Psychological Reports: Employment Psychology & Marketing 2014, 115, 3, 725-740. © Psychological Reports 2014

LEADER-FOLLOWER VALUE CONGRUENCE IN SOCIAL RESPONSIBILITY AND ETHICAL SATISFACTION: A POLYNOMIAL REGRESSION ANALYSIS1 SEUNG-WAN KANG

GUKDO BYUN

Korea University

Southern Illinois University at Carbondale HUN-JOON PARK Yonsei University

Summary.—This paper presents empirical research into the relationship between leader-follower value congruence in social responsibility and the level of ethical satisfaction for employees in the workplace. 163 dyads were analyzed, each consisting of a team leader and an employee working at a large manufacturing company in South Korea. Following current methodological recommendations for congruence research, polynomial regression and response surface modeling methodologies were used to determine the effects of value congruence. Results indicate that leader-follower value congruence in social responsibility was positively related to the ethical satisfaction of employees. Furthermore, employees' ethical satisfaction was stronger when aligned with a leader with high social responsibility. The theoretical and practical implications are discussed.

The adoption of ethics programs is becoming more common for businesses across the globe (Chonko, Wotruba, & Loe, 2003), with the expectation of improved ethical behavior and decision making within the company. In South Korea, e.g., the Federation of Korean Industries reported that 95% of the top 200 companies had instituted ethics programs, including the establishment of codes of ethics (Lee, 2009). Current society is moving to be willing and able to monitor and criticize unethical behaviors or practices by corporations more easily than before. These changes have forced companies to be more aware of securing ethical transparency in their activities. However, in a thorough review of 79 existing studies investigating the effectiveness of ethical codes on business practices, Kaptein and Schwartz (2008) in fact found the results to be equivocal. Specifically, of these empirical studies, 28 suggested that business codes were significantly effective and 13 studies concluded that the relationship was weak but positive. Conversely, another 26 studies determined that codes had no significant positive effect on business practices and only one study suggested that Address correspondence to Hun-Joon Park, Professor, School of Business, Yonsei University, 50 Yonsei-ro, Seodaemoon-Gu, Seoul, Postal code 120-749, Republic of Korea or e-mail ([email protected]). 1

DOI 10.2466/01.14.PR0.115c33z9

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ISSN 0033-2941

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there was a negative relationship. The remaining 11 studies presented mixed results. Though ethics programs are usually applied across the entire company, the extent to which employees are satisfied with the ethical environment of a workplace can vary significantly between individuals. In fact, employee satisfaction with workplace ethics appears to stem from their congruence with the ethical status of the leader; e.g., if a leader displays a lack of ethical behavior, an employee with strong ethical values may be dissatisfied at work. As a salient representative of the organization's cultures and a major social and economic exchange partner in the workplace, leaders can play a key role in forming employees' organizational attitudes and behaviors (Yukl, 2006). Although employees perceive a fit with the organization's overall culture, they are yet dependent on their leaders, who are able to further strengthen or weaken these perceptions. Thus, the perceived match between the values and behavioral styles of employees and leaders are particularly important to employees (Vianen, Shen, & Chuang, 2011). However, previous studies emphasizing the leaders' ethical behavior and leadership have not paid much attention to the fit between leaders' and followers' ethical values. Accordingly, by drawing upon existing literature dealing with person-environment fit theory, especially from the perspective of the importance of leaders (e.g., Verquer, Beehr, & Wagner, 2003; Kristof-Brown, Zimmerman, & Johnson, 2005), this study will examine value congruence between leaders and followers in terms of social responsibility and the effect it has on ethical satisfaction in the workplace. As a result, this study contributes to the fit and leadership literature by emphasizing the role of leaders within the leader-follower value congruence-follower ethical satisfaction link. In this study, the literature concerning person-environment fit and value congruence will be reviewed, key variables defined, and finally a theoretical review will end in a statement of hypotheses. The relationship between leader-follower value congruence in social responsibility and ethical satisfaction at work will then be examined by the polynomial regression and response surface modeling methodology (Edwards & Parry, 1993). The theoretical and practical implications of the findings will be noted, while taking note of limitations and potential future research directions. Person-Environment Fit Person-environment (P-E) fit is broadly defined as the congruence between the characteristics of an individual and those of his environment (Schneider, Smith, & Goldstein, 2000), and can be divided into five categories: person-organization fit, person-supervisor fit, person-vocation fit,

