5. Discussion
Our study identified a moderated mediation process that embodies the flow of ethical leadership across the hierarchical levels of organizations. Specifically, ethical leadership flows down from high-level leaders to low-level leaders, and results in desirable employee outcomes in the form of reduced social loafing and improved task performance. Furthermore, the self-enhancement motives of low-level leaders moderate the trickle-down process. That is, the effects of the ethical leadership of high-level leaders on that of low-level leaders are more prominent when low-level leaders have low (rather than high) levels of self-enhancement motives. Taken as a whole, these findings illustrate the vital roles that ethical leadership plays across multiple hierarchical levels in achieving desirable performance outcomes.
5.1. Theoretical implications
Our results expand the literature on leadership and social loafing in several ways. First, in responding to calls for identifying a broader range of the possible consequences of ethical leadership (Brown & Treviño, 2006a), we established a link bridging two important but previously unconnected fields of study (i.e., the literature on ethical leadership and the literature on social loafing). The extant literature in ethical leadership has focused on its effects on normatively sanctioned behaviors that may be both less frequent and less visible in organizations (Mayer et al., 2009; Mayer et al., 2010; Ng & Feldman, 2015). However, the literature has long ignored the potential impact of ethical leadership on social loafing, which is a frequently occurring and pervasive phenomenon that arises from distinctive motivations and concerns related to group tasks (Karau & Williams, 1993). Our findings suggest that ethical leadership may exert influence on a wider range of subordinate motivations, behaviors, and outcomes than those suggested by past research. In particular, our study extends the effects of ethical leadership to motivation on group tasks by showing that ethical leadership can reduce social loafing, which is a pervasive phenomenon that can pose a significant barrier to team performance.