Skip to main content

Transformative Leadership: Achieving Unparalleled Excellence

Journal of Business Ethics volume 109, pages 175–187 (2012)Cite this article

Abstract

The ongoing cynicism about leaders and organizations calls for a new standard of ethical leadership that we have labeled “transformative leadership.” This new leadership model integrates ethically-based features of six other well-regarded leadership perspectives and combines key normative and instrumental elements of each of those six perspectives. Transformative leadership honors the governance obligations of leaders by demonstrating a commitment to the welfare of all stakeholders and by seeking to optimize long-term wealth creation. Citing the scholarly literature about leadership theory, we identify key elements of the six leadership perspectives that make up transformative leadership, suggest leaders who exemplify each perspective, describe the ethical foundations and message of each perspective, and offer ten propositions that scholars and practitioners can use to test the dimensions of this new transformative leadership model.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Diagram 1

References

  • Anding, J. M. (2005). An interview with Robert E. Quinn: Entering the fundamental state of leadership: Reflections on the path to transformational teaching. Academy of Management Learning & Education, 4(4), 487–495.

    Article  Google Scholar 

  • Arnold, D. G., Audi, R., & Zwolinski, M. (2010). Recent work in ethical theory and its implications for business ethics. Business Ethics Quarterly, 20(4), 559–581.

    Article  Google Scholar 

  • Bandsuch, M., Pate, L., & Thies, J. (2008). Rebuilding stakeholder trust in business: An examination of principle-centered leadership and organizational transparency in corporate governance. Business & Society Review, 113(1), 99–127.

    Article  Google Scholar 

  • Barnard, C. I., & Andrews, K. R. (1971). The functions of the executive: 30th Anniversary edition. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Barnett, T., & Schubert, (2002). Perceptions of the ethical work climate and covenantal relationships. Journal of Business Ethics, 36(3), 279–290.

    Article  Google Scholar 

  • Bass, B. M., & Avolio, B. J. (1993). Improving organizational effectiveness through transformational leadership. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Bass, B. M., & Steidlmeier, P. (1999). Ethics, character, and authentic transformational leadership behavior. Leadership Quarterly, 10, 181–218.

    Article  Google Scholar 

  • Battilana, J., Gilmartin, M., Sengul, M., Pache, A.-C., & Alexander, J. A. (2010). Leadership competencies for implementing planned organizational change. Leadership Quarterly, 21(3), 422–438.

    Article  Google Scholar 

  • Bennis, W., & Nanus, B. (2007). Leaders: Strategies for taking charge (2nd ed.). New York: Harper-Collins.

    Google Scholar 

  • Block, P. (1993). Stewardship: Choosing service over self-interest. San Francisco, CA: Berrett-Koehler Publishers.

    Google Scholar 

  • Boyatzis, R., & McKee, A. (2005). Resonant leadership: Renewing yourself and connecting with others through mindfulness, hope, and compassion. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Brink, A., (1998, April 13). Nelson Mandela. Time International, 15, 16–118.

  • Brown, M. E., & Treviño, L. K. (2006). Ethical Leadership: A Review and Future Directions. Leadership Quarterly, 17(6), 595–616.

    Article  Google Scholar 

  • Brungardt, C. (1996). The making of leaders: A review of the research in leadership development and education. Journal of Leadership Studies, 3(3), 81–95.

    Google Scholar 

  • Buber, M. (2008). I and thou. New York: Hesperides Press.

    Google Scholar 

  • Burns, J. (1978). Leadership. New York: Harper Row.

    Google Scholar 

  • Caldwell, C., & Hayes, L. (2007). Leadership, trustworthiness, and the mediating lens. Journal of Management Development, 26(3), 261–278.

    Article  Google Scholar 

  • Caldwell, C., Hayes, L., Karri, R., & Bernal, P. (2008). Ethical stewardship: The role of leadership behavior and perceived trustworthiness. Journal of Business Ethics, 78(1/2), 153–164.

    Article  Google Scholar 

  • Caldwell, C., Hayes, L. A., & Long, D. T. (2010). Leadership, trustworthiness, ethical stewardship. Journal of Business Ethics, 96(4), 497–512.

    Article  Google Scholar 

  • Caldwell, C., & Karri, R. J. (2005). Organizational governance and ethical systems: A covenantal approach to building trust. Journal of Business Ethics, 58(1), 249–259.

    Article  Google Scholar 

  • Caldwell, C., Truong, D., Linh, P., & Tuan, A. (2011). Strategic human resource management as ethical stewardship. Journal of Business Ethics, 98(1), 171–182.

    Article  Google Scholar 

  • Caldwell, C., Voelker, C., Dixon, R. D., & LeJeune, A. (2007). Transformative leadership: An ethical stewardship model for healthcare. Organizational Ethics: Healthcare, Business, and Policy, Fall Edition, 126–134.

