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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.


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Why smart leaders are the hardest to to work for.
By Rich Hagberg March 30, 2026
Some of the smartest leaders you will ever meet are also some of the hardest people to work with.  They are fast, perceptive, and unusually strong at solving hard problems. They see patterns others miss. They cut through ambiguity. They grasp systems, strategy, and complexity at a very high level. In many cases, those gifts are exactly why they became founders, technical leaders, or senior executives. And yet many of these same people leave a trail of strained relationships behind them. Their direct reports feel unseen or intimidated. Peers experience them as dismissive, impatient, or controlling. Their bosses admire their intellect but hesitate to trust them with broader leadership responsibility. At home, partners often feel emotionally alone. Over time, the leader becomes puzzled. They know they are smart, committed, and often right. So why do people keep pulling away, withholding the truth, or failing to fully follow them? The answer is that many high IQ leaders are working from an incomplete model of effectiveness. They assume that if they think clearly, argue logically, work hard, and produce results, the rest should take care of itself. That model can work for a long time in school, in technical roles, and in the early stages of a company. But eventually leadership becomes less about the quality of your own mind and more about your ability to work through the minds, emotions, motivations, and limitations of other people. That is where many smart leaders start to fail. The Core Problem Intelligence is not the problem. It is an asset. The problem is that intelligence often creates distortions. It can make a leader overestimate the power of logic, underestimate the importance of emotion, and develop habits that quietly damage trust. It can also create a subtle arrogance. Not always the loud kind, but the quieter assumption that if other people are slower, less rigorous, or more emotional, they must be the problem. Once a leader starts living inside that assumption, interpersonal trouble becomes almost inevitable. Five Common Patterns 1. Overreliance on reason Many bright leaders treat relationships as if they are mainly cognitive systems. If there is disagreement, they explain more. If someone is upset, they analyze the issue. If morale is low, they offer strategy. If a direct report feels discouraged, they give solutions. In their minds they are being helpful and efficient. But the other person often feels bypassed. Their emotional reality is treated as noise rather than information. Their need to be heard is mistaken for a need to be corrected. This is a major blind spot in analytical leaders. They often do not realize that understanding is not the same as persuasion, and problem solving is not the same as relationship building. A person can agree with your logic and still not trust you. They can accept your decision and still lose commitment because the relational cost was too high. 2. Impatience High horsepower people often process faster than the people around them. They see the answer early. They get bored by slower thinking, frustrated by repetition, and irritated when others need more context than they do. This can make them decisive and productive. It can also make them hard to work with. They interrupt. They jump ahead. They finish other people’s sentences. They push past concerns before others feel understood. They make those around them feel slow, clumsy, or not worth listening to. This teaches the organization something dangerous. It teaches people that the leader’s mind is the only one that really counts. The safest strategy becomes speaking briefly, deferring quickly, or waiting until the leader has already decided. Then the leader complains that the team is passive or not taking ownership. What they often do not see is that the culture has adapted to them. 3. Emotional underdevelopment hidden by cognitive strength Very bright people can use intellect as a defense against emotional discomfort. They can analyze instead of feel. They can explain instead of reflect. They can argue instead of absorb. They can move to abstraction when the deeper issue is shame, fear, insecurity, hurt, or loneliness. They are often unaware this is happening. They do not experience themselves as defended. They experience themselves as rational. But leadership requires emotional range. Not sentimentality. Not therapeutic language. Real range. The ability to notice your own reactions before they control your behavior. The ability to tolerate feeling wrong, uncertain, criticized, or less competent than you want to appear. The ability to stay present when another person is disappointed, anxious, or angry without immediately shutting it down, fixing it, or counterattacking. Leaders who cannot do this often become brittle. They look composed until challenged in just the wrong way. Then out comes defensiveness, coldness, contempt, withdrawal, or overcontrol. 