Ethical Leadership and Internal Whistleblowing: The Role of Psychological Safety and Moral Courage (Evident from Indonesian Sector Public Organization)

Corruption remains a persistent challenge in local governments, particularly in developing countries, where internal whistleblowing is vital for detecting wrongdoing. Drawing on Leader–Member Exchange (LMX) theory, this study examines the effect of ethical leadership on internal whistleblowing intention, with psychological safety as a mediator and moral courage as a moderator. Survey data from 107 civil servants in Indonesian local government institutions were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that ethical leadership significantly enhances psychological safety but does not directly influence whistleblowing intention, nor does this relationship mediate psychological safety. However, moral courage significantly moderates the relationship between psychological safety and whistleblowing intention, strengthening the translation of psychological safety into ethical action. These findings indicate that while ethical leadership is necessary to foster a safe work environment, individual moral courage is decisive in encouraging whistleblowing. This study contributes to whistleblowing research by emphasizing the contingent role of moral traits and extends LMX theory by integrating psychological safety and moral courage.