  • Cameron, K. S. (2003). Ethics, virtuousness, and constant change. In N. M. Tichy & A. R. McGill (Eds.), The ethical challenge: How to lead with unyielding integrity (pp. 185–194). San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Cameron, K. S., Dutton, J. E., & Quinn, R. E. (2003). Positive organizational scholarship: Foundations of a new discipline. New York: Berrett-Koehler.

    Google Scholar 

  • Carlzon, J. (1989). Moments of truth: New strategies for today’s customer driven economy. New York: Ballinger Publishing Company.

    Google Scholar 

  • Carroll, A. B., & Buchholtz, A. K. (2009). Business & society: Ethics and stakeholder management (7th ed.). Mason, OH: South-Western.

    Google Scholar 

  • Cathy, S. T. (2007). How did you do it, Truett?: A Recipe for Success. Aurora, ON: Looking Glass Press.

    Google Scholar 

  • Cathy, S. T. (2010). Eat Mor Chikin: Inspire more people/it’s better to build boys than to mend men/how did you do it, Truett?. Decatur, GA: Looking Glass Books.

    Google Scholar 

  • Chemers, M. M. (1999). An Integrative Theory of Leadership. Mahwah, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Choi, J. (2006). A motivational theory of charismatic leadership: Envisioning, empathy, and empowerment. Journal of Leadership and Organizational Studies, 13(1), 20–43.

    Article  Google Scholar 

  • Christensen, C. M. (2011). The innovator’s dilemma: The revolutionary book that will change the way that you do business. New York: Harper.

    Google Scholar 

  • Christensen, C. M., & Raynor, M. E. (2003). The innovator’s solution: Creating and sustaining successful growth. Boston, MA: Harvard Business School Publishing.

    Google Scholar 

  • Ciulla, J. B. (2004). Ethics: The heart of leadership. Westport, CT: Praeger Publishers.

    Google Scholar 

  • Ciulla, J. B., Price, T. L., & Murphy, S. E. (2005). The quest for moral leaders: Essays on leadership ethics. Northampton, MA: Edward Elgar.

    Google Scholar 

  • Coles, R. (2001). Lives of Moral Leadership: Men and Women Who Have Made a Difference. New York: Random House.

    Google Scholar 

  • Collins, J. (2001). Good to great: Why some companies make the leap… and others don’t. New York: HarperCollins.

    Google Scholar 

  • Collins, J. (2008). Celebrity leadership. Leadership Excellence, 25(1), 20.

    Google Scholar 

  • Conger, J. A. (1989). The charismatic leader: Behind the mystique of exceptional leadership. San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Conger, J. A., Kanungo, R. N., & Menon, S. T. (2000). Charismatic leadership and follower effects. Journal of Organizational Behavior, 21(7), 747–767.

    Article  Google Scholar 

  • Covey, S. R. (1999). Principle centered leadership. New York: Simon & Schuster.

    Google Scholar 

  • Covey, S. R. (2004). The 8th habit: From effectiveness to greatness. New York: Free Press.

    Google Scholar 

  • Deming, W. E. (2000). Out of the crisis. Boston, MA: MIT Press.

    Google Scholar 

  • Dent, E. B., Higgins, M. E., & Wharff, D. M. (2005). Spirituality and leadership: An empirical review of definitions, distinctions, and embedded assumptions. Leadership Quarterly, 16(5), 625–653.

    Article  Google Scholar 

  • DePree, M. (2004). Leadership is an art. New York: Doubleday.

    Google Scholar 

  • Freeman, R. E., Martin, K., Parmar, B., Werhane, P., & Cording, M. (2006). Leading through values and ethical principles. In R. Burke & C. Cooper (Eds.), Inspired leaders (pp. 149–174). London: Taylor and Francis Group, Routledge.

    Google Scholar 

  • Friedman, T. L. (2007). The world is flat. New York: Picador Press.

    Google Scholar 

  • Friedman, T. L. (2009). Hot, flat, and crowded. New York: Picador Press.

    Google Scholar 

  • Gilligan, C. (1993). In a different voice: Psychological theory and women’s development. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Goleman, D. (2007). Social intelligence: The new science of human relationships. New York: Bantam Publishing.

    Google Scholar 

  • Graham, P. (2003). Mary Parker Follett: Prophet of management. Frederick, MD: Beard Group.

    Google Scholar 

  • Greenleaf, R. K. (1991). The servant as leader. Indianapolis, IN: The Greenleaf Center.

    Google Scholar 

  • Groves, K., & LaRocca, M. (2011). An empirical study of leader ethical values, transformational and transactional leadership, and follower attitudes toward corporate social responsibility. Journal of Business Ethics, 103(4), 511–528.

