The Role of Ethical Climate on Workplace Deviance under Ethical Leadership
DOI:
https://doi.org/10.61506/Keywords:
Ethical leadership, Ethical Climate, Workplace Deviant Behavior, Banking SectorAbstract
On the reasonable grounds of social exchange, this research investigates the moderation of ethical climate on ethical leadership and workplace behaviour diversity in the banking sector of Pakistan to reduce notable incidents of employee losses sufficiently. A survey Questionnaire was distributed among 650 employees of banks working in Pakistan, out of which 425 respondents returned the filled questionnaire and 25 responses were found not fit for the research, that's why 400 responses were taken to testify the linkage among Ethical Leadership, Workplace deviant behaviour and Ethical climate by instigating SEM via Amos. The consistent results of the research project sufficiently indicate that EL is directly associated with WDB inversely in the banking sector. Moreover, EC undoubtedly retains a negative association with WDB; furthermore, EC moderates the direct linkage between EL and WDB in the financial industry. Properly implementing this comprehensive study can progressively eliminate the economic loss due to workplace deviant behaviour. Further ethical climate of financial institutions may promptly lead to effective ethical leadership which ultimately reduces the negativity among the prospective employees of established banks in Pakistan. Modern policies can be carefully formulated by adequately applying this empirical study to improve tremendously the stable environment of the legitimate banks towards ethics implementation at the workplace. This research realistically represents a great addition to the extant literature on ethical climate and leadership. This empirical research highlighted EC moderation on the relationship of EL and WDB in the banking sector of Pakistan. This intensive study invariably delivers keen insights that consider the potential to reliably inform policies, existing practices and further research in the fertile field of the banking sector.
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