The two faces of spiritual leadership: unethical pro-organizational behavior amidst moral boycott pressure

Purpose In the modern business world, ethical corporate behavior is increasingly important, especially when faced with consumer boycotts triggered by moral and political values. The current rampant moral boycott against organizations demonstrates how external pressures can affect the internal dynamics of an organization. This study aims to examine how spiritual leadership influences unethical pro-organizational behavior (UPB), mediated by employee work engagement, in the context of a moral boycott of the company. Design/methodology/approach The questionnaire was distributed to 112 employees from 12 branches of Kentucky Fried Chicken in Lampung Province, Indonesia. The analysis used mediation regression analysis to examine the relationship between the constructs. Findings The results showed that the direct effect of spiritual leadership on UPB was insignificant. Still, the indirect impact through work engagement was significant, indicating that work engagement fully mediates the relationship between spiritual leadership and UPB. These findings reflect two faces of spiritual leadership, where leaders who prioritize integrity, empathy, compassion and well-being do not encourage UPB, but instead have the potential to trigger UPB when they can promote high levels of work engagement. Research limitations/implications This study integrates spiritual leadership and social exchange theory. In the context of a moral boycott, failing to align organizational practices with societal ethical expectations can lead to a moral backlash, which can impact employee moral dilemmas and threaten operational sustainability and public trust. Originality/value This study offers valuable insights for practitioners in leading organizations that face social and ethical pressures, and proposes the importance of integrating ethical values into leadership strategies.