The Moderating Effect of Ethical Climate on the Relationship of Transformational Leadership and Integrity in Kedah State, Malaysia

Abstract

The goal of this research is to provide light on the link between transformative leadership and integrity in the public sector of Kedah State, Malaysia when an ethical atmosphere is implemented among leaders. The continuing flow of governance failures, fraud and other unethical conduct, has now made public sector governance a trending issue. Public sectors all over the world must now justify their sources and use of public resources while also improving the quality of their services. Raising the degree of integrity awareness among public officials, particularly their leaders, is one of the most crucial issues for them. The previous study has shown that transformative leadership affects organisational integrity, but another important factor to consider is the ethical climate. The majority of previous research has revealed significant relationships between the variables. Quantitative methods utilising a 5-point Likert scale were utilised in the study. The integrity questionnaire is based on the Inventori Nilai Integriti (InNI) and has 21 measurement items, 17 transformational leadership items, and 10 ethical climate scale elements. The participants in this study are 266 public sector leaders from the Malaysia's state of Kedah. Partial Least Squares was a method used (PLS). When an ethical atmosphere is implemented among leaders in the public sector in Kedah State, Malaysia, a negative association between transformative leadership and integrity is discovered. The ethical context, according to the research, has a significant and detrimental influence on the link between transformative leadership and integrity. The findings of this study are valuable for state and local government development since they give information about the Malaysian state of Kedah. The findings have broader social implications because they educate organisations about the importance of an ethical climate in preventing integrity.