Authentic Leadership and Socially Responsible Behavior: Sequential Mediation of Psychological Empowerment and Psychological Capital and Moderating Effect of Perceived Corporate Social Responsibility

Rajeh Bati Almasradi, Farhan Sarwar () and Ismail Droup
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Rajeh Bati Almasradi: Department of Business Administration, College of Business, University of Bisha, Bisha 67845, Saudi Arabia
Farhan Sarwar: UE Business School, Division of Management and Administrative Sciences, University of Education, Lahore 54000, Pakistan
Ismail Droup: School of Business & Management, Business Administration Department, University of Juba, Juba 11111, South Sudan

Sustainability, 2024, vol. 16, issue 15, 1-20

Abstract: The aim of the study is to explore the relationship between authentic leadership and socially responsible behavior among employees in Saudi Arabia’s service sector, which aligns with Saudi Vision 2030. Utilizing social cognitive theory as the theoretical framework, the research proposes that authentic leadership indirectly influences socially responsible behavior through psychological empowerment and psychological capital as parallel and serial mediators. Additionally, the study examines the moderating effect of CSR perceptions on these relationships. A cross-sectional survey was conducted with 349 professionals from the service sector. The results, analyzed using partial least squares structural equation modeling (PLS-SEM), revealed that authentic leadership does not directly impact SRB. Instead, the relationship is fully mediated by psychological empowerment and psychological capital. Moreover, CSR perceptions significantly moderate the relationship between authentic leadership and psychological empowerment and have an indirect effect of authentic leadership on SRB through psychological empowerment and psychological capital. The findings highlight the importance of fostering an authentic leadership style and the way the psychological resources of empowerment and psychological capital carry forward this effect to promote SRB in the service sector. Additionally, the study underscores the role of CSR perceptions in strengthening the impact of authentic leadership on employee outcomes. The research contributes to the literature on leadership, CSR, and employee behavior and also offers practical implications for organizations aiming to enhance their social responsibility initiatives.

Keywords: socially responsible behavior; authentic leadership; psychological empowerment; psychological capital; CSR perceptions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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