It is proposed that transformational leadership is likely to be associated with higher ethical decision making, while transactional leadership should be related to lower ethical decision making. However, little empirical research provides support for these claims. Using a structured interview schedule, data from 247 managers was collected from three established higher education institutions in Mauritius. Findings indicate that surprisingly, transformational leadership had a negative impact on ethical judgment and intention of subordinates in relation to ethical issues including bribery, nepotism, padding up of expenses’ account and political favouritism, suggesting the possibility of pseudo-transformational leadership or the influence of cultural factors. Likewise, passive and laissez-faire leadership were also negatively related to subordinates’ ethical judgment and intention with respect to the same scenarios. Implications for the study to researchers and managers as well as future research directions are discussed.