1. Introduction
In recent years, the morality of the leader is experiencing a decline, as evidenced by the many cases of fraud involving top management and higher-level officials. Fraud in top management has now become a worldwide problem. Fraud committed by top management or people who have high positions in companies or organizations can be called character assassination crimes. Silva (2010) suggested that the reason why someone commits a character assassination crime. This is because of pressure, opportunity, and thoughts of justification for committing crimes (Rationalization).
The above phenomenon invites a lot of public attention about morality in today’s leadership. Many people doubt the morality of today’s leaders. This will reduce the credibility of the leader which will have an impact on reducing the commitment of members of the organization and decreasing the trust of members in the leader. The cases that occur not only have an impact on the external company or organization but also have an impact on internal members, for example, the impact on employee trust in the leader, how the leader behaves, whether the leader is cheating, whether the leader’s behavior reflects an ethical leadership style, all these will certainly affect members to trust his leadership.
Ethical leadership can be natured through cultural habituation of being honest, open, and helping each other. According to Khalili (2017), the leader of an organization must be an agent of change in his environment. The attitude of a leader should be more like a thermostat than a thermometer, that is, leaders who can make progress and breakthroughs. At least a regional leader has elements that are under the provisions of the prevailing laws and regulations which consist of service orientation, integrity, commitment, discipline, cooperation, and leadership.
A leader who is willing to take the time to listen to subordinates’ problems and complaints, and wants to build relationships with subordinates is important for the organization, especially those related to positive results such as job satisfaction and mutual trust (Qing et al., 2020). Subordinates perceived ethical leadership as ethical people (traits, behavior, and decision making) and managers who behave ethically through communication, reinforcement, and visible actions (Linda et al., 2000). In other words, subordinates consider ethical leadership as part of the self concept of a leader (Ahmad et al., 2017). Jiang et al. (2017) found that ethical leadership has a positive and significant effect on employee performance.
Power and status are two characteristics that increase their attractiveness (Piskorski, 2005). It is more likely that followers will notice the behavior of an ethical leader model. Most leaders have authority because they occupy a position of status relative to their followers. But attractiveness involves more than authority and status. Credibility also increases the model’s effectiveness. Ethical leaders can be trusted because they practice what they preach.
Tourigny et al. (2019) analyzed the ethical leadership among academic staff at private universities in China, suggesting that future studies should focus on the relationship of ethical leadership with employee outcomes such as organizational performance, organizational commitment, job satisfaction, organizational commitment, citizenship behavior, and deviations in the workplace. More clearly, this can be seen from the various factors that influence the emergence of OCB behavior, namely interaction with leaders, job satisfaction productivity, organizational commitment, work, gender, work performance, and mood (Effendi et al., 2021; Yang et al., 2021; Ozer et al., 2021; Yang & Wei, 2018). OCB is a helpful attitude shown by organizational members, which is constructive, valued by the company but not directly related to individual productivity (Margahana et al., 2018). The levels of OCB in women and men are different. According to Günay (2018), gender is also an important factor in the context of OCB. Ghanbari and Eskandari (2013) found a significant difference between women and men in the levels of OCB.
According to Ghanbari and Eskandari (2013), OCB refers to actions taken by employees beyond the roles that have been implied by the organization and these actions promote the welfare of colleagues, workgroups, or even the organization. Organizations depend on the behavior of employees to help colleagues who are having problems, create a positive work climate, patiently face disturbances without complaining, and protect the assets of the organization (Pouramini & Fayyazi, 2015).
A good organization will focus on human resources to carry out its functions optimally, especially in facing the dynamics of environmental change. Some organizations view employees with superior skills as the main source of sustainable competitive advantage. Organizational performance is an accumulation of individual performance within the organization (Kark & Waismel-Manor, 2005). Organizational citizenship behavior is extra individual behavior, which is not directly or explicitly recognizable in a formal work system and can increase the effectiveness of organizational functions.
Organizations generally believe that they must strive for the highest individual performance because individual performance basically affects the performance of the team or workgroup and ultimately affects the performance of the organization as a whole (Basu et al., 2017).