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person-group fit, and person-job fit (Kristof, 1996; Kristof-Brown, et al., 2005). For research into person-organization (P-O) fit, the most common focus has been value congruence (Verquer, et al., 2003). Values are the set of core beliefs and principles that individuals consider desirable and the principles or regulations that determine desirable actions or final states (Rokeach, 1973; Meglino & Ravlin, 1998). The link between value congruence and job satisfaction has been established through a number of empirical studies (e.g., Chatman, 1991; O'Reilly, Chatman, & Caldwell, 1991; Bretz & Judge, 1994). For instance, a review of 21 studies on the relationship between P-O fit and job satisfaction revealed a significant positive effect (Verquer, et al., 2003). Specifically, mean effect sizes for the outcome variables ranged from −0.18 for intent to turnover to 0.28 for organizational commitment. Leaders assign resources and evaluate employee performance, and so they are a key factor in how employees perceive their work environment (Yukl, 2006). In the literature on person-supervisor (P-S) fit, several prior studies have found that value congruence between leaders and followers can lead to increased satisfaction for followers (e.g., Meglino, Ravlin, & Adkins, 1989; Kristof-Brown, et al., 2005; Edwards & Cable, 2009). For example, Kristof-Brown, et al. (2005) found in their meta-analysis that P-S fit had a strong relationship with employee job satisfaction (r = .44). In addition, Wexley, Alexander, Greenawalt, and Couch (1980) suggested that the relationships between subordinates' perceptual congruence with their supervisors and their overall satisfaction were consistently significantly related (i.e., satisfaction measures: work, r = .34; supervision, r = .50; intrinsic, r = .28; extrinsic, r = .41; general, r = .36). Also, Meglino, et al. (1989) suggested that workers were more satisfied and committed when their values were congruent with the values of their supervisor (i.e., overall satisfaction, r = .20; organizational commitment, r = .15). Based on the value congruence literature concerning P-S fit, the congruence-satisfaction link was supported by available evidence. Leader-Follower Value Congruence in Social Responsibility and Ethical Satisfaction Social responsibility, according to McWilliams and Siegel's definition (2001, p. 117), refers to “actions that appear to further some social good, beyond the interests of the firm and that which is required by law,” transcending simple legal or economic matters. Many individuals and organizations hold social responsibility to be an important value in the construction of their ethical standards.

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Value congruence refers to the similarity between an individual's personal values and those of another. The particular value congruence here concerns social responsibility adopted by leaders and their followers, as measured by person-supervisor fit (Waldman, de Luque, Washburn, House, Adetoun, Barrasa, et al., 2006). This requires an assessment of ethical satisfaction within the workplace, which chiefly refers to three related phenomena: (a) an employee's satisfaction with the ethical atmosphere of their organization; (b) an employee's satisfaction with his firm's management of ethical issues (Morris, Schindehutte, Walton, & Allen, 2002); and (c) an employee's satisfaction with his firm's ethics programs (Morris, et al., 2002). Kalliath, Bluedorn, and Strube (1999) have identified two mechanisms that greatly affect the relationship between value congruence and satisfaction. First, people who have similar values may share common elements in their cognitive processing of information, and thus employ shared methods when interpreting events. Similar interpretations decrease uncertainty and increase the quality of interpersonal relationships, improving satisfaction (Meglino, et al., 1989). Second, a common system of interpretation and strong interpersonal relations enhances the predictability of behavior, leading to less ambiguity concerning roles, less relational conflict, and consequently higher satisfaction (Fisher & Gitelson, 1983). Based on this process, a follower with values similar to his leader's will share a common form of cognitive processing and understanding, and will thus be able to reduce unnecessary communication while also experiencing less uncertainty regarding ethical issues at work. Others have already shown that value congruence between leaders and followers with regards to social responsibility reduces ethical ambiguity generated during the task execution process (Singh, 1993). This is important because individuals who experience situations with high ethical ambiguity in the workplace are unable to determine the most ethically appropriate course of action, increasing ethical dissatisfaction with the workplace environment. Hypothesis 1. Leader-follower value congruence with regards to social responsibility will be positively associated with ethical satisfaction at work; if leaders and their followers value social responsibility to a similar extent (i.e., there is higher congruence), the follower's ethical satisfaction at work will be greater. Leader-follower congruence may arise when both parties perceive social responsibility as a low priority. However, in situations where followers and leaders are both socially irresponsible, ethical ambiguity can still arise if the values of the organization as a whole are not being upheld.

