Law and the ethics of transformational leadership

Black’s Law Dictionary defines law as a body of rules of action or conduct that govern behavior of individuals within society. A contemporary definition of ethical leadership is leadership that engages in ethical conduct that is based on right or wrong behavior towards members of society. Therefore, a common nexus between law and ethical leadership is a concern for the well‐being of members of society. The purpose of this article is to explore the relationship between law and ethical leadership. Specifically, through analysis of several legal cases, the author seeks to illustrate how applying principles of transformational leadership: idealized influence, intellectual stimulation, inspirational motivation and individualized consideration, to the ethical dilemmas faced by managers in the respective cases, would have diminished the need for involvement by the courts. Consequently, this article concludes that applying principles of transformational leadership will more likely than not lead to less litigation and better ethical outcomes than the more common transactional leadership style.