IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v192y2024i2d10.1007_s10551-023-05520-y.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Context Matters Less Than Leadership in Preventing Unethical Behaviour in International Business

Author

Listed:
  • Marlond Antunez

    (Polytechnic of Leiria)

  • Nelson Ramalho

    (Business Research Unit (BRU-IUL))

  • Tânia M. G. Marques

    (Polytechnic of Leiria)

Abstract

This study empirically tests a sequential mediation model that links ethical leadership with employees’ unethical behaviour. The corruption index for countries is used as the moderator, because it represents both the instrumental ethical climate and the employee displacement of responsibility embedded in society’s ethical standards. A total of 175 participants comprising 41 teams (134 dyads) across 13 countries participated in a dyadic two-wave survey. The findings show that ethical leadership has an indirect influence on the avoidance of unethical behaviour by reducing the instrumental ethical climate and by negating the displacement of individuals’ responsibility. In addition, the results also show that this process is not sensitive to the countries’ corruption levels. Such findings suggest that organizations are less prone to adjust their ethical standards to the environment than is usually expected. Accordingly, ethical leaders of MNCs may be instrumental in counteracting any corruptive pressure in the social environment, and likewise, non-ethical leaders may be a contributing factor to fostering corrupt organizations in a society that otherwise values ethical principles in business.

