Examining the factors influencing ethical leadership practices in the retirement and pensions industry in Zimbabwe

Abstract

Increased corporate malfeasance and ethical misconduct in organisations around the world and Zimbabwe in particular have brought about a renewed interest in business ethics, specifically the need for a better understanding of the roles and responsibilities of leadership in promoting ethical conduct among their followers. Drawing from both social learning and social exchange theories, this study aim to empirically examine the factors influencing ethical leadership practices in the retirement and pensions industry in Zimbabwe. A quantitative, cross-sectional study of firms operating in the retirement and pensions industry in Zimbabwe was conducted to determine the extent to which an organisational environment, ethics-related interventions, internal whistleblowing and good governance contributed to the maintenance of ethical practices. Data were collected through a self-administered questionnaire survey of 164 pension fund employees to explore their perceptions of ethical leadership practices in the industry and were subjected to extensive statistical analyses by means of SPSS version 23. The research findings confirm the hypothetical predictions that organisations in the sample are perceived to be highly ethical due to encouragement and disclosure of unethical behaviours through internal whistleblowing, adoption of good governance principles, the presence of an ethical environment and prevalence of ethics-related interventions. Thus, significant and positive links are revealed between tested variables and therefore, an ethical organisational environment, ethics-related interventions, internal whistleblowing, good governance lead to enhanced ethical leadership practices. In light of the high number of reported ethical scandals internationally, this study will add to the empirical body of business ethics research, as it provides organisations with a framework to establish and maintain ethical and reputable organisations.