Does ethical leadership shape employee conduct in hotels and restaurants?

Purpose Drawing on the equity theory, this study examines the influence of ethical leadership on counterproductive work behaviors. Furthermore, it tests the mediating influences of organizational citizenship behavior and psychological entitlement on the relationship between ethical leadership and counterproductive work behavior. Design/methodology/approach The study used a survey questionnaire employing a random sampling technique to collect the data from hotels and restaurants. Data were collected from 329 supervisors and employees working in different hotels and restaurants in Karachi, Pakistan. For the purpose of analysis and to predict hypothesized relationships, the study used PLS-SEM techniques. Findings The study’s results indicated support for all hypothesized relationships. We found a negative relationship between ethical leadership and counterproductive work behavior. The findings also suggest that organizational citizenship behavior positively mediates between ethical leadership and counterproductive work behavior, which was unexpected. Furthermore, the findings also reveal that psychological entitlement positively mediates between ethical leadership and counterproductive work behavior. Originality/value The study examines the direct relationship between ethical leadership and counterproductive work behaviors and through the lens of organizational citizenship behavior and psychological entitlement. The relationships were founded on the theoretical underpinning of equity theory.