Good performance demands exemplary behavior expected by the organization. The behavior demanded by organizations today is not only in-role behavior but also extra-role behavior. This extra-role behavior is also known as Organizational Citizenship Behavior (OCB). This behavior tends to see a person as a social being (being a member of an organization), rather than as an individual being selfish (Dharma, 2018).
2. Literature Review
2.1. Ethical Leadership
Ronald et al. (2010) explained that ethical leadership plays a role in providing motivation, increase work productivity and employee behavior and provide job satisfaction for the employees themselves. The moral values held by the leader are the basis for forming a strong character to build the leader’s credibility and this has a very meaningful influence on his followers.
De Hoogh and Den Hartog (2008) stated that ethical leadership involves subordinates in the decision-making process and listens to their ideas and concerns. They have also found a high correlation between employee sense of autonomy and ethical leadership. Also, ethical leadership is based on the extent to which leaders are motivated by ethical values when influencing their employees (the moral development of a leader) rather than leadership styles. Based on this description, it can be concluded that ethical leadership is a leader who is characterized by having integrity, empathy, empowerment, and encouraging others to develop and be able to make decisions independently.
2.2. Organizational Citizenship Behavior
Organizational citizenship behavior can be defined as discretionary individual behavior, not directly or explicitly recognized by the formal reward system, and in aggregate promotes the efficient and effective functioning of the organization (Nur & Organ, 2006). Nur and Organ (2006) further said that aggregate is referring to people in a group, department, or organization. If there is only one person, OCB does not have a significant impact on an organization. But, according to Nur and Organ (2006), if it is in an organization, in the aggregate, the members have good OCB, the impact on the organization will be felt significantly. Nur and Organ (2006) said that helping behavior and obedience also fall within the definition of OCB itself.
2.3. Job Satisfaction
According to Saari and Judge, (2004), job satisfaction is a positive feeling about a job that is generated by an evaluation of its characteristics. According to Tu et al. (2017), job satisfaction is a person’s feeling about what has been produced from the job, by himself (internally) and supported by other things (externally) for work conditions, work results, and the job itself. According to Aziri (2011), job satisfaction is a general or global affective reaction that individuals have about their job. According to Achmad et al. (2017), job satisfaction is defined as the extent to which an employee feels self-motivated, content, and satisfied with his/her job. Job satisfaction happens when an employee feels he or she is having job stability, career growth, and a comfortable work-life balance. According to Benevene et al. (2018), job satisfaction is a feeling that is felt by employees about something pleasant or unpleasant about their work.
2.4. Hypotheses
2.4.1. The Influence of Ethical Leadership on Organizational Citizenship Behavior
Over the last few years, several quantitative studies have been conducted concerning ethical leadership and employee OCB. Each study uses the definition of ethical leadership developed by Brown et al. (2005) as well as the ethical leadership instruments developed by these authors to measure ethical leadership behavior (Avey et al., 2012; Ronald et al., 2010). But each study also looked at the influence of ethical leadership on various aspects of OCB. The study used different pre-existing instruments described in the previous section. No study has used the same instrument to measure OCB or studied OCB in the same way. There had been little doubt that ethical leadership encourages OCB employees in an organization. This makes sense for two reasons: ethical leadership in the current definition predicts that it encourages employee OCB and one of the predecessors to employee OCB is supportive leaders (Brown et al., 2005). Where agreement is lacking because of the mechanisms by which ethical leadership drives employee OCB, certain aspects of ethical leadership that drive OCB, and what elements of OCB are fostered directly or indirectly by ethical leadership. Some are less consistent in defining and measuring employee OCB.
H1: Ethical Leadership has a significant effect on Organizational Citizenship Behavior.
2.4.2. The Effect of Ethical Leadership on Job Satisfaction
In previous research described by Ren and Chadee (2017), ethical leadership is positively related to job satisfaction. The study focuses on the relationship between ethical leadership, self-efficacy, and job satisfaction in China (Ren & Chadee, 2017). Avey et al. (2012) explained that ethical leadership is positively related to job satisfaction. This suggests that a related leadership style, such as ethical leadership, can also influence job satisfaction.
