Author(s): Noreen Sattar, Muhammad Ali, Muhammad Ali Hamza, Hina Saleem, Hafiz Fawad Ali, Basharat Raza
This study aims to investigate the association of ethical leadership (EL) and employee outcomes, i.e., organizational citizenship behaviour (OCB) and innovative work behaviour (IWB). The study also examines the mediating role of psychological empowerment (PE) between EL and employee outcomes: OCB and IWB. Through convenience sampling, the data have been collected using a self-administered questionnaire from 382 employees working in different branches of various banks located in Lahore, Pakistan. Results reveal that ethical leadership has a significant and positive influence on psychological empowerment: organizational citizenship behaviour, and innovative work behaviour of employees. However, psychological empowerment partially mediates the association of EL with OCB and IWB. Thus, ethical leadership is a powerful tool that helps employees to improve themselves and consequently elevates the organizations. The practical implications, study limitations, and future directions have also been included.