In his book Return on Character, author Fred Kiel address ideas of what motivates business leaders, especially during their climb to become CEO, and once they have reached the highest level of a company. He argues that those who do not display a purely self-interested worldview and can become fully integrated with themselves bring greater success to the companies they work for.
Leaders who operate in a self-interested manner, according to Kiel, are five times less effective, meaning the companies return on the CEO’s salary is five times less, than those who Kiel would describe as virtuoso, or as having strong moral character. He explains that those who are motivated purely by self-interest are not acknowledging other people and factors that play into their own lives as they pursue greater salaries, clout, and power. By becoming a fully integrated human, connecting with others, sharing personal passions and drives, understanding and exploring personal motivations outside of salaries and power, and by understanding a full range of human nature, a CEO can bring more to the table and provide more for the company and lives of the employees within the company.
Kiel explains that Adam Smith’s views in The Wealth of Nations are unable to keep up with the complex lives and global economies of the world today. There may be leaders who are able to innovate and create things that better all of humanity, pushing all people forward through their success with an invisible hand, but Kiel believes that the more common result of CEOs and leaders acting in their own self-interest is more often the destruction of the common good as opposed to the elevation of the common good described by Smith.
His explanation as to why we need to be fully connected human beings in the world today lies with the fact that humans are motivated in complex and intertwined ways. CEOs, employees, and consumers are not simply motivated by economic forces. We face a range of emotions that force us to make decisions based on factors beyond price, salary, and the impact our choice will have on our bank account. Kiel’s thesis throughout his book is that leaders who fully accept, explore, and understand not just their own complex set of beliefs and motivations but that of their colleagues, employees, and customers will be more valuable for everyone. Colleagues will benefit from building relationships with an individual they can trust and grow alongside, employees will become more motivated when working for an individual who respects and advocates for them, and consumers will recognize the value of the products, services, and societal position of companies led by globally responsible leadership teams.