The impact of a leader's integrity on organizational and employee effectiveness has been a relatively unexplored area. Recent research delves into the influence of perceived leader integrity (PLI) and organizational transparency (OT) on employee engagement (EE), with psychological empowerment (PE) as a mediating factor. Utilizing a purposive sampling technique, Australian employees (N=763; Mean Age=36.10 years, SD=9.46) were recruited through an online survey. Results indicated that strong leader’s-integrity contributes to enhanced OT, increased levels of PE, and heightened EE. Additionally, OT positively correlates with both PE and EE. A strong connection is established between PLI, OT, PE, and elevated EE levels. Notably, PE emerges as a complete mediator in the relationship between PLI, OT, and EE, underscoring their interconnectedness in fostering a positive workplace environment. These findings suggest that organizations can foster a vibrant and engaged workforce through customized management training that prioritizes integrity as a fundamental job requirement.

Keywords: leader's integrity, organisational transparency, employee engagement, psychological empowerment, ethical leadership, employees, Australia