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Why a CEO's Comprehension Matters in a Crisis

Moral authority can improve employee and business performance

Human systems can’t function without formal authority, whether it’s the President of the US, a CEO or a school principal, but what makes organizations really work is when leaders occupying those formal positions have moral authority too. While formal authority can be seized, won or bestowed; moral authority must be earned by who you are and how you lead.

In a reshaped world, formal authority is less potent. Only moral authority can build trust, inspire colleagues, create meaning and help people imagine a better future. But can moral authority be quantified and studied?

The new State of Moral Leadership Report, which includes data from 1,500 individuals working in business and highlights the critical role moral leadership can play within organizations. The report provides further evidence of the imperative for moral leadership. Leaders can no longer hope to scale shareholder value without scaling shared values. Mission and margin, profit and principle, success and significance are now inextricably linked.

Please select this link to read the complete blog post from World Economic Forum.

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