Integrity, innovation and risk-taking is a rare combination in CEOs, new research suggests

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Prachi Gala, Kennesaw State University

(THE CONVERSATION) The Research Brief is a short take about interesting academic work.

The big idea

Corporate chief executive officers who have a high degree of integrity – that is, a commitment to act by a morally justified set of principles and values – tend to be less creative, more risk-averse and less likely to take initiative than other CEOs, according to new research I co-authored.

Past research suggests that as a result, their companies are likely to be less competitive and less profitable.

Having a lot of integrity has traditionally been considered one of the most important qualities of a business leader. Research has shown that a high level of CEO integrity is a key trait in determining employee loyalty as well as preventing problems like fraud.

My colleague Saim Kashmiri and I wondered, however, if there are any downsides to being a top boss with lots of integrity. So we analyzed financial and other information on 213...