Ethical Leadership and Creativity Among Employees: Does Leadership Trust and Organizational Climate Matter?

Abstract

Purpose: Leaders encourage employee innovation for organizational effectiveness, but the perception of ethical leadership and factors like trust and organizational climate can influence this dynamic. This study assessed leadership trust and organizational climate as explanatory factors influencing the association between ethical leadership and creativity.Design: Responses were sought from 354 employees from a multinational organization in manufacturing in Ghana. The respondents completed questionnaires that measured ethical leadership, employee trust in leadership, organizational climate, and creativity.Findings: The findings using the PROCESS macro indicated a positive relationship between ethical leadership and creativity. The influence of ethical leadership on creativity was confirmed to be moderated by organizational climate and partially mediated by employees’ trust in leadership. The findings clearly highlight the eminence of leadership trust and organizational climate in explaining ethical leadership's impact on employees' creativity. Practical Implications: The study implies that organizations aiming to enhance creativity and effectiveness should promote ethical leadership while considering the influence of trust and the overall work environment. This study is the first of its kind to assess the underlying mechanisms of leadership trust and organizational climate in explaining the linkage between ethical leadership and employee creativity.