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September 29, 2005

News & Opinion: How is Moral Intelligence connected to business performance and successful leadership?

By: 800-CEO-READ @ 10:00 PM – Filed under: Management & Workplace Culture

We conducted multiple interviews with myriad of business leaders from a variety of both large and small domestic and international companies. We also tapped into a variety of studies and research conducted by institutions like DePaul University, and our conclusion is there is a direct connection between moral intelligence and business performance.
At DePaul researchers from the School of Accountancy and MIS compared the financial performance of 100 companies selected by "Business Ethics" magazine as "Best Corporate Citizens" with the performance of the rest of the S&P 500. Corporate citizenship rankings were based on quantitative measures of corporate service to seven stakeholder groups: stockholders, employees, customers, the community, the environment, overseas stakeholders, and women and minorities. The study found that overall financial performance of the 2001 Best Corporate Citizen companies was significanty better than the rest of the S&P 500. The average performance of the Best Citizens, as measured by the 2001 "Business Week" rankings of total financial performance, was more than 10 percentile points higher than the mean rankings of the rest of the S&P 500.