<p>We examine the dark side of organizational justice by linking it to earnings management, a form of unethical pro-organizational behavior. Earnings management activities can undermine stakeholders’ organizational trust, increase regulatory scrutiny, and impair future operating performance. Whereas prior research tends to focus on incentive-based compensation and supervisor pressure as explanations for earnings manipulation, we take a social identity perspective. Drawing from conceptual frameworks of unethical pro-organizational behavior and the group engagement model, we theorize that when employees are treated fairly by their organization, they will increase their level of identification with the organization and thus be more likely to engage in unethical behaviors intended to help the organization, namely earnings management. Furthermore, we investigate the moderating role of moral identity in influencing our proposed effects. Results from two studies employing both survey and experimental designs provide convergent support for our hypothesized model. We find that organizational identification mediates the positive relationship between organizational justice and unethical pro-organizational behavior in the form of earnings management, and that moral identity weakens this relationship. We conclude by discussing several key theoretical and practical implications of our findings.</p>

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The Dark Side: Linking Organizational Justice to Unethical Employee Behaviors

  • James J. Lavelle,
  • David N. Herda,
  • Kimberly M. Bates

摘要

We examine the dark side of organizational justice by linking it to earnings management, a form of unethical pro-organizational behavior. Earnings management activities can undermine stakeholders’ organizational trust, increase regulatory scrutiny, and impair future operating performance. Whereas prior research tends to focus on incentive-based compensation and supervisor pressure as explanations for earnings manipulation, we take a social identity perspective. Drawing from conceptual frameworks of unethical pro-organizational behavior and the group engagement model, we theorize that when employees are treated fairly by their organization, they will increase their level of identification with the organization and thus be more likely to engage in unethical behaviors intended to help the organization, namely earnings management. Furthermore, we investigate the moderating role of moral identity in influencing our proposed effects. Results from two studies employing both survey and experimental designs provide convergent support for our hypothesized model. We find that organizational identification mediates the positive relationship between organizational justice and unethical pro-organizational behavior in the form of earnings management, and that moral identity weakens this relationship. We conclude by discussing several key theoretical and practical implications of our findings.