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Literature Review: Annotated Bibliography and Outline
AdryAnne Jones
Liberty University
April 16, 2023
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Abstract
Following its role in determining the success or failure of business organizations, ethics in
leadership elements is increasingly getting discussed among academics and business
professionals. The number of cases connected to current financial instability and significant
corporate disasters, such as Enron and WorldCom, has increased. According to whether a leader
demonstrates ethical or unethical tendencies, the issue of ethics in leadership can have both
beneficial and destructive effects on the financial performance of an organization. According to
Demirtas, and Akdogan, (2019), some academics have highlighted how ethical leadership fosters
positive organizational outcomes by encouraging innovation and creativity, leading to enhanced
and outstanding organizational performance. Additionally, ethical leadership mitigates the
negative impacts of job burnout, which has favorable implications on the performance
parameters of businesses, according to extant evidence. The idea of ethics in leadership also
affects how followers form opinions about their leaders regarding morally righteous and morally
wrong actions. Such ethical ideas or tenets may have favorable or unfavorable effects on an
organization's success, particularly its financial performance. While unethical leaders typically
influence organizations to record poor financial performance, instances that occasionally may
lead to corporate failure due to financial meltdown, ethical leaders play profound roles in
facilitating organizational success through, among other ways, improving the financial
performance of organizations.
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Annotated Bibliography: Unethical Leaders and Their Effect on Organizational
Performance
Ahmad, M. G., Klotz, A. C., & Bolino, M. C. (2021). Can good followers create unethical
leaders? How follower citizenship leads to leader moral licensing and unethical
behavior. Journal of Applied Psychology, 106(9), 1374.
This article investigates the connection between unethical leadership and follower
conduct. Researchers in this article focus on the connection between the requirement for
moral licensing and good citizen behavior. Additionally, the others look at how the
relationship above might lead to unethical behavior among leaders. The authors of this
research note that when followers in an organizational context exhibit civic virtues, most
of their leaders tend to feel empowered to engage in immoral activities.
The authors of this article include academics with affiliations to American
colleges who have a range of experience and knowledge in fields related to leadership,
ethics, and organizational behavior. Because it sheds light on the part played by followers
in the reinforcement and emergence of unethical leaders in organizations, the information
highlighted, particularly in the findings and recommendations of this article, is crucial to
the research issue on unethical leaders. Surprisingly, this article's views highlight a few
elements that encourage the emergence of unethical leadership in businesses.
Aydin, M., & Ceylan, C. (2018). The effect of ethical leadership on firm performance: The
moderating role of corporate social responsibility. International Journal of Economics,
Commerce, and Management, 6(11), 16-29.
The two scholars in this essay examine the three critical elements of ethical leadership,
company success, and corporate social responsibility. This study's results strongly link
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moral leadership and effective organizational performance. According to this study,
corporate social responsibility moderates the relationship mentioned above. The writers
of this report are highly knowledgeable and skilled in matters relating to corporate social
responsibility, ethics, and organizational leadership.
The paper is especially pertinent to my research on immoral executives and their
effects on organizational performance. The research's conclusions and the many insights
they highlight show how ethical leadership can favorably impact an organization's
financial performance. Such insights are crucial, especially in my research topic, as they
show how moral leadership and a solid commitment to social responsibility may
significantly boost an organization's financial prospects and performance.
Cui, L., & Liu, J. (2019). Ethical leadership and job burnout: A moderated mediation model.
Frontiers in Psychology, 10, 1971.
This study explores the relationship between ethical leadership, psychological capital,
and job burnout. The scholars, in particular, point out that ethical leadership has a
negative relationship with job burnout. The above relationship gets, in particular,
mediated by psychological capital. Cui and Liu are scholars affiliated with an accredited
university and have expertise in leadership matters.
This investigation is particularly relevant to my research because it illustrates how
ethical leadership can profoundly mitigate most of the adverse effects of job burnout. Job
burnout can have severe implications on the performance of organizations. Remarkably,
the insights highlighted in this study are imperative and applicable to my research topic
because they demonstrate how organizations can improve their financial performance
through ethical leadership that can mitigate the negative implications of job burnout.
