The Impact of Green Ethical Leadership on Employees' Ecological Behavior and Individual Environmental Performance

The relationship between organizational activities and environment is inseparable (Järvilehto, 1998), and such a relationship may result in adverse environmental outcomes, such as pollution, ecological damage, and electrical energy inefficiency. Environmental problems are a big issue today, and we pay extra attention to them (Sun, et al., 2022). On the other side, creating a sustainable environment is the responsibility of any institution (Cheema, et al., 2020), including educational institutions (Crawford and Cifuentes-Faura, 2022; Kohl, et al., 2022).

Efforts to bring about environmental change require exemplary leadership figures. Leaders are responsible for environmental and institutional issues (Althnayan, et al., 2022; Fry and Egel, 2021). Fry and Egel (2021) offer the concept of global leadership, namely, leadership based on spirituality, self-transcendence, and interconnectedness. Althnayan, et al. (2022) and Sun, et al. (2022) demonstrate transformational leadership to support sustainability performance.

However, previous studies have shown that leadership could be more effective in realizing sustainability (Ahmad, et al., 2022), especially in various contexts and problems. Efforts to optimize the role of educational institutions in sustainability are increasingly complex (Obrecht, et al., 2022). In addition, the framework for realizing these goals has not been widely explored in universities (Ruiz-Mallén and Heras, 2020). Althnayan, et al. (2022) also suggest that the mechanism by which leadership influences institutions to realize real support for sustainability remains unclear.

Based on the study, the construction of leadership to optimize the role of universities in realizing sustainability still needs to be made clear. Various leadership options must pay attention to the context and diversity of issues. Leaders who translate ethical values as fundamental principles for the interaction and functionalization of leadership to encourage changes in employee behavior are the key to this success. The presence of a leader with ethical concern for the environment and the ability to interact and enforce environmental and moral norms in HR practice can solve problems regarding ecological performance.

The process for optimizing the role of the leader needs to be explained further based on its relationship with the structure and subordinates. The leadership has a strategic role in ensuring sustainable processes and practices of HR systems and governance. Leaders who advocate sustainability have the same caring and critical characteristics as ethical leadership. According to Arar et al. (2016), the leader is described as a caring ethic, an ethic of justice, and an ethical critique who supports organizational orientation toward ethical issues. Leaders with caring ethics view human relationships as pivotal. An ethic of caring recognizes the individual's right to be himself, openness to recognition of individuality, and loyalty to relationships. Ethics of justice is sourced from a philosophical point of view and is related to the nature of the world, and it shows the relationship between humans and the state. Ren, et al. (2020) present ethical leadership, green HR practices, and individual environmental performance. However, more than a leadership position is required to moderate a green HR practice system within a partially green-oriented HR structure.

Company’s HR management system today begins to shift to green HR practice. This practice can be viewed from some companies' efforts in redesigning and revitalizing HR practices by eliminating harmful activities and promoting environmental friendliness (Guerci, et al., 2016). Green HR practice is also done by designing and implementing HRM systems that support a proactive and positive approach to addressing environmental problems (Afedzie, et al., 2020). Some companies even view green HRM as part of a more sustainable business management strategy (Jerónimo, et al., 2020).

Green HR practice focuses on the employees' environmentally aware contributions. In this regard, higher educational institutions are also responsible for educating the community by exhibiting an example of green HR practices to raise public awareness of environmental problems. Green HR practice orientation is for employees who are concerned with sustainability issues. Employees' ecological behavior makes sustainability values a reference for behavior. This behavior describes a form of individual responsibility as part of a collective effort to achieve sustainability that causes minimal environmental damage and even benefits the environment (Steg and Vlek, 2009). In an environment-friendly HR management system, employees' ecological behavior determines the organization's collective efforts in realizing the demands for sustainability. The individual performance measurement system is formulated based on attributes such as the tangible manifestation of individual environmental performance to ensure a directed orientation. As one of the agents of change, it also experiences a change in point of view in understanding sustainability. This orientation can be seen in HR management's organizational structure and functionalization, which establishes sustainability values as its basis.

