From ethical compass to environmental performance: Unleashing the mediating-moderating role of green climate and culture in Egyptian hotels

Background Environmental sustainability has become a pressing concern in the hospitality sector, especially in developing economies where organizational capabilities are often underutilized. Leadership, organizational climate, and culture are critical intangible resources that can drive improved environmental outcomes. Objective This study investigates the role of ethical leadership in enhancing environmental performance in Egypt’s hotel sector. It further examines the mediating effect of green climate and the moderating role of green culture on this relationship. Methods Grounded in the Resource-Based View (RBV) theory, the study employed a quantitative research design and collected data from 381 hotel employees. Structural Equation Modeling (SEM) was used to test the hypothesized relationships among ethical leadership, green climate, green culture, and environmental performance. Results The findings indicate that ethical leadership significantly enhances environmental performance both directly and indirectly through green climate. Additionally, green culture positively moderates the relationship between ethical leadership and environmental performance, amplifying its effect under strong environmental values. Conclusions The study underscores the strategic importance of ethical leadership, green climate, and green culture as internal resources for promoting sustainability in the hospitality industry. It offers practical insights for hotel managers aiming to strengthen environmental outcomes through ethical practices, particularly within the Egyptian context.