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

Senzo Ngcobo and Colin D Reddy

Athens Journal of Business & Economics, 2024, vol. 10, issue 2, 139-158

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.

Keywords: ethical leadership; performance pressure; qualitative comparative analysis; Delphi method; dishonesty; unfairness; low moral judgement; lack of accountability (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ate:journl:ajbev10i2-4

DOI: 10.30958/ajbe.10-2-4

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