The latest findings from the HOW Institute for Society’s 2026 study on moral leadership in business paint a stark picture: less than one in ten CEOs are perceived by their employees as leading effectively in a moral capacity. This assessment, drawn from a survey of over 2,500 U.S. workers, suggests a significant disconnect between employee expectations and observed leadership behaviors within organizations. The study, which categorized managers and companies into five distinct tiers based on moral leadership practices, also established a clear correlation between these practices and tangible business outcomes, underscoring the operational implications of perceived moral shortcomings at the top.
Dov Seidman, founder and chairman of LRN and the HOW Institute, highlighted the “massive” benefits awaiting companies that manage to elevate their leadership into the top tier, citing enhanced resilience, increased loyalty, and superior results. Yet, the path to achieving this seems fraught with challenges, given that 94% of employees believe the need for moral leadership is more pressing than ever. The study’s data further illustrates this gap; in top-tier companies, 78% of employees reported satisfied customers, a stark contrast to the mere 14% in bottom-tier organizations. Similarly, 83% of respondents in leading companies felt their workplace encouraged new ideas, while only 4% in the lowest tier shared this sentiment.
The influence of immediate supervisors also emerged as a critical factor. The study found that only 3% of employees reporting to top-tier managers in less polarized workplaces expressed a desire to leave their positions. This figure dramatically escalates to 18% for those working under bottom-tier bosses, indicating that the quality of direct leadership significantly impacts employee retention and satisfaction. Seidman offered several actionable strategies for leaders aiming to climb into the top tier, emphasizing the importance of transparent communication, genuine accountability, and a commitment to fostering wisdom among team members. He advised leaders to articulate decisions within the broader context of organizational purpose, take personal risks to uphold truth, and offer authentic apologies when mistakes occur. Furthermore, he advocated for actively enlisting teams in a collective journey toward moral leadership.
While the corporate world grapples with these internal dynamics, the broader economic landscape presents its own set of complexities. Alphabet, for instance, has outlined plans to significantly increase its capital expenditure, projecting between $175 billion and $185 billion in 2026. This represents a potential doubling of the $91.4 billion spent in 2025 and a substantial leap from the $52.5 billion invested in 2024. The announcement, made by CEO Sundar Pichai and CFO Anat Ashkenazi during a recent earnings call, appears to have unsettled investors, with the company’s stock experiencing a dip following the news. Such large-scale investment signals a long-term strategic play, but the immediate market reaction suggests a degree of apprehension regarding the magnitude of the outlay.
Meanwhile, other companies are navigating different strategic currents. Oura, the smart ring manufacturer, has chosen to maintain its subscription-based model despite growing consumer fatigue with such structures. CEO Tom Hale defended the decision, stating that the membership model fuels ongoing innovation and provides significant value to members, evidenced by strong retention rates. This stance highlights a divergent approach to customer engagement in a market increasingly saturated with subscription offerings. In another sector, the future of OpenAI’s potential 2026 IPO has drawn scrutiny, with NYU Stern marketing professor and tech analyst Scott Galloway suggesting that the increasingly competitive AI market, coupled with CEO Sam Altman’s perceived proximity to former President Donald Trump, could pose liabilities.
Even as these individual corporate narratives unfold, larger economic indicators show a nuanced picture. S&P 500 futures remained flat, reflecting a cautious sentiment after the previous session’s decline. European and Asian markets exhibited mixed performances, with the STOXX Europe 600 flat and Japan’s Nikkei 225 down, while South Korea’s KOSPI recorded a notable gain. Bitcoin also saw a decline, settling at $71.2K. These market movements, combined with internal corporate challenges like those identified in the moral leadership study, underscore a period of considerable flux for businesses and their workforces globally.
