Measuring the Return on Character: CEOs who are Rated High on Four Moral Principles Deliver Better Financial Results than those who aren't

Research shows that chief executive officers who were given high ratings for character by their employees produced an average of 9.35% return on assets for a two-year period. The four key values for these CEOs were integrity, responsibility, forgiveness, and compassion. CEOs with low character ratings averaged just 1.93%. While the low-rated CEOs were perceived to be punitive and avoided blame, broke promises, and did not inspire trust, the high-rated CEOs demonstrated strength of character, including a focus on the common good, showing empathy, and upholding fairness. Low-rated CEOs can benefit from mentoring, with a focus on undoing deeply ingrained habits.