Article
Leading with Integrity: Why the Best Leaders Are Models of Values
January 24, 2025

In a recent
Founders Keepers
newsletter
entitled “When Their Moral Compass Fails, Leaders Fail: How Greed, Power, and Pressure Can Destroy Founders” I discussed how the pressure of investor demands, and the corrosive effects of power and greed can erode a founder’s moral compass. These challenges are not limited to startup founders; they affect leaders across all industries. However, our research on nearly 2,000 executives, including the top 200 leaders who emerged as the “best” based on 360-degree feedback ratings, provides a critical insight: the best leaders are unwavering models of integrity and values.
This is not just an ideal to aspire to—it’s a requirement for sustainable success. When leaders prioritize integrity and live by a clear set of values, they build trust, inspire their teams, and create a foundation for enduring impact. This post will delve into what it means to lead with integrity, how the best leaders embody these principles, and actionable steps you can take to align with these ideals.
Integrity: The Cornerstone of Leadership
Integrity in leadership is about much more than honesty. It encompasses consistency between words and actions, ethical decision-making, and a commitment to doing what is right, even in the face of adversity. Leaders with integrity act as a moral compass for their organizations, guiding decisions and behavior through a clear ethical lens.
Our research on the best leaders revealed several defining characteristics of integrity in leadership:
Take Howard Schultz, the former CEO of Starbucks, as an example. Schultz demonstrated integrity by prioritizing ethical sourcing, offering healthcare benefits to part-time employees, and fostering a culture of respect and inclusion. His leadership not only built a globally respected brand but also created an environment where employees felt valued, and customers felt connected to the company’s mission.
According to a comprehensive review of the literature, leaders who demonstrate integrity cultivate stronger trust among their teams, improve morale, and enhance overall organizational performance. The ripple effects of their behavior extend to organizational reputation, customer loyalty, and financial success.
Values as the Leader’s Guiding Light
Values are the principles that define what is most important to an individual or organization. For leaders, values serve as a decision-making framework, shaping their behavior and influencing their teams. Leaders who model and promote core values create a strong organizational culture where employees feel aligned and inspired.
In our study of the best leaders, the following behaviors stood out:
Brian Chesky, CEO of Airbnb, exemplified these principles during the COVID-19 pandemic. Faced with difficult decisions, Chesky ensured that laid-off employees received generous severance packages and career support. His transparent and empathetic approach reinforced Airbnb’s values and preserved the company’s reputation during a challenging time.
The literature supports these findings, emphasizing that when leaders align personal and organizational values, it leads to increased job satisfaction, higher productivity, and reduced turnover.
Trust: The Currency of Leadership
Integrity and values contribute to the most critical currency a leader possesses: trust. Leaders who consistently demonstrate integrity earn the confidence of their employees, stakeholders, and customers. This trust forms the foundation of effective collaboration, open communication, and organizational resilience.
Our research showed that trust was a hallmark of the best leaders. They were described as dependable, reliable, and fair. Their actions consistently reflected their commitments, which inspired loyalty and respect.
Paul Polman, former CEO of Unilever, is a shining example of how integrity builds trust. Polman led Unilever with a focus on sustainability and social responsibility, proving that profitability and ethical practices can coexist. His leadership attracted like-minded stakeholders, enhanced the company’s reputation, and set a benchmark for ethical corporate governance.
Building trust, however, is not a one-time effort. It requires continuous reinforcement through ethical behavior, transparency, and accountability. As one executive in our study remarked, “Trust takes years to build, seconds to break, and forever to repair.”
The Downside of Losing Integrity
The stakes for leaders who fail to model integrity are high. Our review of business failures, including infamous cases like Enron and Theranos, highlights how a lack of ethical leadership can lead to catastrophic outcomes. Leaders who compromise their values for short-term gains risk not only their reputations but also the viability of their organizations.
The Enron scandal was rooted in accounting fraud and ethical violations by top executives who prioritized personal gain over organizational integrity. Similarly, Elizabeth Holmes of Theranos allowed ambition to override honesty, leading to the downfall of a once-promising company. These examples underscore the importance of ethical leadership in avoiding reputational and financial disaster.
Expanding the Legacy: The Ripple Effects of Integrity
Leaders who model integrity extend their influence far beyond their immediate teams. They create a ripple effect that shapes organizational culture, industry standards, and even societal expectations. A consistent pattern in our research is that ethical leaders inspire ethical behavior at all levels of the organization, amplifying their impact.
