Relationship of ethical leadership, organizational culture, corporate social responsibility and organizational performance: a test of two mediation models

Abstract

Purpose The sound leadership style can be indicative of organizational success and explanatory of quality performance. Besides this, there are various factors that can impact organizational performance. To this end, this study aims to investigate the effect of ethical leadership on organizational performance, with the mediating role of corporate social responsibility (CSR) and organizational culture. Design/methodology/approach The service sector in Jordan was targeted by this research, and data were collected from 371 middle-level and top-level managers working in service companies. These responses were analyzed by using analysis of a moment structure. Findings The result conveyed that ethical leadership does not only influence organizational performance, but it also, and positively so, affects the organizational culture and CSR. In addition, CSR and organizational culture significantly mediate the relationship between ethical leadership and organizational performance. Practical implications The findings of this study are a guide for managers and owners of service companies who are aiming to enhance organizational performance. If they follow the ethical leadership approach and emphasize CSR initiatives and organizational culture, they can attain, and naturally so, the maximum level of organizational performance. Originality/value To the best of the authors’ knowledge, this research paper is the first to analyze ethical leadership in the context of the service sector in Jordan and highlight its influence on organizational culture, CSR and ultimately organizational performance. Moreover, it examined the mediating effects of organizational culture and CSR between ethical leadership and organizational performance.