Ethical Leadership and Employee's Wellbeing: Mediating Role of Ethical Climate

Abstract

Research has consistently shown that ethical leadership plays a crucial role in shaping organizational culture and promoting positive employee outcomes. Ethical leaders foster a culture of trust, respect, and openness, which in turn enhances employee well-being. However, the mechanisms by which ethical leaders influence employee well-being. This study aims to investigate the relationships between ethical leadership and employee wellbeing by mediation of ethical climate underpinning the social exchange theory. Philosophically, the current research lies under the post-positivist paradigm, utilizing a deductive approach, as a causal connection between the variables under investigation. Present research examined by collecting primary data through a survey technique using a time-lagged design in 10 public sector hospital in Punjab, Pakistan. This research utilizing contemporary data obtaining and analysis techniques. Data analysis is employed by utilizing Smart PLS. The present research research examined that ethical leadership elevate the employee wellbeing with the mediation ethical climate. The relationship ethical leadership and ethical climate is also investigated. When considering the practical ramifications, managers and policymakers must consider the basic structure in order to improve ethical climate and employee wellbeing.