| Summary: | 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; Rest, Narvaez, Bebeau, & Thoma, 1999). 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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