Does Ethical Leadership Create Public Value? Empirical Evidences from Banking Sector of Pakistan

Year 2016, Volume: 6 Issue: 4, 262 - 270, 01.06.2016

Abdul Sami Ahmad Jusoh Muhammad Imran Qureshi

Abstract

Public value is relatively new concept in the field of public administration and got considerable attention from the public administrators and researchers.
Public value is considered as the contribution of an organization to the society. Citizens pay taxes to the government and in return they demanded benefits,
respects and extra care of their rights at public offices. The major focus of researchers is how to create public value. In this article we discuss the role of
ethical leadership (EL) in creating public value among employees. Leaders of an organization are the key persons who formulate the behavior of their
subordinates. With their vision, directives, attitude and behavior they give a direction to their subordinates that how they have to act in that particular
organization. Ethical leaders in an organization develop the ethical values in their employees and they always ready to maintain ethical standard of
the organization. They consider them as a servant of public and facilitate them beyond their expectation. They feel that they are accountable towards
public because they are custodian of public money. These ethical values create public value among the employees and they wholeheartedly devote
themselves to fulfill the expectations of public and their customers. We tested our hypothesis on 180 employees of public sector bank in Pakistan. The
result of this analysis confirms that EL is an important phenomenon to create public value among employees.

Keywords

Public Value, Ethical Leadership, Public Organization, Public Managers