From Leadership Recession to Systemic Leadership: An Ethical Model of Recovery

The contemporary crisis of trust in institutions and organizations has intensified what recent literature describes as a “leadership recession”, characterized by declining ethical legitimacy and limited capacity to manage systemic change. This article introduces the concept of leadership recession as a systemic and ethical phenomenon and proposes an ethical–systemic leadership model as potential pathway toward leadership recovery. Drawing on Aristotelian ethics—particularly the concepts of phronesis (practical wisdom), justice, and virtue—combined with systems theory and change management, the study develops an integrated theoretical framework that reconceptualizes leadership legitimacy as both a moral and organizational condition. Empirically, the study is based on a quantitative survey of 402 employees from the public and private sectors in Greece. The findings indicate that employees’ perceptions of effective leadership are positively associated with ethical virtues and leaders’ capacity to understand and manage organizational interdependencies. Ethical legitimacy emerges as an important relational mechanism that enhances trust, participation, and acceptance of organizational change. The article contributes to leadership and administrative sciences literature by introducing the notion of leadership recession and by proposing an ethical–systemic leadership paradigm that integrates values-based leadership, systemic thinking, and change management. The findings offer both theoretical insights and practical implications for leaders and organizations seeking sustainable and ethically legitimate transformation.