Ethical Leadership, Organizational Justice and Supporting Environment on Employee Engagement: Empirical Evidences for Public Policy Implications

The purpose of this study was to examine the direct and indirect effect of ethical leadership, organizational justice, organizational support on employee satisfaction and employee engagement. Very little research has been conducted to study those relationships in the socialization context. This paper attempts to fill the gap by analyzing data from a survey of 677 employees from industrial parks. This study used a survey instrument that consists of 2 sections. To ensure content validity, the survey items were derived from those used in previous studies. Each item was measured using a 5-point Likert scale. Ethical leadership scale with ten items were adopted from Toor and Ofori (2009). Partial least square structural equation modeling (PLS-SEM) is employed for testing the structural models and exploratory study is also identified to evaluate the relationship among variables. The findings provided evidence that employee satisfaction is the most important to predict employee engagement. The results also reveal the important effect of ethical leadership, organizational justice and supporting environment on job satisfaction. Implications for public policy practice and further research are also suggested based on the results of structural analysis.