Ethical Leadership and Whistle-blowing Intentions: Mediating Role of Moral Identity

  • Muhammad Wasim Jan Khan Assistant Professor: Department of Management Sciences University College of Zhob, BUITEMS (BUITEMS Sub-Campus Zhob) Balochistan, Pakistan
  • Adnan Ismail Department of Business Administration & Commerce Institute of Southern Punjab Multan, Pakistan
  • Zujaj Ahmed Department of Business Administration & Commerce Institute of Southern Punjab, Multan, Pakistan
  • Israr Ali PhD Scholar: Department of Management Sciences Iqra National University Peshawar, Pakistan
Keywords: Ethical leadership, Moral identity, Whistleblowing intentions, Social identity thoery

Abstract

Detachement of business practicess and ethics led to a number of business scandals and unethical practices in workplaces. This urged scholars and practioners to investigate importance of morality at workplace. This study has highlighted the role of ethical leaders in shaping whistleblowing intentions of their subordinates. Moreover, this study has also investiagted the role of moral identity. A total of four hypotheses, examining the direct effect of ethical leadership on moral identity and whistleblowing intentions and the mediationing role of moral identity were proposeed. This study adopted a timelagged study design and collected information from employee-peer dyads at three points in time. Data was gathered from 214 employees working in service sector. Results verified the role of ethical leaders in shaping moral identity of employees as well as their whistleblowing intentions. Alongwith, the findings also suggest that moral identity acts as an intervening mechanism between ethical leaadership and whistleblowing intentions. Moreover, this study has highlighted multiple avenues for future research. 

 

 

Downloads

Download data is not yet available.

Article Analytics Summary

References

Andrade, J. A. (2015). Reconceptualising whistleblowing in a complex world. Journal of Business Ethics, 128(2), 321-335. DOI: https://doi.org/10.1007/s10551-014-2105-z

Aquino, K., & Reed, I. I. (2002). The self-importance of moral identity. Journal of personality and social psychology, 83(6), 1423. DOI: https://doi.org/10.1037/0022-3514.83.6.1423

Aquino, K., Mcferran, B., &Laven, M. (2011). Moral identity and the experience of moral elevation in response to acts of uncommon goodness. Journal of Personality and Social Psychology, 100(4), 703. DOI: https://doi.org/10.1037/a0022540

Arjoon, S., Turriago-Hoyos, A., &Thoene, U. (2018). Virtuousness and the common good as a conceptual framework for harmonizing the goals of the individual, organizations, and the economy. Journal of Business Ethics, 147(1), 143-163. DOI: https://doi.org/10.1007/s10551-015-2969-6

Bashir, S., Khattak, H. R., Hanif, A., &Chohan, S. N. (2011). Whistle-blowing in public sector organizations: Evidence from Pakistan. The American Review of Public Administration, 41(3), 285-296. DOI: https://doi.org/10.1177/0275074010376818

Benevene, P., Dal Corso, L., De Carlo, A., Falco, A., Carluccio, F., &Vecina, M. L. (2018). Ethical leadership as antecedent of job satisfaction, affective organizational commitment and intention to stay among volunteers of non-profit organizations. Frontiers in psychology, 9, 20-69. DOI: https://doi.org/10.3389/fpsyg.2018.02069

Bhal, K. T., Verma, M., Gupta, B., & Dadhich, A. (2019, July). Ethical Leadership and Internal Whistle-Blowing: A Moderated Mediation Model. In Academy of Management Proceedings (Vol. 2019, No. 1, p. 16133). Briarcliff Manor, NY. DOI: https://doi.org/10.5465/AMBPP.2019.16133abstract

Brebels, L., De Cremer, D., Van Dijke, M., & Van Hiel, A. (2011). Fairness as social responsibility: A moral self‐regulation account of procedural justice enactment. British Journal of Management, 22, 47-58. DOI: https://doi.org/10.1111/j.1467-8551.2010.00715.x

Brown, M. E., &Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595-616. DOI: https://doi.org/10.1016/j.leaqua.2006.10.004

Callahan, E. S., & Dworkin, T. M. (2000). The state of state whistleblower protection. Am. Bus. LJ, 38, 99-104. DOI: https://doi.org/10.1111/j.1744-1714.2000.tb00286.x

Chen, A. S. Y., & Hou, Y. H. (2016). The effects of ethical leadership, voice behavior and climates for innovation on creativity: A moderated mediation examination. The Leadership Quarterly, 27(1), 1-13. DOI: https://doi.org/10.1016/j.leaqua.2015.10.007

Chiu, R. K. (2002). Ethical judgement, locus of control, and whistleblowing intention: A case study of mainland Chinese MBA students. Managerial Auditing Journal, 23, 66-75. DOI: https://doi.org/10.1108/02686900210447588

Culiberg, B., &Mihelič, K. K. (2016). The evolution of whistleblowing studies: A critical review and research agenda. Journal of Business Ethics, 1-17.

