What Determines Ethical Behavior in Public Organizations: Is It Rules or Leadership?

Abstract

: Leadership is widely seen as having an important role in fostering ethical conduct in organizations, but the ways in which the actions of leaders intersect with formal ethics regulation in shaping conduct have been little researched. This article examines this issue through a qualitative study of the operation of the "ethical framework" for English local government, which entailed all councils adopting a code of conduct to regulate the behavior of local politicians. Studying local government provides an opportunity to examine how personal and managerial factors combine to influence ethical conduct and to analyze the ways in which ethical leadership is exercised through multiple people in leadership roles (politicians and managers). The article finds that organizations that exhibit consistently good conduct have multiple leaders who demonstrate good conduct but also act to preempt the escalation of problems and thereby minimize the explicit use of ethics regulation. Practitioner Points• The actions of leaders are important in promoting good conduct and fostering an ethical culture.• The promotion of good conduct within complex organizations can be enhanced when different categories of leaders work in concert.• Leaders need to be willing to intervene informally to steer behavior in their organizations and resolve emerging problems rather than relying on formal regulatory mechanisms.• The personal moral credibility of leaders can be very important in enhancing the effectiveness of formal ethics regulation.

What Causes Unethical Behavior? A Meta‐Analysis to Set an Agenda for Public Administration Research

“…Joining recent calls to address this issue (e.g., Hassan, Wright, and Yukl ), we urge public administration scholars to spearhead experimental work in this area. Research on ethical leadership is flourishing in our field (e.g., Downe, Cowell and Morgan ; Hassan, Wright, and Yukl ) and in the social sciences (e.g., Yukl et al ). However, most of these studies rely on correlational designs that are subject to questions about the internal validity of the findings.…”

“…ethical leadership is flourishing in our field (e.g., Downe, Cowell and Morgan 2016 ;Hassan, Wright, and Yukl 2014 ) and in the social sciences (e.g., Yukl et al 2013 ). However, most of these studies rely on correlational designs that are subject to questions about the internal validity of the findings.…”

Influence of ethical behavior on Corporate Governance of firm’s performance in Ghana.

“…Among the key component according to Grojean, Christian, Dickson, & Brent (2004), is the role of leadership in the organization. According to Downe, Cowell, & Morgan (2016), the ethical behavior of a leader is an essential concept which has played an integral role in the global corporate governance of many organizations. Many scandals incriminating the leaders of the organizations are based on the lack of integrity and ethics, either in financial reporting or on how they treat their employees.…”

Next Steps for Public Administration Theory and Practice: Looking Backward and Moving Forward

“…The authors suggest a research agenda for filling gaps in our knowledge base. Downe, Cowell, and Morgan ( 2016 ) conclude the symposium on the themes of leadership and ethical conduct. Their starting point is a provocative question, "What Determines Ethical Behavior in Public Organizations: Is It Rules or Leadership?"…”

“…Downe, Cowell, and Morgan () conclude the symposium on the themes of leadership and ethical conduct. Their starting point is a provocative question, “What Determines Ethical Behavior in Public Organizations: Is It Rules or Leadership?” Their qualitative study of local governments provides rich insights about how personal and managerial factors influence ethical conduct.…”