Article

Leading with Integrity: Why the Best Leaders Are Models of Values

January 24, 2025
Leading with Integrity: Why the best leaders are models of values.

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:


  1. 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.
  2. Ethical Decision-Making: These leaders prioritize ethical considerations, making decisions that align with their values rather than taking shortcuts for short-term gains.
  3. 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:


  1. Leading by Example: The best leaders don’t just articulate values; they embody them. Their behavior demonstrates the standards they expect from others.
  2. High Standards of Conduct: These leaders maintain impeccable personal and professional standards, setting a tone that permeates their teams and organizations.
  3. 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:


  1. 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.
  2. Lead by Example: Demonstrate your values through consistent actions. Be the behavior you wish to see in your team.
  3. Be Transparent: Openly communicate your decisions and the values guiding them. Transparency builds trust and accountability.
  4. Own Your Mistakes: When you fall short, acknowledge it. Use failures as an opportunity to model humility and resilience.
  5. Seek Feedback: Regularly solicit input from your team to understand how your behavior aligns with your values. This fosters self-awareness and continuous improvement.
  6. Promote Organizational Values: Reinforce the importance of shared values by embedding them into your organization’s culture and decision-making processes.
  7. 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.
  8. 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.


share this

Related Articles

Related Articles

The Courage to Confront: How Real Leaders Balance Candor and Care
By Rich Hagberg December 16, 2025
(Part 2 of The Best Leaders Playbook — Building Trust Systems Series)
Integrity as an Innovation Strategy: Why Moral Clarity Drives Creativity, Not Just Compliance
By Rich Hagberg December 9, 2025
(Part 1 of The Best Leaders Playbook — Building Trust Systems Series)
Greatness Lies in the Contradictions: How the Best Leaders Integrate Opposites Instead of Choosing S
By Rich Hagberg December 2, 2025
The Leadership Tightrope If you lead long enough, you start to realize something uncomfortable: everything that makes you effective also threatens to undo you. Your drive becomes impatience. Your confidence becomes stubbornness. Your empathy turns into guilt. The longer you lead, the more you realize that the job isn’t about choosing one trait over another — it’s about learning to carry both. That’s what maturity looks like in leadership. It’s not balance. It’s tension well managed. The False Comfort of Either/Or Most leaders crave clarity. We want rules. Playbooks. Certainty. Should I be tough or kind? Decisive or collaborative? Visionary or practical? The insecure part of the brain hates contradiction. It wants the “right answer.” But leadership lives in the messy middle — the place where both truths exist, and neither feels comfortable. The best leaders aren’t either/or thinkers. They’re both/and navigators. A Story from the Field I once coached a CEO who told me, “I’m torn between holding people accountable and being empathetic.” I said, “Why do you think those are opposites?” He paused, then laughed. “Because it’s easier that way.” Exactly. It’s easier to pick a lane than to learn how to drive in two at once. He eventually realized the real question wasn’t which side to choose, but when and how to lean into each. He became known as “the fairest tough boss in the building.” That’s the magic of integration — toughness with tenderness, vision with realism, clarity with compassion. Why Paradox Feels So Hard Contradictions feel like hypocrisy when you haven’t made peace with your own complexity. If you believe you have to be one consistent version of yourself — confident, decisive, inspiring — then every moment of doubt feels like fraud. But the truth is, great leaders are contradictory because humans are contradictory. You can be grounded and ambitious, humble and proud, certain and still learning. The work is not to eliminate the tension — it’s to get comfortable feeling it. The Psychology Behind It Our brains love binaries because they make the world simple. But complexity — holding opposites — is the mark of advanced thinking. Psychologists call this integrative complexity — the ability to see multiple perspectives and blend them into a coherent approach. It’s not compromise; it’s synthesis. It’s saying, “Both are true, and I can move between them without losing my integrity.” That’s where wisdom lives — in the movement, not the answer. Funny But True A client once told me, “I feel like half monk, half gladiator.” I said, “Congratulations. That means you’re leading.” Because that’s what the job demands: peace and fight, compassion and steel. If you can’t hold both, you end up overusing one until it breaks you. The Cost of One-Dimensional Leadership We’ve all worked for the “results-only” leader — brilliant, efficient, and emotionally tone-deaf. And the “people-first” leader — kind, loyal, and allergic to accountability. Both are exhausting. Both create lopsided cultures. When leaders pick a single identity — visionary, disciplinarian, nurturer, driver — they lose range. They become caricatures of their strengths. True greatness comes from emotional range, not purity. The Paradox Mindset Here’s how integrative leaders think differently: They value principles over preferences. They can be decisive without being defensive. They know empathy isn’t weakness and toughness isn’t cruelty. They trade perfection for adaptability. They’re the ones who can zoom in and out — from the numbers to the people, from the details to the meaning — without losing coherence. They’re not consistent in behavior. They’re consistent in values. That’s the difference. How to Practice Both/And Thinking Spot your overused strength. The strength that’s hurting you most is the one you lean on too much. If you’re decisive, try listening longer. If you’re compassionate, try being direct faster. Ask, “What’s the opposite quality trying to teach me?” Impatience teaches urgency; patience teaches perspective. You need both. Invite your opposite. Bring someone onto your team who balances your extremes — not a mirror, a counterweight. Hold paradox out loud. Tell your team, “This decision has tension in it — and that’s okay.” Modeling that normalizes complexity for everyone else. A Moment of Self-Honesty I’ve spent decades watching leaders chase “clarity” like it’s peace. But peace doesn’t come from eliminating tension. It comes from trusting yourself inside it. Once you accept that leadership will always feel contradictory, you stop fighting it — and start flowing with it. You don’t need to be the calmest, toughest, or most visionary person in the room. You just need to be the one who can stay whole while the world pulls you in opposite directions. Your Challenge This Week When you catch yourself thinking, “Should I be X or Y?” — stop. Ask instead, “How can I be both?” Then practice it in one small moment. Be kind and firm. Bold and humble. Fast and thoughtful. That’s where growth hides — in the discomfort between two truths. Final Word The best leaders aren’t balanced. They’re integrated. They’ve stopped trying to erase their contradictions and started using them as fuel. They’ve learned that leadership isn’t about certainty. It’s about capacity — the capacity to hold complexity without losing your center. That’s not chaos. That’s mastery.
ALL ARTICLES