THE INFLUENCE OF CORPORATE ETHICAL VALUES ON EMPLOYEE PERFORMANCE IN ENERGY SECTOR COMPANIES IN INDONESIA

Abstract

Ethical practices are crucial in industries with high operational risks, such as mining, yet empirical studies that simultaneously analyze the effects of Corporate Ethical Values (CEV), Organizational Commitment (OC), and work experience on employee performance remain limited in Indonesia. This study aims to fill this research gap by analyzing how CEV influences employee performance, with OC as a mediating variable and work experience as a moderating variable. Using an associative quantitative design with an explanatory approach, data were collected from 126 permanent operational employees selected through the Slovin formula. The research employed the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method using SmartPLS software to test validity, reliability, and causal relationships between variables. The results show that CEV has a significant positive effect on employee performance, both directly and indirectly through OC, while work experience significantly strengthens the relationship between CEV and OC. These findings emphasize that corporate ethical values contribute to higher performance levels by fostering stronger commitment and ethical awareness among experienced employees, highlighting the importance of cultivating ethical culture to enhance human resource performance in the mining industry.