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Toward Understanding Employees 'Responses to Leaders' Unethical Pro-organizational Behavior: An Outcome Favorability Perspective

Author

Listed:
  • Yahua Cai

    (Shanghai University of Finance & Economics)

  • Haoding Wang

    (Zhejiang University of Finance and Economics)

  • Sebastian C. Schuh

    (Department of Organizational Behavior and Human Resource Management, China Europe International Business School (CEIBS))

  • Jinsong Li

    (Shanghai University of Finance & Economics)

  • Weili Zheng

    (Shanghai University of Finance & Economics)

Abstract

The uncovering of several recent corporate scandals has brought to light unethical pro-organizational behavior (UPB) in organizations. A growing body of research has provided insights into employees’ UPB and its antecedents. However, our understanding of leader UPB and its effects remains limited. In this study, we develop and test a theoretical model that explains employees’ responses to their leader UPB. By drawing on the theory of motivated reasoning and the trust literature, we posit that, in general, leader UPB is linked to unfavorable responses from employees such as a lower perception of leaders’ trustworthiness, which, in turn, reduces the citizenship behaviors of employees. However, our model also shows that these effects do not emerge automatically but depend on a crucial boundary condition—followers’ outcome favorability, or the extent to which followers personally benefit from leader UPB. Specifically, we contend that negative responses to leader UPB arise mainly when followers’ outcome favorability is low but decrease significantly when followers’ outcome favorability is high. The results of two multi-wave, multi-source field studies support our hypothesized model. These findings offer a new, instrumental perspective on followers’ responses to unethical leader behaviors, with valuable theoretical and practical implications.

Suggested Citation

  • Yahua Cai & Haoding Wang & Sebastian C. Schuh & Jinsong Li & Weili Zheng, 2024. "Toward Understanding Employees 'Responses to Leaders' Unethical Pro-organizational Behavior: An Outcome Favorability Perspective," Journal of Business Ethics, Springer, vol. 192(1), pages 79-95, June.
    • Handle: RePEc:kap:jbuset:v:192:y:2024:i:1:d:10.1007_s10551-023-05535-5
    DOI: 10.1007/s10551-023-05535-5
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    References listed on IDEAS

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    1. Laurie Barclay & Michael Bashshur & Marion Fortin, 2017. "Motivated cognition and fairness: Insights, integration, and creating a path forward," Post-Print halshs-01698338, HAL.
    2. Na Yang & Congcong Lin & Zhenyu Liao & Mei Xue, 2022. "When Moral Tension Begets Cognitive Dissonance: An Investigation of Responses to Unethical Pro-Organizational Behavior and the Contingent Effect of Construal Level," Journal of Business Ethics, Springer, vol. 180(1), pages 339-353, September.
    3. Elizabeth E. Umphress & John B. Bingham, 2011. "When Employees Do Bad Things for Good Reasons: Examining Unethical Pro-Organizational Behaviors," Organization Science, INFORMS, vol. 22(3), pages 621-640, June.
    4. Michael McCuddy & Musa Pinar & Ibrahim Birkin & Metin Kozak, 2009. "Gender and Perceived Fundamental Moral Orientations: An Empirical Study of the Turkish Hotel Industry," Journal of Business Ethics, Springer, vol. 89(3), pages 331-349, October.
    5. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
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