ABSTRACT
The founder of Microsoft, Bill Gates, used transactional leadership as the CEO of Microsoft to focus on its global growth. In contrast with transactional leadership, a transformational leader is one who focuses on the development and implementation of a long-term strategic vision. It is through transformational leadership that employees are encouraged to be innovative and creative in developing new projects which will be beneficial to the firm. As a result, a transformational leadership style allows the leader to inspire and develop an ethical commitment among employees as well as provide clarity and holistic meaning to the goals of the expectations. As a pioneer of online streaming of movies, Reed Hastings embraced a transformational leadership style in this disruptive industry. It is through the evaluation of the firm via the corporate governance framework that stakeholders can determine the firm's ethical commitment based on its actions.