New research also agrees that ethical leadership has a positive effect on job satisfaction. It also showed that ethical leadership has a positive effect on job satisfaction. Research by Benevene et al. (2018) showed that ethical leadership has a positive effect on job satisfaction.
Ren and Chadee (2017) studied a conceptual model that explicitly includes guanxi as a moderator in explaining the relationship between ethical leadership and job satisfaction. The model was then tested using data from a sample of 388 professional employees at nine organizations in Beijing, China, and used Harman’s one-factor test for data analysis. The results showed that, as expected, self-efficacy positively and strongly mediated the ethical job satisfaction-leadership relationship. However, guanxi negatively relates to the overall effect of leadership ethics on job satisfaction with a greater effect on Chinese-owned firms compared to foreign owned firms. The findings suggested that employees’ relationships with their leaders can act as a substitute for ethical leadership in the Chinese workplace.
In the study of Avey et al. (2012), ethical leadership has emerged as an important topic for understanding effects in organizations. In a study with 845 adult individuals working in multiple organizations, the relationship between ethical leadership and employee outcomes was positive. The results show that ethical leadership is related to psychological wellbeing and job satisfaction in employees, but the process is different. Employee voice mediates the relationship between ethical leadership and psychological well-being. Psychological ownership feelings mediate the relationship between ethical leadership and job satisfaction.
Qing et al. (2020) examined the relationship between the influence of ethical leadership on life satisfaction and well-being by mediating job satisfaction. This study analyzed 166 complete questionnaires that were completed for use in the analysis process. Data analysis, such as Pearson correlation for zero-sequence correlation coefficient calculation, SEM technique, goodness of fit test for structural equations with collected data, and job satisfaction mediation effect test were all performed in AMOS v.20 and SPSS v.19. The results indicated that the relationship between ethical leadership and life satisfaction and well-being was significant. Furthermore, job satisfaction mediates the influence of ethical leadership on job satisfaction and well-being. According to results, ethical leadership directly and indirectly (through job satisfaction) affects the life satisfaction and welfare of nurses. De Hoogh and Den Hartog (2008) studied the relationship between ethical leadership behavior and employee job satisfaction. They used 175 employees from Estonian financial and telecommunications companies as their sample size. The structured survey method, a questionnaire, is used as a tool to collect data. To conclude, the results of this research provide empirical support for the theory that ethical leadership is positively related to employee job satisfaction (De Hoogh & Den Hartog, 2008).
Benevene et al. (2018) investigated the effects of ethical leadership on volunteer satisfaction, affective organizational commitment, and intention to stay in the same organization. This study analyzed an anonymous questionnaire administered with 198 Italian volunteers from different non-profit organizations by using SEM techniques. The results showed that the relationship between ethical leadership and volunteer job satisfaction was significant. Then, it confirmed the mediating role of voluntary satisfaction in the relationship between the variables studied. In particular, ethical leadership is positively related to volunteers’ intention to stay with their affective commitment.
H2: Ethical Leadership has a significant relationship with Job Satisfaction.
2.4.3. Effect of Job Satisfaction on Organizational Citizenship Behavior
The success and survival of the organization are the main important goals of organizational leaders. Ethical leadership may be the preferred leadership style in this process. Because leadership is an influential process, organizational goals depend in part on the leader’s ability to inspire organizational members to work toward these goals. Leadership effectiveness is evaluated by researchers and scholars based on the consequences of the leader’s actions on followers, stakeholders, and the organization pursuing its vision. This study focused on the potential effects of ethical leadership at the level of individual followers. Leader effectiveness measures include objective and subjective determinants of performance. Objective results include results based on profit, return on investment, productivity, sales, market share, costs, and other similar indices. Subjective performance measures are often based on evaluations by followers, coworkers, or subordinates. Leader effectiveness indicators that are often used are based on the attitudes and behavior of followers. It can be considered as an indirect indicator of employee performance and goal achievement. Measures of employee attitudes and behavior include job satisfaction, organizational commitment, employee motivation, willingness to put extra effort into, optimism, organizational citizenship behavior, and satisfaction with leaders (Brown & Mitchell, 2010). Brown and Treviño (2006) hypothesized that ethical leadership would be associated with several positive employee attitudes and behaviors such as follower satisfaction, motivation, and organizational commitment. This premise is based on ethical leader’s care and concern for others, honesty, trust, and principled decision-making. This study focused on three of these employee attitudes and behaviors: job satisfaction, organizational commitment, and organizational citizenship behavior.
