Morals endure as ESG loses momentum

• Today’s CEO Daily: Leaders are rethinking moral leadership for the age of artificial intelligence.
• The key leadership development: Elon Musk loses his lawsuit against OpenAI.
• The markets: Mixed reactions as Trump postpones an attack on Iran.
• In addition: Full coverage and insights from today’s events.

(SeaPRwire) –   Good morning. I first met Dov Seidman in 2007 when he published a book titled HOW: Why HOW We Do Anything Means Everything. In it, he made a compelling case for cultivating a culture of ethical leadership, drawing from his experience leading LRN—a company focused on ethics and compliance training. As Seidman explained: “How we do anything means everything.” His message struck a chord with leaders, particularly amid growing momentum behind “stakeholder capitalism.” (Seidman discussed this topic with CEOs at the 2016 Time Global Forum.)

Although interest in stakeholder capitalism has declined due to a backlash against ESG initiatives and other factors, moral leadership has grown more vital in a climate marked by rising distrust, dishonesty, and polarization. Seidman founded and leads the How Institute for Society, which brought together leaders from business, academia, philanthropy, and media yesterday to discuss the current state of ethical conduct ahead of Seidman’s upcoming honor at 92NY. Since the conversation followed the Chatham House Rule, here are the main takeaways:

Lead by example, not just values. A business leader emphasized what Seidman has consistently stressed: abstract values often lack impact in real-world situations. Instead, emphasize the behaviors you want to see—specifically, how people treat one another—and reinforce those actions through recognition and reward.

Look to Minnesota for inspiration. Several participants referenced the significant surge in civic engagement during the ICE raids in Minnesota, which appeared to shift public opinion on immigration policy. This movement was rooted in a strong sense of mutual responsibility—“people being their neighbors’ keepers.” That deeply personal, community-based trust is emerging as a crucial defense against the erosion of shared values elsewhere. Many also expressed a desire for a unifying middle ground grounded in local connection.

AI demands a new approach to integrity. As we develop synthetic workforces, they need a moral framework to guide their operations. While human oversight and clear guidelines remain essential, we also require robust principles, safeguards, and structural systems to govern AI behavior when humans are absent. Moreover, several attendees reflected on what we lose when we bypass human reasoning by asking AI for direct answers—missing out on the joy of discovery, learning, curiosity, and the process of reaching conclusions ourselves.

Share the spotlight. This theme defined both the afternoon session and the evening reception. Right now, many individuals are seizing the limelight, sometimes redirecting or even blocking others’ visibility. Throughout my career, I’ve observed that exceptional leaders actively share the spotlight, fostering two-way dialogue so others can learn from their insights and actions. Their wise words and conduct serve as visible reminders of what true leadership looks like.

Contact CEO Daily via Diane Brady at diane.brady@.com