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

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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Ethics Springer Journals

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

Journal of Business Ethics , Volume 43 (4) – Oct 17, 2004

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References (58)

Publisher
Springer Journals
Copyright
Copyright © 2003 by Kluwer Academic Publishers
Subject
Philosophy; Ethics; Business and Management, general; Management; Business Ethics; Quality of Life Research
ISSN
0167-4544
eISSN
1573-0697
DOI
10.1023/A:1023085713600
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Journal of Business EthicsSpringer Journals

Published: Oct 17, 2004

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