The mechanism can be explained through the leader–member exchange focusing on value. The leader–member exchange (LMX) theory describes the interactions between leaders and subordinates (Du, et al., 2023). Lee (2020) proposed the LMX framework to explain the creation of sustainable value for stakeholders. This research contributes first to explaining the process for an ethical leader to influence his subordinates and to embed awareness values in a structured manner through green HR practice. The interaction between leaders and subordinates is a methodological communicative interaction, not merely a social transaction. Both are brought together in the structure of green HR practice. A leader's critical reflection may encourage behavioral change by activating norms in green HR practices. The leadership is interested in building emancipatory awareness based on a process of self-formation that is aware of ecological problems that become a shared orientation.

Leaders also develop mechanisms to influence subordinates based on personality characteristics, LMX perspectives, and the norm activation model (NAM). Environment-oriented interactions require norm support to strengthen the structure and provide environment-friendly human resources practice. Activating norms based on environmental ethics directed by the leadership can encourage efforts to produce more effective individual performance. Applying LMX and activation norm theory explains processes related to individual environmental performance through green HR practice as a logical process, not based on teleology or obligations. Environment-friendly behavior is a form of emancipatory awareness based on a ratio. Leaders act as models, motivators, and a source of value for solving environmental and behavioral problems (Asghar, et al., 2022). The leadership is interested in building emancipatory awareness based on a process of self-formation that is aware of ecological problems that become a shared orientation. Integrating the LMX and the NAM may provide a more robust prediction of environmental moral-related behavior. Altruism in NAM is challenging to deny existence. However, it cannot ignore the selfish side of the individual, which can be seen from the interaction and exchange of values between leaders and subordinates. Joanes (2019) suggests that NAM Schwartz (1977) can be used in eco-friendly behavior. It is a fundamental theory in social psychology to study environment-friendly altruistic behavior, including energy conservation behavior. This study aims to analyze the effect of ethical leadership on employees' ecological behavior and individual environmental performance through green HR practices in higher education.

Respondents in this study were academics from universities in the provinces of West Java and Banten, Indonesia. The data were collected by distributing research instruments via email and social media. Before distributing the questionnaire, researchers first recorded the respondents who were the target population. Initial identification is to determine the target number of samples based on the research objectives of 388 staff and lecturers. Both are permanent and contract employees, working for at least 3 months. Employees interact with leaders in daily activities. The perception of leadership is a leader who directly interacts with lecturers and staff.

Furthermore, researchers set university targets based on representation and determine the most relevant social media platforms for research: Facebook and WhatsApp. Researchers use lines of communication through friendship lines and relevant associations, including employment relationships. Next, the researcher compiled a questionnaire to be distributed. The questionnaire is compiled based on relevant references. Ethical leadership in this study was measured using the instrument developed by Ren, et al. (2020), namely, personal life in an ethical way. It defines success not only by results but also by the process of listening to subordinates. Meanwhile, the Renwick, et al. (2016) questionnaire measured green HR practices. It includes recruitment and selection, training and development, involvement and empowerment, pay and reward systems, and performance management. Refer Tariq, et al. (2020) for measurement of employees' ecological behavior. It involved activities such as printing on both sides of the paper, turning off the lights, advising to reduce environmental impact, helping colleagues clean up accidental spills, and reporting sources of pollution. Refer Paillé and Meija-Morelos (2019) for the measurement of individual environmental performance, which suggests the dimensions of EEP based on the concepts of Boiral and Paillé (2012): eco initiative, eco-civic engagement, and ecohelping.

Respondents' answers using a semantic differential scale from 1 to 5 began with not true at all (1), almost not true (2), slightly true (3), true (4), and very true (5). For 2 months, researchers collected data and obtained responses from 388 respondents. Researchers adhere to research ethics and respect user privacy by not uploading email addresses or WhatsApp groups. The stages in data analysis using SEM procedures start from model construction, discriminant validity testing, and composite reliability to goodness-of-fit evaluation and hypothesis testing. Researchers use the maximum likelihood estimation method and ensure that assumptions are met and free of outliers.

The demographic characteristics of staff and lecturers are is shown in Table 1.

Data in Table 1 show that the majority of respondents are men. The age of the majority, 36 to 40, is 34%. The majority of educational background is S2 amounting to 62.4%. This shows that the respondents, staff, and lecturers have higher education backgrounds. The measurement model is used to measure the research model because it is reflective and can show how the manifest or observed variables represent latent constructs. The test is carried out by testing the validity and reliability of the indicators forming the latent construct through confirmatory factor analysis. We can analyze the data processing results based on the measurement model to get overall model fit data. Table 2 shows the measurement results of this study's overall model fit analysis. The value in the second parameter results from model improvement using the modification indices procedure in AMOS software.

