HCBE Theses and Dissertations

Date of Award

2015

Document Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

Advisor

Regina Greenwood

Abstract

ABSTRACT ETHICAL LEADERSHIP, THE FAIR PROCESS EFFECTS OF ORGANIZATIONAL JUSTICE AND FINANCIAL PERFORMANCE by Hopeton St. Aubyn Morrison The research inquired if ethical leadership (EL) positively impacted financial performance (FP) and if this relationship was mediated by the fairness effects of organizational justice. The organizational constructs that we examined were distributive justice, procedural justice and interactional justice. The research led to us proposing 12 hypotheses using correlations, t-tests, and logistic regressions. In our tests of mediation we drew on Preacher and Hayes (2008) multiple mediation strategy and tested by logistic regression and bootstrapping for indirect effects. Our results confirmed that there was a positive relation between ethical leadership and financial performance where there were significant mediating indirect effects from organizational justice constructs. The research was designed around two quantitative studies drawn from CEOs and employees of 40 credit unions in Jamaica. The first study reported a sample of CEOs (n = 27) and employees (n = 155) and the second study of employees only (n = 56). The study extended the landmark research in ethical leadership (Treviño et al., 2003) and (Treviño et al., 2000), as ethical leadership was tested in 10 of 12 hypotheses proposed. While much work has been taking place on the relation between Social Performance (SP) and Financial Performance (FP) over the past 45 years research on the relation between Ethical Leadership (EL) and Financial Performance (FP) has been virtually non-existent and in that regard this research breaks new ground. The findings present interesting results confirming that the fair process effects of organization justice (distributive, procedural and interactional justice) present the most important links with EL and FP and that the mediating effects were generally significant. The variable interactional justice (IJ) was particularly important as we found that IJ when substituted for EL confirmed a significant relation with FP whereas EL did not present a significant relation with FP. The limitations of the study were discussed as well as the implications for theory, practice and future research.

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