The Influence of Ethical Leadership on Employee Engagement and Organizational Commitment: A Quantitative Analysis of Trust and Satisfaction as Mediating Mechanisms

Abstract

This study investigates the influence of ethical leadership on employee engagement and organizational commitment, with trust and job satisfaction examined as mediating mechanisms. We employed a quantitative cross-sectional design across 150 public and private organizations in manufacturing, healthcare, education, IT, and service sectors. Stratified random sampling yielded 1,000 participants, and after data cleaning, 982 valid responses were analyzed using SPSS 29, AMOS, and R. Descriptive statistics, Pearson correlations, multiple linear regression, and structural equation modeling were conducted. The results demonstrated that 81.5% of employees perceived ethical behavior in their leaders, and those reporting high ethical leadership exhibited 28.4% higher engagement and 26.9% greater organizational commitment compared to those with low ethical leadership perceptions. Multiple linear regression identified ethical leadership as the strongest predictor of organizational commitment (standardized β = 0.47, p < 0.001), followed by employee engagement (β = 0.39), trust in leadership (β = 0.34), and job satisfaction (β = 0.29), collectively explaining 75.3% of the variance (R² = 0.753). Pearson correlations revealed strong positive associations between ethical leadership and engagement (r = 0.83), commitment (r = 0.80), satisfaction (r = 0.77), and trust (r = 0.79). Structural equation modeling confirmed an excellent model fit (CFI = 0.97, RMSEA = 0.043), supporting trust and satisfaction as significant mediators. The novelty of this work lies in providing robust quantitative evidence that ethical leadership systematically enhances both engagement and commitment through these mediating pathways. Therefore, our findings underscore the critical role of integrity, transparency, and accountability in leadership for fostering sustainable organizational performance and employee retention. This research contributes actionable insights for leadership development and organizational strategy.