Abstract
Organizational justice is influenced by interpersonal relationships in the workplace. This study investigates the moderating role of ethical leadership on the relationship between justice dimensions (distributive justice, procedural justice, interpersonal justice, and informational justice) and employees’ ethical behavior. We identified a sample of 545 supervisor–subordinate dyads from the banking industry in Saudi Arabia and found that ethical leadership positively and significantly moderates the relationship between organizational justice and employees’ ethical behavior. Nevertheless, the interaction between interpersonal justice and ethical leadership was insignificant. Our findings show the important role played by managerial ethical leadership in increasing the positive impact of organizational justice dimensions on employees’ ethical behavior.
Plain language summary
This study investigates the moderating role of ethical leadership on the relationship between justice dimensions (distributive justice, procedural justice, interpersonal justice, and informational justice) and employees’ ethical behavior. We identified a sample of 545 supervisor–subordinate dyads from the banking industry in Saudi Arabia and found that ethical leadership positively and significantly moderates the relationship between organizational justice and employees’ ethical behavior. Nevertheless, the interaction between interpersonal justice and ethical leadership was insignificant. Our findings show the important role played by managerial ethical leadership in increasing the positive impact of organizational justice dimensions on employees’ ethical behavior.
Keywords
Introduction
Today’s business scandals have placed increasing pressure on experts, academics, practitioners, and the government on issues relating to business ethics and ethical behavior (Astrachan et al., 2020). This has reference to the various scandals involving large organizations such as the Irish National Bank, Enron, and Worldcom. Thus, in the midst of a growing number of business scandals around the world (e.g., Tyco, Enron, WorldCom) significant ethical concerns have been posed by academics, practitioners, policymakers, and governments (Al Halbusi et al., 2019, 2020; Kuenzi et al., 2019; Treviño et al., 2014; Valentine et al., 2013). The 2008 financial crisis and the consequent damage to several worldwide corporations were viewed as ethical rather than financial problems. Hence, business scandals and ethical lapses have heightened issues across managers, shareholders, and employees, who understand that unethical behavior can impair an organization’s long-term health while also harming its reputation in the short term (Brown & Treviño, 2014; Ko et al., 2017; Werner et al., 2019). Every organization that does not foster an ethical culture risk lowering its standards, increasing economic costs, and increasing risk (Ng, & Feldman, 2015; Thomas et al., 2004). Moreover, stakeholders would also stop engaging with such businesses (Bedi et al., 2016; Babalola et al., 2017; O’Keefe et al., 2019).
Employee perceptions of fairness in the workplace are referred to as organizational justice, with justice being the core virtue and principle of an organization (Colquitt et al., 2001; Greenberg, 1990). Scholars have discussed the framework and aspects of organizational justice since the publishing of the underpinning research. According to meta-analytic findings (Colquitt et al., 2013), experts now agree on the multidimensionality of the organizational justice construct, which includes distributive justice, procedural justice, interpersonal justice, and informational justice which is cover all the concepts of fairness. For example, distributive justice is regarding perceived fairness in the outcome distribution (salary, promotions, and rewards), and it addresses the degree to which outcomes are equitable (Colquitt et al., 2013). Considering its importance placed on rewards, distributive justice is primarily associated with cognitive, affective, and cognitive responses to specific consequences (Ambrose & Schminke, 2009). In regards to procedural justice as it refers to perceptions of fairness pertaining to the approaches, structures, and procedures used to distribute rewards and advantages within an entity (Leventhal, 1980). Whilst also distributive justice perspectives are connected to satisfaction with individual results, procedural justice perceptions are associated with organizational-related behavior and attitudes. Thus, poor procedural justice induces intellectual and emotional indignation, which also manifests as resentment and a lack of cooperation (Colquitt, 2001). For interpersonal justice describes the level to which authorities or third parties are required for executing procedures or determining outcomes to treat people with politeness, dignity, and respect. Lastly, informational justice emphasizes the truthfulness and adequacy of the information and clarifications provided to individuals concerning the supply of consequences and/or the implementation of procedures. In the case of informational justice, the descriptions and justifications provided to employees are supposed to mitigate their negative reactions to injustice perceptions and/or to the inequities in the allocation of results (Colquitt et al., 2013). Therefore, in this study, we adapted four-factor models of justice in order to capture the overall concept of organizational justice.
