SYNOPSIS This case is about ethical behavior and reasoning and the framework that govern the Islamic business ethics.

Today, in the early days of industrial revolution, ethical leadership has become an important organization strategy and aim for achieving the organizational objective and success. The purpose of this research is to explore into the influence of ethical leadership through decision making and reinforcement practice by leader on employees’ outcomes such as organizational commitment and moral behavior. A cross sectional technique was employed to collect the primary data from 139 employees from the corporate telecommunication sector in Peninsular Malaysia who experienced the implementation and practice of ethical leadership. This study adopts the partial Least Square Structural Equation Modeling (PLS-SEM) for the purpose of data analysis. The outcomes display that decision making acts as an important predictor to moral behavior and organizational commitment. Additionally, reinforcement acts as an important predictor for moral behavior and yet, acts as an important predictor to organizational commitment.

This study evaluates the relationship between person-oriented leadership and employee outcomes. Person-oriented leadership requires leaders to build and maintain their relation with the employees. In order to accomplish organizational goals, the leader need to understand that having a strong bond with the employee is important. Therefore this research focuses on the effect of person-oriented leadership on employee outcome. The data collection was conducted by distributing questionnaires to 200 employees in different divisions and departments at a public research university in Malaysia. The result of the SmartPLS path analysis model displayed four findings: first, participative leadership style was significantly associated with job satisfaction. Second, consultative leadership style was significantly associated with job satisfaction. Third, participative leadership style was significantly associated with organizational commitment. Fourth, consultative leadership style was significantly associated with organizational commitment. These findings demonstrate that it is important for leaders to implement participative and consultative leadership style during their day-to-day job operations, in order to ensure job satisfaction and organizational commitment of employees in organization.

Ethical leadership is becoming an important organizational strategy in achieving its objectives in the fourth industrial revolution era. This study aimed to explore the impact of ethical leadership practiced through decision making, two-way communication, reinforcement towards ethical climate among organizational leaders. Cross sectional technique was employed to collect primary data from 150 employees from corporate organizations within West Malaysia. Data analysis was conducted through Partial Least Square – Structural Equation Modeling (PLS-SEM). The findings of the analysis indicated that there was a significant relationship between decision making and ethical climate, there was also significant relationship between two-way communication and ethical climate, and the connection between reinforcement and ethical climate was also found to be significant. Statistically, these outcomes confirmed that decision making, two-way communication and reinforcement practiced by leaders are the determinant factors for ethical climate in the organizations involved. Thus the findings of this study provided empirical evidence on the important elements of ethical leadership on ethical climate to enhance ethical climate in the organization.