    Article  Google Scholar 

  • Hamilton, F., & Nord, W. R. (2005). Practicing servant-leadership: Succeeding through trust, bravery, and forgiveness. Academy of Management Review, 30(4), 875–877.

    Article  Google Scholar 

  • Hayibor, S., Agle, B., Sears, G., Sonnenfeld, J., & Ward, A. (2011). Value Congruence and Charismatic Leadership in CEO-Top Manager Relationships: An Empirical Investigation. Journal of Business Ethics, 102(2), 237–254.

    Article  Google Scholar 

  • Heavey, C., Halliday, S. V., Gilbert, D., & Murphy, E. (2011). Enhancing performance: Bringing trust, commitment and motivation together in organisations. Journal of General Management, 36(3), 1–18.

    Google Scholar 

  • Hoffman, W. H., Neumann, K., & Speckbacher, G. (2010). The effect of interorganizational trust on make-or-cooperate decisions: disentangling opportunism-dependent and opportunism-independent effects of trust. European Management Review, 7(2), 101–115.

    Article  Google Scholar 

  • Hosmer, L. T. (2007). The ethics of management (6th ed.). New York: McGraw-Hill.

    Google Scholar 

  • HUSELID, M. A. R. K. A. (1995). The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. Academy of Management Journal, 38(3), 635–672.

    Article  Google Scholar 

  • Jhaveri, V. (1968). Mahatma: Life of Gandhi 1869-1948. (Movie in fourteen reels produced by the Gandhi National Memorial Fund).

  • Jones, B., Harris, M. E., & Santana, M. (2008). Mastering developing new leadership for transformative Change. Journal of the Academy of Business & Economics, 8(2), 66–74.

    Google Scholar 

  • Kant, I. (1993/1785). Grounding for the metaphysics of morals (J. W. Ellington, Trans.). Indianapolis, IL: Hackett Publishing Company.

  • Kolp, A., & Rea, P. (2006). Leading with integrity: Character-based leadership. Cincinatti, OH: Atomic Dog Publishing.

    Google Scholar 

  • Kouzes, J. M., & Posner, B. Z. (2003). Credibility: How leaders gain and lose it, why people demand it (2nd ed.). San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Kouzes, J. M., & Posner, B. Z. (2010). The leadership challenge; How to keep getting extraordinary things done in organizations (4th ed.). San Francisco, CA: Pfeiffer.

    Google Scholar 

  • Kripalani, K. (1990). Mahatma Gandhi: All men are brothers—autobiographical reflections. New York: Continuum Publishing.

    Google Scholar 

  • Lennick, D., & Kiel, F. (2007). Moral intelligence: Enhancing business performance & leadership success. Upper Saddle River, NJ: Wharton School Publishing.

    Google Scholar 

  • Lennick, D., & Kiel, F. (2008). Moral intelligence: Enhancing business performance and leadership success. Upper Saddle River, NJ: Wharton School Publishing.

    Google Scholar 

  • Lewis, C. S. (2001). Mere hristianity. SanFrancisco, CA: Harper.

    Google Scholar 

  • Ludema, J. D., & Cox, C. K. (2007). Leadership for world benefit: New horizons for research and practice. In S. K. Piderit, R. E. Fry, & D. L. Cooperrider (Eds.), Handbook of transformative cooperation: New designs and dynamics (pp. 333–373). Palo Alto, CA: Stanford Business Books.

    Google Scholar 

  • Lussier, R. N., & Achua, C. F. (2009). Leadership: Theory, application, and skill development (4th ed.). Mason, OH: South-Western.

    Google Scholar 

  • Manville, B., & Ober, J. (2003). A company of citizens: What the world’s first democracy teaches leaders about creating great organizations. Boston, MA: Harvard Business School Publishing.

    Google Scholar 

  • Maritz Research. (2010, April, 14). Managing in an era of distrust: Maritz Poll reveals employees lack trust in their workplace (online publication).

  • Mehtal, V. (1976). Mahatma Gandhi and his apostles. New York: Viking Press.

    Google Scholar 

  • Neil, B. F. (1999). A systematic approach to teaching ethics in business. Journal of Business Ethics, Part 2, 19(3), 309–318.

    Google Scholar 

  • Paine, L. S. (2003). Value shift: Why companies must merge social and financial imperatives to achieve superior performance. New York: McGraw-Hill.

    Google Scholar 

  • Pava, M. L. (2003). Leading with meaning: Using covenantal leadership to build a better organization. New York: Palgrave Macmillan.

    Google Scholar 

  • Peck, M. S. (2004). The road less traveled, 25th anniversary edition: A new psychology of love, traditional values, and spiritual growth. New York: Touchstone.

    Google Scholar 

  • Perucci, R. (2009). America at risk: The crisis of hope, trust, and caring. Lanham, MD: Rowman & Littlefield Publishers.

