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The purpose of this paper is to examine the underlying process of a relative leader–member dyadic communication behavior linking association between ethical leadership and organizational identification in Malaysia’s diverse workplace.

Based on relational dyadic communication, social comparison and social identity theories, the authors develop a mediation model. The model illustrates the link between the relative leader–member dyadic communication behavior processes, ethical leadership and organizational identification. The model was tested on a sample of 273 group members from 58 groups working in large government link corporations in Malaysia.

Results of hierarchical regression analysis provide support for the model. The authors found that ethical leadership was positively related to relative leader–member dyadic communication behavior based on the norms and values of budi context. Budi is a social norm in the Malaysian context that helps employees to know how they should interact with others. Budi is manifested through the use of language and should be used or present in the interactions or conversations with others.

The relative shared norms and values of budi mediate the relationship between ethical leadership and organizational identification after controlling for the perception of individual leader–member dyadic communication behavior on norms and values of budi.