PurposeThe study was conducted to understand how the moral identity of employees mediates the relationship between servant leadership and the moral disengagement of employees. Additionally, the study explores whether servant leadership's ability to build the moral identity of employees is contingent upon employees' perception of organizational politics.Design/methodology/approachThe data were collected from 500 service sector-employed knowledge workers. Data analysis was done through structural equation modeling.FindingsThe study found servant leadership to be related to the moral identity of employees. Additionally, moral identity and moral disengagement were found to be negatively related. Moral identity was found to mediate the relationship between servant leadership and moral disengagement. Finally, the study found that the relationship between servant leadership and employees' moral identity was contingent upon their perception of organizational politics.Originality/valueThe study explored the previously unexplored mediating role of moral identity linking servant leadership to the moral disengagement of employees. The study also explained how the relationship between servant leadership and the moral identity of employees was contingent upon employees' perception of organizational politics.