Drawing on social exchange theory, this study aims to examine how ethical leadership (at the group level) influences employees’ interpersonal and organizational deviant behavior (at the individual level). It investigates the mediating role of positive and negative emotions in the relationship between ethical leadership and employees’ interpersonal and organizational deviant behavior. In addition, it explores whether core self-evaluation (CSE) moderates the relationship between ethical leadership and these emotions.
Using a survey questionnaire, data were collected from 446 employees working in Pakistan’s pharmaceutical industry during March–April 2024. Multilevel analyses and cross-level moderation were conducted using multilevel structural equation modeling in Mplus.
The results indicate that ethical leadership negatively influences employees’ interpersonal and organizational deviant behavior. While CSE moderates the indirect relationship between ethical leadership and deviant behaviors through positive emotions, this study did not find evidence supporting the mediating role of emotions in this pathway.
The findings underscore the importance of ethical leadership in managing deviant workplace behaviors, particularly within the pharmaceutical industry, where compliance and ethical standards are critical. By adopting ethical leadership practices, managers can foster a more responsible work environment and reduce counterproductive behaviors. This is especially vital in the pharmaceutical sector, where employee misconduct can have serious consequences for public health and regulatory compliance.
This study provides novel insights into how and under what conditions ethical leadership influences employees’ deviant workplace behaviors.
