This review paper synthesizes the existing body of knowledge on ethical leadership by examining its conceptual foundations, theoretical underpinnings, and multidimensional influence across individual, organizational, and societal contexts. Drawing upon contemporary literature from leadership, organizational behaviour, and business ethics, the study explores how ethical leadership enhances employee engagement, organizational commitment, trust, psychological safety, innovation, and corporate reputation. The paper further discusses the mechanisms through which ethical leaders shape ethical climates and strengthen organizational sustainability by fostering transparent decision-making and stakeholder-oriented governance. Additionally, it identifies emerging research trends, methodological challenges, and future directions that can advance scholarly understanding of ethical leadership in the era of digital transformation, artificial intelligence, and sustainable development. The review concludes that ethical leadership is not merely a moral obligation but a strategic organizational capability that contributes significantly to long-term competitive advantage, employee well-being, and responsible corporate governance. The findings provide valuable insights for researchers, educators, policymakers, and organizational practitioners seeking to strengthen ethical leadership practices in modern institutions.