Exploring the links between Ethical Leadership and Organizational Unlearning: A Case Study of a European Multinational Company

Abstract

Organizational learning is viewed as a source of gaining a sustained competitive advantage for organizations. However, past research suggests that organizations do not necessarily learn constructive and ethical practices and behaviors; instead, organizational members can indulge in unethical and destructive behaviors such as bribery, nepotism and the manipulation of organizational resources for personal gains that impede organizational learning. Literature has highlighted the importance of unlearning for enhancing organizational learning and gaining sustained competitive advantage, there is a paucity of work on how organizations unlearn destructive behaviors and practices. To fill this research void, this study building mainly on social learning theory, using a single case study as research methodology and collecting data using 40 semi-structured interviews, brought to the fore how two key aspects of ethical leadership – accountability and honesty – facilitate the unlearning of destructive and inappropriate behaviors and practices. The study carries important implications for the policymakers and managers concerned with the unlearning of destructive behaviors and obsolete practices.