Ethical leadership and corporate sustainability: Implications for workforce strategy- a systematic literature review

Abstract

Pursuing ecological and social sustainability within organizations is a complex initiative that necessitates collective action at the workplace and leadership levels. However, the role of individual leadership characteristics and ethical decision-making in driving corporate sustainability (CS) initiatives remains underexplored in the context of the future of work. Ethical leadership can promote a sustainability-oriented organizational culture, fostering employee engagement and innovation that enhances social value both within the organization and in broader society. This study aims to deepen the understanding of how leadership ethics influence future of work practices in advancing CS by exploring the values, motivations, and strategic orientations of organizations undertaking CS initiatives. Additionally, it examines the impact of transparency and accountability -central tenets of business ethics- on sustainability-driven workplace policies and corporate performance. By integrating theoretical perspectives from business ethics, leadership studies, and future of work research, we conducted a systematic literature review of 95 peer-reviewed journal articles to illuminate the intersection of ethical leadership, the evolving nature of work, and CS, thereby enriching the discourse on responsible leadership and sustainable organizational development.