Transformational leadership and financial employees’ unethical pro-organisational behaviour: A cognitive perspective

Abstract

We examined the relationship between transformational leadership and financial employees' unethical pro-organisational behaviour, accounting for organisational identity and future focus in the context of the Chinese organisational culture. Participants were 94 business leaders and 176 financial employees mainly from the manufacturing, wholesale and retail, and software and information technology services industries. Based on the survey data, moderation-mediation model analysis results indicated that transformational leadership was associated with higher employees’ unethical pro-organisational behaviour. Employees’ organisational identity mediated the relationship between transformational leadership and employees’ unethical pro-organisational behaviour to be stronger. Furthermore, future focus moderated the indirect relationship between transformational leadership and employees’ unethical pro-organisational behaviour, enhancing the positive correlation between transformational leadership and employees’ organisational identity. The findings imply that transformational leadership contributes to employee unethical pro-organisational behaviour as well as employee organisational identity. Employees’ future focus is important to organisation sustainability.