How transformational leadership influences follower willingness to engage in pro-group unethical behavior

Purpose The purpose of the current research is to study the relationship between transformational leadership and follower willingness to engage in pro-group unethical behavior (PUB) and also examine the mediating role of risk of workplace exclusion. Furthermore, understanding whether high or low levels of moral identity moderates the relationship between transformational leadership and followers’ PUB. Design/methodology/approach Surveys were conducted in China and South Korea. For the Korean sample researchers sent 280 questionnaires online to several Korean organizations in Daegu, South Korea, including a corporation, university, accounting firm, insurance company and deposit bank. A total of 265 questionnaires were returned to us (response rate 94.6%). For the Chinese sample researchers conducted an online survey and sent it to various organizations in China. A total of 223 received questionnaires and five were excluded due to the missing data. Findings The present findings suggest that transformational leadership and the risk of workplace exclusion can positively influence follower’s willingness to engage in PUB for both Chinese and Korean samples. However, the moderating role of moral identity was statistically significant only in the Chinese sample. Research limitations/implications This research paper did not use actual reported cases of PUB for measurement, rather used individual’s willingness to engage in PUB. Practical implications Managers need to provide ethical guidance to prevent conducting PUB because of transformational leadership charisma. Furthermore, leaders should be aware of the determinants and consequences of workplace exclusion. Businesses can set up their psychological counseling programs to minimize the negative effects of workplace exclusion and explain the long-term consequences of PUB. Originality/value The current study sheds the light on dark sides of transformational leadership’s influence on follower’s outcomes. Moreover, it provides empirical support for the mediation role of the risk of workplace exclusion and the moderating role of moral identity in the relationship between transformational leadership and follower’s PUB.