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Previous research indicated that leader moral identity (MI; i.e., leaders’ self-definition in terms of moral attributes) predicts to what extent followers perceive their leader as ethical (i.e., demonstrating and promoting ethical conduct in the organization). Leadership, however, is a relational process that involves leaders and followers. Building on this understanding, we hypothesized that follower and leader MI (a) interact in predicting whether followers will perceive their leaders as ethical and, as a result, (b) influence followers’ perceptions of leader–follower relationship quality. A dyadic field study (N = 101) shows that leader MI is a stronger predictor of followers’ perceptions of ethical leadership for followers who are high (vs. low) in MI. Perceptions of ethical leadership in turn predict how the quality of the relationship will be perceived. Hence, whether leader MI translates to perceptions of ethical leadership and of better relationship quality depends on the MI of followers.

To advance current knowledge on ethical decision-making in organizations, we integrate two perspectives that have thus far developed independently: the organizational identification perspective and the ethical climate perspective. We illustrate the interaction between these perspectives in two studies (Study 1, N = 144, US sample; and Study 2, N = 356, UK sample), in which we presented participants with moral business dilemmas. Specifically, we found that organizational identification increased moral decision-making only when the organization's climate was perceived to be ethical. In addition, we disentangle this effect in Study 2 from participants' moral identity. We argue that the interactive influence of organizational identification and ethical climate, rather than the independent influence of either of these perspectives, is crucial for understanding moral decision-making in organizations.