The present article is a study of concepts and notions underlying the phenomena of value-based leadership as well as of particularities and challenges of it in transition societies. The necessity of this study was dictated by global trends of movement towards flatter organizations, with less hierarchy, built on trust and commitment rather than on control and compliance; the growing importance of the knowledge heavy sector and therefore of the human factor; the increasing awareness of stakeholders demand special attention towards the issues of values and morality. The study tries to look first at the leadership paradigms that are more value- friendly as it is said that initially leadership paradigms have specific values ingrained into them. These are determined to be the transformational and dispersed leadership paradigms, the one gradually evolving into the other. As reality is complex and full of contradictions it is hard to make choices having as a reference point purely values. Integrity thus is treated as a central virtue that helps people and organizations align their behavior to certain values and principles. The present study tackles issues of personal and organizational integrity as basis of personal and organizational value-based leadership respectively.