Peers’ unethical behavior and employees' discretionary behavior: Role of employees’ duty orientation

Abstract

As unethical behavior is of significant concern for organizations, this study examines the effect of peers’ unethical behavior (PUB) in the hospitality sector. Though earlier research suggests the impact of PUB on employees’ ethical intentions, the influence of PUB on organizational citizenship behavior (OCB) and interpersonal deviance (ID) is unexplored. To address this gap, this study uses social learning theory and social information process theory to examine the effect of PUB on OCB and ID through psychological safety as a mediating mechanism and duty orientation as a moderating variable. Using partial least squares structural equation modeling on a three-wave (time lag) survey of a sample of 316 frontline employees in the hotel industry, findings suggest PUB reduces employees’ perception of psychological safety and subsequently reduces OCB and enhances ID. However, high-duty orientation helps to mitigate the negative effect of PUB on employees’ OCB and IDs. The paper concludes with suggestions to reduce unethical behavior and create a positive work context.