Responsible Leadership Outcomes Via Stakeholder CSR Values: Testing a Values-Centered Model of Transformational Leadership

  • Kevin S. GrovesEmail author
  • Michael A. LaRocca


A values-centered leadership model comprised of leader stakeholder and economic values, follower values congruence, and responsible leadership outcomes was tested using data from 122 organizational leaders and 458 of their direct reports. Alleviating same-source bias concerns in leadership survey research, follower ratings of leadership style and follower ratings of values congruence and responsible leadership outcomes were collected from separate sources via the split-sample methodology. Results of structural equation modeling analyses demonstrated that leader stakeholder values predicted transformational leadership, whereas leader economic values were associated with transactional leadership. Follower values congruence was strongly associated with transformational leadership, unrelated to transactional leadership, and partially mediated the relationships between transformational leadership and both follower organizational citizenship behaviors and follower beliefs in the stakeholder view of corporate social responsibility. Implications for responsible leadership and transformational leadership theory, practice, and future research are discussed.


Corporate social responsibility Organizational citizenship behaviors Responsible leadership Stakeholder values Transformational leadership Values congruence 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Agle, B., Mitchell, R., & Sonnenfeld, J. (1999). Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal, 42(5), 507–525.CrossRefGoogle Scholar
  2. Anderson, J., & Gerbing, D. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411–423.CrossRefGoogle Scholar
  3. Arbuckle, J. L., & Wothke, W. (1999). Amos 4.0. Chicago, IL: SmallWaters Corporation.Google Scholar
  4. Avolio, B., & Gibbons, T. C. (1988). Developing transformational leaders: A lifespan approach. In J. A. Conger & R. N. Kanungo (Eds.), Charismatic leadership: The elusive factor in organizational effectiveness. San Francisco, CA: Jossey-Bass.Google Scholar
  5. Bagozzi, R. P., & Heatherton, T. F. (1988). A general approach to representing multifaceted personality constructs: Application to state self-esteem. Structural Equation Modeling, 1, 35–67.CrossRefGoogle Scholar
  6. Bandura, A. (1977). Social learning theory. Oxford: Prentice-Hall.Google Scholar
  7. Barling, J., Christie, A., & Turner, N. (2008). Pseudo-transformational leadership: Towards the development and test of a model. Journal of Business Ethics, 81, 851–861.CrossRefGoogle Scholar
  8. Barling, J., Weber, T., & Kelloway, K. E. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81(6), 827–832.CrossRefGoogle Scholar
  9. Baron, R., & Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.CrossRefGoogle Scholar
  10. Bass, B. (1985). Leadership and performance beyond expectations. New York: Free Press.Google Scholar
  11. Bass, B., & Avolio, B. (1993). Transformational leadership and organizational culture. Public Administration Quarterly, 17(1), 112–121.Google Scholar
  12. Bass, B., & Avolio, B. (2000). Multifactor leadership questionnaire. Redwood City, CA: Mind Garden.Google Scholar
  13. Bass, B., Avolio, B., & Atwater, L. (1996). The transformational and transactional leadership of men and women. International Review of Applied Psychology, 45, 5–34.CrossRefGoogle Scholar
  14. Bass, B., & Steidlmeier, P. (1999). Ethics, character, and authentic transformational leadership behavior. The Leadership Quarterly, 10(2), 181–217.CrossRefGoogle Scholar
  15. Becker, T., Billings, R., Eveleth, D., & Gilbert, N. (1996). Foci and bases of employee commitment: Implications for job performance. Academy of Management Journal, 39(2), 464–482.CrossRefGoogle Scholar
  16. Brown, M., & Treviño, L. (2006). Socialized charismatic leadership, values congruence, and deviance in work groups. Journal of Applied Psychology, 91(4), 954–962.CrossRefGoogle Scholar
  17. Brown, M., & Treviño, L. (2009). Leader–follower values congruence: Are socialized charismatic leaders better able to achieve it? Journal of Applied Psychology, 94(2), 478–490.CrossRefGoogle Scholar
  18. Burns, J. M. (1978). Leadership. New York: Harper Row.Google Scholar
