FROM DEHUMANIZATION TO UNETHICAL PRO-ORGANIZATIONAL BEHAVIOR: THEMEDIATING ROLE OF MORAL DISENGAGEMENT IN THE BANKING SECTOR

Abstract

This study examined the effect of organizational dehumanization on unethical pro-organizational behavior through the mediating role of moral disengagement. Drawing on Social Cognitive Theory, the study proposed that employees who perceive their organization as treating them like tools, objects, or replaceable resources are more likely to morally disengage and subsequently engage in unethical behaviors intended to benefit the organization. A quantitative cross-sectional research design was employed, and data were collected from 500 employees working in public and private banks across major cities of Pakistan. The data were analyzed using IBM SPSS Statistics 27.0, IBM AMOS 28.0, and SmartPLS 4.0. The results showed that organizational dehumanization had a positive and significant effect on unethical pro-organizational behavior. Organizational dehumanization also positively influenced moral disengagement, while moral disengagement had a significant positive effect on unethical pro-organizational behavior. Furthermore, moral disengagement significantly mediated the relationship between organizational dehumanization and unethical pro-organizational behavior. These findings suggest that dehumanizing workplace experiences may weaken employees’ moral self-regulation and increase their willingness to justify unethical acts for organizational benefit. The study contributes to organizational ethics literature by identifying moral disengagement as a key psychological mechanism linking organizational dehumanization with unethical pro-organizational behavior. Practically, the findings highlight the importance of promoting employee dignity, ethical leadership, and accountability systems within banking organizations.

Keywords: Organizational dehumanization, moral disengagement, unethical pro-organizational behavior, banking sector, Social Cognitive Theory, Pakistan