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Exploring the Link between Organisational Performance Pressures and the Factors that Compromise Ethical Leadership

Author

Listed:
  • Senzo Ngcobo
  • Colin D Reddy

Abstract

Purpose: This research paper explores the link between threat-appraised organizational performance pressure and factors that compromise ethical leadership. Design/Methodology/Approach: The study uses a qualitative approach, using a rank-type Delphi method and administered questionnaires to 40 academic and practitioner experts and 10 organisational leaders. The collected data was analysed through qualitative comparative analysis (QCA). Results: The findings provide empirical evidence of the detrimental impact of threat-appraised performance pressure on ethical leadership behaviour. Four themes are identified as top-ranked organisational performance pressures and factors compromising ethical leadership: market share growth pressure, pressure to present positive financial statements, pressure to achieve greater efficiency, and competitive pressure linked to several factors that compromise ethical leadership. Practical Implications: This research has practical implications for academics, ethics practitioners, policymakers, and organizations, emphasising the importance of mitigating the negative consequences of performance pressures on ethical decision-making. The research supports the development of effective measures, training programs, and ethical frameworks to navigate ethical challenges posed by performance pressures, contributing to long-term success and sustainability. Originality/Value This research contributes novel insights to the field of ethical leadership by exploring the relationship between organisational performance pressures and factors compromising ethical leadership. It fills a significant gap in empirical evidence and advances our understanding of how performance pressures can impact ethical leadership behaviour. The rigorous methodology, comprehensive analysis, and practical implications make it valuable for academics, researchers, practitioners, and policymakers.

Suggested Citation

  • Senzo Ngcobo & Colin D Reddy, 2024. "Exploring the Link between Organisational Performance Pressures and the Factors that Compromise Ethical Leadership," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 10(2), pages 139-158, April.
    • Handle: RePEc:ate:journl:ajbev10i2-4
    DOI: 10.30958/ajbe.10-2-4
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    References listed on IDEAS

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    1. Rubin, Robert S. & Dierdorff, Erich C. & Brown, Michael E., 2010. "Do Ethical Leaders Get Ahead? Exploring Ethical Leadership and Promotability," Business Ethics Quarterly, Cambridge University Press, vol. 20(2), pages 215-236, April.
    2. Chase Thiel & Zhanna Bagdasarov & Lauren Harkrider & James Johnson & Michael Mumford, 2012. "Leader Ethical Decision-Making in Organizations: Strategies for Sensemaking," Journal of Business Ethics, Springer, vol. 107(1), pages 49-64, April.
    3. Lu-Ming Tseng, 2019. "How Implicit Ethics Institutionalization Affects Ethical Selling Intention: The Case of Taiwan’s Life Insurance Salespeople," Journal of Business Ethics, Springer, vol. 158(3), pages 727-742, September.
    4. Xiaolin Lin & Paul F. Clay & Nick Hajli & Majid Dadgar, 2018. "Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms," Journal of Business Ethics, Springer, vol. 150(3), pages 779-791, July.
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