This research investigates the influence of ethical conduct within entrepreneurial leadership and how it affects both organizational trust and long-term sustainability. It also explores whether organizational trust mediates the relationship between ethical entrepreneurial leadership and organizational sustainability. The study was carried out in the Village Credit Institutions (Lembaga Perkreditan Desa/LPD) located in Bali. In 2018, there were 1,422 active LPDs. Using the Slovin formula with a 10% precision rate, a total of 93 LPDs were selected as the research sample. Stratified proportional random sampling was used to distribute the sample across categories. Questionnaires were distributed to LPD leaders for data collection, and the data obtained were analyzed using the SmartPLS 3.0 software. The analysis revealed that ethics play a crucial role within entrepreneurial leadership. Leaders who display an entrepreneurial approach while maintaining ethical standards can be categorized under ethical entrepreneurial leadership. This leadership type positively and significantly impacts organizational trust, though its direct influence on organizational sustainability was found to be insignificant. However, organizational trust demonstrated a significant positive relationship with organizational sustainability and served as a full mediator between ethical entrepreneurial leadership and sustainability outcomes.
