Notice of RetractionEthical leadership and employee trust: Governance perspective

The issues of ethics and governance have received significant interest in recent years due to plethora of ethical scandals in organization. The recent scandals internationally and in Malaysia give us now the opportunity to ask if there is a need for a new paradigm for better governance by integrating ethical leadership and trust. The paper aims to examine the relationships between the ethical leadership dimensions and employee trust from governance perspective. Do employees place more trust on leader who aware on ethical issues? The empirical approach utilized here has been applied to the public sector employees. The findings of the study show a strong relationship between the ethical leadership dimensions and employee trust. The paper's research contribution have important implications for organization in terms of hiring suitable person as leader and also in improving good governance mechanism i.e., ethical leadership from governance perspective. Understanding the implications of the ethical leadership and employee trust towards leader provides organization with opportunities to build trust, gain cooperation, commitment and thus, it can create long term wealth and sustainable competitive advantage.