Critical review: Linking Ethical Leadership with Firm Performance: A Multi-dimensional

Perspective Dan Wang1 • Taiwen Feng2 • Alan Lawton3

MOTIVATION
Despite the importance of ethical leadership, the impacts of its different facets on firm-level
performance are unclear.
THEORY
This research follow Eisenbeiss’s conceptualization of ethical leadership as it provides a
normative framework that outlines four central ethical orientations applicable to both Western
and Eastern cultures.
LOGIC BEHIND HYPHOTHESIS
H1 Leader humane orientation has a positive influence on (a) financial performance and (b)
social performance of a firm.
H2 Leader responsibility and sustainability orientation has a positive influence on (a) financial
performance and (b) social performance of a firm.
H3 Leader moderation orientation has a positive influence on (a) financial performance and (b)
social performance of a firm.
H4 Leader justice orientation moderates the relationship between leader humane orientation
and (a) financial and (b) social performance.
H4 Leader justice orientation moderates the relationship between leader responsibility and
sustainability orientation and (c) financial and (d) social performance.
H4 Leader justice orientation moderates the relationship between leader moderation
orientation and (e) financial and (f) social performance.
METHODOLOGY AND MEASURE
Developed the English version of the questionnaire based on existing literature. The square root
of AVE value for each construct was compared with the correlations between this construct and
the other constructs in order to evaluate discriminant validity.
RESULT
Thus, H1a H1b, H2a, H2b, H3a, H4a, H4c, and H4f are empirically supported. H3b, H4b, H4d,
H4e are empirically not supported.
CONCLUSION
It shows that ethical leadership can be used as a tool by top executives to mobilize human
resources of a firm, which further enhance firm capabilities and competitive advantages in the
marketplace.
LIMITATION AND FURTHER RESEARCH
First, the CEO ethical leadership was assessed by two groups of employees, second, we only
focused on leader humane orientation, leader responsibility and sustainability orientation,
leader moderation orientation and leader justice orientation. Then we did not use objective
scales to measure firm performance for all the participating firms. For future research could
incorporate more organizational factors to have an elaborated understanding of how
CEO ethical leadership influences firm performance.

Critical review: Are There Gender Differences When Professional Accountants

Evaluate Moral Intensity for Earnings Management?
MOTIVATION
There are many conflicting studies that suggest similarities or differences in ethical evaluations
and ethical decision making of males and females. Early gender studies have suggested that
women are more ethical than males.
THEORY
Socialization theory suggests that because gender identity is stable and unchanging, the
different values, interests, and traits that males and females bring to the workplace should
cause differences in ethical perceptions to be stable over time (Dawson 1992).
LOGIC BEHIND HYPHOTHESIS
H1 There are no gender differences in professional accountants’ moral sensitivity for earnings
management. Because Dalton and Ortegren (2011) suggest that gender differences in ethical
decision-making may occur because females are more prone to respond in a socially desirable
way.
H2 There are no gender differences in professional accountants’ moral judgment for earnings
management. . The author present the following hypothesis, lies on Lund (2008) found that
male and female marketing professionals differ significantly in their moral judgment
H3 There are no gender differences in professional accountants’ moral intentions to report
earnings management. Because of other researchers suggest that whistleblowing behavior is
considered risky and men are more likely to report these acts while women tend to conform to
a majority opinion and the majority opinion may tend to not report actions
H4 There are no gender differences in professional accountants’ ratings of moral intensity for
earnings management. It is possible that the gender differences are decreased or eliminated
based upon prior research reported. Therefore, present that hypothesis.
METHODOLOGY AND MEASURE
The participants evaluated several statements utilizing a 7-point Likert scale.
RESULT
H1, H2, H3, and H4 are all supported.
CONCLUSION
This study found no differences in ethical evaluations, moral judgments, moral intentions to
whistle blow, or evaluations of moral intensity for male and female accounting professionals. If,
in fact, there are no gender differences between male and female practicing accountants’
ethical decision-making, the implications on hiring and training are profound. This suggests that
hiring and training may not need to be gender specific, and there may be no need to ‘‘balance’’
male and female staff in order to create and maintain an ethical atmosphere.
LIMITATION AND FURTHER RESEARCH
Few studies have attempted to measure the fourth step in Rest’s model of ethical decision-
making, actual behavior. Therefore, future research may wish to attempt to measure actual
behavior. Further, future studies may wish to increase the sample size, sample a different
geographic area, use different situations of earnings management, or consider additional
variables that might impact ethical and moral intensity evaluations.