Typically, treatment refers to employees’ ethical assumptions, particularly their concerns about how they are treated in an organization (Al Halbusi et al., 2018; Folger et al., 2005; Karam et al., 2019). Organizational justice is incorporated of numerous significant dimensions, including distributive, procedural, interpersonal, and interactional justice, which determine the perceptions of organizational justice procedures and, on a practical level, lead to either positive or negative outcomes. Treatment is, therefore, a significant indicator of ethical conduct, which focuses on employees’ reactions to their employers (Konovsky 2000; Treviño et al., 2014). Employees view decisions as being taken in a reasonable manner when an organization makes fair decisions and policies are applied consistently and correctly, for example, resulting in a high degree of positive actions by employees. In addition, psychologically, previous studies have found that injustice at an organization is related to the misconduct of employees (Cohen-Charash & Spector 2001; Colquitt et al., 2001; Khan et al., 2013; Roch et al., 2019).
Despite this, there are a number of studies on the relationship between organizational justice (distributive justice, procedural justice, interpersonal justice, and informational justice) and employees’ ethical behavior (e.g., Shah et al., 2017). Also, most prior studies have concentrated on the impact of one or two components of organizational justice on employees’ ethical behavior (Chen McCain et al., 2010; Shah et al., 2017), as their findings are not completely in line with the propositions in the literature, whereas the current study integrated the four dimensions of organizational justice (i.e., distributive justice, procedural justice, interpersonal justice, and informational justice) to look at their relationship to employees’ ethical behavior.
Importantly, the previous works have neglected the vital role of ethical leadership as a vital moderator between organizational justice and employees’ ethical behavior. Thus, the primary goal of this research is to add to the body of knowledge in the field of business ethics by examining the effects of organizational justice variables such as distributive justice, procedural justice, interpersonal justice, and interactional justice on employees’ ethical behavior and determining the moderating role of ethical leadership in this link. Basically, ethical leadership refers to “the expression or demonstration of normatively appropriate conduct through interpersonal relationships and personal actions, and the endorsement of such conduct for followers through two-way communication, decision-making, and reinforcement” (Brown et al., 2005, p. 120). Thus, we focused on ethical leadership because ethical leaders set a positive example and role model for their employees by demonstrating genuinely ethical behavior, ethical decision-making, and moral conduct in everyday situations with their employees (Toor, & Ofori, 2009). Also, because of ethical leadership understanding the meaning of ethical behavior in role models and as an ethical guide is important since ethical leadership helps to establish and develop an organization’s ethical framework, as well as employee ethical conduct (Brown et al., 2005; Toor & Ofori, 2009). Particularly, ethical leadership concerns good practices, including integrity, both of which demonstrate trustworthiness, fairness, care, and concern for others, and behaving with ethical intentions (Treviño et al., 2014). This is also because ethical leadership can be classified into several dimensions. First, personal moral factors comprise integrity, concern for others, fairness, and trustworthiness. Second, moral manager factors involve role modelling, ethical conduct, determining ethical standards, punishment, communication and reward. So, based on that because most businesses rely on their employees to deal with complex issues, solve complicated problems, and implement crucial choices, identifying the elements that influence employees’ ethical behavior is a major concern. The extent to which employees behave ethically is defined by justice and ethical aspects so the interaction between organizational justice and ethical leadership was valuable to the literature.
