Investigating the Role of Transformational Leadership in Promoting Ethical Decision-Making in Public Sector Organizations

Authors

    Amin Farahani Department of Financial Management, University of Tehran, Tehran, Iran
    Maryam Esnaashari * Department of Business Economics, University of Tehran, Tehran, Iran Esnaashari.mrym10@gmail.com

Keywords:

Transformational leadership, ethical decision-making, public sector, ethical climate, Iran, qualitative research, organizational ethics

Abstract

This study aimed to explore how transformational leadership contributes to ethical decision-making within public sector organizations, focusing on the perceptions and experiences of employees in the Iranian bureaucratic context. A qualitative research design was employed, utilizing semi-structured interviews with 28 public sector employees from various governmental departments in Tehran. Participants were selected through purposive sampling and data collection continued until theoretical saturation was achieved. Interviews were transcribed verbatim and analyzed thematically using NVivo software. The analysis followed Braun and Clarke’s (2006) six-phase framework, enabling the identification of recurring themes related to leadership behavior, ethical culture, and interpersonal influence. The analysis revealed three overarching themes: (1) ethical leadership behavior, which included subthemes such as integrity, transparency, fairness, and accountability; (2) ethical climate and culture, encompassing shared ethical vision, dialogue, recognition of moral behavior, and institutionalized ethics; and (3) leader–follower ethical interaction, including moral empowerment, participative decision-making, ethical mentoring, and support in ethical dilemmas. Participants emphasized that transformational leaders inspire ethical conduct by modeling values, fostering trust, enabling moral dialogue, and reinforcing ethical norms through formal and informal mechanisms. These findings align with existing literature on ethical and transformational leadership, while offering context-specific insights from the Iranian public sector. Transformational leadership plays a pivotal role in promoting ethical decision-making in public sector settings by shaping ethical climates, empowering followers, and modeling moral behavior. The study underscores the need for value-driven leadership development and ethics-centered governance reforms in bureaucratic institutions, especially in non-Western contexts. Implications for policy, leadership training, and institutional integrity are discussed.

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Published

2024-04-01

Submitted

2024-02-13

Revised

2024-03-17

Accepted

2024-03-31

How to Cite

Farahani, A., & Esnaashari, M. (2024). Investigating the Role of Transformational Leadership in Promoting Ethical Decision-Making in Public Sector Organizations. Journal of Management and Business Solutions, 2(2), 1-9. https://journalmbs.com/index.php/jmbs/article/view/44

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