Impact of Transformational, Ethical, and Servant Leadership on Organizational Sustainability: A Structural Equation Modeling Approach

Abstract

Impactful leadership plays a crucial role in driving organizational sustainability by balancing economic, social, and environmental goals. This study examines the effects of transformational, ethical, and servant leadership on organizational sustainability using survey data from managers and executives across diverse industries. Structural Equation Modeling (SEM) analysis reveals that transformational leadership significantly enhances sustainability by fostering innovation, strategic vision, and proactive environmental initiatives. Ethical leadership strengthens sustainability by promoting corporate social responsibility, ethical decision-making, and stakeholder trust. Servant leadership contributes by prioritizing employee well-being, fostering a collaborative work environment, and ensuring long-term stakeholder engagement. The findings highlight the importance of leadership styles in shaping sustainable business practices and addressing global sustainability challenges. Practical implications include leadership development programs focusing on ethical reasoning, innovation-driven sustainability, and servant leadership qualities. By embedding sustainable leadership practices, organizations can create a competitive advantage while addressing pressing environmental and social concerns. These findings provide valuable insights for policymakers, business leaders, and scholars working toward sustainable organizational growth.