Theoretical Foundation and Hypothesis Development
Organizational Justice and Employees’ Ethical Behavior
According to Greenberg (1987), organizational justice described the various views of members of staff regarding their organization’s decision-making practices and its impact on members of staff. They perceived that justice may influence organizational output. Fairness is an incorporation of a constructed analysis that creates the expectation of being treated fairly universally, the purpose of fairness is to be responsible (Colquitt, 2001). Therefore, new over the last 4 decades, many studies have highlighted the importance of organizational justice on workplace ethical behavior (Al Halbusi et al., 2021; Colquitt et al., 2001). However, the extent to which these results can be generalized across different universal principles and across cultures still needs further exploration. Empirical evidence has revealed that subordinates have different perceptions of value systems from their managers, even when they come from the same sociocultural background, which leads to them having different reactions toward their organization (Butitova, 2018; Karam et al., 2019). Numerous studies have underlined the impact of organizational justice on workplace ethical behavior over the last 4 decades (Colquitt et al., 2001; Loi et al., 2006; Xu et al., 2016). Nevertheless, more research is needed to see how far these findings can be applied to various universal principles and across cultures. Even though they originate from the same socio-cultural background, empirical research shows that subordinates and managers have different perceptions of value systems, resulting in distinct responses to their organization (Cheng, 2014; Loi et al., 2011; Li et al., 2012). However, as mentioned earlier, organizational justice involves four components, which are described below.
Contingent Role of Ethical Leadership
In this era, the new leadership style places interest on the importance of virtue and morality. Many researchers, mostly stress truthfulness and honesty in this leadership style (Brown et al., 2005). Brown and Treviño (2006), emphasized that ethical scandals are spreading in several workplace environments such (in non-profit organizations, sports, and religious institutions), which echoed out the importance of ethical issues and leadership behaviors that have ethical content in order to minimize the phenomenon (Bedi et al., 2016). Thus, ethical leadership was defined as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the advancement of such conduct to the followers through two-way communication, reinforcement, and decision making” (Brown et al., 2005, p. 120). As emphasized earlier, this conduct could be promoted to the followers by two-way communication, reinforcement, and decision-making. In the previous studies, ethical leadership generally stressed integrity and honesty (Kuntz et al., 2013), and ethical leaders remained as honest, and principled decision-makers. Scholars categorized these features as the moral character of ethical leaders (Werner et al., 2019).
Numerous empirical studies have provided evidence that ethical leadership is associated with the ethical conduct of employees (Mayer et al., 2009; O’Keefe et al., 2019). Ethical leadership is an aspect of regulating behavior within individual relationships in the organization that can reinforce and improve employees’ ethical behavior. An ethical leader can have an influence on employees through the socio-emotional exchange (Mayer et al., 2009; Kuenzi et al., 2019). The socio-emotional exchange is a behavior which creates trust and fairness between leaders and employees (Blau, 1964). Employees will not tend to behave unethically when they notice their leaders treat them honestly and believe that the leader’s behavior benefits the organization (Treviño et al., 2014). More recently some studies have confirmed that ethical leaders are an essential factor and critically influence the individual’s behavior (Lu & Lin, 2014; Constandt et al., 2018; Dimitriou & Ducette, 2018; Sosik et al., 2019). Thus, ethical leaders are a powerful source of influence on employees’ work behavior, including their ethical behavior. Leaders should exhibit a high degree of ethical standards and moral behavior in their everyday discussions, actions, purposes, and manners as this will position them as the role model for their followers to follow (Brown & Treviño, 2006). Previous scholarly works on ethical leadership have regularly drawn consideration to the significance of understanding the role of ethical leadership in shaping employees’ ethical behavior (Brown et al., 2005; Ofori, 2009). Despite the importance of ethical leadership in triggering the ethical behavior of employees as functional role.