For instance, Satya Nadella’s leadership at Microsoft has transformed the company culture from one of cutthroat competition to collaboration and innovation. By prioritizing empathy, inclusion, and a growth mindset, Nadella has demonstrated how values-driven leadership can rejuvenate a global organization and inspire employees worldwide.
This ripple effect is not accidental; it requires intentional effort to embed integrity into every aspect of leadership. Leaders must ask themselves: How can I ensure my values are reflected in the decisions I make, the systems I design, and the culture I cultivate?
Actionable Steps for Leading with Integrity
So, how can leaders ensure they remain models of values in the face of challenges? Here are actionable strategies based on our research and the broader literature:
An Inspiring Legacy
The best leaders are not only successful but also admired for their integrity and values. Their influence extends beyond organizational performance to leave a lasting legacy of trust, inspiration, and ethical conduct. As leaders, we must constantly ask ourselves: What kind of legacy are we building?
In the words of one of the best leaders from our study, “Leadership isn’t about being in charge; it’s about taking care of those in your charge.” By prioritizing integrity and living by our values, we can inspire those around us and build organizations that stand the test of time.
As you reflect on this, revisit the challenges I outlined in Founders Keepers —the pressures, greed, and power that can erode integrity. Let this serve as a reminder to stay grounded in your values and lead with unwavering commitment to what is right.
Success is fleeting, but integrity endures.
This is not just an ideal to aspire to—it’s a requirement for sustainable success. When leaders prioritize integrity and live by a clear set of values, they build trust, inspire their teams, and create a foundation for enduring impact. This post will delve into what it means to lead with integrity, how the best leaders embody these principles, and actionable steps you can take to align with these ideals.
Integrity: The Cornerstone of Leadership
Integrity in leadership is about much more than honesty. It encompasses consistency between words and actions, ethical decision-making, and a commitment to doing what is right, even in the face of adversity. Leaders with integrity act as a moral compass for their organizations, guiding decisions and behavior through a clear ethical lens.
Our research on the best leaders revealed several defining characteristics of integrity in leadership:
- Consistency in Actions and Words: The best leaders “walk the talk,” ensuring their actions align with their stated values. This predictability fosters trust and reduces organizational uncertainty.
- Ethical Decision-Making: These leaders prioritize ethical considerations, making decisions that align with their values rather than taking shortcuts for short-term gains.
- Accountability: They own their mistakes, modeling humility and responsibility for their teams.
Take Howard Schultz, the former CEO of Starbucks, as an example. Schultz demonstrated integrity by prioritizing ethical sourcing, offering healthcare benefits to part-time employees, and fostering a culture of respect and inclusion. His leadership not only built a globally respected brand but also created an environment where employees felt valued, and customers felt connected to the company’s mission.
According to a comprehensive review of the literature, leaders who demonstrate integrity cultivate stronger trust among their teams, improve morale, and enhance overall organizational performance. The ripple effects of their behavior extend to organizational reputation, customer loyalty, and financial success.
Values as the Leader’s Guiding Light
Values are the principles that define what is most important to an individual or organization. For leaders, values serve as a decision-making framework, shaping their behavior and influencing their teams. Leaders who model and promote core values create a strong organizational culture where employees feel aligned and inspired.
In our study of the best leaders, the following behaviors stood out:
- Leading by Example: The best leaders don’t just articulate values; they embody them. Their behavior demonstrates the standards they expect from others.
- High Standards of Conduct: These leaders maintain impeccable personal and professional standards, setting a tone that permeates their teams and organizations.
- Promoting Organizational Values: By aligning their behavior with the organization’s mission and vision, these leaders reinforce the importance of shared values.
Brian Chesky, CEO of Airbnb, exemplified these principles during the COVID-19 pandemic. Faced with difficult decisions, Chesky ensured that laid-off employees received generous severance packages and career support. His transparent and empathetic approach reinforced Airbnb’s values and preserved the company’s reputation during a challenging time.
The literature supports these findings, emphasizing that when leaders align personal and organizational values, it leads to increased job satisfaction, higher productivity, and reduced turnover.
Trust: The Currency of Leadership
Integrity and values contribute to the most critical currency a leader possesses: trust. Leaders who consistently demonstrate integrity earn the confidence of their employees, stakeholders, and customers. This trust forms the foundation of effective collaboration, open communication, and organizational resilience.
