Abstract
Sometimes, individuals who perform organizational citizenship behaviour (OCB), rather in a bizarre manner, may partake in deviant activities. The moral licensing theory explains this discrepancy. Studies, however, have shown conflicting results regarding extrinsically motivated (acting to appease external factors) OCB and this moral licensing effect. Moreover, a minuscule number of studies has considered the influence of ethical leadership on this relationship. The purpose of this thesis, therefore, is two-fold. First, is to determine whether the extrinsically motivated OCB leads to workplace deviance through moral licensing. Second, is to examine the effect of ethical leadership on the relationship between moral licensing and workplace deviance. To test the hypotheses, the study collected data from employees of small to medium enterprises in Australia and analysed it using partial least squares structural equation modelling (PLS-SEM). The study did not find statistical support to show that extrinsically motivated OCB leads to workplace deviance through moral licensing. However, it was found that ethical leadership attenuated the conversion of moral license to workplace deviance. The results imply that practitioners, while being an ethical role model, should incorporate transactional methods to reduce employee deviant behaviours. This study also adds clarity to the boundary conditions of the moral licensing theory