Linking Ethical Leadership to Social Justice Outcomes: The Moderating Influence of Environmental Sustainability Practices

Ethical Leadership (EL) is crucial for achieving Social Justice Outcomes (SJO) in environmentally vulnerable communities, yet the moderating role of Environmental Sustainability Practices (ESP) remains underexplored. This study examines the effect of EL on SJO and the moderating role of ESP in this relationship. The study sampled 452 respondents, including local government officials, traditional leaders, community opinion leaders, and residents from flood-prone coastal areas, informal settlements, and environmentally degraded communities. Data were collected through structured questionnaires and analyzed using Structural Equation Modelling (SEM) with SmartPLS 4 and bootstrapping techniques to assess direct and moderating effects. Results reveal that EL significantly promotes SJO through fairness, transparency, inclusion, accountability, and respect for rights. EL also positively influences ESP by encouraging conservation, efficiency, recycling, compliance, and innovation. Furthermore, ESP strengthens the relationship between EL and SJO, indicating that structured sustainability practices support ethical decision-making for equitable outcomes. Findings support Stakeholder Theory, emphasizing attention to diverse stakeholders, and Institutional Theory, highlighting formal structures for effective leadership. The study guides policymakers and community institutions in integrating ethical leadership with organized environmental practices to enhance justice and sustainability.