The Role of Ethical Leadership and Organizational Ethics on Reducing Organizational Turnover
Background: Ethical leadership and organizational ethics have a significant effect on the individual and group activities, performance and organizational results. This study considers the effect of ethical leadership and organizational ethics on the reduction of organizational turnover by considering the mediating role of organizational commitment and trust.
Method: This study is descriptive - survey research. Statistical population includes all 4000 employees of Iranian oil terminals company (IOTC). Using Cochran formula (d = 0.5, p= 0.5) and simple random sampling, the sample size of 384 people was obtained. To gather data, standard questionnaires were used. Obtained data were analyzed by structural equation modeling (Partial Least Squares approach) using Smart PLS software.
Results: Results showed a negative and significant correlation between two variables of ethical leadership and organizational ethics with turnover intention considering the mediating role of organizational commitment and trust.
Conclusion: Managers of oil companies can increase reliability, honesty, openness, cooperative tendency, trust-based behavior and organizational commitment in the staff which will lead to turnover reduction, using ethical leadership style and behaviors such as pragmatism, development of interpersonal relationships and improvement of organizational ethics.