Limits of ethical leadership and the role of ethics-oriented HRM system in managing Machiavellians

Abstract

Purpose: The current study investigates the significance of ethics-oriented HRM systems (EHRMS) and ethical leadership in addressing the unethical behavior of Machiavellians in professional services firms. Design/methodology/approach: Our study used a multi-source, multi-wave design to investigate the impact of EHRMS and ethical leadership on the unethical behavior of Machiavellians using a sample of 364 employees. Findings: Our results reveal that EHRMS moderates the relationship between Machiavellianism and unethical behavior, while ethical leadership does not significantly moderate this relationship. Our results suggest that EHRMS has a significantly stronger impact on managing the unethical tendencies of Machiavellians than ethical leadership. Originality/value: The study offers unique insights into the differential effects of EHRMS and ethical leadership in moderating unethical behavior among Machiavellians. The findings are also unique, as they highlight that the receptivity of ethical leadership depends on the individual differences of followers/employees.