The Effect of Ethical Leadership on Organizational Learning: Evidence from a Petroleum Company

Abstract

The purpose of the study was to explore the effect of two aspects - accountability and fairness - of ethical leadership on organizational learning, understood in broader sense as constructive and destructive learning. Case study was used as research methodology and data was collected using 35 semi-structured interviews from the employees and managers of the case study company. Data was analyzed using open, axial and selective coding. The findings suggest that accountability discourages employees from learning destructive practices. Moreover, accountability enhances constructive learning. The findings also show that the lack of fairness and accountability amongst organizational leadership creates a culture that facilitates the penetration and propagation of destructive practices in organizations. The literature has highlighted but not explored the influence of ethical leadership on organizational learning. The study is the first to empirically explore the links between these two important constructs. This study suggests that organizational leaders can enhance constructive learning and deter destructive learning by demonstrating fairness and accountability through their behaviors and actions.