Analysis of spiritual leadership and ethical climate for banking industry using an integrated IT2 fuzzy decision-making model

Abstract

The study aims to propose a novel model to define the role of spiritual leadership on the ethical climate for the banking industry. There are mainly three different stages in this model. Firstly, the criteria of each factor are selected with correlation coefficients by considering the balanced scorecard (BSC)-based linguistic evaluations. After that, these criteria are weighted by using interval type-2 (IT2) fuzzy decision-making trial and evaluation laboratory (DEMATEL). The third and the final stage aims to rank 5 biggest banks of Turkey which are quoted in İstanbul Stock Exchange. Within this framework, IT2 fuzzy technique for order preference by similarity to ideal solution (TOPSIS) approach is considered. The findings demonstrate that the spiritual leadership has a significant influence on the ethical climate. Altruistic love is the most important spiritual leadership dimension to improve ethical climate in the organization. On the other side, it is also concluded that private banks in Turkey are the most successful with respect to the ethical climate. The results give an idea that spiritual leader contributes to the improvement of the ties of love and respect among employees. The main reason is that altruistic love improves the judgement and sensitivity competencies of the ethical so that employees tend to be working in a more ethical way.