To Confess Or Not To Confess: do People Disclose Unethical Behavior To An Ethical Leader?

Authors:

Abstract: Recent organizational scandals have shown that large-scale frauds often originate from seemingly insignificant morally questionable acts. To prevent the slippery slope and avoid substantial organizational costs in the long run, it is crucial to detect early instances of unethical practices—which, unfortunately, are often unnoticeable. In this article, we propose the important act of confessing one’s own unethical behavior in management contexts. In these circumstances, leaders who are well-informed about the situation can play a vital role in resolving these issues and ensuring compliance within the company. However, the motivation behind individuals’ decision to disclose wrongdoing remains relatively unexplored, leaving an important question unanswered: Are people more or less willing to confess their wrongdoing to a highly ethical leader? Two possibilities are considered based on theories regarding the defining nature of ethical leadership. One theory suggests that individuals are less likely to admit past misdeeds to ethical leaders due to the anticipation of harsh punishment at work, while the other suggests that followers will feel comfortable and be more likely to do so as such leaders will not lose trust in them. Results from two randomized controlled laboratory experiments (and one multi-wave field survey) support the latter trust perspective, and reveal that ethical leaders serve as an important cue in encouraging followers to disclose their unethical behavior. This research advances beyond the focus on “who we are” in influencing confession behavior in the literature, and highlights that “who we are around” also matters in disclosing wrongdoing in organizations.

Track: MORAL

Keywords: Confession, Ethical Leadership, Punishment, Trust, Unethical Behavior