The Importance of Ethics in Organisations, Their Leaders, and Sustainability

Rui Caldeira () and Alfonso Infante-Moro
Additional contact information
Rui Caldeira: Business and Economics School—ISG, CIGEST, 1500-552 Lisbon, Portugal
Alfonso Infante-Moro: Facultad de Empresariales y Turismo, University of Huelva, 21071 Huelva, Spain

Administrative Sciences, 2025, vol. 15, issue 9, 1-16

Abstract: In modern organisations, ethical leadership has emerged as a key driver of sustainability, shaping both employee behaviour and long-term organisational performance. This study investigates the mechanisms through which ethical leadership fosters organisational sustainability, with a focus on the mediating role of organisational commitment. A quantitative, cross-sectional survey was conducted in mainland Portugal between January 2024 and January 2025 with a sample of 285 employees from medium and large companies (48% male, 52% female). Ethical leadership was measured with the 10-item Ethical Leadership Scale (α = 0.94), organisational commitment with a 7-item validated scale (α = 0.91), and organisational sustainability with a 12-item scale capturing ethical climate and voluntary pro-environmental behaviours (α = 0.93). Data were analysed using structural equation modelling with maximum likelihood estimation and bootstrapping. Results support the hypothesised model, showing that ethical leadership positively predicts organisational commitment (β = 0.62, SE = 0.07, p < 0.001, 95% CI [0.48, 0.75]) and organisational sustainability indirectly through commitment (indirect effect β = 0.31, SE = 0.06, p < 0.001, 95% CI [0.20, 0.43]). Direct effects of ethical leadership on sustainability were weaker and non-significant once the mediator was included, confirming the centrality of commitment. Model fit indices indicated strong adequacy (CFI = 0.962, TLI = 0.954, RMSEA = 0.048, SRMR = 0.041). Theoretically, the findings reinforce the integration of ethical leadership theory with sustainability research, clarifying the role of commitment as a mediating mechanism. Practically, the study suggests that fostering ethical leadership behaviours—fair decision-making, role modelling, and integrity—can strengthen employee commitment, which in turn drives sustainable organisational practices. This highlights the importance of leadership development programmes centred on ethics as a strategic lever for long-term sustainability.

Keywords: organisational ethics; organisational culture; leadership; ethical leadership; sustainability (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2076-3387/15/9/372/pdf (application/pdf)
https://www.mdpi.com/2076-3387/15/9/372/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jadmsc:v:15:y:2025:i:9:p:372-:d:1753226

Access Statistics for this article

Administrative Sciences is currently edited by Ms. Nancy Ma

More articles in Administrative Sciences from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().