Demand for Moral Leadership in the Workplace Outstrips Supply, According to New Report from The HOW Institute for Society

New data show that 94% of employees agree the need for moral leadership is more urgent than ever, yet less than 10% of CEOs are leading effectively

NEW YORK, Feb. 5, 2026 /PRNewswire/ -- A new study by The HOW Institute for Society published today finds the demand for moral leadership among U.S. workers is at an all-time high. In fact, 94% of employees believe the need for moral leadership is more urgent than ever, up from 86% in 2020. Yet only 6% of CEOs and 9% of managers consistently demonstrate behaviors associated with top-tier moral leadership.

The 2026 State of Moral Leadership in Business report is the latest in an ongoing study that measures "the how" of leadership. In this year's study, The HOW Institute for Society asked more than 2,500 U.S. workers to assess the presence, absence, or frequency of a set of leadership behaviors and practices in their workplaces – from how their leaders put principles and values before self-interest in decision making, how they thoughtfully extend trust to colleagues rather than micromanaging them, and, how they listen and learn from perspectives that challenge their views and assumptions, to how they shape organizational culture, and how leaders in positions of formal authority wield their power with consideration for the concerns and aspirations of the people they lead.

A rigorous statistical analysis of the data employs a tiered analytical framework to assess leadership behaviors, path analysis to trace causal relationships between organizational factors, and mixed-methods design that combines quantitative measurement with qualitative accounts. Five tiers (top, second, third, fourth, and bottom) indicate the extent to which the behaviors associated with moral leaders are present in the workplace.

"This is our fifth in an ongoing series of reports that study the presence of behaviors and practices associated with moral leadership and how, when present, they strengthen an organization's performance, inspire elevated behavior in people, and forge deeper empathy—which is so necessary right now," said Dov Seidman, Founder and Chairman of The HOW Institute for Society. "Our research once again shows both the persistent scarcity of moral leadership and its profound impact, when present, on everything – from the levels of trust within teams, commitment to the organization, courage to bridge divides, and ability to compete, innovate, and win."

Among the key findings from this year's report:

Moral leaders deliver better business results

• 78% of employees with leaders in the top tier of moral leadership report that their organization has satisfied customers, compared to 14% of those with bottom-tier leaders.
• 76% report that their organizations are resilient in the face of economic downturn or market disruptions, compared to 7% of those with bottom-tier leaders.
• 77% report that their organization is positioned to improve its business results in the next 12 months, compared to 8% of those with bottom-tier leaders.

Moral leaders inspire loyalty

• Only 3% of employees reporting to top-tier managers in the least polarized workplaces report they want to leave their positions, compared to 18% of those with bottom-tier managers.
• 95% of employees with top-tier managers would recommend their workplace versus only 64% with bottom-tier managers.

Moral leaders foster the freedom for people to express themselves and innovate

• 78% of employees with leaders in the top tier of moral leadership report they are comfortable in engaging in respectful dialogue with colleagues about controversial current events, compared to only 5% of those with bottom-tier leaders.
• 77% report the autonomy to structure their work in the way they think is best, compared to only 11% of those with bottom-tier leaders.
• 83% report their organization encourages them to try new ideas, compared to only 4% of those with bottom-tier leaders.

"The often-stark differences between organizations with top-tier and bottom-tier moral leadership make obvious the value of values-based behavior at work and in society. We believe the single greatest leadership challenge of the 21st century is to nurture and develop leaders who lead with moral authority and ensure that these leaders, and only these leaders, occupy positions of formal authority at every level of companies and institutions in every sector of society," said Seidman. "Now more than ever, it is my sincere hope that this year's report will encourage leaders to take the critical steps to build their own moral authority, scale moral leadership across their teams, organizations, and communities. Our insights on how to effectively inspire others, navigate polarizations, pause intentionally, and apologize authentically offer concrete pathways for developing the essential leadership capabilities that create the environment for better outcomes."

About The HOW Institute for Society

The HOW Institute for Society seeks to build and nurture a culture of moral leadership, principled decision-making and values-based behavior that enables individuals and institutions to meet the profound social, economic, and technological changes of the 21st Century. Leading the strategy for The HOW Institute is Founder Dov Seidman, a successful entrepreneur and CEO, best-selling author, and a teacher, who has devoted his life and professional career to making philosophy and philosophical frameworks practical in the business arena and across all sectors of society. For more information, sign up for our newsletter and follow us on LinkedIn @TheHOWInstituteforSociety. The spring cohort of fellows for the NXT-GEN Fellowship for Moral Leadership begins February 25. Learn more at thehowinstitute.org.

Media Contact:
Jennifer Uner
[email protected] 

SOURCE The HOW Institute for Society