“Ethical leadership: a dual path model for fostering ethical voice through relational identification, psychological safety, organizational identification and psychological ownership”

Abstract

Purpose This study aims to identify the impact of ethical leadership on ethical voice by determining two paths covering relational identification and psychological safety. The first path focused on relational identification and psychological safety. Alternatively, the second path focused on organizational identification and psychological ownership leading to ethical voice. The specific objective of the study is to develop and test an integrated model of ethical leadership. Design/methodology/approach The objectives were achieved through the adoption of quantitative research techniques. Two hundred forty-eight samples were collected from the banking sector using quantitative research techniques, and data was gathered through a self-administrated questionnaire. Exploratory and confirmatory factor analyses were used through AMOS to generate the results and test hypotheses. Findings The results suggested a significant impact of ethical leadership on ethical voice, while the other paths’ results, such as relational identification, psychological safety, organizational identification and psychological ownership, suggested partial mediation. The study result adds new insights into ethical leadership and social exchange theory since it tested overlooked paths in the literature, such as relational identification and psychological safety. Research limitations/implications The research highlights the significance of ethical voice as a desirable organizational behavior. Ethical voice contributes to a culture of accountability, transparency and ethical decision-making. Organizations should establish channels and platforms for employees to voice ethical concerns and suggestions. This may involve regular feedback sessions, anonymous reporting mechanisms and protection policies for whistleblowers. Leaders should actively encourage and value ethical voices as a valuable contribution to the ethical climate of the organization. Practical implications The study found that ethical leaders influence their followers in such a way that they adopt ethical behavior. It is also validated that organizational ethics are shared by employees who interact with ethical leaders. So, departments should train such leaders because ethical leadership positively affects followers’ attitudes and behaviors, and organizations should encourage ethical behavior in supervisors and subordinates. The study also found that relational and organizational identification helps employees develop psychological capabilities, which leads to reporting workplace misconduct. The current study tested these mechanisms collectively and found that ethical leadership significantly contributes to ethical voice. Social implications The current study highlighted the role of ethical leaders in promoting ethical behavior, improving employee well-being and engagement, cultivating collaboration and inclusion, and making a contribution to the overall ethical climate within organizations and society as a whole. Organizations can have a positive impact on the social fabric by cultivating a culture of ethics, respect and social responsibility if they make these considerations their top priorities. Originality/value The current study is unique since it is intended to develop and test an integrated model of ethical leadership and ethical voice. This research combines an integrated model, focusing on employees’ identities and self-concepts and examining ethical voice as a behavioral outcome.