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Since many companies increasingly emphasize the need for high ethical standards, such a situation can hinder the ethical satisfaction of employees. In contrast, when both leaders and followers are either socially responsible or irresponsible, ambiguity will decrease, leaving employees experiencing higher ethical satisfaction. Thus, it is likely that the extent to which the leader-follower dyad values social responsibility, even if the two parties are congruent, will have an effect on ethical satisfaction within the workplace. Figure 1 shows the research framework outlined above. Hypothesis 2. The ethical satisfaction at work for a follower will be higher when the follower is aligned with a leader who values social responsibility highly than when aligned with a leader who does not. Leader Social responsibility (Leader reported)

(Congruence)

Ethical satisfaction at work (Follower reported)

Follower Social responsibility (Follower reported)

FIG. 1. Research framework

METHOD Sampling Procedure and Participants In this study, the target firm is a large manufacturer in South Korea. Survey questions in English were translated into Korean by two experts in the field fluent in both languages and then reverse-translated back into English to ensure consistency of meaning (Brislin, 1980). To ensure that survey questionnaires were clearly understood by respondents, a pilot survey was conducted on 19 employees within the participant company and minor adjustments were made. With the cooperation of the firm, the company's official communication channels were used to distribute the survey. One randomly selected employee from each team was given the follower questionnaire, while the respective team leaders were given the leader questionnaire. To ensure that the respondents' answers were as honest as possible, the completed questionnaires were sent directly to the researchers in sealed envelopes. Of the returned questionnaires, 163 leader-follower dyads were fully completed and suitable for analysis. The response rate was 50% for both the followers and leaders.

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Most of the respondents were male (99% of leaders, 95% of followers). The most common age group for the leaders was 45–49 years (54%) and for the followers 30–34 years (26%), with an average tenure of 23 and 16 years, respectively. The length of time the leader and follower had worked together was on average 1.5 years. Many of the leaders and followers had obtained a four-year college degree (58% and 49%, respectively). Measures Most survey items were composed using a seven-point Likert-type scale, with anchors 1: Strongly disagree and 7: Strongly agree. All measured variables had Cronbach's α reliability .70 or greater, satisfying the cut-off requirement for reliability (Nunnally & Bernstein, 1994). Ethical satisfaction at work.—The ethical satisfaction of employees was measured using the three items (α = .77) proposed by Morris, et al. (2002), who developed a satisfaction index regarding company management of ethical issues. A sample item is “I am satisfied with the firm's ethics program.” Social responsibility.—The social responsibility of leaders and followers was measured using two items (α = .81 for leaders and .80 for followers) drawn from Waldman, et al.'s (2006) measurements of social responsibility for community/state welfare. The sample item was “The welfare of the local community should be considered as more important than all other considerations, e.g., a focal company's economic performance.” Control variables.—Age, sex, job level, education level, tenure with leader, whether employees work in the same city as their leader, leader tenure, top management's ethical focus, and task type were included as control variables. Validity and Common Method Bias Checks The psychometric properties of ethical satisfaction and social responsibility measures were assessed using reliability and factor analyses. Cronbach's α for these two scales ranged from .77 to .81. To verify the construct validity of ethical satisfaction and social responsibility of leaders and followers, confirmatory factor analysis (CFA) was conducted. The CFA results indicated a strong model fit (χ2 = 16.13, df = 11). CFI and TLI values were presented as 0.99 and 0.97, respectively, exceeding the cut-off of 0.95 (Hair, et al., 2010). Moreover, RMSEA was 0.05, which satisfies the cut-off of 0.05 or below. All CFA indicators satisfied typical cut-offs. In addition, exploratory factor analyses also provided support for the validity of the measures used. All items loaded on their predicted constructs at .78 or better, above the cut-off of .50 (Fornell & Larcker, 1981). Based on these results, the measures had adequate reliability and validity.

