Purpose The purpose of this paper is to examine the effect of ethical leadership on employee performance, with the employee engagement and organizational citizenship behavior (OCB) as mediating variables. Design/methodology/approach The design of this study was to ascertain the predictive generalizations truth of the theory. The population in this study was all employees of non-star hotels in Sarbagita area of Bali. Findings First, ethical leadership does not have a significant effect on employee performance, where the increase in leadership value is not able to provide a significant improvement in the performance of non-star hotel employees in the Sarbagita area of Bali. Second, employee engagement is able to mediate ethical leadership in improving employee performance. Third, the OCB will be able to play a role in mediating the influence of ethical leadership on employee performance if it passes the mediating role of employee engagement first. Originality/value The inconsistencies of the previous study results provide evidence and opportunities for this study to review by including mediating variables on ethical leadership and employee performance relationship. The studied variable as a mediating variable is employee engagement. In addition to employee engagement, this study also included the OCB variable as a mediating variable. Several previous studies have identified the influence of ethical leadership, employee engagement and OCB in improving employee performance in separate research models, so there is still a gap for further research.
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