Bridging Risk Ethics and Sustainability: A Data-Driven Study of Ethical Leadership Practices in Risky Business Environments

Abstract

This paper analyzes the increasing demand to recognize the role of ethical leadership in sustainability performance under high-risk and multi-dimensional business conditions. The research aims to examine empirically the connection between ethical leadership behaviors and sustainability performance in five countries (Estonia, Armenia, the United Kingdom, Germany, and Poland) between 2022 and 2024. The countries have been chosen because they have varying risk profiles, institutional maturity, and educational capacities and make an adequate comparison in developed and transitional economies. The timeframe of the study reflects a period of increased vulnerability caused by geopolitical tensions, economic disruptions, and shifting governance structures. The study relies on the secondary statistical data of globally reputable databases, such as environmental performance, the quality of governance, and socio-economic development variables. Through the panel fixed effects regressions, the research finds positive and significant associations between ethical leadership and sustainability, especially when good governance and education systems are in place.