Ethical Leadership in LTC: From Caregivers’ Customer Orientation to Senior’s Satisfaction and Well-Being

BACKGROUND: In response to the growth of the world’s senior population, an investigation of ethical leadership on LTCs is needed, in particular in the impact it may have on customer orientation and on seniors’ well-being. OBJECTIVE: We propose a model to identify the relationship between ethical leadership in LTCs and caregivers’ customer orientation, and its influence on satisfaction with the service, satisfaction with life, and the quality of the interaction between caregivers and seniors. SAMPLING: We present a matched sample of 277 caregivers and 277 elderly Brazilians, workers and seniors’ in LTCs in Brazil. The minimum sample size was 222, determined using G-Power software version 3.1.9.2, based on the desired statistical power parameters and the number of predictors. Two structured questionnaires were developed, one for caregivers and the other for the elderly. 69 LTCs were contacted and 29 participated in the survey (10 nonprofit, 34.48%). Data were treated statistically using SEM modelling. RESULTS: We identified a positive influence of ethical leadership on caregivers’ attitudes, favoring their orientation towards the seniors’. A positive relationship between customer-oriented caregivers and customer satisfaction, life satisfaction, and the quality of the senior’s interaction. A customer-oriented caregiver exerts a mediating effect between ethical leadership and the seniors’ related outcomes, making ethical leadership beneficial to seniors and their family members. CONCLUSION: Ethical leadership favors successful management of LTCs, increasing customer orientation, and provides clues to establish a better causality and a chain of effects between leadership and senior-related outcomes. Therefore, LTCs may be the appropriate outlet for the role of ethics in leadership. PRACTICAL IMPLICATIONS: This study provides managers with an understanding of the effects of ethical leadership in the context of LTCs, for both caregivers and seniors. The powerful effects of ethical leadership can be a stimulus to increase the role of ethics in LTCs, improving the quality of care, the well-being of the seniors, and, therefore, the human and financial performance of these institutions.