Ethical leadership, employees’ job satisfaction and job stress in the restaurant industry

Purpose This paper aims to investigate how employees’ perception of the ethical conduct of their leaders affects their level of job stress and job satisfaction in the restaurant industry, specifically in the context of Pakistan. Therefore, this research investigated the relationship between ethical leadership and job satisfaction, and job stress as a mediator between ethical leadership and job satisfaction. Design/methodology/approach This research is based on a quantitative method, employed a survey strategy, utilized a cross-sectional research design, and data was collected using a convenient sampling technique. In all, 236 questionnaires from the front-line employees of the restaurants were used for data analysis. Initially, normality (univariate and multivariate), demographic description, descriptive analysis and common method bias were computed using Statistical Package for Social Sciences (SPSS v23) software. Moreover, direct and indirect effects were conducted using SmartPLS v3 software. Findings Results of this research indicate a (i) negative relationship between ethical leadership and job stress, (ii) positive relationship between ethical leadership and job satisfaction, (iii) negative relationship between job stress and job satisfaction and (iv) job stress play a mediating role in the relationship between ethical leadership and job satisfaction. Research limitations/implications This study highlights several theoretical and practical implications, thereby providing more insight into how job satisfaction can be maximized in the restaurants of Pakistan. Originality/value This research is novel, as it highlights the direct and indirect effect of ethical leadership behavior on job satisfaction, specifically in the context of the restaurants of Pakistan.