How Corporate Ethical Values and Ethical Leadership Influence on Religious Commitment? A Study on Sharia Banks Indonesia

The main goals of this paper is to explore (1) the influence of firm's ethical value to ethical leadership and organizational commitment, (2) the influence of ethical leadership to organizational commitment, and (3) the impact of religiosity as a moderating variable to the relationship of ethical leadership toward organizational commitment on Syariah Banks in Pasuruan and Probolinggo City, Indonesia. This study is an explanatory research that held by quantitative method. To collect the data a survey using questionnaire as an instrument of the research was filled out by 109 respondents as the research's sample. The population of this research is the employees of both the state-owned enterprises and private Syariah Banks in Pasuruan and Probolinggo city. The population involve all the permanent employees besides the top level manager of those Syariah Banks. Data obtained from the questionnaire was analysed with Partial Least Square method. This study found that firm's ethical value has significant influence toward ethical leadership and ethical leadership has significant influence toward organizational commitment, but firm's ethical value has found no significant relationship to organizational commitment. This study also found that religiosity be able to mediate the indirect relationship between ethical leadership and employee's organizational commitment. This paper give contribution to the firms that religiosity has a moderating effect that can improve the relationship between ethical leadership toward organizational commitment.