leade
es
 closer to his employees
 inspirational motivation
 intellectual stimulation
 built a culture of the best and brightest
 created culture of innovation, learning and improvement over time
 high level of commitment by the people involved

taking care of employees
 empowering workers by giving them all the information about what’s going on
CSGB 6101 - Human Capital Management

22. ETHICAL LEADERSHIP
s of
p ec t i p
l as
hica adersh
n et
U
es l e
Gat
Bill
• Microsoft is in a practically
monopolistic position
• to hide this unethical policy
CSGB 6101 - Human Capital Management

23. ETHICAL LEADERSHIP
Awards and Honors
CSGB 6101 - Human Capital Management

24. ETHICAL LEADERSHIP
Conclusion
• http://
www.youtube.com/watch?v=UhxINyIZ454&featur
CSGB 6101 - Human Capital Management