4. Low interpersonal curiosity Smart leaders are often highly curious about ideas, products, markets, and strategy, but not necessarily about people. They know how to interrogate problems, but not always how to explore another person’s inner world. They ask what happened, but not what it felt like. They want the conclusion, not the hesitation. They want the output, not the psychology. People do not trust leaders simply because they are competent. They trust leaders who show that they are trying to understand them. Interpersonal curiosity communicates respect. A leader does not have to agree with someone to make that person feel seen. But when the leader skips that step, people feel reduced to functions rather than treated as human beings. 5. Weak awareness of impact Many smart leaders are genuinely surprised by how strongly people react to them. They tell themselves, “I was just being direct,” or “I was only asking a question.” In their own minds, intent carries most of the moral weight. If they did not mean harm, then the reaction seems excessive. But leadership does not work that way. Impact matters because power magnifies everything. A passing comment from a founder can ruin a weekend. A skeptical look from a senior executive can silence a room. A blunt critique can stick in someone’s head for months. High IQ leaders often underestimate this because they evaluate themselves from the inside while everyone else experiences them from the outside. That gap sits at the center of many 360 feedback problems. The Identity Trap There is another layer here. Some smart leaders have been rewarded for being exceptional for so long that they quietly build their identity around being the smartest person in the room. They may not say it out loud. They may even dislike arrogance in others. But inside, being quick, insightful, and right has become central to their sense of worth. Once that happens, other people’s competence can feel threatening. Feedback becomes harder to absorb. Collaboration becomes more performative than real. The leader listens selectively, especially when they believe the other person is less capable. They become invested in remaining the mental center of gravity. That is a dangerous place to lead from. It turns intelligence into status defense. It makes humility feel like loss. It makes genuine curiosity harder. And it makes the leader lonelier than they realize, because very few people feel close to someone who always has to occupy the top intellectual position. The Shift That Matters The good news is that these problems are workable. In fact, smart leaders often improve quickly once they see the pattern clearly. Their intelligence then becomes an ally rather than a shield. But improvement requires a shift in model. Leadership is not just about being right. It is about creating enough trust, clarity, and psychological safety that the best thinking of the group can emerge. Your job is not merely to contribute your intelligence. It is to increase the total intelligence of the system. That means treating emotions as information rather than interference. It means becoming curious about your own interpersonal signature. What happens to people in your presence when you are under pressure. Do they get more open or more cautious. More honest or more political. More energized or more tense. Those are not soft questions. They are the real scorecard of leadership impact. It also means slowing down your certainty just enough to make room for other minds. Ask one more question before concluding. Stay with the other person’s frame a little longer. Notice when you are moving to solution because you are uncomfortable with uncertainty or emotion. Let people finish. Reflect before rebutting. And it means understanding that warmth and strength are not opposites. Many analytical leaders fear that becoming more emotionally intelligent will make them softer or less respected. The opposite is usually true. Leaders become more effective when people experience them as both rigorous and fair, both clear and human, both demanding and safe enough to tell the truth to. Practical Experiments A few simple practices can help. In your next one on one, spend more time understanding than advising. In your next disagreement, summarize the other person’s view in a way they agree is accurate before stating your own. In your next leadership meeting, track how often you interrupt, redirect, or signal impatience. After a difficult conversation, ask yourself not only whether your point was valid, but what emotional residue you likely left behind. Ask two trusted people what it feels like to disagree with you, and listen without defending. Final Thought Human beings are not engineering problems. They are not solved by superior reasoning alone. They need respect, steadiness, dignity, trust, and emotional attunement. That is why so many smart leaders struggle. Not because they are too intelligent, but because they have leaned on the wrong part of themselves for too long. At a certain point in leadership, your mind stops being the main differentiator. Plenty of people are smart. What becomes rarer is the ability to combine intelligence with self awareness, candor with sensitivity, high standards with trust, and authority with emotional maturity. That is when a smart leader becomes someone people actually want to follow.
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