Influence of Ethical Environment, Ethical Leadership, and Organizational Trust on Employee Engagement of the Construction Company in Malaysia

There are many unethical issues in the construction business such as wrong practices, poor quality of construction work, safety culture, and corruption. However, the issue that has been highlighted in this study is the low quality of construction work which is linked to employee engagement. This research aims to examine the relationships between ethical environment, ethical leadership, and organizational trust towards employee engagement. The study was quantitative research assessing employee engagement in a construction company. A self-administered survey questionnaire was used to collect primary data from 91 construction companies in Malaysia. The data were analysed using SPSS and finding discovered that the proposed model explained 68.8% of the variance in the dependent variable. This study found that there is a positive relationship between the ethical environment and organizational trust towards employee engagement. In contrast, ethical leadership has no relationship towards employee engagement. The findings from this study can help future researchers to examine factors influencing employee engagement in construction companies in Kuala Lumpur, Malaysia. Besides, practically, this current research can help in terms of improving the performance of management teams in the organization by enhancing their ethical environment.