From bad to worse: Follower reactions to escalating unethical behaviors of leaders

Abstract The present study focuses on the Charismatic, Ideological, and Pragmatic Theory of leadership, examining how sensemaking mitigates follower reactions after unethical leader behavior. We examine the impact of ethical misconduct type on follower outcomes, specifically whether CIP leaders are able to justify unethical behavior to maintain follower attitudes toward the leader. Participants assumed the role of an employee for a fictional oil and gas exploration company, encountering the company’s C, I, or P chief executive officer (CEO) through a video-taped speech discussing the state and vision of the organization. Participants read ethical misconduct related to “people” or ethical misconduct related to “tasks or resources” by the organization’s CEO. Finally, participants were provided (or not provided) a video-taped justification of the ethical misconduct. A three-way interaction revealed the impact of ethical misconduct type is key to leader sensemaking. Implications are discussed.