Based on Table 2, there are 13 good fits, 1 marginal fit, and 1 poor, and then, we can conclude that the fit between the data and model is a good fit. The RMSEA is better also now: 0.05, good fit. Then, we can continue the subsequent testing: measurement model fit analysis. Table 3 shows the result of the measurement model fit analysis. Measurement model fit analysis for validity testing can be conducted by conducting: 1. construct validity test, 2. convergent validity test, and 3. reliability test. In this step, we will do the construct validity test first by looking at the "CR (critical ratio)" score than the "P” (probability). Suppose the CR is > 1.96 (1.96 is the critical value at the significant level 0.05) and P < 0.05, then the indicator is valid, which is able to reflect the latent variable. If the "P" score shows "***," then it means that the "P" score is significant, targeted < 0.001.

Based on Table 3, we can see from Amos output that all observed variables have CR score > 1.96 and P score shows “***,” which means < 0.05. We conclude that the measurement model fit analysis fits the construct validity test. Then, we can continue the next step with the convergent validity test, testing the indicator to determine whether it has a high variance proportion. All the items/observed variables/indicators of a latent variable should converge or share the high variance proportion. The convergent validity test can be done by looking at the "loading factor" or the "standardized loading factor/SLF" score. If the SLF score is high, it shows that the observed variable and its latent variables converge or are valid. It will be converged/valid if the SLF score is ≥ 0.70. Table 4 shows the result of the convergent validity test.

Based on Table 4, all observed variables have the “standardized loading factor/SLF” ≥ 0.70, leading to the conclusion that all the variables are valid. However, there are five observed variables, namely, EL3, EL9, EL10, HRP3, and HRP4, which have an SLF score ≤ 0.70. Those five observed variables are still valid if the SLF score is ≥ 0.05. Table 5 shows the summary of all the validity testing results.

Reliability testing with construct reliability (CR) test measures the data's reliability and consistency. A CR score ≥ 0.70 shows good reliability in the latent variable/construct. However, 0.60 ≥ CR ≤ 0.70 is still acceptable if the validity testing results for the indicator are valid. We can count the CR score for the latent variables with the above formula. Another reliability test uses the average variance extracted (AVE) to complete the CR score. The AVE score ≥ 0.50 shows good convergence in the latent variable/construct. The CR and VE scores are provided in Table 6, summarizing all the reliability testing results.

Based on Table 6, we can conclude that all latent variables are reliable. Therefore, as all the variables pass the reliability testing, we can continue to the following testing fit analysis: structural model fit analysis or hypothesis analysis. The critical decision in structural model fit or hypothesis testing is checking the P-value with a significant level (alpha) at 0.05 or comparing the CR (critical ratio) score with the t-table (1.96). Table 7 shows the result for testing fit-structural model fit analysis (hypothesis testing).

Based on Table 7, all relationships have a CR (critical ratio) score > 1.96, all P-values are < 0.05 as well, and evaluating the standardized loading factor, all are <1.00. Therefore, we conclude that all the hypotheses are accepted.

The results show that the role of ethical leadership is very significant both directly and through a structured mechanism, namely, green HR practice. In line with Arar, et al. (2016) regarding ethical leadership that serves to solve ethical dilemmas and Molly and Johan (2017), Bäckström, et al. (2018), and Riggio, et al. (2010) who show that ethical leadership provides a critical foundation for directing individual systems and behaviors to be more environment friendly (Islam, et al., 2021, Althnayan, et al., 2022; Kohl, et al., 2022;). Bui, et al. (2022) demonstrate that ethical leaders serve as a role model, influencing actions that are based on ethics; ethical leadership can function to facilitate the HR governance system to be oriented to shape behaviors that support sustainability. Leaders can realize environment-friendly subordinate behavior and environmental performance through direct mechanisms in social exchange interaction (LMX) as well as through green HR practice as described by Farrukh, et al. (2022).

Environment-oriented HR management is carried out based on the ethical awareness of the organization on ecological issues. The ethical leader directs human resource practice to reflect on norms and principles or moral values that are oriented and place nature and humans as one unit, as stated by Ahmad, et al. (2022) and Islam, et al. (2021). Activities such as designing green job descriptions for employees (and green goals are included in the job description) or recruiting environmentally aware employees as part of the interview can be held with a value system and the underlying principles. As Julius and Nagel (2020) hold, HR management is a critical reflection of what individuals must do to face moral choices related to environmental issues.

