BLOCKCHAIN-DRIVEN TRANSPARENCY AND EMPLOYEE TRUST: THE MEDIATING ROLE OF ETHICAL LEADERSHIP

Abstract

This study examines how blockchain-driven transparency influences employee trust and investigates the mediating role of ethical leadership within manufacturing organizations. The research is grounded in ethical leadership theory, which emphasizes the importance of moral interpretation when employees evaluate organizational processes. A quantitative, cross-sectional design was used to collect survey data from employees across medium and large manufacturing firms, with validated scales measuring transparency, ethical leadership, and trust. Data were analyzed using SPSS for preliminary analysis and SmartPLS for structural equation modeling. The findings show that blockchain-driven transparency significantly enhances employee trust, and ethical leadership partially mediates this relationship. Ethical leadership also demonstrated a strong direct effect on trust. These results highlight the complementary roles of technological transparency and moral leadership in shaping positive organizational perceptions. The study contributes to ongoing discussions on digital governance and workplace ethics, offering theoretical and practical insights for organizations adopting blockchain-based systems.

Keywords: Blockchain-Driven Transparency, Employee Trust, Ethical Leadership, Ethical Leadership Theory