In this study therefore, ethical leadership is regarded as a critical moderator for a number of reasons. First, Managers play a critical role in bringing justice in a corporation since they have control over the business resources and legitimate power over employees (Brown et al., 2005; Brown & Treviño, 2006). As stated by Loi et al. (2009), The most serious issue is that leaders are frequently viewed as business representations, and when leaders act ethically, workers’ perceptions of justice improve, which is a vital aspect in exhibiting ethical behavior in the workplace. A moral leader is likened to a ship’s captain who steers the ship in the proper path (Brown, 2007). Second, because employees see their leader as a role model, both professionally and personally, who executes their work in an ethical manner within the business and reflects a reasonable spectrum of viewpoints, the organization’s leader provides and outlines guidelines and an ethical structure (Brown et al., 2005; Treviño et al., 2014). An individual leader look after their employees, make fair decisions, and prioritize the means over the results. A professional leader communicates with and treats employees fairly, establishing clear policies and procedures that set high expectations, and proactively trying to connect those moral expectations and standards to employees through the use of a reward system and punishment program that promotes people to perform ethical manner (Brown & Treviño, 2006). Hence, developing an ethical structure and creating a strong ethical culture among workers are key tasks for the ethical manager (Babalola et al., 2017; Werner et al., 2019). In the sense that the leader listens to what employees have to say and makes rational decisions, ethical leadership is connected to justice (Al Halbusi et al., 2022).
In essence, we argue that ethical leadership moderates the relationship between organizational justice dimensions (i.e., distributive justice, procedural justice, interpersonal justice, and informational justice) and employees’ ethical actions because managers perform their work in a transparent and equitable way. As a result, employees who work for such leaders regard the organization’s processes as transparent and trustworthy, and they have faith that they will prevent unethical behavior (Brown et al., 2005; Brown & Treviño, 2006). In contrast, employees who work for managers who are unjust and dishonest sense a misalignment between the organization’s processes and the manager’s actions. The issue is whether or if workplace fairness and ethical conduct are accurate and reliable indicators of their future as employees in the organization, and whether or not they behave or interact ethically (Brown et al., 2005). Employees use this evidence to infer how they will be treated, therefore leaders with a high sense of ethics emerge vital and crucial (Lin et al., 2009; Koopman et al., 2019). Open communication, such as discussing business ethics and personal issues, along with the expectations of the ethical leader, conveys ethics to the employees in the workplace (Ko et al., 2017). Leaders’ commitment to the organizational procedures and policies gives the employees a sense of the fairness of the organization’s procedures, as well as the application of fairness practically, sufficiently, and clearly, in order to stand out in the organizational context. Therefore, Employees’ perceptions of justice are crucial because they use them to determine whether or not they will continue working for that business. Furthermore, managers that engage in unethical dialogues with their staff are more likely to have differing perspectives on ethical behavior and justice (Brown et al., 2005; Brown & Treviño, 2006; Kuenzi et al., 2019). Thus, the following hypotheses were formulated.
Method
Sample and Procedures
A self-administered survey was utilized to collect 545 supervisor–subordinate dyads from the Saudi banking sector to examine the hypotheses. Prior conducting the questionnaire, senior members from each organization’s human resources department were informed. After getting approval, the survey was distributed. Two hundred ninety-five employees received the questionnaire, a pre-stamped envelope, and a covering letter in their questionnaire packs. The purpose of the survey was outlined in the covering letter, and participants were encouraged to return the filled questionnaires in a pre-stamped envelope.
We obtained data from two sources to reduce common method variance (CMV) (supervisors and their subordinates). To mitigate common method bias, we used a two-wave survey with a 1-month lag (Podsakoff et al., 2003, 2012). Surveys were distributed to 500 employees operating under 150 superiors. Employees rated their views of distributive justice, procedural justice, interpersonal justice, and informational justice, as well as the ethical leadership behavior of their direct supervisor, in the first phase. The supervisors evaluated their subordinates’ ethical behavior a month later in the second wave. Only 477 out of 500 employee questionnaires were found to be legitimate, reflecting a 95% response rate. A total of 139 supervisor questionnaires were returned out of a total of 150, resulting in a supervisor response rate of 92%. Over the course of the two waves, 545 matching subordinate-supervisor replies were obtained. Two sets of surveys were coded so, that the responses of subordinates and supervisors could be matched later. Furthermore, the participants were notified of their anonymity and the significance of their involvement in this study (Podsakoff et al., 2003).
