The Role of Transformational Leadership in the Formulation and Implementation of Responsible Leadership across Organisational Levels

Assignment Brief

You are tasked by United Nations to work as a consultant and write a working paper on following topic:

• What is the role of traditional leadership processes (e.g., transformational, servant, or authentic leadership) in Responsible leadership formulation and implementation at different organisational levels? (Please choose only one example)

Utilising appropriate leadership theory, you will be required to outline and analyse the above-mentioned problem and surrounding context; and following this initial analysis you will develop a working paper to explain your findings.

The aim is that companies would read this document and use it to think about responsible leadership in their own context.

Sample Answer

The Role of Transformational Leadership in the Formulation and Implementation of Responsible Leadership across Organisational Levels

Introduction

Responsible leadership has become a defining feature of modern organisations that seek to balance profitability with ethical, social, and environmental accountability. As global concerns around sustainability, social justice, and corporate governance intensify, leadership models that encourage integrity and stakeholder engagement are becoming more essential. This paper explores how transformational leadership, a traditional yet evolving leadership process, contributes to the development and implementation of responsible leadership across different organisational levels. Transformational leadership is particularly relevant because it inspires shared purpose, fosters moral responsibility, and empowers employees to align personal values with corporate goals. Using examples from Unilever, a company recognised for its commitment to sustainable and ethical business practices, this paper critically analyses the mechanisms through which transformational leadership facilitates responsible leadership.

Transformational Leadership and Its Core Principles

Transformational leadership, first introduced by James MacGregor Burns (1978) and expanded by Bernard Bass (1985), is based on four key components: idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration. Leaders adopting this approach act as role models who demonstrate ethical integrity, communicate a compelling vision, encourage innovation, and support the personal growth of employees. Unlike transactional leadership, which focuses on exchange relationships and performance rewards, transformational leadership aims to change followers’ beliefs and motivations, aligning them with broader organisational and societal goals.

Within the context of responsible leadership, transformational leaders are not only concerned with efficiency or profit maximisation but also with developing ethical awareness and long-term sustainability. They promote inclusive dialogue with stakeholders, encourage transparency, and ensure decisions contribute positively to society. This makes transformational leadership a natural foundation for responsible leadership, as both share common principles of moral guidance, stakeholder inclusion, and visionary purpose.

Responsible Leadership: Concept and Importance

Responsible leadership, as discussed by scholars such as Maak and Pless (2006), involves balancing the interests of multiple stakeholders, including employees, customers, communities, and the environment, while maintaining ethical integrity and long-term accountability. It shifts leadership from a self-centred to a collective and moral practice. In today’s globalised economy, where decisions made in one region can affect communities worldwide, responsible leadership demands a balance between performance and principles.

Companies like Unilever have adopted this model by embedding sustainability into their core business strategy. Under former CEO Paul Polman, the company moved away from short-term shareholder value toward long-term stakeholder engagement. Polman’s transformational style, characterised by visionary leadership, ethical decision-making, and empowerment, proved crucial in aligning organisational culture with Unilever’s Sustainable Living Plan.

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