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Demirtas, O., & Akdogan, A. A. (2019). The effect of ethical leadership on creativity and
innovativeness: Mediating role of psychological safety. Journal of Business Research,
98, 146-159.
In this article, the two scholars explore the relationship between four significant
organizational aspects, mainly ethical leadership, innovativeness, creativity, and
psychological safety. The findings of this investigation illustrate that ethical leadership
has a positive relationship with aspects of innovativeness and creativity. The findings
also highlight that the above relationship gets mediated by psychological safety—the
authors in this study uh scholars with affiliations from universities and extensive
knowledge of leadership and innovation.
This article is particularly relevant to my topic of ethical leaders and their
implications on the financial performance of organizations because it gives suggestions
and insights that ethical leadership has positive implications on organizational creativity
and innovation. In other words, insights in this article demonstrate the role played by
ethical leadership in promoting creativity and innovation among organizations that can
consequently result in excellent organizational performance.
Egorov, M., Kalshoven, K., Pircher V. A., & Peus, C. (2020). It’s a match: Moralization and the
effects of moral foundations congruence on ethical and unethical leadership
perception. Journal of Business Ethics, 167, 707-723.
This investigation explores the relationship between moral foundation congruence and
ethical and unethical leadership perceptions. The scholars in this article point out that
moral foundations' congruence can imply followers' perceptions of their leaders. In
particular, the findings of this article claim that moral unity can significantly influence
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how followers perceive their leaders, especially in terms of their unethical and ethical
behaviors. Scholars in this article get affiliated with Australian and German universities.
Additionally, the authors have extensive expertise in psychology, ethics, and leadership.
The authors' qualifications in this article and insights on unethical leaders make it
relevant to the investigation focusing on unethical leaders. In particular, the article is
relevant to my research because it provides valuable insights into how moral values
influence perceptions of unethical and ethical leadership.
Hiller, N. J., & Weiner, J. (2019). Who succeeds in ethical leadership? The role of core selfevaluations. Journal of Business Ethics, 155(1), 137-153.
In this article, the scholars explore the relationship between ethical leadership, core selfevaluations, and job performance. According to the findings of this investigation,
individuals demonstrating high levels of core self-evaluations have a high propensity for
exhibiting ethical leadership behaviors. Such instances, in particular, result in improved
job performance. This article is reliable because the authors have extensive knowledge of
ethics and leadership.
This article is much relevant to my research topic of ethical leaders and their
implications on the financial performance of organizations because it investigates various
implications of ethical leadership. In particular, the article has various suggestions
demonstrating how individual traits can significantly influence organizational ethical
leadership development. The development of such ethical leadership traits through
individual traits among individuals is essential because it facilitates positive outcomes in
organizations.
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Lee, S., Lee, D. H., & Hwang, T. (2019). Ethical leadership and employee creativity: The
mediating role of psychological safety. Social Behavior and Personality: An International
Journal, 47(3), e7233.
This investigation explores the relationship between ethical leadership, employee
creativity, and organizational psychological safety. The authors in this study point out
that ethical leadership has a positive relationship with employee creativity and
psychological safety. The findings of this study claim that psychological safety mediates
the relationship between ethical leadership and aspects of creativity within organizations.
The authors of this article know about leadership, personality, and social behavior,
making the article relevant and reliable.
This study or article is, in particular, relevant to my topic of research on ethical
leaders and their implications on the financial performance of organizations in different
formations. First, the article points out that ethical leadership is critical in fostering a
positive work environment. Most importantly, it encourages creativity by influencing
individuals across the organization to have and employ creative thinking. Such aspects
are integral, especially for business-based organizations, because they ultimately
contribute to excellent and improved financial performance.
Liu, J., Zhang, Y., & Wang, H. (2019). Ethical leadership, ethical climate, and employee silence:
A cross-level examination in China. Journal of Business Ethics, 154(4), 1049-1062.
