Performance pressure and peer reporting of infractions: a moderated mediation model

Purpose – The aim of this paper is to examine how the relationship between performance pressure and unwillingness to report ethical infractions of peers is mediated by moral disengagement, while considering organizational cynicism as a moderator in the mediating relationship. Design/methodology/approach – Data collected from 302 managers working in public, private and multinational companies were used to test a model employing a moderated mediation analysis. The strength of the indirect effects of performance pressure on peer reporting via moral disengagement was found to depend on organizational cynicism when tested using a generalized approach to simultaneously test combined, moderation and meditation effects as suggested by Edwards and Lambert. Findings – Path analytic tests of moderated mediation supported the hypothesis that moral disengagement mediates the relationship between performance pressure and unwillingness to report ethical infractions by peers and that the mediation effect is stronger in the presence of higher organizational cynicism. Implications are drawn for organizations. Originality/value – This is believed to be one of the first studies on organizational cynicism and moral disengagement experienced by managers in India. Further, the application of moderated mediation analysis demonstrates the combination of moral disengagement and organizational cynicism in a theoretically interesting way. In the context of the continued unwillingness of employees to report ethical infractions of their peers, these results may shed additional light on appropriate courses of action for organizations.