Measurement
Since the participants speak Arabic, Brislin’s (1980) back-translation approach was used to translate the English version to Arabic one. In cross-cultural surveying, this method is commonly used to determine the accuracy of a translations. The items were translated into Arabic first, then compared to the original English language by two bilingual speakers to see if any semantic inconsistencies existed. If a discrepancy was identified, the retranslation and assessment process should be repeated till the two bilingual speakers were no more aware of issues. Finally, a large number of people consented to take part in this stage. The responses were formatted on a five-point Likert Scale, with anchors of “1 = Strongly Disagree” and “5 = Strongly Agree.”
Organizational Justice has been evaluated using a 20-item measure derived from Colquitt’s (2001) measure for workplace impressions. The 20-items refer to “distributive justice,”“procedural justice,”“interpersonal justice,” and “informational justice.” The example of the items shown respectively.
Data Analysis and Results
The partial least squares (PLS) analysis was used to measure model structural equations in this investigation. The Smart-PLS 3.2.8 software was then used to assess the research model (Ringle et al., 2015). Hair et al. (2017) recommended a two-stage analytical process, which was followed in this study. It begins with a measurement model assessment (which establishes reliability and validity) and proceeds to a structural model assessment (tests the hypothesized relationships).
Demographic Analysis
The 22.2% of the respondents were men (18.2% women). In terms of their ages, the largest group (16.2%) falls in the range between 31 and 40 years. With regards to educational background, people who hold a bachelor’s degree represent the majority (24.2%), and for job experience, more than the 18.1% of the respondents had been working for 6 to 10 years.
Measurement Model Assessment
The measuring model was evaluated using construct validity (containing convergent and discriminant validities) and construct reliability. To assess the reliability of each fundamental variables in the measurement model, individual Cronbach’s alpha value were assessed for construct reliability. The consequences showed that all the individual Cronbach’s alpha values, which ranged from 0.787 to 0.914, were more than the recommended value of 0.70 (Hair et al., 2017). Moreover, the composite reliability (
Measurement Model, Loading, Construct Reliability, and Convergent Validity.
Two methodologies were utilized to determine discriminant validity: Fornell-Larcker and Heterotrait-Monotrait Ratio (HTMT). There were no issues with Fornell-technique; Larcker’s the AVE for each concept was bigger than the variation explained by the other observed variables (Hair et al., 2017). (See Table 2). Henseler et al. (2015) suggested the Heterotrait-Monotrait Ratio (HTMT) of correlations based on the Multitrait-Multimethod Matrix as a more accurate approach. When the HTMT value is greater than HTMT 0.85 (value of 0.85), there is a concern with discriminant validity (Kline, 2010). Table 3 demonstrates that all of the
Descriptive Statistics, Correlation Matrix, and Discriminant Validity Via Fornell and Larcher.
Discriminant Validity Via HTMT.
Structural Model Assessment (Hypothesis Testing)
Our direct hypotheses from H1 to H4 are discussed in this section. The hypothesis testing provided the first indication of the direct effect (H1), namely, distributive justice significantly predicts the ethical behavior of employees. Hence, H1 was accepted with β = 0.386,
Structural Path Analysis: Direct Effect.

Research model: Hypotheses testing.
The moderation test was a crucial contribution in evaluating whether ethical leadership moderates the link between the independent elements of organizational justice, which was one of the study’s major purposes (distributive justice, procedural justice, interpersonal justice, and informational justice) and the dependent variable (ethical behavior of employees). Therefore, the moderation effect of ethical leadership on the correlation between organizational justice and employee ethical conduct was tested. The first interaction between distributive justice and ethical leadership toward employees’ ethical behavior revealed a significant interaction, such that β = 0.131,
Structural Path Analysis: The Interaction Effect (Moderation).
