نوع مقاله : پژوهشی
موضوعات
عنوان مقاله English
نویسندگان English
Introduction: One of the factors that can influence a company's performance is its leadership style. An appropriate leadership style can enhance customer satisfaction by fostering strong morale and motivation among employees, improving their job satisfaction, and ultimately boosting the company's performance. Among various leadership styles, ethical leadership is increasingly recognized as a key tool through which leaders can positively impact company performance. The purpose of this research is to determine whether ethical leadership affects company performance through the mediating roles of social responsibility and company reputation.
Methodology: This research follows a descriptive survey approach of an applied nature. The statistical population consists of employees from the financial departments of companies located in the industrial town of Yazd province. Out of the 1,000 employees in the financial departments, 278 individuals were selected as the final sample using the Cochran-Morgan table. Data was collected using a questionnaire based on a 5-point Likert scale. To examine the causal relationships between variables, structural equation modeling was employed using Smart PLS software. The reliability of the data was confirmed with an average Cronbach’s alpha coefficient of 0.82, and the KMO index was 72.20%, indicating that the validity and reliability of the research were well-established.
Results and Discussion: The results of the first hypothesis suggest that ethical leadership significantly and positively impacts company performance. Many experts believe that leadership is the most critical factor in sustaining the success of a company. By recognizing the importance of ethical leadership, organizations can improve their efficiency and effectiveness, ultimately enhancing company performance. The second hypothesis indicates that ethical leadership has a significant positive impact on the company's social responsibility. Ethical leadership is essential for the successful implementation of social responsibility. In this context, it is believed that ethical leaders possess a strong sense of accountability and a desire to implement social responsibility, thereby leading to high-quality social responsibility initiatives. The third hypothesis demonstrates that social responsibility has a significant positive effect on the company’s reputation. Companies that effectively implement social responsibility initiatives often see an improvement in their reputation. According to the fourth hypothesis, the company’s reputation has a significant positive effect on its performance. Corporate reputation is defined as the overall evaluation of a company by stakeholders over time. A strong reputation can influence customer preferences by enhancing the company’s social standing, thereby impacting company performance. Conversely, high performance within business units can lead to the creation of a positive image in the minds of stakeholders, which, in turn, affects the company’s reputation. The fifth hypothesis suggests that social responsibility has a significant positive effect on company performance. One of the primary motivations for companies to engage in social responsibility is the belief that they should act ethically and consider the interests of all stakeholders. The sixth hypothesis reveals that the company’s reputation does not play a significant mediating role in the relationship between social responsibility and company performance. Previous research suggests that an increase in corporate reputation allows the social responsibility of a company to directly affect its performance. The seventh hypothesis indicates that corporate social responsibility does not have a significant mediating role in the relationship between ethical leadership and company performance. The results of this research contradict the theoretical framework and findings of Nguyen et al. (2021). One possible reason for this discrepancy is that ethical leadership holds a distinct and important position within the company. The way ethical leadership is practiced has a direct and measurable impact on company performance. While social responsibility has a positive effect on performance, it does not significantly mediate the relationship between ethical leadership and company performance. This ultimately highlights the prioritization of ethical leadership over corporate social responsibility in influencing company performance.
Conclusion: This research aims to investigate the impact of Ethical Leadership on company performance, considering the mediating roles of Social Responsibility and company Reputation. Leaders should regard social responsibility as a cornerstone of corporate integrity and work to remove barriers to its adoption and implementation in the workplace. Since social responsibility incurs costs for businesses, many companies in Iran tend to avoid its implementation. However, given its positive impact on both the company’s reputation and performance, it is crucial for leadership to prioritize its implementation and incorporate it into the company’s agenda.Moreover, considering the significant positive effects of ethical leadership across various dimensions of company operations, including reputation and performance, it is recommended to implement a system of rewards and penalties to encourage ethical behavior and eliminate unethical practices. Additionally, promoting accountability among employees for their actions is essential. This approach not only enhances the company’s reputation but also leads to improved overall performance.
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