In the training process and the implementation of environmental management in the green HR management system, a curriculum has been developed to encourage awareness of environmental ethics. Activating environmental norms in the green HRM system is an operational training framework. Values of environmental awareness may establish the basis for training needs analysis. HR management integrates training instruction, skill development, and employee competencies based on their orientation to ecological issues. The green HRM practice system actualizes the company's support for collective efforts to solve ecological problems based on the results of critical reflection. Activation of norms requires the support of a green HRM system in the form of involvement. Employee participation in green schemes includes encouraging employees to use environment-friendly transportation and setting up structures, including CEOs, to increase environmental action. HRM is at more than just the technical or operational level. Green HRM is a strategic partner that determines environment-friendly company policies through the organizational structure. Moral values in the environment are applied more broadly in organizational life. Green HRM is a critical reflection on the role of employees in facing moral choices related to sustainability issues. It becomes the basis for companies to assess performance from an environmental awareness perspective.

The interaction between leaders and subordinates as a model is a social learning process that can encourage subordinates' normative awareness of their behavior and performance. Green HRM activities determine changes in behavior that affect performance levels. Ethical leadership is one of the sources of value that encourages green HR practices to orient environment-friendly individual performance. The theoretical implication is the development of LMX theory about normative activation. The practical implication is to develop relationships between leaders and subordinates both directly and through existing structures, namely, green HR practices, to encourage changes in employee behavior that are environment friendly.

Leaders influence subordinates by two mechanisms: directly or through green HR practices. Both mechanisms are built on LMX and interactions that create awareness of environmental norms and responsibilities. In line with Tariq, et al. (2020) in their research, which proves the influence of leadership and green HRM on attitude and performance, both aim to form employees' ecological behavior for environmental performance. Ethical leaders as a driving force for the operation of an environment-friendly HR management system are in line with Northouse (2019), Skubinn and Herzog (2016), and Toytok and Kapusuzoglu (2016), who show the position of ethical leaders in organizational behavior.

The formation of employees' ecological behavior is influenced by ethical leadership in line with the research by Jordan, et al. (2013) through interactions between leaders and subordinates using exchange and learning mechanisms. Leadership as a role model realizes itself not only as a social being but also as an example of an ecological creature. Leaders recognize and respect diversity and ecological complexity through their interactions with subordinates. Ethical leadership orientation is the exchange and learning of the sources of existence and sources of life for organisms in nature. Leaders and subordinates have a moral responsibility based on a critical awareness of the position of humans and nature. Leaders play a role in creating learning relationships to activate environmental norms. Leaders encourage the growth of normative awareness with influence, trust, and ethical learning. Leaders encourage the learning process by showing and setting examples of environment-friendly behavior and still showing the interest of employees in them to live better. Leaders understand how to influence subordinates to learn about environmental norms, facilitate processes and leadership, and influence subordinates to participate in collective efforts to solve environmental problems. The legitimacy of modeling success and communicating the vision can be seen from the subordinates' normative awareness of the environment.

The process for establishing employees' ecological behavior (EEB) through green HRM practice is based on values that indicate responsibility for the environment in line with Kim, et al. (2019) and Alzgool (2019). Integrating values oriented toward solving environmental problems into the HR management system affects the attitudes and behavior of environment-friendly employees. Recruitment is a realization of responsibility for the environment in selecting employees and interviewers in recruitment. Involvement and training practices encourage normative awareness of the environment. This reflective awareness is emancipatory.

Green HRM practices encourage employees to integrate environment-friendly behaviors into their routines, such as reducing energy consumption, minimizing waste, and promoting recycling. By promoting these behaviors, organizations can significantly reduce their ecological footprint and contribute to the larger goal of environmental preservation. Furthermore, companies that actively involve their employees in environmental initiatives foster a culture of sustainability, attracting like-minded individuals who seek to make a positive impact. Green HRM practices are pivotal in driving organizational change toward environmental sustainability. By promoting ethical awareness, encouraging eco-friendly behaviors, involving employees in collective activities, and integrating sustainability into decision-making processes, companies can make a meaningful contribution to solving environmental problems while fostering a positive work environment and enhancing their long-term success.