Dawson (2014) recommended that this can be followed up with an interaction plot. Hence, this research used interactions plot to investigate at the gradient of the slopes for all four interactions. As shown in Figure 2, the line labeled “high ethical leadership” for the first interaction has a steeper gradient when compared to “low ethical leadership,” which indicates that when ethical leadership is higher, the positive relationship between distributive justice and the ethical behavior of employees is stronger (see Figure 2). The second interaction is between procedural justice, ethical leadership, and the ethical behavior of employees, which shows that the positive relationship between procedural justice and employees’ ethical behavior is greater when ethical leadership is higher (see Figure 3). Figure 4 presents the interaction between informational justice, ethical leadership, and employees’ ethical behavior. As can be seen from the interaction, a high ethical leadership value strengthens the positive relationship between informational justice and the ethical behavior of employees, such that the relationship is stronger when the ethical leadership is higher (see Figure 4).

Distributive justice X ethical leadership interaction on the employees’ ethical behavior.

Procedural justice X ethical leadership interaction on the employees’ ethical behavior.

Informational justice X ethical leadership interaction on the employees’ ethical behavior.
The concern of collinearity is crucial in a structural model, as noted before in the analysis section. Hair et al. (2017) state that there is a multi-collinearity issue when the largest variance inflation factor (VIF) has a value greater than 5.0. However, Tables 4 and 5 present the findings related to our results and are free of multicollinearity problems, as the VIF values are all far lower than the 5.0 cutoff (Hair et al., 2017). Also, Tables 4 and 5 demonstrate the effect size
Importantly, in terms of the overall explanatory power of the model,
Discussion and Conclusion
This study examines the relationship of distributive justice, procedural justice, interpersonal justice, and informational justice with employee ethical behavior. Importantly, we analyzed ethical leadership as a vital boundary condition on the relationship between (distributive justice, procedural justice, interpersonal justice, and informational justice) and employee ethical behavior. Despite this, there are a number of studies on the relationship between organizational justice (distributive justice, procedural justice, interpersonal justice, and informational justice) and employees’ ethical behavior (e.g., Shah et al., 2017). Also, most prior studies have concentrated on the impact of one or two components of organizational justice on employees’ ethical behavior (Chen McCain et al., 2010; Shah et al., 2017), as their findings are not completely in line with the propositions in the literature, whereas the current study integrated the four dimensions of organizational justice (i.e., distributive justice, procedural justice, interpersonal justice, and informational justice) to look at their relationship to employees’ ethical behavior. Therefore, as our investigation revealed (distributive justice, procedural justice, interpersonal justice, and informational justice) positively influence employees’ ethical behavior, the term is closely connected to the concept of fairness; employees are sensitive to decisions made on a day-to-day basis by their employers that will judge these decisions as fair. These judgments influence an individual’s behavior and can, in cases where the actions have a personal effect on the employee and are judged as fair, lead to positive ethical behavior (Karam et al., 2019). Based on its centrality, in this study, we found that distributive justice, procedural justice, interpersonal justice, and informational justice and an individual’s behaviors. Indeed, these elements has been demonstrated to significantly influence the ethical behavior of employees.
Most significantly, in this study, we analyzed ethical leadership as a contingent element on the relationship of (distributive justice, procedural justice, interpersonal justice, and informational justice) and ethical behavior of employees. Therefore, the results revealed that ethical leadership is strengthened the positive impacts of both (distributive justice, interpersonal justice, and informational justice) and employee ethical behavior. Thus, we derive two main conclusions: First, by evoking enhanced ethical behavior among employees, justice including (distributive justice, procedural justice, interpersonal justice, and informational justice) constitutes a fueling factor that rests on employees’ perceptions of fairness within their organization. Even if they do everything possible to ensure fair and ethical content outputs and processes within an organization, individuals may respond differently to these factors. Leaders in an organization are in a privileged situation to administer justice since they have significant influence over organizational resources and legitimate power over employees (Hayibor et al., 2011), especially when the compatibility of a follower’s values with the manager’s values is high that would facilitate the development of followers’ ethical behavior (Cha et al., 2020). Thus, ethical leadership is a clear moderator of the effects of (distributive justice, interpersonal justice, and informational justice) and employee ethical behavior.
