Leader bottom-line mentality and employee pro-self-unethical behavior: the moderating role of contingent rewards and punishments

Abstract

Purpose This study aims to investigate the situational factors that intensify the impact of leader bottom-line mentality (BLM) on employee pro-self-unethical behavior. In particular, the moderating role of contingent rewards and punishments is evaluated under the lens of situational strength theory. Design/methodology/approach Data were collected from 218 full-time employees working in the USA in a time-lagged study and analyzed using SPSS Process Macro. Findings Statistical analysis reveal contingent rewards and punishments significantly moderate the positive relationship between BLM and pro-self-unethical behavior. Practical implications This paper highlights the need for more balanced reward systems that incorporate moral conduct into work performance. It also emphasizes the role of robust accountability and monitoring systems in minimizing employees’ unethical behavior. Originality/value To the best of the authors’ knowledge, this is the first study to investigate the moderating role of contingent rewards and punishments on the relationship between leader BLM and subordinate pro-self-unethical behavior. Moreover, it provides significant empirical support to situational strength theory.