The purpose of this study is to investigate the moderating and mediating effect of moral commitment (MCMM) and moral courage (MC) on the association of ethical leadership (EL) with group ethical voice (EV), ethical behavior (EB) and scouting behavior (SB).
The questionnaires were administered, and an attempt was made to cover as many frontline, middle-level and senior management employees as possible. The population targeted for this survey included all employees in Pakistan’s various organizations. Out of the 650 distributed questionnaires, 462 were returned duly filled out; hence, a response rate of 71.07% was achieved. Unfortunately, 188 questionnaires were not returned. However, 21 responses were deleted due to extreme values. This has left 441 responses to be analyzed for the study. The study used partial least squares structural equation modeling to test the hypothesized relationships, ensuring robust statistical validation. SmartPLS was used for structural model estimation, while SPSS was used for preliminary analysis, including descriptive statistics, normality checks and correlation analysis.
The results indicate that EL has a significant impact on EB, EV and SB. MCMM mediates these relationships, strengthening employees’ ethical decision-making. In addition, MC moderates the link between EL and MCMM, reinforcing the importance of courage in ethical actions. This means that when employees have higher MC, the influence of EL on their MCMM becomes even stronger. The study supports a model in which EL encourages ethical actions, particularly when employees are morally committed and courageous.
According to social learning theory, the study establishes a moderated mediation model that explains how EL leads to positive organizational outcomes. This study highlights how EL fosters a culture of integrity, trust and ethical communication in organizations. By enhancing employees’ MCMM, organizations can reduce unethical practices and promote sustainable business operations.
