The effect of ethical leadership on purchasers’ unethical behavior in China: The moderating role of ethical ideology

This paper examines the role of ethical leadership in managing purchasing agents’ unethical practices. By focusing on the manager-purchasing agent relationship within a firm's purchasing function, we investigate the effect of the manager's ethical leadership on purchasing agents’ unethical behaviors, and explore the moderating role of purchasing agents’ ethical ideology in this relationship. Our scenario-based experiment and survey-based empirical study show that a manager's ethical leadership in a purchasing team plays a critical role in reducing purchasing agents’ unethical behaviors. More importantly, the results reveal that the negative impact of ethical leadership on unethical behaviors is strengthened when the level of purchasing agents’ idealism or relativism is high. In addition, we found that ethical leadership has the strongest negative effect on the unethical behavior of purchasing agents when the agents have high levels of both idealism and relativism.