The demand for moral leadership in the workplace has seen a significant uptick, with the importance employees place on it rising from 86% in 2020 to 93% in 2024, as per The HOW Institute for Society. This type of leadership emphasizes principles over personal gain, trusts and empowers employees instead of micromanaging, and values diverse viewpoints for growth and understanding. The institute’s research underscores the profound impact moral leadership has on organizational culture, including enhancing trust, loyalty, and even financial performance.
One notable finding from a survey of 2,500 U.S.-based workers is the effect of moral leadership on employee retention. Those working under leaders who excel in moral leadership are far less likely to seek new employment compared to those under leaders who score poorly in this area. Furthermore, moral leaders are not only accountable but also create an environment where accountability is valued and mistakes are openly addressed.
The report sheds light on the contrast between formal authority, which is rooted in hierarchical position, and moral leadership, which is about inspiring and connecting with others through shared values and purposes. Despite the growing recognition of its value, there remains a significant gap between the demand for and supply of moral leadership. Many employees feel that only a small fraction of CEOs and managers exhibit the qualities associated with this type of leadership consistently.
A survey by GE and Ipsos highlighted a related issue, revealing a mismatch between senior executives’ and entry-level staff’s perceptions of whether leadership effectively represents the company’s values and goals. While almost all C-suite executives believed they embodied the company’s leadership mindset, less than 60% of entry-level workers agreed.
Deloitte’s findings also point to a broader challenge: leaders are struggling to navigate the changing work landscape, with many unsure of what to prioritize. This uncertainty, along with the recent turmoil of layoffs, has eroded trust in leadership, according to a report by Challenger, Gray & Christmas. This erosion is attributed to perceived inefficacy, inconsistency, and poor communication from the top.
The growing call for moral leadership reflects a broader desire for leaders who not only drive business success but also foster a culture of trust, integrity, and shared values. Dov Seidman, founder and chairman of The HOW Institute, emphasizes that moral leadership is no longer just admirable but essential for navigating today’s complex and rapidly changing work environment.
