The Relationship of Leadership Style and CEO Values to Ethical Practices in Organizations

This study analyzes the relationship between CEO values, leadership style and ethical practices in organizations. The ethical practices of formal statement of ethics and diversity training are included in the study, as well as four categories of values based on Rokeach's (1973) typology including personal, social, competency-based and morality-based. Results indicate that all four types of values are positively and significantly related to transformational leadership, with transactional leadership positively related to morality-based and personal values, and laissez-faire leadership negatively related to competency-based values. When size of company and values are controlled, transformational leadership explains a significant amount of change in formal statement of ethics, and transactional leadership explains a significant amount of change in diversity training.     

An Empirical Study of Leader Ethical Values,Transformational and Transactional Leadership,and Follower Attitudes Toward Corporate Social Responsibility

Several leadership and ethics scholars suggest that the transformational leadership process is predicated on a divergent set of ethical values compared to transactional leadership. Theoretical accounts declare that deontological ethics should be associated with transformational leadership while transactional leadership is likely related to teleological ethics. However, very little empirical research supports these claims. Furthermore, despite calls for increasing attention as to how leaders influence their followers’ perceptions of the importance of ethics and corporate social responsibility (CSR) for organizational effectiveness, no empirical study to date has assessed the comparative impact of transformational and transactional leadership styles on follower CSR attitudes. Data from 122 organizational leaders and 458 of their followers indicated that leader deontological ethical values (altruism, universal rights, Kantian principles, etc.) were strongly associated with follower ratings of transformational leadership, while leader teleological ethical values (utilitarianism) were related to follower ratings of transactional leadership. As predicted, only transformational leadership was associated with follower beliefs in the stakeholder view of CSR. Implications for the study and practice of ethical leadership, future research directions, and management education are discussed.     

The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice.     

Does CEO transformational leadership influence top executive normative commitment?

Grounded in social exchange theory logic, this study proposes that CEO transformational leadership causes high normative commitment among top executives but this relationship is nonlinear. Specifically, top executives in Turkey express less normative commitment when their CEOs exhibits moderate levels of transformational leadership than low or high levels of transformational leadership. Additionally, CEO transformational leadership exhibits a similar nonlinear relationship to affective commitment which fully mediated the J-shaped relationship between CEO transformational leadership and normative commitment. The findings highlight the need to consider the nonlinear effects of leadership types as well as implications for further exploration of antecedents of normative commitment.     

Does integrity matter for CSR practice in organizations? The mediating role of transformational leadership

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility (CSR) and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions.     

Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership

This study examines a comprehensive model comprising of various relationships between transformational and transactional leadership, knowledge management (KM) process, and organizational performance. Data are collected from human resource managers and general managers working in 119 service firms. Exploratory factor analysis and hierarchical regression analysis are used to analyze the proposed hypotheses. The results indicate that transformational leadership has strong and positive effects on KM process and organizational performance after controlling for the effects of transactional leadership. Further, KM process partially mediates the relationship between transformational leadership and organizational performance after controlling for the effects of transactional leadership. Implications and directions for future research are also discussed.     

变革型领导如何影响员工亲组织非伦理行为?——一个被调节的中介作用模型

本文从社会认同理论的视角,对变革型领导与亲组织非伦理行为之间的关系进行考察,并且构建一个被调节的中介模型.研究选取浙江省3家企业的300名员工作为研究对象,探讨了在组织领导化身调节下,变革型领导与亲组织非伦理行为的关系,以及组织认同的中介作用.研究结果表明:变革型领导对亲组织非伦理行为具有积极的预测效应;组织认同在变革型领导与亲组织非伦理行为之间起部分中介作用;领导组织化身在变革型领导和组织认同之间起调节作用.     

Organizational performance with a broader focus: The case for a stakeholder approach to leadership

In 2019, BlackRock CEO Larry Fink, Apple CEO Tim Cook, and the other 179 CEO members of the Business Roundtable argued that the purpose of a corporation must reflect not only the fiduciary interests of owners but also the varied interests of all stakeholders: employees, customers, partners, and broader society. This idea challenges a decades-old norm of shareholder primacy, so it is reasonable for organizational leaders to wonder whether doing so is truly in their firms’ best interests, and if so, how to implement this approach to leadership. To answer these questions, we draw on over 200 peer-reviewed articles covering leadership research to demonstrate how servant leadership, a stakeholder-focused approach to management, outperforms other leadership approaches across both shareholder and stakeholder criteria. We leverage case studies of organizational leaders from SAS, Zappos, Starbucks, and Jason’s Deli, financially successful organizations that exemplify how managers provide value and sustainability to stakeholders and shareholders through servant leadership. We also include practical steps managers can take to begin putting this form of leadership into practice.     

