Leadership in Crisis: Survey Reveals Over 90% of Employees Doubt Their CEO's Moral Compass
FOR IMMEDIATE RELEASE — A damning new report on the state of corporate ethics reveals a profound disconnect in American workplaces: while 94% of employees agree moral leadership is critically urgent, fewer than 10% believe their chief executives are demonstrating it effectively.
The 2026 study from the HOW Institute for Society, provided exclusively to Fortune, surveyed more than 2,500 U.S. workers. It benchmarks organizations and managers across five tiers of moral leadership, drawing a direct correlation to business performance. The findings are stark. In top-tier companies, 78% of employees feel they have satisfied customers, compared to a mere 14% in bottom-tier organizations. Similarly, 83% in leading firms say innovation is encouraged, versus just 4% in lagging ones.
"The data confirms what many feel intuitively—that ethical leadership isn't a soft skill, but a hard driver of results," said Dov Seidman, founder of LRN and the HOW Institute, who has tracked leadership behavior for decades. "Leaders in the top tier build resilience, foster fierce loyalty, and simply get better outcomes."
The retention gap is particularly telling. Only 3% of employees working under top-tier managers in low-polarization environments want to leave their jobs. That number jumps to 18% for those reporting to bottom-tier bosses.
Seidman outlines actionable steps for leaders aiming to climb the tiers: 1) Speak truth despite personal risk; 2) Offer authentic apologies and make amends for mistakes; 3) Frame decisions within the organization's broader purpose; 4) Mentor others to develop ethical judgment; and 5) Embark on a collective journey toward moral leadership with one's team.
"The benefits of reaching that top tier are massive," Seidman emphasized in an interview. "It's the ultimate competitive advantage in today's volatile market."
The full study is available for review here.
Voices from the Floor
Michael R., Mid-Level Manager, Tech: "This resonates deeply. Our CEO talks about 'values' in all-hands meetings, but then we see quarterly decisions that completely undermine them. It creates a cynical, disengaged culture. Seidman's point about explaining decisions in context of purpose is key—without that, it's all just empty rhetoric."
Priya Chen, HR Director, Manufacturing: "The correlation with retention isn't surprising. People don't leave bad jobs; they leave bad bosses. This study gives us quantifiable metrics to advocate for leadership development programs focused on ethical behavior, not just financial targets."
David K., Former Financial Analyst: "Only 10% are seen as effective? That's wildly optimistic. In my experience, it's closer to 2%. Most C-suite executives are morally bankrupt, focused solely on share price and their own bonuses. This isn't a 'skills gap'—it's a character crisis. Until boards stop rewarding psychopathic behavior, nothing will change."
Susan Lee, Organizational Psychologist: "The 'journey' aspect is crucial. Moral leadership isn't a checkbox. It's a continuous practice of vulnerability, accountability, and courage. Companies that institutionalize these practices, like transparent decision-making forums, see the benefits outlined in the top tier."
Contact: For further commentary, reach out to Diane Brady at [email protected].
This story was originally featured on Fortune.com.