Sahar Qabool, Tariq Jalees, Atif Aziz, Adnan Anwar, Munwar Hussain Pahi
Ethical leadership is an important determinant of job performance and organizational outcomes. Earlier studies have examined the direct effect of ethical leadership on the organizational outcome and job performance without incorporating mediating variables. Moreover, past studies have only incorporated one or two mediating variables. We have developed a new model based on social learning theory that contains six direct relationships and three indirect relationships because of this gap. The study specifically examines the effect of ethical leadership on job performance, self-efficacy, and workplace climate. We also examined the effect of workplace climate on job performance and safety compliance. Also, we investigated the mediating effect of self-efficacy and workplace climate on job performance and safety compliance while focussing on SMEs in Karachi. SMEs are generally less structured than large firms and vulnerable to unethical leadership practices. Based on quota sampling, we have collected a sample of 500. The Smart PLS software was used for estimating the measurement and structural models. Ethical leadership promotes job performance, self-efficacy, and work climate. Self-efficacy and work climate are significant precursors of job performance. Work climate promotes safety compliance. Self-efficacy and work climate have mediating effects on job performance. And work climate affect safety compliance.