FROM ETHICAL LEADERSHIP TO EMPLOYEE WELL-BEING: THE EMPOWERMENT AND EMOTION PATHWAY IN THE HOSPITALITY INDUSTRY

Abstract

This study explored the influence of ethical leadership on employees’ psychological well-being, emphasizing the mediating role of psychological empowerment and the moderating effect of emotional intelligence in the hospitality industry. Grounded in Social Exchange Theory (SET) and Self-Determination Theory (SDT), a moderated mediation model was examined using cross-sectional data obtained from 475 frontline hospitality employees. The findings indicate that ethical leadership exerts a significant positive effect on employees’ psychological well-being both directly and indirectly through psychological empowerment. Employees, who perceive their leaders as fair, principled, and caring report greater meaning, competence, and autonomy, which subsequently enhances their psychological vitality and emotional balance. Furthermore, emotional intelligence strengthens the positive association between psychological empowerment and well-being, suggesting that employees with higher emotional intelligence are more capable of transforming empowerment into a sustained psychological fulfillment. Theoretically, this study extends leadership and well-being research by integrating SET’s perspective of relational reciprocity with SDT’s framework of motivational fulfillment, illustrating how ethical leadership concurrently functions as a social exchange mechanism and a source of intrinsic need satisfaction. It positions psychological empowerment as a central mediating construct and emotional intelligence as a key moderating condition that enhances its effects. Practically, the results emphasize the strategic importance of promoting ethical leadership behaviors, empowerment-oriented management practices, and emotional intelligence development programmes as complementary approaches to fostering resilient, motivated, and psychologically healthy employees. Overall, this study provides a comprehensive understanding of how moral, motivational, and emotional factors interact to sustain employee well-being and organizational effectiveness in demanding hospital settings.