When ownership stakes pull in different directions: How CGHRM practices shape the ethical implications of employee stock ownership level

Introduction Employee stock ownership is widely used to align employee and organizational interests, yet its ethical implications across different ownership levels remain insufficiently understood. Drawing on goal-framing theory, we develop a conditional dual-path model linking employee stock ownership level to unethical pro-organizational behavior through felt responsibility and bottom-line mentality, with perceived corporate green human resource management (CGHRM) practices moderating these pathways. Methods We tested the proposed model using three-wave, multisource data collected from 303 employee–coworker dyads in three Chinese firms. Results Perceived CGHRM practices strengthened the positive association between employee stock ownership level and felt responsibility but weakened the positive association between employee stock ownership level and bottom-line mentality. Accordingly, the negative indirect association between employee stock ownership level and unethical pro-organizational behavior through felt responsibility was stronger when perceived CGHRM practices were higher, whereas the positive indirect association through bottom-line mentality was stronger when perceived CGHRM practices were lower. Discussion This study extends the employee stock ownership literature to the domain of employee ethical behavior by identifying two contrasting psychological pathways linking ownership level to unethical pro-organizational behavior. It also advances a more contextualized understanding of the ethical implications of employee ownership arrangements by highlighting the moderating role of perceived CGHRM practices.