Demirtas, O. (2015). Ethical leadership influence at organizations: Evidence from the field. Journal of Business Ethics, 126(2), 273-284. DOI: https://doi.org/10.1007/s10551-013-1950-5

Fredin, A., Venkatesh, R., Riley, J., & Eldridge, S. W. (2019). “The road not taken”: A study of moral intensity, whistleblowing, and regret. Ethics &Behavior, 29(4), 320-340. DOI: https://doi.org/10.1080/10508422.2018.1469088

Hardy, S. A. (2006). Identity, reasoning, and emotion: An empirical comparison of three sources of moral motivation. Motivation and Emotion, 30(3), 205-213. DOI: https://doi.org/10.1007/s11031-006-9034-9

Hardy, S. A., & Carlo, G. (2005). Identity as a source of moral motivation. Human Development, 48(4), 232-256. DOI: https://doi.org/10.1159/000086859

Hart, D., Atkins, R., & Ford, D. (1998). Urban America as a context for the development of moral identity in adolescence. Journal of Social Issues, 54(3), 513-530. DOI: https://doi.org/10.1111/j.1540-4560.1998.tb01233.x

Hogg, M. A. (2001). A social identity theory of leadership. Personality and Social Psychology Review, 5(3), 184-200. DOI: https://doi.org/10.1207/S15327957PSPR0503_1

Işik, A. N. (2020). Ethical leadership and school effectiveness: The mediating roles of affective commitment and job satisfaction. International Journal of Educational Leadership and Management, 8(1), 60-87. DOI: https://doi.org/10.17583/ijelm.2020.4114

Islam, T., Ahmed, I., & Ali, G. (2019). Effects of ethical leadership on bullying and voice behavior among nurses: mediating role of organizational identification, poor working condition and workload. Leadership in Health Services, 32(1), 2-17. DOI: https://doi.org/10.1108/LHS-02-2017-0006

Koopman, J., Scott, B. A., Matta, F. K., Conlon, D. E., &Dennerlein, T. (2019). Ethical leadership as a substitute for justice enactment: An information-processing perspective. Journal of Applied Psychology, 104(9), 1103. DOI: https://doi.org/10.1037/apl0000403

Krettenauer, T., Murua, L. A., & Jia, F. (2016). Age-related differences in moral identity across adulthood. Developmental Psychology, 52(6), 972. DOI: https://doi.org/10.1037/dev0000127

Kuenzi, M., Mayer, D. M., & Greenbaum, R. L. (2020). Creating an ethical organizational environment: The relationship between ethical leadership, ethical organizational climate, and unethical behavior. Personnel Psychology, 73(1), 43-71. DOI: https://doi.org/10.1111/peps.12356

Lam, L. W., Loi, R., Chan, K. W., & Liu, Y. (2016). Voice more and stay longer: How ethical leaders influence employee voice and exit intentions. Business Ethics Quarterly, 26(3), 277-300. DOI: https://doi.org/10.1017/beq.2016.30

Latan, H., Jabbour, C. J. C., & de Sousa Jabbour, A. B. L. (2019). Ethical awareness, ethical judgment and whistleblowing: A moderated mediation analysis. Journal of Business Ethics, 155(1), 289-304. DOI: https://doi.org/10.1007/s10551-017-3534-2

Lee, D., Choi, Y., Youn, S., & Chun, J. U. (2017). Ethical leadership and employee moral voice: The mediating role of moral efficacy and the moderating role of leader–follower value congruence. Journal of Business Ethics, 141(1), 47-57. DOI: https://doi.org/10.1007/s10551-015-2689-y

Lemoine, G. J., Hartnell, C. A., & Leroy, H. (2019). Taking stock of moral approaches to leadership: An integrative review of ethical, authentic, and servant leadership. Academy of Management Annals, 13(1), 148-187. DOI: https://doi.org/10.5465/annals.2016.0121

Lewis, D. (2015). Is a public interest test for workplace whistleblowing in society’s interest?. International Journal of Law and Management. DOI: https://doi.org/10.1108/IJLMA-10-2014-0056

Liu, S. M., Liao, J. Q., & Wei, H. (2015). Authentic leadership and whistleblowing: Mediating roles of psychological safety and personal identification. Journal of Business Ethics, 131(1), 107-119. DOI: https://doi.org/10.1007/s10551-014-2271-z

