Why Ethical Leaders Are Not Enough to Overcome Employee Silence in Companies

Illustration by AI

FORMOSA NEWS

Recent research published in July 2026 examines the reasons behind employees remaining silent in the workplace despite companies being led by figures who uphold ethics. This study was led by Danny Philipe Bukidz from Universitas Pelita Harapan, highlighting that ethical leadership alone cannot stop organizational silence without the support of a robust corporate ethical culture. The findings of this study are crucial for modern business and corporate governance to detect misconduct early, prevent operational losses, and maintain organizational integrity.

Background of the Problem

Employee ethical voice is an essential element for detecting fraud, legal violations, and preventing organizational harm. However, the phenomenon of organizational silence frequently occurs when corporate governance systems are flawed, accountability pressures weaken, or moral considerations are deliberately ignored by decision-makers. Many companies mistakenly assume that the presence of an ethical leader will automatically make employees brave enough to speak up. In reality, structural factors such as fear of career retaliation, rigid hierarchies, and a lack of safe reporting channels often cause employees to choose to remain silent.

Research Methodology

To unpack this complex dynamic, the researcher used a narrative literature review approach that integrates previous scholarly research from various disciplines. This approach allows for the collection of data across fields—ranging from business management to organizational psychology—to compare alternative theoretical perspectives and build a comprehensive multi-level framework without getting bogged down in overly complex technical terms.

Main Research Findings

Based on a deep synthesis of the literature, the study identifies several key findings regarding employee voice behavior:

• The Role of Leadership in Safety: Ethical leadership has been proven to build psychological safety, enabling employees to feel more confident in expressing concerns without fear of punishment or hostility.
• Three Critical Employee Judgments: An employee's decision to voice ethical issues depends on three main considerations: perceived safety, perceived legitimacy (the belief that the action is morally right), and perceived efficacy (the belief that their voice will bring about real change).
• The Importance of Ethical Signal Consistency: The study introduces the concept of ethical signal consistency, which shows that an ethical leader's behavior must align with company policies, reporting systems, reward structures, and organizational sanctions so that employees feel truly protected.

Implications and Impact for Companies

These findings provide invaluable practical guidance for managers, policymakers, and boards of directors in designing effective governance strategies. Danny Philipe Bukidz from Universitas Pelita Harapan emphasizes that companies must go beyond mere leadership development programs. In his view:

"Organizations capable of self-correction require not only ethical leaders but also cultures that listen, protect dissent, investigate concerns, and act upon ethically relevant information through fair and credible institutional processes."

The main benefits of implementing this system are the creation of a transparent work environment, reduced moral distress among workers, and increased long-term accountability and company performance.

Brief Author Profile

• Full Name: Danny Philipe Bukidz
• University Affiliation: Universitas Pelita Harapan
• Field of Expertise: Business Ethics, Corporate Governance, and Organizational Behavior

Research Source

• Article Title: When Ethical Leaders are Not Enough: Corporate Ethical Culture and The Translation of Psychological Safety into Ethical Voice
• Journal Name: Contemporary Journal of Applied Sciences (CJAS)
• Publication Year: 2026
• Official DOI/URL: https://doi.org/10.55927/cjas.v4i7.211