When and how can organizational punishment stop unethical pro-organizational behaviors in hospitality?

Abstract

How can hospitality employees be prevented from engaging in unethical behavior toward customers with the intention of helping their organization (i.e., from displaying unethical pro-organizational behavior directed at customers, UPB-C)? Drawing on ethical decision-making (EDM) theory, we propose that organizational punishment for unethical behavior and service climate will jointly inhibit UPB-C via moral disengagement. We test our hypotheses across two studies. In Study 1, using a sample of 122 frontline service employees, we find that, when both organizational punishment for unethical behavior and service climate are higher, UPB-C is lower. In Study 2, we replicate the above findings using a two-wave panel data from a sample of 191 employees who had service roles in the hospitality industry, and further indicate the role of moral disengagement in explaining the interactive effects of organizational punishment and service climate on UPB-C.