Harnessing Transformational Leadership to Curb Unethical Pro-Group Behavior: Roles of Group Potency and Leader–Organization Fit

Abstract Previous research mainly emphasizes relational factors that drive employees to engage in unethical behaviors to benefit their group, overlooking the role of ability-related mechanisms. However, understanding the ability-related mechanisms not only deepens our insight into unethical pro-group behaviors but also informs effective strategies for reducing such behaviors. Drawing upon social cognitive theory, we propose that employees who perceive low group potency are more likely to engage in unethical pro-group behaviors. In this regard, transformational leadership can reduce these unethical behaviors by increasing employees’ perception of group potency. Furthermore, we suggest that this effect is particularly salient when employees perceive a high leader–organization fit. We conducted an experiment and a multi-source, multi-wave field study to empirically test this theoretical model. Our research contributes to the literature on behavioral ethics and transformational leadership and provides practical implications for reducing unethical pro-group behaviors in the workplace.