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Common method bias was not problematic, because the data had different response sources (from a team leader and from a follower). The result of Harman's single factor test also showed that there was no single factor that explained a significant amount of the total variance (the highest eigenvalue = 2.64, explained variance = 0.17). Accordingly, the probability of substantial common method bias was low (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003). Data Analysis: Polynomial Regression and Response Surface Modeling Edwards and his colleagues have identified problems caused when different scores are retrieved when testing for congruence effects. Each congruence index frequently used in organizational behavior research “is inherently ambiguous, confounds the effects of its constituent components, and implies a set of constraints that were rarely tested (Edwards, 1994; p. 71).” They have suggested that this can be overcome by using a polynomial regression analysis and by generating three-dimensional response surfaces to verify congruence effects on outcome variables (Edwards & Parry, 1993). Consequently, polynomial regression and response surface modeling were adopted to examine the congruence effects (Hypothesis 1 and 2) in the current analysis. To this end, the following process was strictly adhered to. First, to lessen multicollinearity and help interpretation of the results, two variables were standardized – leader social responsibility (L) and follower social responsibility (F) – before calculating the second-order terms such as L2, L × F, and F2. The dependent variable, ethical satisfaction in the workplace, was then regressed on the control variables and five polynomial terms: L, F, L2, L × F, and F2. Following these polynomial regressions, a three-dimensional response surface graph was drawn using the coefficients of the five polynomial terms. In the final step, additional tests were conducted to examine slopes and curvatures along two lines: the congruence (L = F) and the incongruence (L = –F) lines. The 10,000 times repeatedly bootstrapped samples presented the coefficients and confidence intervals of the slopes and curvatures along the L = F and L = –F lines. To test Hypothesis 1, the congruence effect was determined to be significant when the coefficient of curvature along the incongruence line (L = –F) was negative and significantly different from zero, and the three second-order polynomial terms L2, L × F, and F2 were jointly significant, according to the suggestion by Edwards and Parry (1993). To test Hypothesis 2, the congruence at higher levels of social responsibility was held to produce higher ethical satisfaction than congruence at lower levels when the coefficient of the slope along the congruence line (L = F) was positive and significant. Results of the polynomial re-

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gression and response surface modeling were presented in accordance to prior empirical research (e.g., Shanock, Baran, Gentry, Pattison, & Heggestad, 2010; Zhang, Wang, & Shi, 2012), in addition to Edwards and Parry (1993). RESULTS Table 1 presents the means, standard deviations, minimums, maximums, correlations, and reliabilities of the key variables. The followerreported variables (follower social responsibility and ethical satisfaction) are significantly correlated (r = .48, p < .001). To test the hypotheses, a polynomial regression was undertaken. The average variance inflation factor (VIF) of Models 1 and 2 in Table 2 were 1.50 and 1.52, respectively, and no variable exceeded a VIF of 10.00 in relation to the polynomial regression coefficient estimates. Therefore, the probability of multicollinearity was low (Aiken & West, 1991). TABLE 1 DESCRIPTIVE STATISTICS, CORRELATIONS, AND RELIABILITIES (N = 163) Variable

Correlation

M

SD

Min.

Max.

1. Leader social responsibility

5.64

0.81

2.00

7.00

2. Follower social responsibility

5.47

0.96

2.00

7.00

.10

3. Ethical satisfaction at work

6.04

0.76

2.67

7.00

−.04

1

2

3

.81 .80 .48‡

.77

Note.—Internal reliabilities (Cronbach's α coefficients) for the constructs are shown on the diagonal in italics. ‡p < .001.

