Abstract
Unethical behavior of employees threatens business development and sustainability by damaging the image and reputation of companies. Unethical pro-organizational behavior (UPB) must also be considered in this context, and its antecedents should be analyzed. This study aims to advance what is known about how leader-member exchange (LMX) and organizational identification affect employees’ intentions to perform UPB, by incorporating the effect of leadership communication. Within this context, the mediating role of organizational identification and the moderating role of leader’s message framing (gain or loss) are examined. The research sample consists of 306 employees working for state and private banks operating in Turkey. Participants were divided into two groups and message framing was manipulated with a hypothetical story using vignettes. Research hypotheses were tested by structural equation modeling (SEM) and multi-group analysis. Results confirmed positive effects of LMX and organizational identification on UPB. Organizational identification also mediated the effect of LMX on UPB. Moreover, leader’s communication style moderated the effects of LMX and organizational identification on UPB. When leaders used loss framing instead of gain framing, the effect of LMX on UPB was augmented whilst the effect of organizational identification diminished. Our study contributes to the literature by documenting how a leader’s communication style can trigger a shift towards UPB among highly identified employees. Research and managerial implications of the findings are discussed.
Highlights
Publisher’s Note: MDPI stays neutralEthically questionable actions, have become a common phenomenon in corporate life which threatens business sustainability
This study investigated the effects of leader-member exchange (LMX) and organizational identification on employees’ intentions to engage in Unethical pro-organizational behavior (UPB), in the context of the banking and insurance industry
We examined the LMX-UPB link in depth, by probing the mediating role of organizational identification and the moderating role of leader’s message framing
Summary
Questionable actions have become a common phenomenon in corporate life which threatens business sustainability. While some of these actions are uncovered and turned into sensational corporate scandals (i.e., WelssFargo, Facebook, Uber, Volkswagen and Enron), some remain hidden within the organization. Unethical behavior is typically defined as any action “illegal or morally unacceptable to the wider society” [1]. Can occur at any level within the organization, from entry-level employees to CEOs. When unethical behavior is disclosed, it causes legal problems for companies, and seriously damages corporate image and reputation. Unethical employee behavior has been a key topic in management and organizational research for a long time. Business ethics has become one of the integral components of sustainable management and companies develop institutionalized processes to prevent ethical issues and ensure responsible development
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