The relationship between ethical leadership and corporate governance: study of an Algerian senior managers sample

Abstract EN

This study aimed to examine the impact of ethical leadership on corporate governance in a sample of Algerian senior managers.

the study used a quantitative methodology, it developed a conceptual model addressing the two variables’ relationship.

to measure variables and collect data, a designed questionnaire was sent to a purposive sample of senior managers and members of board of directors.

data analysis was done using partial least squares structural equation modelling (PLS-SEM) and linear regression.

the study found that ethical leadership has a significant positive impact on corporate governance and it explains 52.5% of its variability in Algerian corporations and the variability of its four reflective factors, respectively, auditing function (39.60%) stakeholder rights (36.40%), transparency and information disclosure (33.40%) and the role of the board of directors (16.40%).

the study concluded that Algerian senior managers exercise moral leadership implicitly relying on personal ethical leadership and that boards of directors can’t provide codes of conduct to promote ethical behaviour.