Ethical preferences of transformational leaders: an empirical investigation

Abstract

This study looked at the relationship between the four factors of transformational leadership – charisma, inspirational leadership, intellectual stimulation, and individualized consideration – and the leader’s preference for unethical behavior. Five ethical scenarios – bribery, endangering the physical environment, lying, personal gain, and favoritism – were studied using a sample of 100 pairs of managers and subordinates from four multinational organizations in India. Relationships between the leader’s ethical preferences and three outcomes – followers’ willingness to put in extra effort, perceived effectiveness, and satisfaction – were also analyzed. Findings indicate that inspirational leadership is negatively related to the leader’s preference for bribery and favoritism, and intellectual stimulation is negatively related to preference for bribery. Charisma and individualized consideration are not related to the leader’s ethical preferences. Followers’ willingness to put in extra effort is also negatively related to the leader’s preference for bribery and favoritism. Results also suggest that organizational culture might moderate the relationship between transformational leadership and ethics.

Value systems of transformational leaders

“…Burns (1978) argued that transformational leaders are likely to be guided by near universal values like equality of human rights and respect for individual dignity. Transformational leaders are also likely to resort to bribery and favoritism less frequently (Banerji and Krishnan, 2000), indicating the relatively greater importance they might give to values related to honesty and fairness. Therefore: Hypothesis 1.…”

“…Ross and Offermann (1997) found that transformational leadership was positively related to self-confidence, feminine attributes, pragmatism, and nurturance, and negatively related to criticalness and aggression. Banerji and Krishnan (2000), in a study of transformational leaders' ethical preferences, found that that inspirational leadership was negatively related to the leader's the preference for bribery and favoritism, and intellectual stimulation was negatively related to preference for bribery. Transformational leaders rate themselves high on purpose-in-life, personal efficacy, interpersonal control, and social selfconfidence, while subordinates rate transformational leaders high on interpersonal control (Sosik and Megerian, 1999).…”

Spirituality and Transformational Leadership in Education

“…Bass argued that although transformational leadership and transactional leadership are conceptually distinct, they are likely to be displayed by the same individuals (Banjeri & Krishnan, 2000;Howell & Avolio, 1993). Transformational leadership and transactional leadership are seen to be a single continuum rather than mutually independent continua (Bass & Avolio, 1994;Northouse, 2004;Yammarino, 1993).…”

Revisiting Innovation Leadership

“…The related contingency reward is the reward made available to followers for achieving goals. Although there are arguments supporting the effectiveness of transactional relations in achieving performance, an exclusive focus on the exchanges and transactions with followers has been criticized in the case of a) low expectations of followers and b) non-performing organizations (Banerji & Krishnan, 2000;Barbuto, 2005;Nahavandi, 2009). A particularly strong critique is that transactional leadership fails to inspire followers to reach for excellence, and focuses on short-term, immediate outcomes rather than on long-term commitment (Nahavandi, 2009), because the work environment of the follower does not provide the necessary motivation, direction and satisfaction (Den Hartog et al, 1997).…”

“…Transformational leaders motivate and inspire followers to achieve extraordinary goals (Berson & Avolio, 2004), and are process-oriented (van Linden & Fertman, 1998). According to Banerji and Krishnan (2000), transformational leaders exploit the situation to launch and sustain the transformation process in organizations. To be able to do this, they must have the ability to articulate a compelling vision and to clarify any ambiguity that followers perceive, to ensure that everyone is following the new path.…”