Liyanarachchi, G. A., & Adler, R. (2011). Accountants’ whistle‐blowing intentions: The impact of retaliation, age, and gender. Australian Accounting Review, 21(2), 167-182. DOI: https://doi.org/10.1111/j.1835-2561.2011.00134.x

Matherne, C. F., Ring, J. K., & Farmer, S. (2018). Organizational moral identity centrality: Relationships with citizenship behaviors and unethical prosocial behaviors. Journal of Business and Psychology, 33(6), 711-726. DOI: https://doi.org/10.1007/s10869-017-9519-4

Mayer, D. M., Aquino, K., Greenbaum, R. L., &Kuenzi, M. (2012). Who displays ethical leadership, and why does it matter? An examination of antecedents and consequences of ethical leadership. Academy of Management Journal, 55(1), 151-171. DOI: https://doi.org/10.5465/amj.2008.0276

McFerran, B., Aquino, K., & Duffy, M. (2010). How personality and moral identity relate to individuals’ ethical ideology. Business Ethics Quarterly, 20(1), 35-56. DOI: https://doi.org/10.5840/beq20102014

Miceli, M. P., & Near, J. P. (1985). Characteristics of organizational climate and perceived wrongdoing associated with whistle‐blowing decisions. Personnel Psychology, 38(3), 525-544. DOI: https://doi.org/10.1111/j.1744-6570.1985.tb00558.x

Miceli, M. P., & Near, J. P. (1988). Individual and situational correlates of whistle‐blowing. Personnel Psychology, 41(2), 267-281. DOI: https://doi.org/10.1111/j.1744-6570.1988.tb02385.x

Moore, C., Mayer, D. M., Chiang, F. F., Crossley, C., Karlesky, M. J., &Birtch, T. A. (2019). Leaders matter morally: The role of ethical leadership in shaping employee moral cognition and misconduct. Journal of Applied Psychology, 104(1), 123. DOI: https://doi.org/10.1037/apl0000341

O’Keefe, D. F., Messervey, D., & Squires, E. C. (2018). Promoting ethical and prosocial behavior: The combined effect of ethical leadership and coworker ethicality. Ethics &Behavior, 28(3), 235-260. DOI: https://doi.org/10.1080/10508422.2017.1365607

Ofori, G. (2009). Ethical leadership: Examining the relationships with full range leadership model, employee outcomes, and organizational culture. Journal of Business Ethics, 90(4), 533. DOI: https://doi.org/10.1007/s10551-009-0059-3

Ouakouak, M. L., Zaitouni, M. G., & Arya, B. (2020). Ethical leadership, emotional leadership, and quitting intentions in public organizations. Leadership & Organization Development Journal. DOI: https://doi.org/10.1108/LODJ-05-2019-0206

Park, H., Blenkinsopp, J., Oktem, M. K., &Omurgonulsen, U. (2008). Cultural orientation and attitudes toward different forms of whistleblowing: A comparison of South Korea, Turkey, and the UK. Journal of Business Ethics, 82(4), 929-939. DOI: https://doi.org/10.1007/s10551-007-9603-1

Qian, Y., & Jian, G. (2020). Ethical leadership and organizational cynicism: the mediating role of leader-member exchange and organizational identification. Corporate Communications: An International Journal, 2, 33-54. DOI: https://doi.org/10.1108/CCIJ-06-2019-0069

Randall, P. M., Saurage-Altenloh, S., & Osei, E. T. (2020). The relationship between leadership ethics and organizational success: A global perspective. In Examining Ethics and Intercultural Interactions in International Relations (pp. 106-137). IGI Global. DOI: https://doi.org/10.4018/978-1-7998-2377-3.ch005

Reynolds, S. J., &Ceranic, T. L. (2007). The effects of moral judgment and moral identity on moral behavior: an empirical examination of the moral individual. Journal of Applied Psychology, 92(6), 1610. DOI: https://doi.org/10.1037/0021-9010.92.6.1610

Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi‐sample study. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 25(3), 293-315. DOI: https://doi.org/10.1002/job.248

Sharif, M. M., &Scandura, T. A. (2014). Do perceptions of ethical conduct matter during organizational change? Ethical leadership and employee involvement. Journal of Business Ethics, 124(2), 185-196. DOI: https://doi.org/10.1007/s10551-013-1869-x

Sims, R. L., & Keenan, J. P. (1998). Predictors of external whistleblowing: Organizational and intrapersonal variables. Journal of Business Ethics, 17(4), 411-421. DOI: https://doi.org/10.1023/A:1005763807868