Our research showed that trust was a hallmark of the best leaders. They were described as dependable, reliable, and fair. Their actions consistently reflected their commitments, which inspired loyalty and respect.
Paul Polman, former CEO of Unilever, is a shining example of how integrity builds trust. Polman led Unilever with a focus on sustainability and social responsibility, proving that profitability and ethical practices can coexist. His leadership attracted like-minded stakeholders, enhanced the company’s reputation, and set a benchmark for ethical corporate governance.
Building trust, however, is not a one-time effort. It requires continuous reinforcement through ethical behavior, transparency, and accountability. As one executive in our study remarked, “Trust takes years to build, seconds to break, and forever to repair.”
The Downside of Losing Integrity
The stakes for leaders who fail to model integrity are high. Our review of business failures, including infamous cases like Enron and Theranos, highlights how a lack of ethical leadership can lead to catastrophic outcomes. Leaders who compromise their values for short-term gains risk not only their reputations but also the viability of their organizations.
The Enron scandal was rooted in accounting fraud and ethical violations by top executives who prioritized personal gain over organizational integrity. Similarly, Elizabeth Holmes of Theranos allowed ambition to override honesty, leading to the downfall of a once-promising company. These examples underscore the importance of ethical leadership in avoiding reputational and financial disaster.
Expanding the Legacy: The Ripple Effects of Integrity
Leaders who model integrity extend their influence far beyond their immediate teams. They create a ripple effect that shapes organizational culture, industry standards, and even societal expectations. A consistent pattern in our research is that ethical leaders inspire ethical behavior at all levels of the organization, amplifying their impact.
For instance, Satya Nadella’s leadership at Microsoft has transformed the company culture from one of cutthroat competition to collaboration and innovation. By prioritizing empathy, inclusion, and a growth mindset, Nadella has demonstrated how values-driven leadership can rejuvenate a global organization and inspire employees worldwide.
This ripple effect is not accidental; it requires intentional effort to embed integrity into every aspect of leadership. Leaders must ask themselves: How can I ensure my values are reflected in the decisions I make, the systems I design, and the culture I cultivate?
Actionable Steps for Leading with Integrity
So, how can leaders ensure they remain models of values in the face of challenges? Here are actionable strategies based on our research and the broader literature:
- Clarify Your Core Values: Take time to reflect on your principles and create a personal mission statement. Ensure your values align with your organization’s mission.
- Lead by Example: Demonstrate your values through consistent actions. Be the behavior you wish to see in your team.
- Be Transparent: Openly communicate your decisions and the values guiding them. Transparency builds trust and accountability.
- Own Your Mistakes: When you fall short, acknowledge it. Use failures as an opportunity to model humility and resilience.
- Seek Feedback: Regularly solicit input from your team to understand how your behavior aligns with your values. This fosters self-awareness and continuous improvement.
- Promote Organizational Values: Reinforce the importance of shared values by embedding them into your organization’s culture and decision-making processes.
- Practice Ethical Decision-Making: Develop a habit of evaluating decisions through an ethical lens. Ask yourself how your choices align with your values and their impact on others.
- Amplify Your Influence: Leverage your position to mentor others, advocate for ethical practices, and inspire your industry to prioritize integrity.
An Inspiring Legacy
The best leaders are not only successful but also admired for their integrity and values. Their influence extends beyond organizational performance to leave a lasting legacy of trust, inspiration, and ethical conduct. As leaders, we must constantly ask ourselves: What kind of legacy are we building?
In the words of one of the best leaders from our study, “Leadership isn’t about being in charge; it’s about taking care of those in your charge.” By prioritizing integrity and living by our values, we can inspire those around us and build organizations that stand the test of time.
As you reflect on this, revisit the challenges I outlined in Founders Keepers —the pressures, greed, and power that can erode integrity. Let this serve as a reminder to stay grounded in your values and lead with unwavering commitment to what is right.
Success is fleeting, but integrity endures.
