Volume 10, 1999
Proceedings of the Tenth Annual Meeting
Jacqueline N. Hood
The Influence of Values and Transformational Leadership on Ethical Practices in Organizations
This study analyzes the relationship between CEO values, leadership style and ethical practices in organizations. Two ethical practices are investigated: formal statement of ethics and diversity training. Results indicate that the top manager’s values are related to ethical practices, transformational leadership is significantly related to all types of values, and laissez-faire leadership is 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.