Influence of empowering and ethical leadership on employees’ job satisfaction, performance, and organization commitment

Abstract

Unethical behavior in public and private organizations raises concerns among stakeholders about ethical stand in the workplace. This study aimed to investigate the effect of empowering and ethical leadership on employees' job satisfaction, performance, and organizational commitment. A total of 650 employees were identified from 25 companies in Sulawesi Selatan district, Indonesia. Data were collected through survey study, and Structural Equation Modeling (SEM) was used to test the hypotheses. We found that empowered and ethical leaders positively influenced employees' job satisfaction which also bridged the predictor variables to employees' job performance and organizational commitment. Job satisfaction also played a crucial role in mediating the relationship between predictor variables (e.g., empowering and ethical leadership) and employees' job satisfaction and organizational commitment. Following the call for determinants of empowering and ethical behavior, this study provides insights for managers to foster ethical behavior at the workplace.