When employees are loyal, both they and their organizations benefit. Loyal employees tend to have stronger bonds with others because of loyalty’s “binding effect.” These strong bonds are important for cooperation and the pursuit of shared organizational goals.

In addition, being loyal to your employer can improve your own performance, reduce job-related stress, and open up new opportunities.

Loyalty can also foster unethical behavior if not managed.

For instance, research has shown that employees that are too loyal to their organizations are less likely to blow the whistle on corruption. They feel that they are part of a community and want to protect that commu...