Does Ethical Leadership Foster Employee Green Behaviour? The Mediating Role of Psychological Ownership

Honey Kanojia and Neeraj Dhiman

Indian Journal of Corporate Governance, 2025, vol. 18, issue 1, 110-131

Abstract: As organisations increasingly seek to promote environmental sustainability through green human resource management (GHRM), understanding the role of corporate governance in fostering employee environmental behaviours becomes crucial. Prior research suggests that corporate governance mechanisms, particularly ethical leadership (EL), play a vital role in building employee trust and commitment towards environmental initiatives, yet this relationship remains understudied in emerging economies. This study examines how EL and GHRM shape employee green behaviour (EGB) through psychological ownership in the Indian context. Using data collected from 343 employees and employing partial least squares structural equation modelling (PLS-SEM), the analysis is divided into two sections: a measurement model to ensure accuracy and validity, and a structural model to test hypotheses. Results revealed that EL and GHRM practices account for 62% of the variance in psychological green climate (PGC) and 58% in green behaviour. Notably, psychological ownership was found to partially mediate the relationship between PGC and green behaviour. This study contributes significantly to leadership and sustainability literature, while offering actionable insights for organisations promoting pro-environmental behaviours among employees. The findings provide a foundation for future research in organisational environmental management and the development of more effective sustainability strategies.

Keywords: Ethical leadership; green human resource management; pro-environmental behaviour; psychological ownership; employee green behaviour; psychological green climate (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ijcgvn:v:18:y:2025:i:1:p:110-131

DOI: 10.1177/09746862251314963

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