Theoretical Implications
This research added to the body of knowledge by concentrating on the wide range of positive outcomes associated with organizational justice and individual ethical behavior. The majority of recent study has focused on the favorable influence of organizational justice on employees’ ethical behavior (Demirtas, 2015; Shah et al., 2017). Nevertheless, this investigation is one of the few to incorporate all four aspects of organizational justice (distributive justice, procedural justice, interpersonal justice, and informational justice) into a single study (Al Halbusi et al., 2019). Hence, as a result, all four aspects of organizational justice (distributive justice, procedural justice, interpersonal justice, and informational justice) were investigated in relationship to employees’ ethical behavior in a single sample. In addition, the majority of previous research concentrated on the Western cultural context (Chen McCain, et al., 2010; Treviño & Weaver, 2001) or on a type of unethical behavior directed at redressing perceived issues of injustice, for example, retaliation, theft, and sabotage (Cohen-Charash & Spector, 2001; El Akremi et al., 2010). Thus, by examining at how organizational justice significantly influences ethical behaviors in a Middle Eastern country like Saudi Arabia, our work has taken a significant step forward in examining the actual nature of these interactions across various cultural settings.
Most importantly, As earlier stated, behavioral implications are determined by the compatibility of a person’s (leaders) values with organizational values (justice). The aim of this study was to see if ethical leadership increased the positive impact of organizational justice on workers’ ethical behavior. Therefore, leaders are seen as essential purposes of ethical behavior and organizational success. This study discovered that ethical leadership has a significant impact on the relationship between organizational justice (i.e., distributive justice, procedural justice, and informational justice) and the ethical behavior of employees, such the relationship is stronger when a leader’s ethical behavior is higher (except for the interaction between interpersonal justice and ethical leadership, which was insignificant). This research coped that as role models in their organizations who can trigger relational attachments and model ethical leadership behavior, trigger managers have a legitimate right that morally controls the activities of the organization’s members. In addition, the results of this investigation can be used to derive a variety of important conclusions. A moral leader is comparable to a captain who knows how to lead a ship in the proper path (Brown, 2007). Individuals see their leader as a role model, both as a personal manager and as a professional manager, who executes their work in an ethical manner inside the organization, as the organization’s leader creates and articulates ethical guidance and ethical principles (Brown et al., 2005). According to Brown and Treviño (2006), A personal leader runs his or her business appropriately, caring for his or her employees, making sound decisions, and emphasizing on the means rather than the goal. A professional leader engages and treats employees fairly by establishing clear rules and procedures that demand high moral standards from employees, proactively conveying those moral standards and expectations to employees, and employing a system of rewards and punishments to motivate subordinates to engage in ethical behavior (Brown et al., 2005). Therefore, as a result, ethical leadership was discovered to be a significant moderator in the relationship between organizational justice (distributive justice, procedural justice, and informational justice) and ethical conduct among employees in this research.
Managerial Implications
The findings give a clear indication to upper management that, while ethical issues in businesses are more concerning than organizational justice alone, failing to ensure that organizational justice is perceived favorably by employees is an important component to consider when encouraging ethical workplace practices. Of further importance, the findings of this study support previous suggestions (e.g., Al Halbusi et al., 2021; Brown et al., 2005) that managerial activities can vary depending on whether a leader has high or low ethical values. Although the positive relations we found between organizational justice and employee ethical behavior, our findings suggest that these associations might be established either positively or negatively depending on the extent of ethical leadership behavior. In other words, upper management should be cautious that their efforts to make organizational justice transparent and interpreted in their organizations will not evoke the favorable response in terms of ethical behavior that they expect from all of their subordinates. These findings are significant because they help practitioners forecast whether employees will be encouraged by distributive justice, procedural justice, interpersonal justice, and informational justice practices in the workplace, as well as when these experiences would be less influential.