Transformational leadership and job performance: A social identity perspective

Drawing on social identity theory, this study provides a model explaining the underlying process through which transformational leadership influences creative behavior and organizational citizenship behaviors. Individual differentiation and group identification are proposed as social identity mechanisms reflecting the characteristics of personal and collective identity orientations that underpin the differential effects of transformational leadership behaviors on performance outcomes. The model is tested with data from a sample of 250 front-line employees and their immediate managers working in five banks in the People's Republic of China. Results of hierarchical linear modeling provide support for the model whereby group-focused and individual-focused transformational leadership behaviors exert differential impacts on individual differentiation and group identification. Furthermore, individual differentiation mediates the relationship between individual-focused transformational leadership and creative behavior, whereas group identification mediates the relationships between group-focused transformational leadership and OCBs toward individuals and groups. Implications for theory and practice are discussed and future research directions are outlined.     

Humanistic leadership: Lessons from Latin America

We review the psychological, sociological and historical explanations underlying leadership styles in Latin America. A fundamentally paternalistic style relies on social bonds based on reciprocity and stresses workers’ expectations. Transformations in leadership styles in Latin America require consideration of alternative theoretical approaches such as stakeholder management and cultural hybridism, beyond cross-cultural frameworks. Viewing employees as key stakeholders implies a legitimate concern for workers beyond the employment relationship. From a hybridism perspective, diversity is a critical concept that applies to organizational ownership arrangements, management practices, cultural backgrounds, and socio economic contextual changes surrounding leadership styles.     

Transformational leadership and R&D workers' multiple commitments: Do justice and span of control matter?

This study examines how transformational leaders influence research and development (R&D) workers' commitment to their organizations and leaders. The study investigates the mediating role of organizational justice (i.e., procedural and interactional) based on social exchange theory and the moderating role of span of control in this relationship. In a sample of 445 Turkish R&D personnel, the study finds that transformational leadership significantly influences followers' organizational commitment partially through procedural justice and their supervisory commitment partially through interactional justice. Second, the findings reveal that transformational leaders boost perceptions of procedural justice and organizational commitment when the span of control is relatively narrow. Interestingly, when the span of control is large, transformational leadership has significant positive effects on supervisory commitment, but no significant effects on organizational commitment among R&D workers.     

Productivity and patriotism: The management narrative of New South Wales Rail Chief Commissioner James Fraser, 1917–1929

The management narrative of James Fraser, the Chief Commissioner of the NSW Railways and Tramway Department, 1917–1929, provided the defining values of the Department's organizational discourse and reflected the aims of transformational leadership, inspiring managers and staff to share the values he advocated. Fraser sought to impose a regime of disciplined productivity upon rail and tram workers based on scientific management techniques, and linked appeals to increased productivity with patriotism to manage the stresses imposed on the Department during World War I. Fraser's narrative reflected the values of liberal governmentality in shaping the conduct and culture of the workforce. It is argued that the narrative turn may establish a more fruitful analytical relationship between business history and organization studies by uncovering the discursive codes and values embedded in organizational culture and practice.     

Transformational leadership, creativity, and organizational innovation

This study proposes a model of the impact of transformational leadership both on followers' creativity at the individual level and on innovation at the organizational level. The model is tested on 163 R&D personnel and managers at 43 micro- and small-sized Turkish software development companies. The results suggest that transformational leadership has important effects on creativity at both the individual and organizational levels. At the individual level, the results of hierarchical linear modeling show that there is a positive relationship between transformational leadership and employees' creativity. In addition, transformational leadership influences employees' creativity through psychological empowerment. At the organizational level, the results of regression analysis reveal that transformational leadership positively associates with organizational innovation, which is measured with a market-oriented criterion developed specifically for developing countries and newly developing industries. The implications of the findings along with some potential practical applications are discussed.     

Organizational Value for Age Diversity and Potential Applicants’ Organizational Attraction: Individual Attitudes Matter

Using diversity climate theory and research, this paper examines the relationships among an organization’s actions which indicate a value for age diversity and potential applicants’ reactions toward that organization. Specifically, we investigate the interactive effects of an organization’s age diversity, an organization’s age diversity management practices, and potential applicants’ individual attitudes toward age diversity on two outcome variables, organizational attractiveness and expected age discrimination. We conducted an experimental survey study with a sample of 244 German employees likely to be in the job market again in their careers. Organizational age diversity and age diversity management practices were positively related to organizational attractiveness and negatively related to expected age discrimination. Results also support a three-way interaction of an organization’s age diversity, an organization’s age diversity management practices, and potential applicants’ attitudes toward age diversity on both dependent variables. The findings demonstrate the importance of considering individual attitudes toward age diversity in assessing the effectiveness of an organization’s age diversity and age diversity management practices.     

