A Way Forward

Abstract

Corruption recovery is a critical but understudied organizational change. We gained unique access to a company that experienced multiple corruption incidents in the months prior to our survey rollout that garnered 2,300+ respondents (71%) across 19 business units. We explored how employee perceptions of leaders’ enactment of a core set of values and of CEO and business unit leaders’ ethical leadership were associated with organizational commitment as these leaders implemented change following corruption. Results indicated that ethical leadership and values enactment were associated with increased organizational commitment. Group-level membership in units implicated in corruption was associated with reduced commitment while membership in business units with increased customer contact was associated with increased commitment. Shared employee perspectives of the ethical leadership of business unit leaders, but not the CEO, were also associated with higher commitment. We also discuss future research, limitations, and implications for management.