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Let's be brutally honest. In the cutthroat world of modern business, we obsess over metrics, strategies, and market share. We chase innovation, efficiency, and the next big disruption. But what if I told you that the single most powerful, yet often overlooked, asset in your leadership arsenal isn't a new technology or a groundbreaking business model, but something far more fundamental? It's trust . Research reveals that trust isn't just a "nice-to-have" soft skill; it's the bedrock of every high-performing team, the fuel for innovation, and the hidden engine of organizational success. Ignore it at your peril, because the cost of low trust isn't just a dip in morale—it's a direct hit to your bottom line, your talent pipeline, and your legacy as a leader. The Uncomfortable Truth: Trust is Your Most Valuable Capital Think of trust not as an abstract concept, but as tangible capital for your organization. It’s the "first step of genuine and effective leadership". Without it, people simply won't follow you. This isn't hyperbole; it's a stark reality backed by compelling data. Companies with high trust factors report staggering benefits: 74% less stress, 13% fewer sick days, and a remarkable 40% less burnout among employees compared to their low-trust counterparts. This translates directly into reduced operational costs and a healthier, more engaged workforce. Employees in high-trust organizations are also 50% more likely to stay with their employer long-term, drastically cutting turnover costs and retaining invaluable talent. Beyond retention, trust ignites collaboration. When your team trusts each other and you, they share ideas freely, seek help without hesitation, and work cohesively towards shared goals. This isn't just about being "nice"; it leads to more innovative solutions, superior problem-solving, and a cohesive, high-performing workforce. Google's own Project Aristotle, a deep dive into team effectiveness, concluded that high-performing teams are simply impossible without trust. It is the very bedrock for open communication and innovation. A high-trust environment also minimizes micromanagement, granting employees the autonomy and confidence to make decisions and focus on meaningful work, boosting productivity and efficiency. And the ripple effect extends outward: employees who feel trusted and respected internally are far more likely to deliver exceptional customer service, enhancing brand loyalty and driving business growth. So, if trust is so powerful, why do so many leaders struggle with it? The Three Non-Negotiable Pillars: Where Leaders Often Stumble Research has identified three fundamental pillars of trustworthiness: Ability, Integrity, and Benevolence . Here's the critical, often misunderstood, part: trustworthiness is a product of these three, not a sum. This means if you score a zero in any one of these areas, your overall trustworthiness plummets to zero, regardless of how stellar you are in the others. Let that sink in. You can be a brilliant strategist (high Ability), but if your team perceives you as dishonest (zero Integrity), your trust account is empty. You can be the most ethical person in the room (high Integrity), but if you consistently fail to deliver on promises (zero Ability), trust evaporates. And perhaps the most insidious blind spot for many leaders: you can be competent and honest, but if you lack genuine care and kindness for your team (zero Benevolence), you will not be trusted. Let's break them down: Ability: This is your professional competence – your skills, knowledge, and, most importantly, your consistent delivery on promises. As one CEO put it, "Trustworthiness is about doing what it says on the tin". If you say you'll do something, do it. Period. Integrity: This is "walking the talk." It's about being reliable in your behaviors, consistently upholding your values, and demonstrating honesty, openness, and fairness. Even a minor ethical slip from years ago can permanently damage a leader's perceived integrity. Benevolence: This is the genuine concern for the well-being of others – care, generosity, and kindness. The most potent destroyer of trust is the perception that you're acting solely in your own self-interest. Leaders who publicly humiliate or criticize team members, even if they are otherwise capable, will struggle to build trust due to a glaring lack of benevolence. It’s time to "re-humanize the workplace". The Blueprint for Building Unshakeable Trust Building trust is a deliberate, ongoing process. It requires conscious effort and consistent action. Here's how leaders who truly get it cultivate high-trust environments: Be Authentically Transparent and Accountable: Authenticity is the very foundation of trust. Be open about your intentions, share insights into decision-making, and, crucially, admit your mistakes. When you own your fallibilities, you create a psychologically safe environment where others feel safe to do the same. This vulnerability, counter-intuitively, builds immense trust. Practice Radical Empathy and Active Listening: Empathetic leaders genuinely value their employees' needs and desires. Respect is the "cornerstone of trust". This means not just hearing, but actively listening – giving full attention, asking clarifying questions, paraphrasing to confirm understanding, and empathizing with their feelings. It signals genuine value for their input and builds a deeper connection. Be a Beacon of Consistency and Reliability: Consistency is paramount, especially when paired with empathy. Your actions must consistently