Abstract

Objectives: This study aims to investigate the relationship between ethical leadership and employee loyalty in Jordanian joint stock companies. The research also examines how ethical leadership influences employee loyalty through the lens of the Social Exchange Theory, highlighting the importance of ethical behaviors and fairness in organizational settings. Methods: Quantitative research methods were used, and data were analyzed using SmartPLS software to examine the hypothesized relationships, the study population included all Jordanian joint stock companies (N = 239) with a total of 3,612 directors. Results: The findings indicate a positive and direct effect of ethical leadership on employee loyalty. Directors demonstrating ethical behavior, fairness, and transparency significantly influence employees' commitment and loyalty, The study also highlights the mediating role of organizational justice in strengthening this relationship. Conclusions: The study confirms that ethical leadership is a crucial determinant of employee loyalty in Jordanian joint stock companies. Organizations should prioritize ethical leadership development and foster organizational justice to enhance employees' engagement and long-term commitment. These findings provide practical insights for managers aiming to build a loyal and ethically committed workforce.