The base model in Table 2 was a model that only included control variables in the regression analysis on ethical satisfaction at work (base model R2 = .47, F = 14.92, p < .001). Model 1 in Table 2 was created by adding leader and follower social responsibilities to the base model. R2 increased from .47 (base model) to .52 (Model 1), and ΔR2 was significant (ΔF = 8.27, p < .001). While Model 1 in Table 2 shows the polynomial regression without the three second-order terms, Model 2, the hypothesized research model, was created by adding three second-order terms (i.e., L2, L × F, F2) to Model 1. R2 increased from .52 (Model 1) to .55 (Model 2), and ΔR2 was significant (ΔF = 2.99, p < .05). To compare the base model with the research model (i.e., Model 2), R2 increased from .47 (base model) to .55 (Model 2), and ΔR2 was significant (ΔF = 5.24, p < .001). The five polynomial variables (i.e., L, F, L2, L × F, F2) additionally explained 8% of the variance in leadership effectiveness (i.e., ethical satisfaction at work). Before adopting the research variables, R2 of the base model was 47%, so the in-

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VALUE CONGRUENCE TABLE 2 RESULTS OF POLYNOMIAL REGRESSION ANALYSES ON ETHICAL SATISFACTION AT WORK (N = 163) Variable Constant Leader social responsibility (L) Follower social responsibility (F)

Model 1

Model 2

b

CI

b

CI

1.84†

0.28 ∼ 3.31

1.63†

0.10 ∼ 3.11

−0.07 .20‡

L2

−0.18 ∼ 0.05 0.06 ∼ 0.33

−0.05 .21‡ 0.00

L× F

.14† −0.01

F2 R2

.52

.55

F

14.87‡

12.79‡

ΔR2

.05

.03

ΔF

8.27‡

2.99*

−0.18 ∼ 0.07 0.06 ∼ 0.36 −0.06 ∼ 0.07 0.02 ∼ 0.26 −0.09 ∼ 0.07

Congruence (L = F) line Slope

.16†

0.03 ∼ 0.12

Curvature

.13†

0.05 ∼ 0.34

Incongruence (L = −F) line −.26†

−0.24 ∼ −0.08

Curvature

−.15†

−0.44 ∼ −0.10

F for the 3 quadratic terms

2.99*

Slope

Note.—b = unstandardized regression coefficient; CI = 99% confidence interval; Control variables were included. *p < .05, †p < .01, ‡p < .001 (two-tailed tests).

crease of 8% can be interpreted as a 17% increase over the previous explanation (i.e., .17 = .08/.47). Hypothesis 1 posited that value congruence in the social responsibility of leaders and followers would positively affect ethical satisfaction in the workplace. Model 2 in Table 2 presents estimated coefficients, as well as the slopes and curvatures along the congruence (L = F) and incongruence (L = −F) lines, for the polynomial regression predicting ethical satisfaction at work. The three second-order polynomial terms were jointly significant (ΔF = 2.99, p < .05). Also, the surface along the incongruence (L = −F) line curves downward (curvature = −0.15). As a bootstrapped 99% confidence interval for the curvature along the incongruence line did not include zero, so the downward curve of surface along the incongruence line was significant (bias-corrected percentile method bootstrapping results: 99% confidence interval lower limit = −0.44; upper limit = −0.10). Based on these results, Hypothesis 1 was supported. In addition, the surface in Fig. 2 presents an inverted U-shape along the incongruence line.

