Ethical leadership in organizations: prestige versus dominance

Ethical leadership plays an important role in shaping the ethical culture within organizations. People often associate dominant leadership with strong performance and decision-making power, but recent research by Brady and Sivanathan (2024) shows that this leadership style can also have unintended negative consequences for workplace ethics. These findings are relevant for organizations that strive for both high performance and an ethically responsible work environment.

Insight into the 'dual-strategies' theory

The research uses the 'dual-strategies' theory, which distinguishes leadership into two primary approaches: dominance and prestige.

• Dominant leaders are characterized by an assertive and controlling attitude, commanding respect through strength and authority.
• Prestige-oriented leaders, on the other hand, earn respect through their knowledge, skills, and willingness to share them with their team. This approach provides a valuable framework for understanding the impact of different leadership styles on ethics within organizations.

The influence of leadership on ethical behavior

Seven different studies, ranging from laboratory experiments to field studies, show that dominant leaders can encourage unethical behavior among their subordinates. In one experiment, participants were exposed to a video in which an actor played a dominant or prestige-oriented leader. After watching the video, participants were given the opportunity to demonstrate unethical behavior in a simulated work task. The results were consistent. Participants consistently showed more unethical behavior when exposed to the dominant leader than when they saw a prestige-oriented leader.

What is striking is the discovery that employees of dominant leaders are more likely to view unethical behavior as acceptable. Dominant leaders, possibly unintentionally, create an environment in which deviant behavior is considered the norm. This effect is reinforced by the emotional pressure that this leadership style entails, such as increased anxiety and stress among employees. This negative emotional state can lead to vengeful and self-protective behavior, which in turn further undermines ethical standards within a team.

Practical implications for organizations

The findings of this study have implications for how organizations approach their leadership. In times of uncertainty or economic pressure, companies may tend to opt for dominant leaders who make quick decisions and exercise control. However, this research suggests that such choices can have unintended negative consequences for an organization's ethical behavior.

Organizations that strive for an ethical work environment would do well to place more emphasis on prestige-oriented leadership. Leaders who earn respect through their expertise support their teams through advice and guidance. These leaders appear to be more effective at promoting ethical standards within their teams.

For companies that do opt for a more dominant leadership style, it is wise to pay extra attention to communicating and maintaining high ethical standards. Clear rules, consistent enforcement, and training in ethical decision-making can help reduce the potentially negative effects of a dominant leadership style.

Conclusion

While dominant leaders may seem more effective at enforcing performance, they may inadvertently foster a culture of unethical behavior. Organizations that strive to create a healthy, ethical work environment must carefully consider which leadership styles they support and promote. Companies that choose leaders who earn respect through their expertise promote an ethical culture. This can not only lead to better results but also to a positive work environment where employees feel morally supported.