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Organizations are more interested in examining the role of ethical leaders than ever before due to several high profiled corporate ethical downfalls and due to increasing responsibility put on leaders since last two decade. Base on theories of Social Learning and Social Exchange, present study was designed to examine the influences of ethical leadership of school heads and ethical climates that prevail in the public sector schools on employees’ performance (teachers) and the mediating effect of organizational citizenship behavior and counterproductive behavior of employees (teachers). For empirical testing of framework, non-probability sampling (purposive sampling) methodology was used. The participants involved principals / vice-principals / headmasters / deputy headmasters from one hundred seven different public schools. Of total 300 distributed questionnaires, 237 received back participation rate 79%. Finally, 220 questionnaires were selected as per present research criteria. Descriptive statistics, correlation, regression analysis, factor analysis and cross tabulations were performed on the collected data using AMOS and SPSS v. 21.0 software. The results were drawn on the parameters set, and they show that ethical leadership enhances ethical climate. Findings indicate a significant and positive influence of ethical leadership on counterproductive work behavior but no significant influence on organizational citizenship behavior. Ethical climate has strong significant and positive influence on organizational citizenship behavior but no significant impact on counterproductive work behavior. Moreover, iv organizational citizenship behavior has significant positive impact on employees’ performance but counterproductive work behavior has no significant impact on employees’ performance. Findings also suggest that employees’ performance is influenced by ethical leadership through counterproductive work behavior but not through organizational citizenship. Moreover, employees’ performance is influenced by ethical climate through organizational citizenship behavior but not through counterproductive work. The research also highlights the recent updates about the workplace; as it utilizes counterproductive work behavior and organizational citizenship behavior as mediators in relation to employees’ performance. Base on present study, it is recommended that if an organization wants to improve performance of its employees, there is a dire need to emphasis more on ethical aspects especially the aspect of ethical leadership and climate which really play a vital role in the this concern. However, with the existence of the effect of both may be nullified. Therefore, organizational citizenship behavior plays a vital role through which the impact of ethical leadership and climate is transmuted in the shape of employees’ performance. Additionally, it is recommended that policy makers should focus on the training and monitoring of employees for better outcomes. Current study has its theoretical and practical implications
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