Effects of Leader Conscientiousness and Ethical Leadership on Employee Turnover Intention: The Mediating Role of Individual Ethical Climate and Emotional Exhaustion

Abstract

Employees working under conscientious leadership perceive their leaders as ethical leaders. This study investigates the conscientiousness of leaders as an essential trait of ethical leadership and the relationship between ethical leadership and employee-turnover intention. Additionally, we study the potential mediating roles of the individual-level ethical climate (self-interest, friendship, and personal morality) as well as the level of employees’ emotional exhaustion that contribute to the decision-making process of turnover intention. Building on social learning and social exchange theories, outcomes from nine industrial manufacturing organizations comprising 260 subordinates’ responses show that leaders’ conscientiousness is positively related to ethical leadership and negatively associated with employees’ turnover intention. Consistent with this hypotheses, results found that, in an individual-level ethical climate, employees experience diminished emotional exhaustion. The relationships are found to mediate between ethical leadership and turnover intention in manufacturing organizations. Additionally, it was also found that individual-level ethical climates cause a relatively positive impact on employees’ emotional exhaustion leading them to lower turnover intention.