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3

1

Incongruence line

grue n Con

3 Fo 1 l l re ow sp e on r s –1 sib oc ilit ial y

(L=–F)

ce li

5

L=F

)

–1

ne (

Ethical satisfaction

at work

5

–3 –5–5

–3 der Lea

5 3 1 lity sibi –1 pon s e ial r soc

FIG. 2. Response surface of leader-follower value congruence in social responsibility and its effect on ethical satisfaction at work

The congruence line (L = F) is from the front corner (where L = F = −5.0) to the rear corner (where L = F = 5.0), whereas the incongruence line (L = −F) is from the left corner to the right corner. The concave curvature along the L = −F line indicates that ethical satisfaction at work was higher when a leader's level of social responsibility was aligned with that of their followers, and that any deviation from the L = F line (i.e., moving to the left or right) decreased ethical satisfaction at work. Therefore, these findings offer clear support for Hypothesis 1: the more aligned leader and follower are on social responsibility (i.e., the higher the congruence), the greater the followers' ethical satisfaction at work. Hypothesis 2 posed that congruence between leaders and followers with high social responsibility will have a different effect on the ethical satisfaction of followers in the workplace compared to the congruence between leaders and followers with low social responsibility. As shown in Table 2, the slope along the congruence (L = F) line was positive (slope = 0.16), indicating that the high-high congruence condition produced greater ethical satisfaction than the low-low congruence condition. As a bootstrapped 99% confidence interval for the slope along the congruence line did not include zero, the slope of surface along the congruence line was significant (bias-corrected percentile method bootstrapping re-

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sults: 99% confidence interval lower limit = 0.03; upper limit = 0.12). Based on these results, Hypothesis 2 was supported. In addition, the three-dimensional response surface graph in Fig. 2 also showed that ethical satisfaction was higher in the rear corner (high/high congruence) than in the front corner (low/low congruence). Therefore, these findings support Hypothesis 2: Followers' ethical satisfaction at work was higher when they were aligned with a leader with high social responsibility than when they were aligned with a leader with low social responsibility. Ad Hoc Analysis One old popular method to assess congruence is to reduce the results from two sources into a single index representing the extent of similarity between those two sources (Kristof, 1996). Researchers have typically used three types of difference score: algebraic (X – Y), absolute (|X – Y|), and squared differences (X – Y)2 (Kristof, 1996). Ordinary least squares (OLS) regression was conducted here as an ad hoc analysis by reversing the score of the absolute difference (|X – Y|) between the social responsibility of leaders and followers. Addressing Hypothesis 1, the OLS analysis generated the same outcome as both polynomial regression and response surface (b = 0.14, p < .01; ΔF = 7.24, p < .01). It was not possible to test Hypothesis 2 using the typical methods of difference scores. DISCUSSION Ethical satisfaction in the workplace can be contingent upon the congruence of ethical values between an individual and the company they work (Sims & Kroeck, 1994). Someone who places great importance on ethical values will be more satisfied working for a company that also has high regard for ethical behavior while, in contrast, someone with scant regard for ethics will be more likely to find satisfaction working for an organization that does not promote high ethical standards. Therefore, ethical satisfaction itself does not indicate whether an individual or an organization has high ethical standards. This also holds true for the value congruence between an individual and leader, another proven influence on employee satisfaction with the ethical environments in the workplace. In particular, the current empirical evidence suggests that ethical satisfaction for an employee at work stems from the leader-follower congruence in their attitude toward social responsibility. That is, if a leader possesses low social responsibility, a follower with higher social responsibility may be ethically dissatisfied at work; equally, a leader with high regard for social responsibility is likely to provoke ethical dissatisfaction in an employee with low social responsibility standards. Therefore, simply measuring ethical satisfaction does little to establish the strength of the ethical standards in either the leader or the follower.