领导风格与员工工作态度:互惠和信任的中介作用的实证研究

Reciprocity and trust are the basic principles of human social exchanges. Using a sample of 972 managers in China, we examined the relationship between transformational and transactional leadership styles and job-related attitudes of employees, as well as the mediating effects of both reciprocity and trust on the above relationship based on social exchange theory. The main findings of structural equation modeling analyses were shown as follows. Firstly, transformational leadership not only affects organizational trust and commitment directly, but also motivates organizational trust of employees through the mediation of generalized and balanced reciprocity indirectly, and thus enhances organizational commitment and stay intention of employees. Secondly, transactional leadership indirectly affects organizational trust and commitment of employees through the mediation of reciprocity. Thirdly, generalized reciprocity has direct effects on organizational commitment of employees, whereas balanced reciprocity exerts its influences through affecting organizational trust of employees. Managerial suggestions are provided. __________ Translated from Zhongda Guanli Yanjiu 中大管理研究 (China Management Studies), 2007, (1): 13–45     

变革型领导对企业员工组织信任影响的实证研究

文章以湖南省十家大中型企业251名员工为研究对象,构建了一个包括变革型领导、组织公平、组织政治知觉和组织信任在内的概念模型,运用结构方程建模方法,探讨变革型领导对员工组织信任的影响机制。研究结果表明,变革型领导不仅对员工组织信任具有直接显著的正面影响,而且还通过组织公平、组织政治知觉对员工组织信任产生间接的显著影响,组织公平和组织政治知觉是变革型领导影响企业员工组织信任的中介变量。文章的研究结论对我国企业的人力资源管理具有直接的现实意义。     

Impact of Transformational and Servant Leadership on Organizational Performance: A Comparative Analysis

The purpose of this study is to examine the impact of two comparative leadership styles on organizational performance outcomes. The leadership styles undertaken is transformational and servant leadership. A sample of 155 participants is taken from profit-oriented service sector of Pakistan. Data through survey gathered on a five point likert scale from organizations. AMOS and SPSS are used for statistical analysis. The result shows that, transformational leadership has more impact on organizational learning than servant leadership. Furthermore organizational learning enhances organizational performance. Managers and leaders of corporate sector can get benefited from this study. Their main objective is to maximize the profitability of organization thus, they can choose leadership style which polishes their abilities and helps them to achieve profit maximization.     

Transformational Leadership and Follower’s Unethical Behavior for the Benefit of the Company: A Two-Study Investigation

Although the ethical dimension of transformational leadership has frequently been discussed over the last years, there is little empirical research on employees’ ethical behavior as an outcome of transformational leadership. This two-study investigation examined the relationship between transformational leadership and unethical yet pro-organizational follower behavior (UPB). Moreover, mediating and moderating processes were addressed. Our research yielded a positive relationship between transformational leadership and employees’ willingness to engage in UPB. Furthermore, both studies showed employees’ organizational identification to function as a mediating mechanism and employees’ personal disposition toward ethical/unethical behavior to moderate the relationship between organizational identification and willingness to engage in UPB. Altogether, results indicate transformational leadership to entail a certain risk of encouraging followers to contribute to their company’s success in ways that are generally considered to be unethical. Implications regarding the ethical dimension of transformational leadership are discussed.     

Reassessing the role of Chinese workers in problem solving: a study of transformational leadership,trust and security in ‘lean’ manufacturing

In this paper, we study leadership style and organizational culture, elements that, we argue, are conducive for Chinese shop-floor employees to participate in problem solving in ‘lean’ manufacturing. Power distance and the concern for saving face potentially hinder employees' willingness to participate in such problem solving, but our findings support the notion that transformational leadership helps to overcome these barriers. The relationships are not straightforward, however, and by examining the complexities, this research may provide insights into this dilemma.     

For All Good Reasons: Role of Values in Organizational Sustainability

Management practices are at the heart of most organizations’ sustainability efforts. Despite the importance of values for the design and implementation of such practices, few researchers have analyzed how human values, particularly ethical values, relate to human resource management practices in organizations. The purpose of this conceptual paper is to integrate scholarship on organizational sustainability, human resource practices, and values in delineating how four specific values—altruism, empathy, positive norm of reciprocity, and private self-effacement—support effective human resource practices in organizations. This set of distinct values has sustainability implications, global relevance, and ethical significance. Propositions that indicate relationships among these values, human resource practices, and organizational sustainability, as well as the effects of the resource-based view to potentiate these relationships, are developed. This analysis suggests that ethical and multicultural values are important for planning and implementing effective management practices and organizational sustainability.