An assessment of the impact of ethical leadership on corporate financial sustainability at ActionAid International Zimbabwe

Abstract

This study investigated the nexus between ethical leadership and long-term corporate financial sustainability within the non-governmental organization (NGO) sector, utilizing ActionAid International Zimbabwe (AAIZ) as an explanatory single-case study. Anchored in a pragmatist paradigm, the research adopted a mixed-methods approach to facilitate a rigorous, context-rich examination of the causal relationship between ethical leadership (the predictor variable) and financial sustainability (the dependent variable). From a target population of 120 stakeholders, a sample of 60 respondents was drawn using stratified random sampling for the quantitative phase. Concurrently, purposive sampling was employed to select 5 key informants for qualitative inquiry. Data were collected via structured questionnaires and semi-structured in-depth interviews. Quantitative data were analysed utilizing SPSS to generate both descriptive and inferential statistics. Empirical findings established a strong, statistically significant positive correlation (r = 0.715) between the practice of ethical leadership and long-term financial resilience. The research revealed that AAIZ operates under a highly institutionalized ethical framework driven by transformational leadership and virtue ethics, which effectively buffers the organization against Zimbabwe’s volatile macroeconomic climate and stringent regulatory environment. The study concludes that institutional integrity transcends normative compliance, functioning as a quantifiable strategic asset and a primary driver of corporate financial sustainability. Consequently, the study recommends that NGO boards reconfigure leadership Key Performance Indicators (KPIs) to prioritize ethical governance, alongside adopting a proactive strategic posture toward statutory compliance. Ultimately, these findings contribute critical insights into civil society governance, offering actionable frameworks for leadership development, talent acquisition, and the cultivation of robust organizational cultures across the international NGO sector.