The Dynamics of Ethical Leadership : Unraveling Influences on Individual Behavior within Organizations

Abstract

Ethical leadership is a subject of growing interest within organizational psychology and management research. This research addresses the topic of ethical leadership's influence on individual behavior within organizational contexts. Ethical leadership is a crucial factor in shaping the behaviors of employees, affecting not only their performance but also the ethical climate within the organization. This master’s thesis endeavors to contribute to the existing research by conducting a systematic literature review to comprehensively examine the mechanisms through which ethical leadership impacts individual behavior.

The primary purpose of this study is to investigate the key mechanisms and mediating factors through which ethical leadership affects individual behavior in organizations. Drawing from a theoretical framework that encompasses trust, moral identity, self-control, work engagement, and ethical decision-making, this research synthesizes the findings from 32 peer-reviewed journal articles published between June 2013 and October 2023. These articles provide critical insights into the intricate relationship between ethical leadership and various facets of individual behavior.

The findings of this systematic literature review illuminate several significant mechanisms by which ethical leadership ideally influences individual behavior. Ethical leadership serves as a catalyst fostering trust and ethical conduct among employees. It influences the development of moral identity and self-control in subordinates, leading to more ethical decision-making processes. Moreover, ethical leadership is linked with increased work engagement, creativity, and enhanced citizenship behaviors among employees. On the other hand, it also plays a role in reducing deviant behaviors and encouraging whistleblowing when ethical transgressions occur. However, the review also identifies the moderating influence of contextual factors, such as perceived organizational support, workplace friendships, organizational cynicism, and cultural context, on the relationship between ethical leadership and individual behavior. In presenting these findings, it is essential to note that they are presented in the most ideal and normative way.

This systematic literature review enhances the understanding of the crucial role ethical leadership plays in shaping individual behavior in organizations. The insights offer valuable contributions for scholars, practitioners, and organizations seeking to improve ethical leadership and elevate individual behavior in the workplace, fostering ethical and productive organizational climates. However, these normative findings, rooted in decision-making theory research, pose practical implementation challenges. Nevertheless, it is crucial to acknowledge that these normative findings present challenges in practical implementation. This research underscores the need for continued exploration of cultural variations, long-term effects, and practical applications in the field of ethical leadership.