Impact of Ethical Leadership and Organizational Citizenship Behavior on Organizational Effectiveness of the Non-Bank Financial Institutions in Bangladesh

June 2022
DOI: ………………………………………..
ISSN: 2221-2523

Noman Hasan¹

Mohammad Ali²

Ariful Islam³

Abstract

This study aims at examining how ethical leadership behavior (ELB) influences employees   to form organizational citizenship behavior (OCB) with the mediating role of organizational ethical climate (OEC). It also aims at exploring the impact of organizational citizenship behavior on employee engagement. Data were collected from 151 employees from 33 non-bank financial institutions (NBFIs) in Bangladesh. The Partial Least Squares (PLS) path modeling technique was used to analyze the data. The study found that ELB had significant and positive impacts on OCB, which, in turn, significantly influence employee engagement. Surprisingly,  it is revealed that the OEC positively mediates the relationship between ELB and OCB but does not consider significantly which calls for further research in this regard. This study will positively contribute to the decision-making process of organizations’ top management and policy makers.

Keywords: Ethical Leadership Behavior, Organizational Ethical Climate, Organizational Citizenship Behavior, Employee Engagement