Ethical leadership: Exploring bottom-line mentality and trust perceptions of employees on middle-level managers

With the increased competitiveness and significance of the workforce, the responsibility of organizational leaders has been increased to behave ethically and lead their followers in the best ethical way. This study aims to explore how the perception and trust of followers of their middle-level managers can shape the ethical behavior of middle managers and their bottom-line mentality. This qualitative study was conducted using semi-structured interviews from 10 employees of two Pakistani textile organizations—selecting five employees from each. Thematic analysis was used for data analysis. The findings reported that the bottom-line mentality demands are given priority. Thus, to achieve these demands, ethical values are being ignored while the nature of the task and attitude of the supervisor leads towards the social undermining of the employees. Furthermore, it has been found that leaders’ behavior and personality are more important in building trust and perception of employees, and this perception does not entail that leader will be acting ethically in real, but they are perceived to be. This study can provide valuable implications for policymakers, especially HR personnel, to device policies by considering ethical leadership practices. The findings of this research recommend that better performance and profit maximization by employees can be enhanced by reducing the bottom-line mentality of top management. Few scholars have elaborated on ethical leadership, the complexity of the leader–follower relationship, and individual perceptions. Behavioral aspects, bottom-line mentality, and trust from employees’ perspective in ethical leadership have received little attention. In addition, this research has taken a step forward by exploring the collectivist country of Pakistan.