The leadership quality of construction leaders is one of the most critical factors in assuring the success of a project. This study aimed to look into the construction sector's ethical issues and learn more about the situation of unethical behaviours in Malaysia. It emphasizes the complexities of ethical issues and the limitations to ethical activity in the construction business. Therefore, quantitative data was collected for this study by delivering an online questionnaire to respondents in Klang Valley to collect 400 sets of questionnaires. Following this, the researcher conducts data analysis involving factor analysis, reliability testing, descriptive analysis, and multiple linear regression to discover the relationship between the independent and dependent variables. Eight hypotheses were developed to test the relationship between ethical leadership and other constructs, including people orientation, fairness, integrity, ethical guidance, and market culture. Overall, 2 out of 8 research hypotheses are supported according to the research findings, and six research hypotheses are not supported. The result also indicates that people orientation significantly correlates with employee engagement mediated by market culture. Also, ethical guidance is significantly related to employee engagement mediated by market culture.