As an outcome of the present study, it’s probable that there are constraints affecting (by enhancing or buffering) the positive effects that define justice standards in the results given to the employees and the actions used to make decisions that are intended to enforce social exchange processes. Certainly, organizational justice perceptions (i.e., distributive justice, procedural justice, interpersonal justice, and informational justice) may generate positive responses in subordinates, including ethical actions, centered on social exchange processes. Nonetheless, employees can respond inversely to these aspects of justice (distributive justice, procedural justice, interpersonal justice, and informational justice) even though they do whatever possible to ensure equal outcomes and processes of the organization. Therefore, the effects of organizational justice on employee ethical conduct are explicitly moderated by ethical leadership, the most significant issue is that leaders are often seen as representatives of the company, and when managers act ethically, they reinforce workers’ perceptions of justice as a key component of ethical conduct in the workplace (Lind, 2001). Employee ethical behavior is influenced by ethical leadership. As a result, organizations should take it into account. As a result, businesses should make an effort to select and/or train ethical leaders, as ethical leadership encourages employees to act ethically. Company entities may consider two options: recruiting more ethical leaders and offering more training to current leaders. Training themes include promoting and rewarding ethically behaving employees, conveying the importance of ethics, and being role models of ethical behavior (Treviño et al., 2014). As a result, at the highest levels, ethical practitioners must be considered and recognized, regardless of whether they have a high or low degree of ethical values, who have prior knowledge of how corporate justice affects employee ethical behavior, and complement administrative acts with those that maintain an ethical work environment.
Limitations and Future Studies
Due to the research’s shortcomings, precautions should be taken when interpreting the findings. First, because the workers in our sample derive from a particular industry (banking), the generalizability of our findings to the general population may be limited. Generalizability remains a severe concern because the sample does not really reflect the complete cultural context of Saudi Arabia’s population. Hence, future research would be able to reproduce the current findings across a variety of organizational, manufacturing, and geographic settings. Second, although this investigation is predictive and utilizes a strong time-lagged study design that separates two-time frames, it is not a completely longitudinal design that enables for clear causal conclusions to be derived. Hence, we inspire organizational researchers in conducting more empirical studies to look into the link between ethical leadership and employee behavioral outcomes, as well as collectivistic and gender issues, because feminist issues are significant in Saudi Arabia, where men and women are treated differently in the workplace (Marcinkowska et al., 2017). Third, the study’s findings were based on a survey of respondents from a Middle Eastern cultural background. As a consequence, the context’s specific cultural characteristics, which featured a strong adherence to religious values among other things, are taken into consideration (Moaddel & Karabenik, 2010), might have affected the study’s outcomes. The consequences of right, ethical action is remarkably likely to be repeated within cultural settings (Triandis et al., 1988). Nevertheless, further study is clearly required to determine the context-sensitivity of these results (Whetten, 2009) when compared to other cultures, Saudi Arabia’s religious and cultural features are easily distinct (Ribberink et al., 2018).
Particularly, as indicated earlier, cultural issue may affect the outcomes of this study. Thus, at first glance, the cultural background and ethnic diversity that exists in the Saudi Arabia verified that the perceived of ethical perspectives are different from other cultures and this variety is indeed indicated unexpected results. Saudi is considered as country has variety of ethnic. Since ethics aspects is considered as self-regulation, self-conception and responsibility of an individual the perceived of ethics has variation from one person to another in the diversity context in term of self-conception which is very hard to verify it in context has ethnic diversity. By the same token, this point is highlighted in the Saudi context with ethnic diversity where, basically, the different diversity of employees may provide an unconscious prescription makes a high difference of the concepts. A further according to Hofstede (1984) Saudi society is collectivist nature, so in the collectivist nature; in comparison with individualistic societies, defining ethics as activities of ethical decision, and assigning tasks based on ethical standards and responsibilities of individuals, so, based on this is very clear for individualistic people works better rather than collectivistic, for instance, employees feel and behave better when they have more action and interaction of individualism rather than collectivism (Al Halbusi et al., 2022).
Footnotes
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This research has been funded by the scientific research deanship at the University of Hail- Saudi Arabia through project number BA-2210.
Ethical Approval
All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.
Informed Consent
Informed consent was obtained from all individual participants included in the study.
Data Availability Statement
Data sharing not applicable to this article as no datasets were generated or analyzed during the current study.
