The Role of Trust in Effective Leadership

Abstract

This literature review examines the relationship between leadership behavior and organizational trust across diverse contexts. Studies in Latvia, manufacturing plants, Lithuania, and on leadership styles highlight the significance of ethical, transformational, and democratic leadership in fostering trust and commitment. Findings reveal that ethical leadership prioritizing integrity and fairness significantly contributes to trust-building processes. Transformational leadership in manufacturing plants enhances team cohesion and trust through emotional intelligence. In Lithuania, leadership relationships mediate the link between ethical culture and organizational trust. Contrasting democratic leadership positively influences trust levels, while non-democratic styles diminish trust. These insights emphasize the universal relevance of ethical, transformational, and democratic leadership in cultivating trust and collaboration within organizations, providing actionable guidance for leaders striving for sustained success.