Transformational and transactional leadership should be judged to be ethical based on two different sets of values, motives and assumptions. Transformational leaders, have an organic world view and moral altruistic motives grounded in a deontological perspective (concerned with the duties and rights which shape our actions), whereas transactional leaders have an atomistic world view and mutual altruistic motives grounded in a teleological perspective (concerned with the consequences of our action). Thus, whilst different influence process may be at work in the two kinds of leaders and their relationship whit followers, each can be conducted in an ethically sound(or unsound) way