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Theoretical Contributions and Practical Implications This study investigated the effect of leader-follower value congruence on employee satisfaction. The empirical analysis revealed a positive link between leader-follower value congruence in social responsibility and the ethical satisfaction of employees. The findings of this study provide four important theoretical insights. First, by integrating an analysis of personenvironment fit, the scope of existing research into value congruence in social responsibility was extended. Specifically, although previous research suggested that congruence between personal and organizational values was significantly related to individual attitudes and work outcomes (Sims & Kroeck, 1994; Edwards & Cable, 2009), little was known about the extent to which P-S fit perceptions influence employees' ethical satisfaction. It was discovered that the leader's social responsibility influences the likelihood of his followers experiencing ethical satisfaction. The second contribution is the additional empirical support for the validity of the congruence-satisfaction link, especially for value congruence between individuals and leaders. Within the P-E fit literature, research on value congruence is the most notable, especially in the field of organizational behavior (Chatman, 1989; Kristof, 1996). Theoretically, value congruence should influence employee satisfaction because individuals are more attracted to and feel more comfortable with others holding similar values (Kristof-Brown, et al., 2005). This value congruence is particularly important in leader-follower dyads within formal organizations because leaders serve as important sources for followers (Lowin & Craig, 1968). By investigating the effect of leader-follower value congruence on ethical satisfaction, this study sheds some light on the role of leaders on followers' ethical attitudes. Third, this study contributes to the fit and leadership literature by emphasizing the leaders' value in social responsibility within the relationship between leader-follower value congruence and followers' ethical satisfaction. Prior research, which investigated the leaders' ethical behavior and leadership, neglected the ethical value fit between leaders and followers. Only a few studies attempted to connect the literature involving ethical values fit and leadership. One example is Kruglanski, Pierro, and Higgins (2007), who suggested that subordinates' job satisfaction is higher when there is a greater fit between their regulatory mode orientation and the leadership style of their leader. In addition, Ogunfowora (2014) found that perceived value congruence with the CEO mediated the link between CEO ethicality and job pursuit. The present research suggests that when there is a greater fit in social responsibility between leaders and followers, followers' ethical satisfaction are higher and, more specifically, their ethical satisfaction is higher when they are aligned with a leader with high

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regard for social responsibility than when they are aligned with a leader with a low regard for social responsibility. Therefore, this study contributes to the fit and leadership literature by emphasizing the leaders' ethical role within the leader-follower fit and followers' ethical attitude relationship. Last, by using polynomial regression and response surface modeling (Edwards & Parry, 1993), it was possible to assess the complex congruencesatisfaction relationship. This study can help researchers identify congruence effects between the personal values of followers and leaders, and explain how this congruence or lack thereof affects ethical satisfaction. The study also indicates that there are several practical implications for the field of management. By revealing that an employee's ethical satisfaction does not necessarily depend on the introduction of an official ethical code, the findings highlight the pivotal role of leader-follower value congruence with regard to social responsibility and its influence on ethical satisfaction. This might explain why ethical codes often do not improve ethical behavior or ethical decision making within the workplace (Kaptein & Schwartz, 2008). The present study suggests that introducing a code of ethics should not be approached purely as an issue of formal corporate management, but rather efforts must be made to alter the perceptions of individual employees. Limitations and Future Research Directions Several limitations were encountered in this research. The first limitation was that analyses' results were based on a survey of team leaders and employees from a single manufacturing company, and thus may not translate to other industries. To overcome this limitation, rapidly growing industries such as the IT manufacturing or service industries should be investigated. Another limitation is that the current study cannot provide information about causal relations between value congruence and ethical satisfaction. The study was cross-sectional and although key variables were collected from different sources (i.e., both leaders and followers reported their own levels of social responsibility, and followers assessed their own level of ethical satisfaction), they were measured at a single point in time with no experimental manipulation. To describe causality, future studies must use an experimental design or a time-lagged survey. This study did not take into account many precursors at once, although many variables affect leadership effectiveness (Yang, 2014). Nine control variables were included in the analysis, but this is not sufficient. For future study, considering many affecting variables simultaneously is necessary to capture the whole picture of the nomological network regarding leadership effectiveness.

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Finally, as this study concentrated on individuals' ethical satisfaction in the workplace, future studies should not be limited to leader-follower dyads but rather should focus on the company level. A macro-level analysis of organizational ethics is expected to expand upon and inform the current micro-level analysis. The current study lacked a multilevel analysis to take into account both individuals and teams simultaneously; including this would help form a clearer picture of ethical satisfaction in the workplace. REFERENCES

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Leader-follower value congruence in social responsibility and ethical satisfaction: a polynomial regression analysis.

This paper presents empirical research into the relationship between leader-follower value congruence in social responsibility and the level of ethica...
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