The number of research studies on ethical leadership and its effectiveness in influencing employee performance is increasing (Brown & Mitchell, 2010; De Hoogh & Den Hartog, 2008). Khuntia and Suar (2004) analyzed three dimensions of ethical leadership in private and public organizations in India. They measure the elements of a leader’s motivation, transformational influence strategies, and indicators of employee attitudes, behavior, and performance, including job performance, job involvement, and affective organizational commitment, to ensure leadership effectiveness. The study demonstrated a positive relationship between all outcomes and two of the three dimensions of ethical leadership - character and transformational influence strategies - although the predictive relationship was not tested. A major limitation of this study is the previously untested instruments used to measure ethical leadership. This study does offer a preview of potential benefits and support for examining possible links between ethical leadership and employee attitudes and behavior. Subsequent research examining ethical leadership and its impact on employee outcomes has contributed to the development of knowledge that supports the effectiveness of ethical leaders (Brown & Mitchell, 2010).
Toor (2009) discussed the issue of leader effectiveness, finding that ethical leadership was positively related to leader effectiveness, satisfaction with the leader, and employee willingness to put extra effort into it. Ethical leadership as an effective leadership style is supported by additional research that examines ethical leadership and perceptions of leader effectiveness, employee commitment, employee job satisfaction, reduction of deviant behavior, and organizational citizenship behavior (Avey et al., 2012; Neubert et al., 2009; Walumbwa et al., 2011). Research to date has also shown a relationship between leader integrity, a key feature of ethical leader’s character, and perceived leadership effectiveness (Brown & Treviño, 2006; Kouzes & Posner, 2008; Richard & Richard, 1979; Posner & Schmidt, 1992). Kouzes and Posner (2008) found that honesty, integrity, and trustworthiness led the list of desired leader characteristics among followers. Honesty includes authenticity about oneself and the ability to inspire trust. These characteristics allow organizational members to follow voluntarily and enthusiastically which can lead to increased employee motivation to perform and greater commitment to the organization (Kouzes & Posner, 2008; Richard & Richard, 1979). Furthermore, ethical leadership has been associated with affective trust in leaders, predicting positive outcomes of job dedication, satisfaction with leaders, and employee performance (Brown & Treviño, 2006). Ethical leaders are important role models in influencing positive behavior among employees. Brown and Treviño (2006) found a negative relationship between ethical leadership and group level deviance and a positive relationship between ethical leadership and increased organizational citizenship behavior at the workgroup level.
H3: Job Satisfaction has a significant relationship with Organizational Citizenship Behavior.
3. Research Method and Materials
This research uses quantitative methods with SEM with partial least square (PLS). Quantitative testing is carried out to test field data based on theoretical and empirical studies, test the validity and reliability of indicator relationships and relationships between variables which are ended by testing the research hypothesis (inner model or structural model).
3.1. Operational Definition of Variables
The section presents the operational definition of a variable. The indicators and items used in this study are based on relevant theory and previous studies. Thus, the validity of these indicators can be fulfilled.
3.1.1. Ethical Leadership
Ronald et al. (2010) explained that ethical leadership plays a role in helping to provide motivation, increase work productivity, employee behavior and provide job satisfaction for the employees themselves. The moral values held by the leader are the basis for forming a strong character to build the leader’s credibility and this has a very meaningful influence on his/her followers.
Ethical leadership dimensions are as follows (Brown et al., 2005):
(a) Integrity is consistent with the values espoused by the organization.
(b) Humility, avoiding status symbols and privileges, recognizes limitations and mistakes.
(c) Empathy encourages accepting diversity, encouraging forgiveness of destructive conflicts.
(d) Personal growth facilitates the development of individual confidence and skills even though it is not for the benefit of the current job, and providing, mentoring, and coaching when needed.
