An ethical leadership competency framework for managing the efficiency of internal controls and accountability to facilitate effective governance

Abstract

This study aimed to develop an ethical leadership competency framework to strengthen internal controls and accountability, thereby enhancing effective governance. A cross-sectional quantitative research design was employed, using a purposive sample of 274 permanently employed officials at post levels 9 to 15 from two national government institutions. The sample represented diverse sociodemographic characteristics, including age, race, gender, years of public service, staff category, and educational level. The study examined the relationships between ethical leadership, internal control, accountability, and effective governance, while also analysing perceptual differences across sociodemographic groups to inform the development of an ethical leadership competency framework and a governance and ethical leadership scorecard. Data were analysed using descriptive statistics, correlation analysis, and inferential techniques, with structural equation modelling applied to test the relationships among the constructs. Ethical leadership was operationalised through three dimensions: character, influence, and morality. Effective governance was measured using six dimensions: inclusiveness, managerial structures, staff support, management controls, staff loyalty, and work–life balance. Internal control effectiveness was assessed through compliance frameworks and structures, compliance culture, risk management, and operational controls, while accountability management was measured at both strategic and operational levels. The results revealed significant and positive relationships among ethical leadership, internal control, accountability, and effective governance. Ethical leadership was found to enhance accountability and strengthen internal control systems. Internal control emerged as the central pathway to effective governance, exerting a particularly strong influence on governance Page | vi outcomes. While ethical leadership plays a critical enabling role, the quality of governance was primarily driven by the robustness of internal control systems rather than leadership practices alone. Governance was most effective when ethical leadership behaviours were embedded within organisational practices, creating an environment conducive to accountability. Sociodemographic variables, including age, race, gender, length of public service, staff category, and education level, significantly influenced perceptions of ethical leadership, governance, internal control, and accountability. This study contributes to the field of Business Administration by proposing an ethical leadership competency framework and scorecard to support the institutionalisation of ethical leadership, enhance internal controls and accountability, and promote effective governance in both public and private sector organisations.