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.
