Bridging Ethics and Engagement: A Review of Psychological Safety in Ethical Leadership Research

Abstract

This review synthesises recent empirical studies that examine the relationship between ethical leadership, psychological safety, and employee engagement across diverse organisational and cultural contexts. Guided by the PRISMA framework, a systematic search of Scopus and Web of Science databases identified seven empirical studies that met the inclusion criteria. The findings reveal that ethical, benevolent, inclusive, and authentic forms of leadership consistently enhance trust, fairness, and psychological safety, which subsequently promote engagement, creativity, and innovation. Psychological safety emerges as the primary mediating mechanism through which moral conduct translates into behavioural and emotional engagement, supported by complementary mediators such as trust, job satisfaction, and workplace friendship. Cultural factors, including power distance and collectivism, influence the strength and expression of these relationships, suggesting that ethical leadership is interpreted differently across contexts. The review integrates insights from Social Exchange Theory and Social Learning Theory, framing ethical leadership as both a relational and cognitive process that shapes the moral–psychological climate of organisations. It concludes that ethical leadership should be viewed as a strategic capability that nurtures psychological safety, engagement, and well-being, particularly within the evolving realities of hybrid and cross-cultural workplaces.