Human capital is widely recognized as a key driver of value creation in organizations. However, recent perspectives highlight the emerging influence of spiritual ethics in enhancing human capital’s effectiveness, thereby changing workplace scenario. Spiritual ethics consist of the inner values of an individual that guides him to follow the path of compassion, interconnectedness and integrity in his day-to-day activities. This study aims to fulfil two main objectives: to study the importance of spiritual ethics among teachers in universities and to study the mediating role of spiritual ethics in the relationship between human capital and value creation in universities.
A cross-sectional research design was used using a structured five-point Likert scale questionnaire. Data were collected from 432 university teachers across universities in the state of Haryana, India. The data were analysed using partial least squares structural equation modelling.
The results reveal that human capital significantly influences both spiritual ethics and value creation. Additionally, spiritual ethics has a positive and significant effect on value creation. Most notably, the analysis confirms that spiritual ethics partially mediates the relationship between human capital and value creation in the university context.
While spiritual ethics has garnered increasing attention in recent years, empirical research on its mediating role – particularly in the higher education sector – is lacking. Existing literature primarily focuses on corporate settings. The study shows that human capital possessing explicit and tacit knowledge leads to ethical behaviour in faculty members. This leads to meaningful academic engagement and a collaborative culture within universities, thereby leading to long-term value creation in universities. This study contributes to the emerging discourse by bridging this gap and advancing understanding of the interplay between human capital, spiritual ethics and value creation in universities.
