Less than 10% of CEOs are Leading Effectively, According to a New Report from The HOW Institute for Society

New data shows that while the demand for moral leadership is at an all-time high, supply remains critically low

NEW YORK, Jan. 22, 2025 /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, 95% of employees believe the need for moral leadership is more urgent than ever, up from 86% in 2020. Yet only 9% of CEOs and 11% of managers consistently demonstrate behaviors associated with moral leadership.

The 2025 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 2,000 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.

"This is our fourth 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 relationships within communities and society," said Dov Seidman, Founder and Chairman of The HOW Institute for Society. "Our research this year demonstrates both the persistent scarcity of such leadership and its profound impact, when present, on everything – from the levels of trust within teams and employee loyalty to an organization's ability to compete, innovate, and win."

Among the headlines from this year's report:

Moral leaders deliver better business results  

• 74% of employees with leaders in the top tier of moral leadership report that their organization has satisfied customers, compared to 13% of those with bottom-tier leaders.
• 69% report that their organizations are resilient in the face of economic downturn or market disruptions, compared to 9% of those with bottom-tier leaders.
• 72% 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 10% of employees reporting to top-tier managers are actively job hunting, compared to 31% of those with bottom-tier managers.
• 96% of employees with top-tier managers would recommend their workplace versus only 70% with bottom-tier managers.

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

• 71% 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 7% of those with bottom-tier leaders.
• 78% report the autonomy to structure their work in the way they think is best, compared to only 11% of those with bottom-tier leaders.
• 80% report their organization encourages them to try new ideas, compared to only 5% of those with bottom-tier leaders.

"We believe the single greatest leadership challenge of the 21st century is to nurture and develop moral leaders who lead with moral authority and ensure that these leaders, and only these leaders, occupy positions of formal authority at every level, sector, and dimension of society," said Seidman. "It is my sincere hope that this year's report will encourage leaders to take the deliberate and necessary steps to build their own moral authority, scale moral leadership across their organizations, and seize the opportunities of our reshaped world. Our findings on how to effectively inspire others, pause intentionally and apologize authentically offer concrete pathways for developing these essential leadership capabilities."

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 at www.thehowinstitute.org/e-news-signup/ and follow us on LinkedIn @TheHOWInstituteforSociety and X @TheHOWInstitute.

CONTACT: Victoria Finlay, [email protected]

SOURCE The HOW Institute for Society