Relationship Between Ethical Leadership and Job Performance in Non-Profit Organizations of Pakistan: Mediating Role of Psychological Safety

This study aims to investigate the effect of ethical leadership on employee job performance and to examine the role of psychological safety as a mediator of this relationship. The sample comprised 170 employees from various NGOs in the region through a simple random sampling technique. Data were collected using a structural closed-ended self-administered questionnaire. Both descriptive and inferential statistics were used as data analysis techniques. The findings of the study revealed that ethical leadership significantly improved the job performance of employees by promoting a safe, secure, and healthy working environment. Psychological safety also mediates the relationship between ethical leadership and job performance. This study is novel because it focuses on an understudied and challenging environment with dynamic and complex political and social environments. This research explored how ethical leadership influences the job performance of employees working in non-governmental organizations (NGOs) in remote areas of Pakistan, specifically Gilgit-Baltistan. Ethical leadership refers to leaders who are moral, trustworthy, and fair in managing their teams. We focused on whether such leadership helps create a workplace environment where employees feel safe, respected, and valued, known as psychological safety, and how this, in turn, impacts their job performance.We gathered data from 170 employees and analyzed it using advanced statistical methods. Our findings suggest that when leaders behave ethically, it significantly enhances job performance by fostering a sense of security and well-being among employees. Furthermore, the presence of psychological safety within the team serves as an important link between ethical leadership and improved job performance.This study is important because it highlights the role of good leadership in improving how well employees perform, especially in challenging environments like Gilgit-Baltistan, where issues such as political disputes and harsh living conditions can make working difficult. The results are particularly relevant for NGOs considering the crucial role they play in such regions, suggesting that investing in ethical leadership training could be beneficial for enhancing employee performance and ensuring the safety and security of vulnerable communities.