Subjective well-being in organizations: Effects of internal ethical context and ethical leadership

Abstract

The literature rarely addresses the possible effects of organizations’ internal ethical context on their employees’ subjective well-being, that is, people’s evaluation of their lives based on positive and negative emotional experiences and perceived life satisfaction. This study explored how internal ethical context’s components—specifically ethics codes, ethics programs’ scope and perceived relevance, and perceived corporate social responsibility practices—are related to workers’ subjective well-being. Ethical leadership’s possible leveraging of ethical context variables’ effect on subjective well-being was also examined. The data were collected from 222 employees from various organizations in Portugal using an electronic survey. The results from multiple regression analyses indicate that organizations’ internal ethical context positively affects employees’ subjective well-being. This impact is mediated by ethical leadership, suggesting that leaders play a crucial role in highlighting and embodying their organization’s ethical norms and orientation, thereby directly influencing their staff members’ subjective well-being.