Moral Leadership in the Boardroom: Key Insights from Stanton Chase Amsterdam’s Non-Executive Director Breakfast Series 

Stanton Chase Amsterdam recently held its highly anticipated Annual Non-Executive Director (NED) Breakfast Series.  

This esteemed event gathered distinguished non-executive directors (NEDs) from across industries. Jan Stolker led the discussion as Director of Leadership & Governance, bringing insights from his roles as former Director at the Erasmus Governance Institute, which he founded. He is also the author of ‘The Game in the Boardroom: An Introduction to Behavioral Governance’ (Het Spel in de Boardroom – een introductie in behavioral governance). 

The discussion centered on moral leadership in the boardroom, examining both executive and non-executive roles. 

Event Overview

A Meeting of Minds

The breakfast series serves as a platform for NEDs to network, share insights, and deliberate on critical governance issues. This year’s theme, moral leadership, could not have been timelier. As global enterprises grapple with ethical dilemmas and societal expectations, the role of moral leadership within the boardroom becomes ever more important. 

The NEDs spoke extensively about the behavioral science behind leadership and discussed how they could bring that into the boardroom themselves. 

The Role of the Moderator

Jan Stolker, renowned for his expertise in corporate governance and ethics, directed the discourse with remarkable precision and depth. His participation ensured that the discussions were both informative and thought-provoking, prompting participants to critically evaluate their own leadership practices. 

The Psychology of Board Leadership

The Dark Triangle 

The concept of the “dark triangle” was a key topic of discussion. This theory explores three detrimental personality traits: narcissism, Machiavellianism, and anti-social behavior. 

• Narcissism: In the context of leadership, narcissism can manifest as an inflated sense of self-importance and a lack of empathy for others. Such leaders might prioritize personal gain over the welfare of the organization, leading to toxic work environments and poor decision-making. 
• Machiavellianism: Derived from the political philosophy of Niccolò Machiavelli, this trait involves manipulation and deceit to achieve one’s goals. Leaders exhibiting Machiavellian behavior may engage in unethical practices, undermining trust and integrity within the boardroom. 
• Anti-social Behavior: This encompasses behaviors that are hostile or harmful to organizational harmony. Leaders with anti-social tendencies may disregard societal norms and ethical standards, posing serious risks to the entity’s reputation and legal standing. 

The non-executive directors explored a critical dilemma: when do desirable leadership traits—dominance, charm, vision, and persuasiveness—become subordinate to “dark triangle” behaviors? As they discussed, these boundaries often blur, and leadership behavior can shift subtly over time, influenced heavily by cultural factors. 

The discussion between the NEDs on the appropriate timing for non-executive board intervention was particularly insightful. Specifically, it explored when a CEO’s actions might transition into the dark triangle realm, even while they remain highly successful from a financial standpoint. 

The Information Paradox

The information paradox, a concept defined by bounded rationality, was another important topic. Bounded rationality refers to the limitations of human cognitive capacities in processing and analyzing information. 

In the boardroom, this paradox presents a challenge: how can leaders make informed decisions when they are inundated with vast amounts of data, yet constrained by their cognitive limits? The discussion emphasized the need for executive and non-executive directors to develop proper decision-making frameworks that account for these limitations, ensuring that choices are both rational and ethical. 

The discussion turned to Daniel Kahneman’s ideas about fast and slow thinking, a framework he developed in ‘Thinking, Fast and Slow.’ This framework distinguishes between two modes of thought: System 1, which is fast, instinctive, and emotional, and System 2, which is slower, more deliberative, and logical. The NEDs remarked that the perceived pressure of deciding quickly can affect the quality of their decision making. 

For NEDs, the role inherently demands a reliance on slow thinking. The complexity and gravity of boardroom decisions necessitate careful deliberation and a thorough analysis of all available information. NEDs must guard against the cognitive biases and heuristics that often accompany fast thinking, ensuring that their decisions are not only prudent but also ethically sound. 

These complex topics—particularly the ‘dark triangle’ and information paradox—show why boards need a balanced approach to decision-making. Quick, intuitive reactions have their place, but NEDs must also take time to weigh the long-term impact of their decisions. Taking this extra time leads to more sustainable and ethical leadership. 

The Light Triangle

In contrast to the dark triangle, the light triangle encompasses three positive leadership qualities: empathic leadership, transparency, and inclusivity. 

• Empathic Leadership: This quality involves understanding and sharing the feelings of others. Empathic leaders foster a supportive and collaborative environment, enhancing employee morale and organizational cohesion. 
• Transparency: Transparent leaders prioritize openness and honesty in their communications and operations. This builds trust among stakeholders and ensures accountability within the organization.
• Inclusivity: Inclusive leadership values diversity and ensures that all voices are heard. By embracing different perspectives, inclusive leaders drive innovation and cultivate a culture of respect and equity.

A New Triangle for Non-Executive and Executive Directors

Building upon the foundation of the light triangle, a “new triangle” emerges, characterized by entrepreneurship, ownership and perseverance, and self-reflection. These elements complement the positive aspects of the dark triangle—charm, vision, and persuasion—forming a winning set of characteristics for successful non-executive boards. 

• Entrepreneurship/Strategic Intelligence: This trait embodies innovation and the willingness to take calculated risks, driving the organization forward with a proactive and agile mindset. It encourages NEDs to identify opportunities and navigate challenges with creativity and strategic foresight. 
• Ownership and Perseverance: Effective NEDs demonstrate a strong sense of responsibility and commitment to the organization’s long-term goals. Their perseverance ensures resilience in the face of adversity, fostering a culture of accountability and sustained effort. 
• Self-Reflection: Continuous self-assessment enables NEDs to remain aware of their strengths and areas for improvement. This introspective approach promotes personal and professional growth, aligning individual and organizational values. 

When these qualities are combined with the charm, vision, and persuasion of the dark triangle, they create a holistic leadership framework that enhances the efficacy and ethical grounding of non-executive boards. This integrative approach equips NEDs to navigate complex corporate landscapes with both decisiveness and integrity. 

The insights gained from this year’s Stanton Chase Amsterdam Annual Non-Executive Director Breakfast Series were invaluable. The discussions on the dark triangle, the information paradox, and the light triangle provided an understanding of the complexities of moral leadership. As NEDs return to their respective organizations, the principles discussed will undoubtedly influence their approach to governance, creating more ethical and effective leadership practices. 

Stanton Chase Amsterdam remains committed to facilitating such critical dialogues, recognizing the importance of continuous learning and reflection in the ever-changing landscape of corporate governance. The breakfast series will continue to serve as a cornerstone event, bringing together thought leaders and practitioners to shape the future of leadership.