Inhibiting unethical pro-organizational behavior: harnessing the effects of responsible leadership and leader–member exchange

Purpose - Leadership styles appear to influence unethical pro-organizational behavior (UPB), but there has been little empirical research on employees' ethical behavior as an outcome of responsible leadership. This study examines the positive effect of responsible leadership on unethical pro-organizational behavior (UPB) via the mediator, leader–member exchange (LMX). Design/methodology/approach - Responses from 200 full-time working employees in Pakistan were collected in two waves, and structural equation modeling was used to test the hypotheses. Findings - The results indicated that LMX mediated the relationship between responsible leadership and UPB. Our research also yielded a negative relationship between responsible leadership and employees' willingness to engage in UPB and between LMX and UPB. In addition, the mediation and direct relationship results were stronger for employees who spent more than seven years in the organization as compared to those with less than seven years. Research limitations/implications - The leader's responsible behavior trickles down to the subordinates and encourages their employees to behave responsibly too. We also showed that responsible leadership influenced employees’ UPB engagement through LMX. Practical implications - By adopting a responsible leadership style through training practices and appraisal tools, organizations may increase quality exchange relationship between leader and subordinates, which will reduce UPB. Originality/value - This paper is one of the few empirical studies which have examined the relationship between responsible leadership, LMX and UPB. The results from our study help to enhance findings from earlier studies on the antecedents of UPB. Contrary to previous studies, our study also shows that LMX can lead to ethical behavior i.e. reduce UPB.