In this article, the three scholars explore the relationship between ethical leadership,
employee silence, and ethical climate in Chinese organizations. The findings of this
investigation point out that unethical climate and unethical leadership in organizations
have a relationship and usually result in employee silence. The authors, in particular,
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argue that such a relationship gets mediated by employee perceptions of justice. The
authors in this investigation are affiliated with universities in China and have the
expertise and extensive knowledge of ethical and leadership matters.
This article is relevant to my research topic because it emphasizes the significance
of ethical leadership in workplace environments. In particular, this article highlights that
ethical leadership in organizations plays a critical role in creating a positive
organizational climate that can facilitate organizational success, especially in financial
dimensions. Such a climate is also Imperative because it reduces any instances of
unethical behavior not only among leaders but also any other employee within an
organization.
McAllister, D. J., & Bigley, G. A. (2018). The role of ethical leadership in shaping proactive
employee behavior: Evidence from a longitudinal field study. Journal of Business Ethics,
149(1), 45-61.
McAllister and Bigley (2018) examined the relationship between ethical leadership,
proactive behaviors, and organizational performance in this article. The two authors
argue that ethical leadership positively relates to proactive organizational behaviors. In
their investigation, the two authors Also point out that proactive behaviors in
organizations have positive relationships with excellent organizational performance, in
this case, financial performance. The two scholars are reliable based on the latter that
they have extensive knowledge and expertise in matters of ethics and leadership, and
employee behavior.
This study is particularly relevant to my research on unethical leaders and their
implications on organizational performance. It provides insights demonstrating how
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ethical leadership can be critical in encouraging proactive behaviors among employees.
Most organizations that have employees with proactive behaviors record significant
success, especially in terms of their financial performance. Such behaviors can ultimately
improve organizational outcomes, including excellent financial performance.
Wang, Z., Xu, X., & Zhao, H. (2018). The influence of abusive supervision on employee
performance: The mediating role of ethical leadership. Frontiers in Psychology, 9, 1234.
In this investigation, the authors examine the relationship between three key concepts:
abusive supervision, employee performance, and ethical leadership. In particular, this
research finds that abusive supervision in organizations or workplace environments
negatively affects employee performance. The findings of this investigation also point out
that the relationship between abusive supervision and employee performance gets
partially mediated by ethical leadership. The authors in this study are affiliated with
universities in China and have substantial knowledge and expertise in leadership aspects
in organizations.
This article provides relevant insights that fit into my research topic and therefore
is relevant. It particularly suggests that leadership behaviors that are unethical and have
advice effects on employee performance. The investigation findings also demonstrate that
the implications of unethical leadership behaviors on employee performance can
extensively affect an organization's financial performance and sometimes lead to
organizational failure.
Zheng, F., Khan, N. A., & Khan, M. W. A. (2021). Unethical leadership and employee extra-role
behavior in the information technology sector: A moderated mediation analysis.
Frontiers in Psychology, 12, 708016.
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This article's authors examine the relationship between the development of employee
extra-role behavior and unethical leadership. In particular, scholars in this research point
out that unethical leadership can create negative extra-role behaviors among employees.
Researchers in this article claim that creating extra-role behaviors due to unethical
leadership in organizations can have devastating implications for a given organization.
Scholars in this article are affiliated with universities in Pakistan and China and have
remarkable expertise in psychology and organizational behavior.
The qualifications and insights pointed out by the authors in this article make it
relevant to the research topic on unethical leaders. Notably, the article concentrates on the
effects of unethical leadership in organizations, especially information technology-based
organizations. The article also highlights the significance of comprehending such
implications in the context of accounting practices among business organizations.
Remarkably, such insights can play a critical role in providing supportive evidence on the
implications of unethical leaders in organizations.