  19. Carless, S. A. (1998). Gender differences in transformational leadership: An examination of superior, leader, and subordinate perspectives. Sex Roles, 39(11–12), 887–904.CrossRefGoogle Scholar
  20. Conger, J. A. (1999). Charismatic and transformational leadership in organizations: An insider’s perspective on developing streams of research. Leadership Quarterly, 10(2), 145–179.CrossRefGoogle Scholar
  21. De Luque, M., Washburn, N., Waldman, D., & House, R. (2008). Unrequited profit: How stakeholder and economic values relate to subordinates’ perceptions of leadership and firm performance. Administrative Science Quarterly, 53(4), 626–654.CrossRefGoogle Scholar
  22. Doh, J. P., & Stumpf, S. A. (2005). Handbook on responsible leadership and governance in global business. Cheltenham: Edward Elgar.Google Scholar
  23. Dumdum, U., Lowe, K., & Avolio, B. (2002). A meta-analysis of transformational and transactional leadership correlates of effectiveness and satisfaction: An update and extension. Transformational and Charismatic Leadership, 2, 35–66.Google Scholar
  24. Dvir, T., Eden, D., Avolio, B., & Shamir, B. (2002). Impact of transformational leadership on follower development and performance: A field experiment. Academy of Management Journal, 45(4), 735–744.CrossRefGoogle Scholar
  25. Engelbrecht, A., Van Aswegen, A., & Theron, C. (2004). The effect of ethical values on transformational leadership and ethical climate in organizations. South African Journal of Business Management, 36(2), 19–26.Google Scholar
  26. Friedman, M. (1962). Capitalism and freedom. Chicago: University of Chicago Press.Google Scholar
  27. Ghoshal, S. (2005). Bad management theories are destroying good management practices. Academy of Management Learning and Education, 4, 75–91.CrossRefGoogle Scholar
  28. Ghoshal, S., & Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21(1), 13–47.Google Scholar
  29. Groves, K. (2005). Linking leader skills, follower attitudes, and contextual variables via an integrated model of charismatic leadership. Journal of Management, 31(2), 255–277.CrossRefGoogle Scholar
  30. Hackman, M., Furniss, A., Hills, M., & Paterson, T. (1992). Perceptions of gender-role characteristics and transformational and transactional leadership behaviors. Perceptual and Motor Skills, 75(1), 311–319.CrossRefGoogle Scholar
  31. Hood, J. (2003). The relationship of leadership style and CEO values to ethical practices in organizations. Journal of Business Ethics, 43, 263–273.CrossRefGoogle Scholar
  32. Hui, W., Law, K., Hackett, R., Duanxu, W., & Zhen, X. (2005). Leader–member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48(3), 420–432.CrossRefGoogle Scholar
  33. James, L., Demaree, R., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69(1), 85–98.CrossRefGoogle Scholar
  34. Jensen, M. (2002). Value maximization, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12(2), 235–256.CrossRefGoogle Scholar
  35. Joreskog, K. G., & Sorbom, D. (1993). LISREL 8: Structural equation modeling with the SIMPLIS command language. Chicago, IL: Scientific International Software.Google Scholar
  36. Judge, T., & Piccolo, R. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755–768.CrossRefGoogle Scholar
  37. Jung, D., & Avolio, B. (2000). Opening the black box: An experimental investigation of the mediating effects of trust and value congruence on transformational and transactional leadership. Journal of Organizational Behavior, 21(8), 949–964.CrossRefGoogle Scholar
  38. Kanungo, R. (2001). Ethical values of transactional and transformational leaders. Canadian Journal of Administrative Sciences, 18, 257–265.CrossRefGoogle Scholar
  39. Kristof, A. (1996). Person-organization fit: An integrative review of its conceptualizations, measurement, and implications. Personnel Psychology, 49(1), 1–49.CrossRefGoogle Scholar
  40. Lord, R., & Brown, D. (2001). Leadership, values, and subordinate self-concepts. The Leadership Quarterly, 12(2), 133–152.CrossRefGoogle Scholar
  41. Lowe, K., Kroeck, K., & Sivasubramaniam, N. (1996). Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the MLQ literature. The Leadership Quarterly, 7(3), 385–425.CrossRefGoogle Scholar
  42. Maak, T., & Pless, N. M. (2006a). Responsible leadership in a stakeholder society—a relational perspective. Journal of Business Ethics, 66(1), 99–115.CrossRefGoogle Scholar
