The Impact of Ethical Leadership on Corporate Performance

Henny Pratiwi

Abstract

Ethical leadership supports the adoption of positive behaviors by employees and overall improves organizational performance. This approach emphasizes the ethical dimensions of leadership in a management context, focusing on enhancing leaders' values, ethical traits, and behaviors within the organization. Aspects such as honesty, integrity, trust, and fairness are considered key elements in ethical leadership. Ethical leadership is a form of leadership that focuses on appropriate behavior through respect for the ethics, values, rights, and dignity of others. Moral principles are integrated into the values, beliefs, and actions of ethical leaders.

The method used is multiple regression analysis, a method of analysis used to evaluate the relationship between one dependent variable and one or more independent variables. This analysis aims to predict the value of the dependent variable by considering changes in the value of the independent variables. In addition, multiple regression analysis helps determine the direction of the relationship between the dependent and independent variables, whether the correlation is positive or negative. The regression equation formula for two dependent and independent variables. The tests used are the classic assumption test, hypothesis test, and data quality test. The sample is determined by taking a representation of the population predicted to represent the entire population. The sample in this study is employees at the Office of PT. Perkebunan Nusantara (Persero) II Regional I. The determination of the sample for employees of PT. Perkebunan Nusantara II (Persero) Regional I is done using the Saturation Sampling method.

The research results show that X1 (telling) has t-count -1.113 < t-table 5.409 and significance 0.316 > 0.05 (no effect). X2 (selling) has t-count -0.365 < t-table 5.409 and significance 0.730 > 0.05 (no effect). X3 (participation) has t-count 8.090 > t-table 5.409 and significance 0.010 < 0.05 (positive effect). X4 (delegation) has t-count 9.320 > t-table 5.409 and significance 0.000 < 0.05 (positive effect). The simultaneous significance test F shows f-count 6.076 > f-table 5.409 and prob (F-statistic) 0.0000 < 0.05. H0: β1 = β2 = • • • = βk = 0 means that the independent variables have an overall influence/relationship with the dependent variable.

Keywords

Organizational Perforamance; Behavior; Ethical Traits

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