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Literature Review: Outline
I. Introduction
a. Unethical leadership is a topic of concern that has become one critical issue, especially in
workplace environments. It, in particular, involves organizational leaders who display
unethical behaviors, including illegal and immoral traits and engagements that negatively
affect organizations and employees. The study of unethical leadership is imperative
because it helps vital stakeholders, such as business owners and the public, including
investors, to understand the impact of such unethical behaviors on the performance of an
organization (McAllister & Bigley, 2018, p. 59). Studying such a topic is also imperative
because it enables organizations to develop effective strategies to prevent and promote
ethical leadership.
b. While various themes get illustrated in research and findings on unethical leaders and
their effects on organizational performance, the following four themes are imperative in
studying and understanding ethical leadership and its implications on organizations. The
themes include the impact of unethical leadership on employee behavior, the impact of
ethical leadership interventions, the role of organizational culture, and the relationship
between unethical leadership and organizational performance. The above themes depict
the implications of unethical leadership on employees and organizations.
II. Theme One: The Impact of Unethical Leadership on Employee Behavior
a. Existing literature points out the various negative implications of unethical
leadership on organizational employee behaviors. In particular unethical
leadership contributes to the development of negative employee behavior,
including reduced productivity, turnover, and job satisfaction (Ahmad, Klotz &
Bolino, 2021, p. 1374).
b. Sub-Theme – Perception of Unethical Leadership
1. Employee perceptions of ethical leadership affect job performance
and satisfaction (Ahmad, Klotz & Bolino, 2021, p. 1374).
2. Employees who usually perceive their leaders or managers as
ethical regarding their behaviors and engagements develop more
commitments to the organization (Ahmad, Klotz & Bolino, 2021,
p. 1374).
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3. Such employees develop high propensities of displaying
organizational citizenship behaviors (Ahmad, Klotz & Bolino,
2021, p. 1374).
c. Sub-Theme – Impact of Unethical Leadership on Employee Turnover
1. Employees who discharge job duties in cultures with ethical
leadership are more likely to leave their jobs (Cui & Liu, 2019, p.
1971).
2. Studies have identified unethical leadership as one of the critical
predictors of employee turnover (Cui & Liu, 2019, p. 1971).
III. Theme B – The Role of Organizational Culture
a. Existing Organizational culture has a role in preventing unethical behaviors,
especially among leaders. Robust and effective ethical cultures can promote
ethical leadership and prevent unethical behaviors (Demirtas & Akdogan, 2019, p.
152).
b. Sub-Theme – Ethical Culture and Ethical Leadership
1. There is a relationship between ethical culture and ethical
leadership among organizations (Demirtas & Akdogan, 2019, p.
149).
2. Leaders' moral identity moderates the relationship between ethical
cultures and ethical leadership in organizations (Demirtas &
Akdogan, 2019, p. 155).
c. Sub-Theme – Ethical Culture and Employee Behavior
1. There is a positive relationship between ethical culture and
employee behavior, including essential behaviors among
employees such as organizational commitment and job satisfaction
(Ahmad, Klotz & Bolino, 2021, p. 1374).
2. Solid and effective ethical cultures in organizations can reduce the
likelihood of employees or individuals engaging in and practicing
unethical behaviors (Demirtas & Akdogan, 2019, p. 147).
IV. Theme C: Impact of Ethical Leadership Interventions
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a. Ethical leadership interventions are essential in improving employee behaviors
and organizational performance (Aydin & Ceylan, 2018, pp. 18-21).
b. Sub-Theme: Impact on Employee Behavior
1. Applying ethical leadership interventions in organizations or
organizational cultures improves employee behavior.
2. Such interventions improve employee behavior in aspects such as
employee organizational commitment and increased job
satisfaction (Aydin & Ceylan, 2018, p. 25).
V. Theme D: The Relationship Between Unethical Leadership and Organizational
Performance
a. The existence of unethical leadership in organizations has a relationship with poor
organizational performance and sometimes failure. Usually, unethical leadership
results in negative employee behaviors, including reduced morale and lack of
employee commitment toward the organization (Lee, Lee & Hwang, 2019, p.
e7233).
b. Sub-Theme: Effects of Unethical Leadership on Employee Well-Being
1. Unethical leadership actions and practices in organizations
increase emotional exhaustion, lower levels of psychological
safety, and lower job satisfaction among employees (Cui & Liu,
2019, p. 1971).
