THE NEXUS BETWEEN ETHICAL LEADERSHIP AND ETHICAL CLIMATE: THE PANACEA FOR COUNTERPRODUCTIVE WORK BEHAVIOUR IN NIGERIA

Ogochukwu Augustine Isimoya; Emmanuel Bamidele Bakarey

Ogochukwu Augustine Isimoya Department of Actuarial Science & Insurance, Faculty of Management Sciences, University of Lagos, Akoka, Lagos-Nigeria
Emmanuel Bamidele Bakarey Department of Insurance, Faculty of Management Sciences, University of Jos, Jos, Nigeria

Keywords: Ethical Leadership, deviant behaviour, ethical climate, Nigerian Insurance industry

Abstract

This survey-based research was undertaken with the objective of examining the ethical climate linkage between ethical leadership and employees’ counterproductive work behaviours. The study adopted a two-step sampling procedure. First, a systematic random sampling method was used to select five (5) out of thirty (30) quoted insurance companies operating in Nigeria. Second, a non-probability judgemental sampling method was applied to elicit information from one hundred and fifty-four (154) respondents (senior staff) from the five (5) participating organizations. However, one hundred and fifty-one (151) questionnaires were retrieved (a response rate of 98%) and found usable for analysis. Using simple linear regression analysis and Sobel test mediation analysis, it was revealed that ethical leadership not only had a negative association with deviant behaviours, but also a robust positive relationship with ethical climate (the mediating variable). Sobel test mediation analysis revealed that the ethical climate (mediator) significantly influences the relationship between ethical leadership and employee counterproductive behaviour. Based on these findings, the study concludes that ethical leadership behaviour and ethical climate can stem the tide of employees’ counterproductive work behaviours in the Nigerian insurance industry.