A Study of Ethical Leadership on Organizational Performance with Innovative Employee Performance as Mediator at VOE’s Tourism Sector

The generate active community participation in village development, a leader's role is needed who can influence the community to change their mindset about how important community participation in development process. Leaders must be role model who have a view of achieving a better future and are able to invite all elements of society to collaborate in improving the economy and prosperity. Village development is greatly influenced by the role of the leader, namely the extent to which the village head plans, mobilizes, motivates, directs, communicates, implements in influencing the community to participate in village development. Apart from that, villages also have the opportunity to develop the community economy, through training and marketing community crafts, developing livestock and fisheries businesses, and developing tourist areas through village-owned enterprise (VOE). The role of the leader is not only limited to directing followers to achieve organizational goals, but the role of the leader is greater because the leader must also be able to touch the psychological aspects of the followers. Ethical leadership can influence employee engagement so that employees who have a positive attitude towards their work which will have an impact on organizational performance, leaders are an important factor in organizations that can influence employee performance, so that it will have an impact on organizational performance.