  43. Maak, T., & Pless, N. M. (2006b). Responsible leadership. London: Routledge.Google Scholar
  44. Majer, K. (2004). Values-based leadership: A revolutionary approach to business success and personal prosperity. San Diego, CA: Majer Communications.Google Scholar
  45. McAllister, D. (1995). Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38(1), 24–59.CrossRefGoogle Scholar
  46. Meindl, J., & Ehrlich, S. (1987). The romance of leadership and the evaluation of organizational performance. Academy of Management Journal, 30(1), 91–109.CrossRefGoogle Scholar
  47. Mendonca, M. (2001). Preparing for ethical leadership in organizations. Canadian Journal of Administrative Sciences, 18, 266–276.CrossRefGoogle Scholar
  48. Morris, J., Brotheridge, C., & Urbanski, J. (2005). Bringing humility to leadership: Antecedents and consequences of leader humility. Human Relations, 58(10), 1323–1350.CrossRefGoogle Scholar
  49. Organ, D. (1997). Organizational citizenship behavior: It’s construct clean-up time. Human Performance, 10(2), 85–97.CrossRefGoogle Scholar
  50. Pennino, C. (2002). Is decision style related to moral development among managers in the U.S.? Journal of Business Ethics, 41, 337–347.CrossRefGoogle Scholar
  51. Phillips, R. (2003). Stakeholder legitimacy. Business Ethics Quarterly, 13(1), 25–41.CrossRefGoogle Scholar
  52. Pless, N. (2007). Understanding responsible leadership: Role identity and motivational drivers. Journal of Business Ethics, 74, 437–456.CrossRefGoogle Scholar
  53. Pless, N., Maak, T., & Stahl, G. (2011). Developing responsible global leaders through international service learning programs: The Ulysses experience. Academy of Management Learning & Education, 10(2), 237–260.Google Scholar
  54. Podsakoff, P., MacKenzie, S., & Bommer, W. (1996). Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors. Journal of Management, 22(2), 259–299.Google Scholar
  55. Premeaux, S. (2004). The current link between management behavior and ethical philosophy. Journal of Business Ethics, 51, 269–278.CrossRefGoogle Scholar
  56. Rest, J. (1990). DIT manual (3rd ed.). Minneapolis, MN: Center for the Study of Ethical Development.Google Scholar
  57. Rousseau, D. (1985). Issues of levels in organizational research: Multi-levels and cross level perspectives. In L. L. Cummings & B. M. Staw (Eds.), Research in organizational behavior. Greenwich, CT: JAI.Google Scholar
  58. Shamir, B., House, R., & Arthur, M. (1993). The motivational effects of charismatic leadership: A self-concept based theory. Organization Science, 4, 577–594.CrossRefGoogle Scholar
  59. Singhapakdi, A., Vitell, S., Rallapalli, K., & Kraft, K. (1996). The perceived role of ethics and social responsibility: A scale development. Journal of Business Ethics, 15(11), 1131–1140.CrossRefGoogle Scholar
  60. Sosik, J. (2005). The role of personal values in the charismatic leadership of corporate managers: A model and preliminary field study. The Leadership Quarterly, 16(2), 221–244.CrossRefGoogle Scholar
  61. Trevino, L. (1986). Ethical decision-making in organizations: A person–situational interaction model. Academy of Management Review, 11(3), 601–617.Google Scholar
  62. Turner, N., Barling, J., Epitropaki, O., Butcher, V., & Milner, C. (2002). Transformational leadership and moral reasoning. Journal of Applied Psychology, 87(2), 304–311.CrossRefGoogle Scholar
  63. Waddock, S., & Graves, W. (1997). The corporate social performance–financial perform link. Strategic Management Journal, 18, 303–319.CrossRefGoogle Scholar
  64. Waldman, D., & Galvin, B. (2008). Alternative perspectives of responsible leadership. Organizational Dynamics, 37(4), 327–341.CrossRefGoogle Scholar
  65. Waldman, D., Siegel, D., & Javidan, M. (2006). Components of CEO transformational leadership and corporate social responsibility. Journal of Management Studies, 43(8), 1703–1725.CrossRefGoogle Scholar
  66. Walsh, J. (2005). Book review essay: Taking stock of stakeholder management. Academy of Management Review, 30(2), 426–438.CrossRefGoogle Scholar
  67. Yukl, G. (2006). Leadership in organizations (6th ed.). Upper Saddle River, NJ: Prentice-Hall.Google Scholar

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.Graziadio School of Business and ManagementPepperdine UniversityLos AngelesUSA

Personalised recommendations