Ethical leadership and firms’ sustainability: mediating role of corporate social responsibility in Pakistan’s banking sector

Abstract

The sustainability of businesses has emerged as a pressing concern in the competitive landscape. To tackle this issue, the present study aims to explore the role of ethical leadership in determining the sustainability of private banking institutions in Pakistan, with corporate social responsibility (CSR) serving as the mediator. The research utilized data from 232 middle and upper-level private bank employees in Pakistan. The statistical tools SPSS and SmartPLS were employed for data analysis, and a structural equation model was used to test the study hypotheses. The findings indicate a positive and significant impact of ethical leadership on firms' sustainability. Furthermore, CSR significantly and positively mediates the relationship between ethical leadership and firms' sustainability. This study provides valuable insights into the fields of organizational behavior, leadership, and sustainable business practices. The results shed light on the mechanisms through which ethical leadership influences CSR practices and the sustainability of private banking institutions in Pakistan. The study has implications for policymakers, practitioners, and academic researchers to promote sustainable and socially responsible business practices in the private banking sector of Pakistan.

Keywords

• firms’ sustainability
• ethical leadership
• corporate social responsibility
• banking sector