(e) Fairness and justice encourage and support fair treatment.
(f) Empowerment provides an appropriate amount of autonomy and discretion for subordinates and consulting with employees about decisions that will affect employees.
3.1.2. Organizational Citizenship Behavior (OCB)
Moorhead and Griffin (2013) defined the OCB as follows: Organization Citizenship refers to the behavior of individuals who make a positive overall contribution to the organization. Moorhead and Griffin, (2013) provide an example by comparing two employees who have the same quality in a job. But one of them is not willing to work late and only wants to work according to his working hours, while the other one is willing to work late even though it is outside his working hours. He is also willing to help his boss whenever needed. According to Moorhead and Griffin (2013), the second type of individual has better organizational citizenship or OCB behavior.
If someone has good OCB criteria, he/she has the following dimensions.
(a) Helpful Traits: Employees who have good OCB will like to help others even though there is no appreciation for it.
(b) Sportsmanship: Individuals who are said to have good OCB, he/she will have sportsmanship such as no complaining when they are treated poorly by their colleagues and continue to do their job well. It is also possible that the individual will sacrifice his/her desires for the sake of his/her work.
(c) Loyalty: With good OCB, a person will have a high level of loyalty, for example, an individual will remain loyal to his/her organization even though the organization is experiencing difficult conditions.
(d) Organizational Compliance: Individuals will comply with even the most stringent organizational rules.
(e) Individual Initiative: Individuals will have more initiative, for example, someone will ask if they do not understand their job or someone will do their job and they do not wait for the order first.
(f) Civic Virtue/Citizenship: This dimension relates to citizenship in which individuals will be more responsive to the things the government does so that they will inform about changes that have occurred and inform the organization.
(g) Self-development: Actions are taken voluntarily that can increase abilities, skills, and knowledge.
3.1.3. Job Satisfaction
According to Robbins and Judge (2005), job satisfaction is a general attitude towards one’s job; the difference between the amount workers receive and the amount they believe they should receive. Job Satisfaction is a person’s feeling about what has been produced from the job, by himself (internally) and supported by other things (externally) for work conditions, work results, and the job itself. According to Chetty et al., (2009), job satisfaction is a general or global affective reaction that individuals have about their job. Job satisfaction or employee satisfaction is a measure of workers’ contentedness with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be measured in cognitive (evaluative), affective (or emotional), and behavioral components. Job satisfaction is a feeling that is felt by employees about something pleasant or unpleasant about their work.
Indicators affecting job satisfaction: According to Valentine et al. (2006), there are four indicators of job satisfaction, namely:
1. In general, you like what you do
2. Enjoys working at work
3. Comfortable with work
4. Satisfied with work
3.1.4. Population, Sample, and Sampling Technique
The population of this study was taken from civil servants in the municipal government of Kediri with 125 organizational members by using a random sampling technique.
3.2. Research Instrument
This study used a questionnaire as a research instrument. The questionnaire is a data collection instrument by listing the questions and answers that have been prepared by the researcher. The research questionnaire is divided into three main parts: (1) leadership ethics as measured by 6 indicators and 12 items. (2) Organizational Citizenship Behavior (OCB) as measured by 7 dimensions and 14 items (3) job satisfaction as measured by 4 indicators and 8 items.
3.2.1. Validity Test
The accuracy of the data greatly influences the accuracy of testing the hypothesis of the relationship between variables. The accuracy of the data depends on the accuracy of the tools used in the process of measuring the data. For this reason, the validity of the research tool must be tested to ensure its accuracy. The validity of the tool is the accuracy of a tool in providing the right and appropriate value that is measured. In this study, the research instrument was a questionnaire (Zhao et al., 2014; Yuliansyah et al., 2017).
3.2.2. Reliability Test
Reliability is the consistency of the value given by a measuring instrument, even though measurements are made more than once. In this study, the reliability of the research instrument was tested for internal consistency using Alpha Cronbach (Liao & Szabó Gendler, 2011; Zhao et al., 2014, Jimoh, 2017).
