The Role of Ethical Leadership in Brand Image Building and Cost Reduction through the Adoption of Green Practices: A Path Analysis Using SEM

This study investigated the role of ethical leadership in brand image building and firms’ end-to-end operations cost reduction through the implementation of green practices. This research employed SEM (Structural Equation Modelling) for testing hypothesis, while data were collected from the Indian electronics’ products manufacturers. The findings revealed that the role of ethical leadership is very important in improving brand image and customer trust through adopting green practices, while green practices is negatively correlated with end-to-end firms’ cost reduction due to scarcity of green technology and green suppliers in Indian market. In addition, most companies import green materials and technologies from European countries, which incur huge costs in terms of long lead times. This research also discussed research implications and future research area.