Suggested Citation

  • Marlond Antunez & Nelson Ramalho & Tânia M. G. Marques, 2024. "Context Matters Less Than Leadership in Preventing Unethical Behaviour in International Business," Journal of Business Ethics, Springer, vol. 192(2), pages 307-322, June.
    • Handle: RePEc:kap:jbuset:v:192:y:2024:i:2:d:10.1007_s10551-023-05520-y
    DOI: 10.1007/s10551-023-05520-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-023-05520-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-023-05520-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lilian Otaye-Ebede & Samah Shaffakat & Scott Foster, 2020. "A Multilevel Model Examining the Relationships Between Workplace Spirituality, Ethical Climate and Outcomes: A Social Cognitive Theory Perspective," Journal of Business Ethics, Springer, vol. 166(3), pages 611-626, October.
    2. Barr, Abigail & Serra, Danila, 2010. "Corruption and culture: An experimental analysis," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 862-869, December.
    3. Brenkert, George G., 2009. "Innovation, rule breaking and the ethics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 448-464, September.
    4. Geert Demuijnck, 2015. "Universal Values and Virtues in Management Versus Cross-Cultural Moral Relativism: An Educational Strategy to Clear the Ground for Business Ethics," Journal of Business Ethics, Springer, vol. 128(4), pages 817-835, June.
    5. Newman, Alexander & Round, Heather & Bhattacharya, Sukanto & Roy, Achinto, 2017. "Ethical Climates in Organizations: A Review and Research Agenda," Business Ethics Quarterly, Cambridge University Press, vol. 27(4), pages 475-512, October.
    6. Alice Martini & Luca Spataro, 2018. "The Principle of Subsidiarity and the Ethical Factor in Giuseppe Toniolo’s Thought," Journal of Business Ethics, Springer, vol. 153(1), pages 105-119, November.
    7. Daniel Roos & Rüdiger Hahn, 2019. "Understanding Collaborative Consumption: An Extension of the Theory of Planned Behavior with Value-Based Personal Norms," Journal of Business Ethics, Springer, vol. 158(3), pages 679-697, September.
    8. Harris, Lloyd C. & He, Hongwei, 2019. "Retail employee pilferage: A study of moral disengagement," Journal of Business Research, Elsevier, vol. 99(C), pages 57-68.
    9. Salar Mesdaghinia & Anushri Rawat & Shiva Nadavulakere, 2019. "Why Moral Followers Quit: Examining the Role of Leader Bottom-Line Mentality and Unethical Pro-Leader Behavior," Journal of Business Ethics, Springer, vol. 159(2), pages 491-505, October.
    10. Vishag Badrinarayanan & Indu Ramachandran & Sreedhar Madhavaram, 2019. "Mirroring the Boss: Ethical Leadership, Emulation Intentions, and Salesperson Performance," Journal of Business Ethics, Springer, vol. 159(3), pages 897-912, October.
    11. Maureen Ambrose & Anke Arnaud & Marshall Schminke, 2008. "Individual Moral Development and Ethical Climate: The Influence of Person–Organization Fit on Job Attitudes," Journal of Business Ethics, Springer, vol. 77(3), pages 323-333, February.
    12. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
    13. repec:eme:ijlma0:ijlma-03-2017-0053 is not listed on IDEAS
    14. Muhammad Shaukat Malik & Mustabsar Awais & Ahmad Timsal & Umer Hameed Qureshi, 2016. "Impact of Ethical Leadership on Employees’ Performance: Moderating Role of Organizational Values," International Review of Management and Marketing, Econjournals, vol. 6(3), pages 590-595.
    15. Adam Barsky, 2008. "Understanding the Ethical Cost of Organizational Goal-Setting: A Review and Theory Development," Journal of Business Ethics, Springer, vol. 81(1), pages 63-81, August.
    16. Silke Eisenbeiß & Felix Brodbeck, 2014. "Ethical and Unethical Leadership: A Cross-Cultural and Cross-Sectoral Analysis," Journal of Business Ethics, Springer, vol. 122(2), pages 343-359, June.
    17. Adam Barsky, 2011. "Investigating the Effects of Moral Disengagement and Participation on Unethical Work Behavior," Journal of Business Ethics, Springer, vol. 104(1), pages 59-75, November.
    18. Raymond Fisman & Edward Miguel, 2007. "Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1020-1048, December.
    19. Minna-Maaria Hiekkataipale & Anna-Maija Lämsä, 2019. "(A)moral Agents in Organisations? The Significance of Ethical Organisation Culture for Middle Managers’ Exercise of Moral Agency in Ethical Problems," Journal of Business Ethics, Springer, vol. 155(1), pages 147-161, March.
    20. Dan Wang & Taiwen Feng & Alan Lawton, 2017. "Linking Ethical Leadership with Firm Performance: A Multi-dimensional Perspective," Journal of Business Ethics, Springer, vol. 145(1), pages 95-109, September.
    21. Lei Chen, 2016. "Local Institutions, Audit Quality, and Corporate Scandals of US-Listed Foreign Firms," Journal of Business Ethics, Springer, vol. 133(2), pages 351-373, January.
    22. Wolfgang Scholl & Carsten C. Schermuly, 2020. "The Impact of Culture on Corruption, Gross Domestic Product, and Human Development," Journal of Business Ethics, Springer, vol. 162(1), pages 171-189, February.
    23. Xianchun Zhang & Zhu Yao, 2019. "Impact of relational leadership on employees’ unethical pro-organizational behavior: A survey based on tourism companies in four countries," PLOS ONE, Public Library of Science, vol. 14(12), pages 1-19, December.
    24. Julena M. Bonner & Rebecca L. Greenbaum & David M. Mayer, 2016. "My Boss is Morally Disengaged: The Role of Ethical Leadership in Explaining the Interactive Effect of Supervisor and Employee Moral Disengagement on Employee Behaviors," Journal of Business Ethics, Springer, vol. 137(4), pages 731-742, September.
    25. Patrick Schneider & Gautam Bose, 2017. "Organizational Cultures of Corruption," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(1), pages 59-80, February.
    26. Luzi Hail & Ahmed Tahoun & Clare Wang, 2018. "Corporate Scandals and Regulation," Journal of Accounting Research, Wiley Blackwell, vol. 56(2), pages 617-671, May.
    27. Kelly Martin & John Cullen, 2006. "Continuities and Extensions of Ethical Climate Theory: A Meta-Analytic Review," Journal of Business Ethics, Springer, vol. 69(2), pages 175-194, December.