Singh, J., Verbeke, W., & Rhoads, G. K. (1996). Do organizational practices matter in role stress processes? A study of direct and moderating effects for marketing-oriented boundary spanners. Journal of Marketing, 60(3), 69-86. DOI: https://doi.org/10.1177/002224299606000305

Suifan, T. S., Diab, H., Alhyari, S., &Sweis, R. J. (2020). Does ethical leadership reduce turnover intention? The mediating effects of psychological empowerment and organizational identification. Journal of Human Behavior in the Social Environment, 1-19. DOI: https://doi.org/10.1080/10911359.2019.1690611

Tajfel, H., & Turner, J. C. (1985). The social identity theory of intergroup behavior. In S. Worchel& W. G. Austin (Eds.). Psychology of intergroup relations (2nd ed., pp. 7-24). Chicago: Nelson-Hall.

Tarjo, T., Suwito, A., Aprillia, I. D., & Ramadan, G. R. (2019). Theory of planned behavior and whistleblowing intention. JurnalKeuangan dan Perbankan, 23(1), 43-57. DOI: https://doi.org/10.26905/jkdp.v23i1.2714

Treviño, L. K., Brown, M., & Hartman, L. P. (2003). A qualitative investigation of perceived executive ethical leadership: Perceptions from inside and outside the executive suite. Human Relations, 56(1), 5-37. DOI: https://doi.org/10.1177/0018726703056001448

Valentine, S., &Godkin, L. (2019). Moral intensity, ethical decision making, and whistleblowing intention. Journal of Business Research, 98, 277-288. DOI: https://doi.org/10.1016/j.jbusres.2019.01.009

Vallacher, R. R., Nowak, A., &Zochowski, M. (2005). Dynamics of social coordination: The synchronization of internal states in close relationships. Interaction Studies, 6(1), 35-52. DOI: https://doi.org/10.1075/is.6.1.04val

Vandekerckhove, W., &Tsahuridu, E. E. (2010). Risky rescues and the duty to blow the whistle. Journal of Business Ethics, 97(3), 365-380. DOI: https://doi.org/10.1007/s10551-010-0513-2

Walker, L. J., &Frimer, J. A. (2007). Moral personality of brave and caring exemplars. Journal of Personality and Social Psychology, 93(5), 845. DOI: https://doi.org/10.1037/0022-3514.93.5.845

Walumbwa, F. O., &Schaubroeck, J. (2009). Leader personality traits and employee voice behavior: mediating roles of ethical leadership and work group psychological safety. Journal of Applied Psychology, 94(5), 1275. DOI: https://doi.org/10.1037/a0015848

Wang, Z., Xu, H., & Liu, Y. (2016). How does ethical leadership trickle down? Test of an integrative dual-process model. Journal of Business Ethics, 1-15. DOI: https://doi.org/10.1007/s10551-016-3361-x

Wen, P., & Chen, C. (2016). How does ethical leadership influence employees' whistleblowing intention? Evidence from China. Social Behavior and Personality: An International Journal, 44(8), 1255-1266. DOI: https://doi.org/10.2224/sbp.2016.44.8.1255

Yang, F., Liu, J., Wang, Z., & Zhang, Y. (2019). Feeling energized: a multilevel model of spiritual leadership, leader integrity, relational energy, and job performance. Journal of Business Ethics, 158(4), 983-997. DOI: https://doi.org/10.1007/s10551-017-3713-1

Yukl, G., & Chavez, C. (2002). Influence tactics and leader effectiveness. Leadership, 139-165.

Zhou, H., Sheng, X., He, Y., & Qian, X. (2020). Ethical Leadership as the Reliever of Frontline Service Employees’ Emotional Exhaustion: A Moderated Mediation Model. International Journal of Environmental Research and Public Health, 17(3), 976. DOI: https://doi.org/10.3390/ijerph17030976

Zhu, W., Treviño, L. K., & Zheng, X. (2016). Ethical leaders and their followers: The transmission of moral identity and moral attentiveness. Business Ethics Quarterly, 26(1), 95-115. DOI: https://doi.org/10.1017/beq.2016.11

Published
2020-12-31
How to Cite
Muhammad Wasim Jan Khan, Adnan Ismail, Zujaj Ahmed, & Israr Ali. (2020). Ethical Leadership and Whistle-blowing Intentions: Mediating Role of Moral Identity. Journal of Accounting and Finance in Emerging Economies, 6(4), 1021-1032. https://doi.org/10.26710/jafee.v6i4.1455