When Power Reveals Values: The Moderating Role of Managerial Power in Ethical Conduct

Abstract: When and why does power lead to ethical misconduct? We propose that power itself is not inherently corrupting, but rather amplifies the behavioral expression of personal values. Across two studies with working adults (N = 623), self-enhancement values were associated with less ethical conduct, whereas self-transcendence values were associated with more ethical conduct. Crucially, these associations emerged only among individuals holding managerial power. In Study 1, self-enhancement and self-transcendence values predicted ethical and unethical decisions among managers, but not among non-managers. Study 2 extended these findings to actual dishonest behavior (misreporting demographic information for monetary gain) and showed that the strength of the value–behavior relationship increased with supervisory responsibility. Together, these findings challenge the assumption that power itself corrupts, instead demonstrating that power functions as a behavioral amplifier of preexisting values. The results further suggest that promoting individuals with self-transcendent value orientations into leadership roles may be an effective strategy for fostering ethical organizational cultures.

Keywords: organizations, ethical conduct, personal values, power