An investigation on the impact of ethical leadership on corporate performance of Zimbabwean Parastatals

Abstract

This study investigated the impact of ethical leadership on corporate performance of Zimbabwean parastatals. Data was obtained from parastatals within and close to the central business district (CBD). Responses of 200 questionnaires were analysed. The results found that the practice of ethical leadership positively influenced the corporate performance of the parastatals. Furthermore, a conditional indirect effect was found in which the frequency of leader–follower interaction positively moderated the indirect effect of ethical leadership on work performance via perceived salience of the ethics code. Specifically, the strength of the indirect effect increased as the frequency of leader–follower interaction increased. The theoretical and practical implications of the results are offered and limitations with suggestions for future study are discussed