The present study aims to investigate the interconnections of ethical leadership, moral identity, and employee prosocial conduct within the private business sector in the Kurdistan area of Iraq. The study adopts a quantitative research technique, utilizing a sample of 112 employees from seven distinct firms. The research incorporates survey tools to measure ethical leadership, moral identity, and prosocial conduct. The objective of this study is to examine the direct and indirect impacts of ethical leadership on employee prosocial behavior while considering moral identity as a potential mediator. The findings offer strong evidence in favor of the proposed associations. There is a considerable and positive relationship between ethical leadership and both moral identity and employee prosocial conduct. Likewise, moral identity exhibits a robust and favorable correlation with the engagement of employees in prosocial conduct. Moreover, the confluence of ethical leadership and moral identity in influencing prosocial conduct has been validated, substantiating the mediating function of moral identity within this association. The implications of these studies have practical significance for firms seeking to foster pleasant working environments. The promotion of ethical leadership practices is emphasized as a crucial approach to improving both the formation of moral identity and the engagement of employees in activities that benefit society. This research adds to the expanding corpus of scholarly work on organizational behavior, highlighting the significance of ethical leadership and personal beliefs in influencing a socially responsible and altruistic workplace setting. It is recommended that future studies undertake a long-term examination of these associations, encompassing a wide range of cultural contexts, and study additional variables that could potentially impact the observed dynamics.