Ethical leadership and organizational performance: Employee happiness as a mediator and corporate social responsibility as a moderator

Abstract

In the resource-constrained context of Pakistan's healthcare sector, the role of employee happiness in influencing organizational performance remains underexplored. Our study addressed this gap by examining how ethical leadership and corporate social responsibility (CSR) influence organizational outcomes via employee happiness. Utilizing a cross-sectional design with data from healthcare professionals and applying structural equation modeling, we found that ethical leadership significantly boosted employee happiness, which, in turn, enhanced organizational performance. Further, CSR strengthened the relationship between ethical leadership and happiness. The findings not only emphasize the centrality of employee happiness in mediating leadership and performance linkages but also offer insights for improving healthcare services in similar contexts.