The modern C-suite is obsessed with "deliverables" and "shareholder value," yet it's currently suffering from a total collapse of the one thing that actually keeps the wheels from falling off. We call it character. It’s not a soft skill. It’s not something you find in a corporate social responsibility brochure. It’s the baseline of human decency that tells a CEO not to lie to regulators or a politician not to sell out their constituents for a board seat.
Michael Hiltzik recently pointed out the squalor of our current leadership landscape, and he’s right. We’ve traded integrity for optics. We’ve replaced actual ethics with compliance checklists. If you can check the box, you’re "good," regardless of whether you’re actually a sociopath in a bespoke suit. This rot isn't just a moral failing. It’s a systemic risk that’s costing billions in market cap and destroying public trust in every institution we have left.
The High Cost of the Moral Vacuum
We see the same pattern repeat in every major corporate scandal of the last decade. It’s rarely a lack of intelligence or resources that brings these giants down. It’s a fundamental absence of character at the top. Think about Wells Fargo and the millions of fake accounts. Think about Boeing and the 737 Max. These weren't accidents. They were the logical conclusion of a culture where "winning" mattered more than the truth.
When character disappears, transparency follows. Leaders start hiding behind legalese. They use "non-denial denials" to skirt accountability. This creates a trickle-down effect. If the person at the top is a shortcut-taker, the middle managers will be too. Pretty soon, the whole organization is just a collection of people trying to cover their tracks.
Why We Keep Hiring the Wrong People
Our recruitment systems are broken because they’re designed to find competence, not character. We look at the resume. We look at the Ivy League degree. We look at the track record of "hitting the numbers." But we rarely look at how those numbers were hit.
The "brilliant jerk" is a classic example. Companies tolerate toxic behavior from high performers because they think the revenue justifies the headache. It doesn't. Research from the Harvard Business Review suggests that the cost of a toxic employee—even a "superstar"—far outweighs their financial contribution when you factor in turnover, litigation, and lost productivity. Character is the only thing that makes competence sustainable. Without it, you’re just building a faster car with no brakes.
The Myth of the Objective Leader
There’s this weird idea in business school that leadership should be "objective" and "data-driven," as if that somehow absolves you of having a soul. Data doesn't make decisions; people do. And those people bring their biases, their greed, and their insecurities to the table every single day.
A leader with character understands that they aren't just a machine for processing KPIs. They're a steward of a community. When a CEO decides to lay off 10% of the workforce while taking a massive bonus, they aren't being "objective." They're being selfish. They're showing a lack of character by prioritizing their own bank account over the lives of the people who built the company. It’s that simple.
Accountability Is Not a Suggestion
The problem is that our current system rarely punishes a lack of character. In fact, it often rewards it. We see failed CEOs walk away with "golden parachutes" worth tens of millions. We see politicians stay in office long after they've been caught in blatant lies.
If there’s no penalty for being a bad person, why would anyone strive to be a good one? We need a radical shift in how we hold leaders accountable. This means more than just a fine from the SEC. It means social ostracization. It means clawback provisions in contracts that actually get triggered. It means refusing to work for, or buy from, people who have shown they can’t be trusted.
The Character Audit You Should Be Doing
If you’re running a team or a company, you need to stop asking if your people are "compliant" and start asking if they have integrity. Compliance is doing what you’re told. Integrity is doing the right thing when nobody’s looking.
You can’t teach character in a weekend retreat. You can’t fix it with a mission statement. It’s built through a thousand small decisions made every day. Do you admit when you’re wrong? Do you give credit where it’s due? Do you stand up for your team when it’s inconvenient? If the answer is no, you’re part of the squalor Hiltzik is talking about.
Stop Prioritizing the Wrong Metrics
We measure everything. We measure engagement. We measure churn. We measure "brand sentiment." But we don’t measure character because it’s hard to put on a spreadsheet.
That has to change. Start looking for the quiet indicators of character. Look at who stays late to help a struggling colleague. Look at who speaks up during a meeting when an idea is unethical, even if it’s profitable. These are the people who will save your company when the next crisis hits. The "stars" who only care about their own career will be the first ones out the door.
How to Reclaim the High Ground
Fixing this mess starts with individual choices. It’s about deciding that your reputation is worth more than a quarterly bonus. It’s about refusing to participate in the "squalor" of modern leadership.
- Vet for values first. During interviews, ask about failures. If someone can’t admit to a mistake or doesn't show empathy for those affected by it, don't hire them.
- Normalize the "No." Create an environment where employees are rewarded for flagging ethical concerns, not silenced.
- Fire the high-performing toxic leader. It sends a clearer message than any memo ever could.
- Demand transparency. If a leader can’t explain a decision in plain English without hiding behind "corporate speak," they’re probably hiding something else.
True leadership isn't about being the smartest person in the room. It's about being the most trustworthy. If we don't start valuing character again, we’re going to keep watching our institutions crumble from the inside out. Don't wait for a regulator to tell you to be a decent person. Just do it.
