Silence of Observers of Unethical Pro‐Organizational Behavior—Role of Consensus Estimation

ABSTRACT Since the seminal article on unethical pro‐organizational behavior (UPB), very few studies have explored the UPB from observers' perspectives. Using moral foundation theory, we propose that observers' personal UPB acceptance would be based on their relative preference for loyalty over fairness value. Further, we argue that UPB observers will respond according to their perceived normative manner; that is, their perception of peer UPB acceptance would shape their pro‐organizational and quiescent silence. In Study 1, we conducted a two‐phased, vignette‐based field survey where data were collected from 292 working individuals from the United States. We found that observers' relative preference for loyalty over fairness affects their personal UPB acceptance. Further, because of the pro‐organizational element in UPB, observers would estimate high peer acceptance for the observed UPB. Loyalty (fairness)‐preferring UPB observers are likelier to feel that they are in the majority (minority) and maintain pro‐organizational (quiescent) silence. In Study 2, we conducted an activity‐based two‐phase survey study of 131 participants from India, where we made respondents participate in an activity in which an actual UPB act takes place. Study 2 confirmed our findings about how varying moral preferences among UPB observers would lead them to a majority or minority perception and motivate them to maintain silence. This study uniquely contributes by showcasing how UPB observers are more likely to maintain silence than observers of unethical behavior for self‐interest owing to the ambivalent nature of UPB.