Author
Listed:
- Rui Caldeira
(Business and Economics School—ISG, CIGEST, 1500-552 Lisbon, Portugal)
- Alfonso Infante-Moro
(Facultad de Empresariales y Turismo, University of Huelva, 21071 Huelva, Spain)
Abstract
In modern organisations, ethical leadership has emerged as a key driver of sustainability, shaping both employee behaviour and long-term organisational performance. This study investigates the mechanisms through which ethical leadership fosters organisational sustainability, with a focus on the mediating role of organisational commitment. A quantitative, cross-sectional survey was conducted in mainland Portugal between January 2024 and January 2025 with a sample of 285 employees from medium and large companies (48% male, 52% female). Ethical leadership was measured with the 10-item Ethical Leadership Scale (α = 0.94), organisational commitment with a 7-item validated scale (α = 0.91), and organisational sustainability with a 12-item scale capturing ethical climate and voluntary pro-environmental behaviours (α = 0.93). Data were analysed using structural equation modelling with maximum likelihood estimation and bootstrapping. Results support the hypothesised model, showing that ethical leadership positively predicts organisational commitment (β = 0.62, SE = 0.07, p < 0.001, 95% CI [0.48, 0.75]) and organisational sustainability indirectly through commitment (indirect effect β = 0.31, SE = 0.06, p < 0.001, 95% CI [0.20, 0.43]). Direct effects of ethical leadership on sustainability were weaker and non-significant once the mediator was included, confirming the centrality of commitment. Model fit indices indicated strong adequacy (CFI = 0.962, TLI = 0.954, RMSEA = 0.048, SRMR = 0.041). Theoretically, the findings reinforce the integration of ethical leadership theory with sustainability research, clarifying the role of commitment as a mediating mechanism. Practically, the study suggests that fostering ethical leadership behaviours—fair decision-making, role modelling, and integrity—can strengthen employee commitment, which in turn drives sustainable organisational practices. This highlights the importance of leadership development programmes centred on ethics as a strategic lever for long-term sustainability.
Suggested Citation
Rui Caldeira & Alfonso Infante-Moro, 2025.
"The Importance of Ethics in Organisations, Their Leaders, and Sustainability,"
Administrative Sciences, MDPI, vol. 15(9), pages 1-16, September.
Handle:
RePEc:gam:jadmsc:v:15:y:2025:i:9:p:372-:d:1753226
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:15:y:2025:i:9:p:372-:d:1753226. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.