match your words. Reliability is, in fact, the top trust-building factor identified by business leaders, with 90% considering it important. When your team knows what to expect from you, uncertainty diminishes, and trust flourishes. Cultivate Mindfulness and Self-Awareness: This isn't just a wellness trend; it's a leadership imperative. Mindfulness enhances your cognitive capacity, flexibility, and ability to "re-perceive" situations objectively. It improves self-awareness and self-regulation, ensuring your actions align with your values, not just automatic reactions. A mindful leader is better equipped to exhibit all the behaviors necessary for building trust. Champion Fairness and Resolve Conflict: Leaders who fairly distribute rewards, maintain transparency, and enforce unbiased policies build trust. Addressing fears and resolving conflicts quickly and fairly strengthens team trust, enhancing collaboration and engagement. The Silent Sabotage: How Leaders Accidentally Destroy Trust Now for the uncomfortable part. Many leaders, often with good intentions, inadvertently erode trust through subtle behaviors that chip away at the foundation. These aren't always malicious acts, but rather blind spots that have devastating consequences: Inconsistent Actions and Unkept Commitments: You say one thing but do another. You make promises, even small ones, and fail to follow through. This gap between words and deeds is a trust killer, making teams feel unheard and disengaged. Lack of Transparency and Disengagement: You sideline key stakeholders in decisions, offer inconsistent messaging, or simply become physically or emotionally unavailable. This signals a profound lack of investment and erodes confidence, often without you even realizing the impact. Micromanagement and Disrespect for Time: You constantly hover, dictate every detail, or retract delegated tasks. This screams, "I don't trust you to do your job," leading to a reciprocal loss of trust. Similarly, frequent reschedules, unreturned messages, or unnecessary meetings signal that your team's time isn't valued, breeding resentment. Unethical Behavior and Compromising Values: Even a seemingly minor ethical lapse can permanently damage your integrity. When you compromise the organization's core values, your team notices, and their trust in your leadership crumbles. Ignoring Performance Issues: When a team member isn't pulling their weight or is negatively impacting the team, and you "look the other way," it demoralizes everyone else. It signals a lack of fairness and accountability, eroding trust in your leadership. Displaying Superiority or Losing Composure: Acting superior, undervaluing team perspectives, or losing your temper in communications makes employees feel disrespected and unheard. The "One-Size-Fits-All" Fallacy: Applying a uniform leadership style to diverse, multicultural teams can be perceived as autocratic and lead to a significant loss of trust, as it ignores crucial cultural nuances. Expecting Others to Earn Your Trust Without Reciprocating: You demand trust from your team, but you don't extend it first. Healthy relationships, including professional ones, are never one-sided. The Passive "My Door Is Always Open": Simply saying "my door is always open" is not enough. If you don't actively seek input, schedule check-ins, and create safe spaces for dialogue, many voices will remain unheard, and trust will not grow. The Devastating Fallout: What Happens When Trust Dies The consequences of low trust are not theoretical; they are devastatingly real: Disengagement and High Turnover: Energy and enthusiasm drain away. Individuals feel undervalued, leading to high turnover rates, decreased productivity, and widespread dissatisfaction. Friction and Unresolved Conflict: Without trust, conflicts escalate. Teams avoid addressing issues, engage in "polite nodding" without genuine agreement, or resort to passive-aggressive behaviors and gossip, creating a toxic atmosphere. Stifled Innovation: The fear of rejection or ridicule suppresses creativity. Teams hesitate to propose new ideas or challenge the status quo, leaving the organization stagnant and vulnerable to competitors. Lack of Feedback and Misunderstandings: Team members are reluctant to give or seek feedback, fearing judgment or repercussions. This means valuable insights go unshared, and opportunities for growth are missed. Negative assumptions about intentions lead to strained relationships and a focus on self-protection over collaboration. Low Confidence and Indecision: Individuals second-guess their abilities, doubt decisions, and hesitate to take risks, further stifling creativity and progress. Your Call to Action: Reclaim Your Superpower Trust is not built overnight, nor is it maintained passively. It requires consistent, deliberate effort. If trust has been eroded, it can be rebuilt, but it demands honesty, humility, and sustained action. Acknowledge your missteps, own them, and commit to consistent behaviors that prove your reliability over time. Re-engage with your team, prioritize benevolence, and shift from demanding trust to actively earning it. In today's complex and rapidly changing world, trust is not just a competitive advantage; it's a prerequisite for survival. Leaders who master the art and science of building and sustaining trust will not only foster more engaged, innovative, and productive teams but will also forge a legacy of true, impactful leadership. Are you ready to unlock your ultimate leadership superpower? The choice, and the action, is yours.
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