A significant number of studies reported linkages between ethical moral reasoning and transformational leadership (TFL) style, but questioned its moral foundation based on shared values and ethics. Thus, the issue of public leaders' and subordinates' degree of moral judgment and TFL behavior as perceived by followers is explored. The Defining Issues Test (DIT-2) and the Multifactor Leadership Questionnaire (MLQ X5) were completed by leaders and subordinates severely (Avolio & Bass, 2004;. Path analysis of the structural model indicates positive significant statistical relationship between cognitive moral development (CMD) and TFL style (β = 0.120, t = 1.286, p < .10). Nevertheless, we indicate that the capacity to experience, discover, and anticipate ethical threats encourages the use of post-conventional stage in decision making, and this result adds to our understanding of the relationship between ethical reasoning and leadership style.

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The relationship between moral reasoning and leadership style has received considerable attention for decades, however this has been not fully explicated as different leadership styles elist different ethical values. What constitutes moral behaviour is conflicting and subjective. This study examines public leaders’ degree of moral judgment associated with leadership styles in a public sector organization. To test the hypothesized relationship, data were collected using questionnaire survey distributed to 550 workers out which 300 were found worthy to be used. The Defining Issues Test (DIT2) and the Multifactor leadership questionnaire (MLQ X5) were completed by leaders and subordinates respectively. The PLS path analysis of the structural model indicates significant statistical relationship between cognitive moral development (CMD) and transactional leadership style (TSL) ( β= -0.214, P< 0.012). However, we argue that cognitive moral development is amiable to the individual qualities of the leader that might necessitate the application of particular leadership style and behaviour. We also found collaboration evidence that leaders high in cognitive moral development are perceived more as transformational leaders by their subordinates. Finally, we suggest that the dichotomies between moral reasoning and leadership style are hinged more on individual leadership values and motivational beliefs.