Four Studies on the Social-Exchange Implications of Ethical Leadership Needed and Received

Abstract

Social-exchange theory predicts beneficial outcomes of ethical leadership as followers perceive an obligation to return the favorable treatment. Drawing from theories of threat responses and need satisfaction, I propose a qualification of this well-established perspective. In particular, I differentiate between ethical leadership needed (i.e. the extent followers need ethical leadership from their leader) and ethical leadership received (i.e. the extent leaders show ethical leadership) to predict that in certain situations low (and not high) ethical leadership received may facilitate beneficial social-exchange outcomes in the form of increased follower responsibility taking. I develop a model in which an unsatisfied need for ethical leadership (i.e. ethical leadership is highly needed but only little is received) may strengthen followers’ felt obligation towards the team which then also translates into higher levels of helping behavior. I test my predictions across four different studies diverse in design including within-person, between-person, and team-level settings. Findings are in line with propositions and highlight an assumption in the ethical leadership literature in need of revision. This opens the door to further inquiry about the ethical means that stimulate followers to show normatively appropriate conduct.