    Google Scholar 

  • Pfeffer, J. (1998). The human equation: Building profits by putting people first. Cambridge, MA: Harvard Business School Press.

    Google Scholar 

  • Pfeffer, J. (2007). Human resources from an organizational behavior perspective: Some paradoxes explained. Journal of Economic Perspectives, 21(4), 115–134.

    Article  Google Scholar 

  • Prewitt, M. (2003, June 9). Chick-fil-A founder inspires crowd with insights, truisms. Nation’s Restaurant News, 37(23), 94.

    Google Scholar 

  • Puranam, P., & Vanneste, B. S. (2009). Trust and governance: Untangling a tangled web. Academy of Management Review, 34(1), 11–31.

    Article  Google Scholar 

  • Quinn, R. E. (1996). Deep change: Discovering the leader within. San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Quinn, R. E. (2004). Building the bridge as you walk on it: A guide for leading change. San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Quinn, R. E. (2005, July–August). Moments of greatness: entering the fundamental state of leadership. Harvard Business Review, 75–83.

  • Reich, R. B. (2011). Aftershock: The next economy and America’s future. New York: Random House.

    Google Scholar 

  • Reina, D. S., & Reina, M. L. (2006). Trust and betrayal in the workplace: Building effective relationships in your organization (2nd ed.). San Francisco, CA: Berrett-Koehler Publishers.

    Google Scholar 

  • Roberts, L. M., Dutton, J. E., Spreitzer, G. M., Heaphy, E. D., & Quinn, R. E. (2005). Composing the reflected best-self portrait: Building pathways for becoming extraordinary in work organizations. Academy of Management Review, 30(4), 712–736.

    Article  Google Scholar 

  • Savage-Austin, A. R., & Honeycutt, A. (2011). Servant leadership: A phenomenological study of practices, experiences, organizational effectiveness, and barriers. Journal of Business & Economics Research, 9(1), 49–54.

    Google Scholar 

  • Schein, E. A. (2010). Organizational culture and leadership. San Francisco, CA: Wiley.

    Google Scholar 

  • Schmall, E. (2007). The cult of Chick-fil-A. Forbes, 180(2), 80–83.

    Google Scholar 

  • Senge, P. M. (2006). The fifth discipline: The art & practice of the learning organization. New York: Crown Publishing.

    Google Scholar 

  • Sheean, V. (1970). Mahatma Gandhi: A great life in brief. New York: Alfred A. Knopf.

    Google Scholar 

  • Singh, J. (2008). Impostors Masquerading as Leaders: Can the Contagion be Contained? Journal of Business Ethics, 82(3), 733–745.

    Article  Google Scholar 

  • Sisodia, R. S., Wolfe, D. B., & Sheth, J. N. (2007). Firms of endearment: How world class companies profit from passion and purpose. Upper Saddle River, NJ: Wharton School of Publishing.

    Google Scholar 

  • Solomon, R. C. (1992). Ethics and excellence: Cooperation and integrity in business. New York: Oxford University Press.

    Google Scholar 

  • Staub, R. E., I. I. (2007). The heart of leadership: 12 Practices of courageous leaders. Provo, UT: Executive Excellence Publishing.

    Google Scholar 

  • Taylor, B. (2003). Corporate governance: The crisis, investors’ losses, and the decline in public trust. Corporate Governance: An International Review, 11(3), 155–163.

    Article  Google Scholar 

  • Ulrich, D., Smallwood, N., & Sweetman, K. (2008). The leadership code: Five rules to live by. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. (2005). Organizing and the process of sensemaking. Organization Science, 16(4), 409–421.

    Article  Google Scholar 

  • Werhane, P. H. (2007). Women leaders in a globalized world. Journal of Business Ethics, 74, 425–435.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Georgia Southwestern State University, Americus, GA, USA

    Cam Caldwell, Joe Chaudoin, Jonathan Post & Gaynor Cheokas

  2. Weber State University, Ogden, UT, USA

    Rolf D. Dixon

  3. Liberty University, Lynchburg, VA, USA

    Larry A. Floyd

Authors
  1. Cam Caldwell
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rolf D. Dixon
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Larry A. Floyd
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Joe Chaudoin
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Jonathan Post
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Gaynor Cheokas
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Cam Caldwell.

Additional information

Rolf D. Dixon, a co-author and key contributor to this paper, past away in 2011 while this paper was under review.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Caldwell, C., Dixon, R.D., Floyd, L.A. et al. Transformative Leadership: Achieving Unparalleled Excellence. J Bus Ethics 109, 175–187 (2012). https://doi.org/10.1007/s10551-011-1116-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-011-1116-2

Keywords

  • Ethical leadership
  • Transformative leadership
  • Covenantal leadership
  • Ethical stewardship
  • Level 5 leadership
  • Servant leadership
  • Principle-centered leadership
  • Transformational leadership
  • Charismatic leadership