Beyond Compliance: The HOW Institute Tackles a 'Moral Leadership' Gap in Business

By Susan Powell

As stakeholder capitalism gains traction and demands for corporate social responsibility rise, a new report highlights a critical disconnect: a vast majority of employees believe moral leadership is more urgent than ever, yet a shockingly small percentage perceive their CEOs and managers consistently demonstrating it. The findings, from a 2025 study by The HOW Institute, are prompting a re-evaluation of leadership development and a push beyond traditional compliance-based ethics programs.

The report reveals that 95% of employees now view moral leadership as critically important – a significant increase from 82% just five years ago. However, only 9-11% believe their top executives consistently embody those values. This widening gap is fueling concerns about trust, employee engagement, and long-term organizational sustainability.

“The expectation is no longer just about what results are achieved, but how they are achieved,” explains a source familiar with the report’s findings. “Employees are demanding leaders who are not just legally compliant, but genuinely committed to ethical principles and values-based decision-making.”

A Holistic Approach to Leadership Development

The HOW Institute, founded by Dov Seidman, is positioning itself as a key player in addressing this challenge. Unlike many corporate ethics programs that focus primarily on legal compliance and risk mitigation, the Institute emphasizes a more holistic approach rooted in philosophical frameworks and practical application. Their core philosophy centers on the importance of building a strong “moral operating system” within leaders and organizations – a framework for consistently making ethical choices in complex situations.

“There’s a real need to move beyond ‘check-the-box’ ethics training and cultivate genuine moral courage and discernment within leaders,” says a consultant specializing in leadership development. “It’s about equipping them with the tools and frameworks to navigate ambiguity, make difficult decisions, and inspire trust.”

The Institute's flagship program, the NXT-GEN Fellowship, aims to do just that. This global program, currently supporting over 800 fellows across 43 countries, brings together emerging leaders from diverse backgrounds to develop their capabilities in values-based decision-making, stakeholder engagement, and ethical innovation.

“The fellowship isn’t just about imparting ethical principles; it’s about building a community of leaders committed to making a positive impact on the world,” explains a participant in the program. “It’s a transformative experience that challenges you to think critically about your values and how they inform your actions.”

Measuring the 'HOW' – Beyond Traditional Metrics

One of the unique aspects of The HOW Institute's approach is its emphasis on measuring not just what results are achieved, but how those results are accomplished. While many organizations focus solely on quantitative metrics, the Institute argues that it’s equally important to assess the ethical implications of decisions and the values that underpin organizational culture.

“We’re moving beyond a narrow focus on shareholder value and embracing a more holistic view of success that includes stakeholder well-being, social responsibility, and environmental sustainability,” says a source within the Institute. “And that requires developing new metrics and frameworks for measuring the ‘how’ of leadership.”

To demonstrate the impact of its programs, The HOW Institute is collaborating with Mastercard on a case study that will examine the outcomes of the NXT-GEN Fellowship. This partnership signals a growing recognition among major corporations of the importance of investing in moral leadership development.

A Crowded Field – Differentiation and Competition

The landscape of leadership development and corporate ethics is crowded, with numerous organizations offering training programs and consulting services. The Ethics & Compliance Initiative (ECI), the Center for Ethical Leadership, and various university-affiliated centers all offer valuable resources for organizations seeking to improve their ethical performance.

However, The HOW Institute differentiates itself through its philosophical underpinnings, its emphasis on measuring the “how” of leadership, and its global reach. The Institute’s founder, Dov Seidman, has a strong personal brand and a history of applying philosophical frameworks to business challenges. This, coupled with the Institute’s partnerships with major foundations and corporations, has positioned it as a thought leader in the field.

“There's a lot of noise in the leadership development space,” says a consultant specializing in organizational culture. “The HOW Institute stands out by offering a more holistic and philosophical approach that resonates with the growing demand for authentic and values-driven leadership.”

Looking Ahead: The Future of Moral Leadership

As stakeholder expectations continue to rise and the complexity of business challenges increases, the demand for moral leadership is only likely to grow. Organizations that prioritize ethical values, invest in leadership development, and measure the “how” of their actions will be best positioned to thrive in the long run.

The HOW Institute, with its unique approach and growing influence, is poised to play a key role in shaping the future of moral leadership. By bridging the gap between employee expectations and leadership behavior, the Institute is helping to build a more ethical, sustainable, and responsible business world.