2. Employees who typically develop perceptions that their leaders are
unethical display high-stress levels and subsequently lower levels
of well-being (Cui & Liu, 2019, p. 1971.
VI. Conclusion and Recommendations
One of the significant contributions of the existing literature on corrupt leadership
entails providing a comprehensive overview of the complex relationships between ethical
leadership and organizational performance. In particular, existing literature has demonstrated
that unethical leadership can have far-reaching severe implications for the well-being and
performance of organizations. Unethical leadership among organizations, in particular,
decreases employee engagement and motivation, organizational commitment, and employee
turnover rates. The existing literature has also played a critical role in identifying various
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essential factors and interventions that can mitigate the negative implications of unethical
leadership among organizations. Such interventions include having a strong organizational
culture, utilizing contextualized research methods, and developing ethical leadership
programs.
The other success in the existing literature demonstrates various strengths, especially
in utilizing diverse research methods and case studies from renowned organizational contexts
such as Enron and WorldCom that have been diversely affected by unethical leadership.
Most of the authors in the existing literature are qualified, with most affiliations with various
accredited universities. In contrast, others have extensive knowledge and expertise in critical
areas such as ethics, organizational leadership, and management. The literature review
existing also provides essential practical and effective implications for businesses for
companies that seek to mitigate the various effects of unethical leadership on their
performance.
However, a few areas for improvement in the existing literature need to get
addressed. For instance, most studies concentrate on the negative implications of unethical
leadership without practically and effectively exploring the underlying mechanisms that
result in unethical leadership. Notably, there is a need for extensive research to focus on and
examine the effect of unethical leadership on different types of organizations, along with the
various causes of such leadership.
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References
Ahmad, M. G., Klotz, A. C., & Bolino, M. C. (2021). Can good followers create unethical
leaders? How follower citizenship leads to leader moral licensing and unethical
behavior. Journal of Applied Psychology, 106(9), 1374.
Aydin, M., & Ceylan, C. (2018). The effect of ethical leadership on firm performance: The
moderating role of corporate social responsibility. International Journal of Economics,
Commerce, and Management, 6(11), 16-29.
Cui, L., & Liu, J. (2019). Ethical leadership and job burnout: A moderated mediation model.
Frontiers in Psychology, 10, 1971.
Demirtas, O., & Akdogan, A. A. (2019). The effect of ethical leadership on creativity and
innovativeness: Mediating role of psychological safety. Journal of Business Research,
98, 146-159.
Egorov, M., Kalshoven, K., Pircher V. A., & Peus, C. (2020). It’s a match: Moralization and the
effects of moral foundations congruence on ethical and unethical leadership
perception. Journal of Business Ethics, 167, 707-723.
Hiller, N. J., & Weiner, J. (2019). Who succeeds in ethical leadership? The role of core selfevaluations. Journal of Business Ethics, 155(1), 137-153.
Lee, S., Lee, D. H., & Hwang, T. (2019). Ethical leadership and employee creativity: The
mediating role of psychological safety. Social Behavior and Personality: An International
Journal, 47(3), e7233.
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Liu, J., Zhang, Y., & Wang, H. (2019). Ethical leadership, ethical climate, and employee silence:
A cross-level examination in China. Journal of Business Ethics, 154(4), 1049-1062.
McAllister, D. J., & Bigley, G. A. (2018). The role of ethical leadership in shaping proactive
employee behavior: Evidence from a longitudinal field study. Journal of Business Ethics,
149(1), 45-61.
Wang, Z., Xu, X., & Zhao, H. (2018). The influence of abusive supervision on employee
performance: The mediating role of ethical leadership. Frontiers in Psychology, 9, 1234.
Zheng, F., Khan, N. A., & Khan, M. W. A. (2021). Unethical leadership and employee extra-role
behavior in the information technology sector: A moderated mediation analysis.
Frontiers in Psychology, 12, 708016.