The role of ethical leadership in employee psychological well-being (Case study: Golsar Fars Company)

The emerging ethical leadership, as a novel approach in the leadership perspective, by giving priority to ethics in organization has provided the ground for building and promotion of individual and organizational effectiveness. Today, workforce is frequently and directly exposed to many life-threatening events or situations, injuries, and psychological and physical stress. To cope with such adverse condition, one of the feasible solutions available to managers is the maintenance of employee well-being. With this approach, the present research was conducted to examine the role of ethical leadership in the improvement of the employee well-being in Golsar Fars Company, a private metal sanitary ware manufacturer in Shiraz, Iran. The statistical population included all employees of the company from among whom, using stratified random sampling, 148 examinees were selected. The actual data were collected through a questionnaire. Data analysis was performed in Amos software using partial least squares structural equation modeling technique. The results indicated a positive and significant relationship between ethical leadership and its components, i.e., being a servant of others, ethical and values-based behaviors, and respect for others, on the one side, and employee psychological well-being on the other side.