    28. Richard Bernardi & Michael Witek & Michael Melton, 2009. "A Four-Country Study of the Associations Between Bribery and Unethical Actions," Journal of Business Ethics, Springer, vol. 84(3), pages 389-403, February.
    29. James Johnson & M. Ronald Buckley, 2015. "Multi-level Organizational Moral Disengagement: Directions for Future Investigation," Journal of Business Ethics, Springer, vol. 130(2), pages 291-300, August.
    30. Jay Mulki & Jorge Jaramillo & William Locander, 2009. "Critical Role of Leadership on Ethical Climate and Salesperson Behaviors," Journal of Business Ethics, Springer, vol. 86(2), pages 125-141, May.
    31. Celia Moore, 2008. "Moral Disengagement in Processes of Organizational Corruption," Journal of Business Ethics, Springer, vol. 80(1), pages 129-139, June.
    32. Seriki, Olalekan K. & Nath, Pravin & Ingene, Charles A. & Evans, Kenneth R., 2020. "How complexity impacts salesperson counterproductive behavior: The mediating role of moral disengagement," Journal of Business Research, Elsevier, vol. 107(C), pages 324-335.
    33. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Corruption in international business: A review and research agenda," International Business Review, Elsevier, vol. 29(4).
    34. Abdul Ghafoor & Rozaimah Zainudin & Nurul Shahnaz Mahdzan, 2019. "Factors Eliciting Corporate Fraud in Emerging Markets: Case of Firms Subject to Enforcement Actions in Malaysia," Journal of Business Ethics, Springer, vol. 160(2), pages 587-608, December.
    35. Liz Wang & Lisa Calvano, 2015. "Is Business Ethics Education Effective? An Analysis of Gender, Personal Ethical Perspectives, and Moral Judgment," Journal of Business Ethics, Springer, vol. 126(4), pages 591-602, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicholas Burton & Mai Chi Vu, 2021. "Moral Identity and the Quaker tradition: Moral Dissonance Negotiation in the WorkPlace," Journal of Business Ethics, Springer, vol. 174(1), pages 127-141, November.
    2. Alexander Newman & Huong Le & Andrea North-Samardzic & Michael Cohen, 2020. "Moral Disengagement at Work: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 167(3), pages 535-570, December.
    3. Ulf Schaefer & Onno Bouwmeester, 2021. "Reconceptualizing Moral Disengagement as a Process: Transcending Overly Liberal and Overly Conservative Practice in the Field," Journal of Business Ethics, Springer, vol. 172(3), pages 525-543, September.
    4. Niklas Egels-Zandén, 2017. "Responsibility Boundaries in Global Value Chains: Supplier Audit Prioritizations and Moral Disengagement Among Swedish Firms," Journal of Business Ethics, Springer, vol. 146(3), pages 515-528, December.
    5. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
    6. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas & Joan Fontrodona, 2013. "Ethical Culture and Employee Outcomes: The Mediating Role of Person-Organization Fit," Journal of Business Ethics, Springer, vol. 116(1), pages 173-188, August.
    7. Tina Sendlhofer, 2020. "Decoupling from Moral Responsibility for CSR: Employees' Visionary Procrastination at a SME," Journal of Business Ethics, Springer, vol. 167(2), pages 361-378, November.
    8. Thang V. Nguyen & Minh H. Doan & Nhung H. Tran, 2021. "The perpetuation of bribery–prone relationships: A study from Vietnamese public officials," Public Administration & Development, Blackwell Publishing, vol. 41(5), pages 244-256, December.
    9. Lamar Pierce & Jason Snyder, 2015. "Unethical Demand and Employee Turnover," Journal of Business Ethics, Springer, vol. 131(4), pages 853-869, November.
    10. Gary M. Fleischman & Eric N. Johnson & Kenton B. Walker & Sean R. Valentine, 2019. "Ethics Versus Outcomes: Managerial Responses to Incentive-Driven and Goal-Induced Employee Behavior," Journal of Business Ethics, Springer, vol. 158(4), pages 951-967, September.
    11. Guy Elaad & Alex Krumer & Jeffrey Kantor, 2018. "Corruption and Sensitive Soccer Games: Cross-Country Evidence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(3), pages 364-394.
    12. Ervin L. Black & F. Greg Burton & Joshua K. Cieslewicz, 2022. "Improving Ethics: Extending the Theory of Planned Behavior to Include Moral Disengagement," Journal of Business Ethics, Springer, vol. 181(4), pages 945-978, December.
    13. Jhorland Ayala-García & Jaime Bonet-Morón & Gerson Javier Pérez-Valbuena & Eduardo José Heilbron-Fernández & Jéssica Dayana Suret-Leguizamón, 2022. "La corrupción en Colombia: un análisis integral," Documentos de Trabajo Sobre Economía Regional y Urbana 20080, Banco de la República, Economía Regional.
    14. Lora Reed & Deborah Vidaver-Cohen & Scott Colwell, 2011. "A New Scale to Measure Executive Servant Leadership: Development, Analysis, and Implications for Research," Journal of Business Ethics, Springer, vol. 101(3), pages 415-434, July.
    15. Monica Violeta Achim, 2016. "Cultural Dimension of Corruption: A Cross-Country Survey," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 333-345, August.
    16. Juliana Toro-Arias & Pablo Ruiz-Palomino & María Pilar Rodríguez-Córdoba, 2022. "Measuring Ethical Organizational Culture: Validation of the Spanish Version of the Shortened Corporate Ethical Virtues Model," Journal of Business Ethics, Springer, vol. 176(3), pages 551-574, March.
    17. Giorgio Gulino & Federico Masera, 2023. "Contagious Dishonesty: Corruption Scandals and Supermarket Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 218-251, October.
    18. Theodora Bermpei & Antonios Nikolaos Kalyvas & Leone Leonida, 2021. "Local Public Corruption and Bank Lending Activity in the United States," Journal of Business Ethics, Springer, vol. 171(1), pages 73-98, June.
    19. K. Praveen Parboteeah & Matthias Weiss & Martin Hoegl, 2024. "Ethical Climates Across National Contexts: A Meta-Analytical Investigation," Journal of Business Ethics, Springer, vol. 189(3), pages 573-590, January.
    20. Burak Oc & Maryam Kouchaki, 2024. "The More the Merrier: How Psychological Standing and Work Group Size Explain Managers’ Willingness to Communicate About Unethical Conduct in Their Work Group," Journal of Business Ethics, Springer, vol. 190(4), pages 775-786, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:192:y:2024:i:2:d:10.1007_s10551-023-05520-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.