Ethical leadership is essential in small businesses, significantly impacting employee loyalty and retention. Research indicates that ethical leadership fosters job commitment and mitigates turnover, a critical concern for small enterprises with limited resources (Kim & Brymer, 2015). Unlike large corporations, small businesses depend on strong leader-employee relationships, making ethical leadership crucial for trust and stability (Hegarty & Moccia, 2018). High turnover disrupts operations and increases costs, threatening business sustainability. This study is a systematic review of the literature from databases such as Academic Search Ultimate and Business Source Complete where key themes including trust, transparency, accountability, and ethical culture were identified. These factors contribute to employee satisfaction and retention, emphasizing ethical leadership’s role in fostering a positive work environment and enhancing business performance. Future research can employ quantitative surveys measuring ethical leadership’s direct impact on turnover and qualitative case studies exploring ethical leadership practices in small businesses for valuable insights and strategies for long-term success.
The post Ethical Leadership Impact on Employee Loyalty in Small Businesses appeared first on JOISS Research.
]]>