4. Results and Discussion
This study test and analyze the significance of the influence of Ethical Leadership on Organizational Citizenship Behavior with Job Satisfaction as the mediating variable. The statistical analysis used in this study is SmartPLS. The results of the analysis using smartPLS are presented in Figure 1.
Figure 1: Research Model SmartPLS
Based on the results of the analysis, the results for three hypotheses testing in the study are presented in Table 1.
Table 1: Of Research Hypothesis Testing
H1: Ethical Leadership has a significant effect on Organizational Citizenship Behavior.
The first hypothesis in this study is that Ethical Leadership has a significant effect on Organizational Citizenship Behavior. The results of the analysis using SEM-PLS with the help of SmartPLS software give a statistical t-value of 12.04. This value is greater than the t-table, so it can be concluded that Ethical Leadership has a significant effect on Organizational Citizenship Behavior. The coefficient of this hypothesis is 0.861. This value provides information that the increase in Ethical Leadership will have an impact on the increase in Organizational Citizenship Behavior by 0.861 times a unit.
H2: Ethical Leadership.
The second hypothesis in this study is that Ethical Leadership has a significant effect on Job Satisfaction. The results of the analysis using SEM-PLS with the help of SmartPLS software give a statistical t-value of 10.322. This value is greater than the t-table value (1.645) so that it can be concluded that Ethical Leadership has a significant effect on Job Satisfaction. The coefficient of this hypothesis is 0.742. This coefficient provides information that an increase in the Ethical Leadership variable will affect Job Satisfaction by 0.742 units.
H3: Job Satisfaction has a significant effect on Organizational Citizenship Behavior.
The third hypothesis in this study examines the effect of Job Satisfaction on Organizational Citizenship Behavior. The results of the analysis using SEM-PLS with the help of SmartPLS software give a statistical t-value of 0.116. This value is smaller than the t-table value (1.645) so it can be concluded that Job Satisfaction has no significant effect on Organizational Citizenship Behavior.
Test the goodness of the SEM-PLS model
In the SEM-PLS model, there are several criteria to determine the model is suitable for this study. The criteria used in this study are Convergent Validity which can be measured by the value of Average Variance Extracted (AVE), Composite Reliability, and Cronbach Alpha. The resulting Average Variance Extracted (AVE) value must be greater than 0.5. The Composite Reliability value must be above 0.7 as well as the Cronbach Alpha value.
Based on Table 2, it is known that all major variables have met the measure of the model’s goodness of fit. The R-square value for the Job Satisfaction variable is 0.551. This value provides information that 55.1% of the variance in endogenous variables can be explained by their exogenous variables. Meanwhile, the R-square value for the Organizational Citizenship Behavior variable is 0.753. This value means that 75.3% of the variance in endogenous variables can be explained by their exogenous variables.
Table 2: Results of Goodness Test of SEMPLS Model
5. Conclusion
Based on the results of the discussion of data analysis and proving hypotheses regarding the effect of ethical leadership on Organizational Citizenship Behavior with job satisfaction as a mediating variable (a case study on civil servants of the Kediri City government), this study concludes that:
1. In the first test, it can be concluded that Ethical Leadership has a significant effect on Organizational Citizenship Behavior. That the increase in Ethical Leadership will have an impact on increasing Organizational Citizenship Behavior.
2. The second test shows that Ethical Leadership has a significant effect on Job Satisfaction. The conclusion provides information that an increase in the Ethical Leadership variable will affect Job Satisfaction.
3. The third test shows that Job Satisfaction has no significant effect on Organizational Citizenship Behavior.
Based on the results of the analysis in suggestions can be given such as the following: this study,
1. Leaders are already good at developing articulating the organizational vision, but and it is hoped that the development and articulation of the organization’s vision can be improved so that it can motivate employees in the future. Leaders can approach employees openly and explore what employees need and want.
2. Concerning the positive feelings felt by employees, it would be even better if the leaders could spend more time discussing and motivating employees so that employees feel they are always being noticed by their leaders to maintain the positive feelings felt by employees.
3. Leaders need more to provide inspiration and challenges in the work of employees so that they can generate more creativity in employees in solving problems related to their work.
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