A contemporary perspective on Ethical Leadership: emerging dimensions and the role of Moral Identity and Moral Attentiveness

Abstract

This research aims to address a gap in the literature by validating the Ethical Leadership Scale (ELS) for leader self-assessment and examining the influence of moral characteristics, specifically moral identity (MI) and moral attentiveness (MA), on leaders' self-assessment of ethical leadership (EL). It also investigates the moderating roles of gender and functional areas, such as marketing and finance. The study comprised two comprehensive phases. In the first phase, we validated the ELS through Exploratory Factor Analysis (EFA) using SPSS 29.0, Confirmatory Factor Analysis (CFA) with AMOS 29.0, and assessments of reliability and validity. In the second phase, we applied Structural Equation Modelling (SEM), using AMOS 29.0, to examine the relationships between MI, MA, and EL, drawing on data from 368 leaders in Spain working in finance and marketing roles. The sample was multisectoral, with substantial representation from the finance and technology industries. The results indicate that MI and MA play a significant role in improving leaders' self-assessment of EL. While gender did not substantially influence EL, differences were observed across functional areas. Additionally, the analysis uncovered three emerging EL dimensions (integrative decision-making, rewarding ethical behavior, and role model behavior), highlighting the continuous evolution of leadership ethics in response to contemporary challenges. The study is limited to a Spanish context and cross-sectional data. Future research should explore longitudinal and cross-cultural dimensions to generalize the findings further. Organizations can enhance ethical behavior by integrating MI and MA assessments into recruitment and training programs, fostering ethical decision-making and reinforcing role model behaviors among leaders. The study highlights the societal impact of ethical leadership by promoting transparency and fostering trust, which can lead to more sustainable and equitable organizational practices. This study introduces a novel validation of the ELS for self-assessment and uncovers new dimensions of EL. It is one of the first to examine the influence of MI and MA on EL from the leaders' perspective, offering fresh insights into ethical leadership's evolving framework.