31-07-2025
Faith And Leadership: Why Business Leaders Need Purpose More Than Ever
Stephanie Ricci contributed to this story.
While many CEOs start board meetings with data slides and quarterly projections, the most successful leaders I know begin theirs with silence. Instead, they prepare their team for what Oxford's Alister McGrath calls "navigating the ocean of uncertainties" — a practice more valuable than any spreadsheet.
We're living through a time when volatility is the norm and certainty is rare. For business leaders, the challenges go far beyond quarterly earnings or market share. What truly motivates people? How do we lead when the path isn't clear? And perhaps most pressingly, how do we find meaning in the work we do?
These questions led me to McGrath, an Oxford emeritus professor, whose latest book, "Why We Believe," explores the fundamental role of faith in human existence. McGrath, who has advised leaders across sectors on questions of meaning and purpose, brings a unique perspective to contemporary business challenges.
While his expertise lies in theology, his insights into belief, purpose, and leadership offer profound lessons on what drives human motivation and sustainable organizational success today.
Why Facts Alone Aren't Enough
At the heart of McGrath's argument is a quiet challenge to business orthodoxy: facts and data, on their own, aren't sufficient to lead well.
'We have to deal with human nature as it is,' McGrath says. 'And the way we seem to be is that we believe things that go beyond the facts that are available. And we find these beliefs very important.'
This observation is particularly relevant in a VUCA world — one that is volatile, uncertain, complex, and ambiguous.
When I asked McGrath about leading in such uncertainty, his response was illuminating: 'Faith allows you to see past the empirical. Faith kind of looks through that and says, yeah, it's not good. But there are certain things that we can see about this that go beyond pure factual analysis. And this gives us hope for the future,' he says.
For business leaders, this isn't about abandoning rigorous analysis, but recognizing its limitations. Before dismissing this as academic philosophy, ask yourself: When did you last make a major business decision based purely on data? If you're honest, probably never.
'Faith is empowering,' McGrath continues. 'It's about saying there are other ways of seeing this, maybe we can do something about this, and we can find our way through this rather puzzling phase in human history.'
The Corporate Purpose Revolution
McGrath's insights align remarkably with current business thinking.
'I was just watching a presentation from the Saïd Business School at Oxford, and one of the central points is saying that you need to have a corporate purpose. The corporation must go, why do you exist? What is your mission in the world? How are you making the world a better place?'
The corporate purpose movement isn't just about marketing or public relations, it reflects a deeper understanding of human psychology. McGrath points to research showing that people need "a deep sense of who we are, sense of identity, but also a sense of value. We need to know that we matter and also a sense that there's something we're meant to be doing, a sense of calling, a purpose."
A 2020 study published in Frontiers in Psychology found that corporate purpose serves as a significant antecedent to employee motivation and work engagement, particularly in VUCA business environments.
McKinsey research further validates this approach: 70% of employees say their sense of purpose is defined by their work, and employees whose sense of purpose connects with their organizations are five times more likely to feel fulfilled at work.
The implications for leadership are profound. Organizations that can articulate a compelling purpose beyond profit create stronger employee engagement, better customer loyalty, and more sustainable performance.
The impact is measurable: another McKinsey study shows that people with positive employee experiences have 16 times the engagement level of those with negative experiences, and are eight times more likely to want to stay at their company.
The Luxury of Meaning
One particularly striking insight from McGrath addresses the relationship between economic security and existential questioning. When I suggested that searching for purpose might be a luxury of the wealthy, McGrath agreed, referencing Bertrand Russell's observation that "once we're able to keep ourselves alive, then we start to think these deep questions."
The cost of neglecting purpose is significant: McKinsey analysis reveals that employee disengagement and attrition can cost a median-size S&P 500 company $228 to $355 million annually in lost productivity.
While workers in developing markets may be primarily motivated by economic necessity, employees in developed economies increasingly seek meaning and purpose in their work. Understanding this hierarchy of needs is crucial for leadership across diverse markets and cultures.
From Atheism to Faith
McGrath's personal journey from Marxist atheist to Christian theologian also offers lessons about intellectual humility and openness to change.
His shift in perspective began at Oxford, where he confronted a surprising contradiction: while his atheist peers challenged Christians for being unable to prove their beliefs, neither they — nor he — could offer definitive proof that atheism was correct, he says.
This intellectual honesty, or the willingness to acknowledge uncertainty and remain open to new perspectives, is essential for business leaders.
Conversation Over Proclamation
For modern leaders, McGrath's emphasis on dialogue over monologue stands out.
"The best form of Christian witness these days is conversations,' he says. 'You know, let me tell you about my faith, you tell me about yours. It's about opening up a sharing, it's about building a relationship."
A focus on conversation over command reflects broader shifts in leadership today. It's about listening as much as speaking, being curious about others' perspectives, and building genuine relationships, not just issuing orders.
Through this approach, McGrath also highlights the crucial role of community in sustaining purpose-driven leadership. It's not just about individual actions, but about fostering relationships and collective engagement to drive shared goals.
"Faith is best lived up with others because they support you, you support them, and also they're able to reflect with you on things you might be able to do," he explains.
For business leaders, this translates into the importance of building strong leadership teams, creating supportive organizational cultures, and fostering communities of practice where leaders can also learn from each other.
Reverse Mentoring and Generational Wisdom
McGrath highlights how today's leaders have much to learn from younger generations. He speaks about 'very helpful conversations I had with students from America, China, Europe, over the last 10 years... they were just saying, here's the way we see it. And it really helped me step inside a different way of seeing things.'
This concept of reverse mentoring—where senior leaders actively seek to understand the perspectives of younger employees—aligns with the evolving leadership landscape, where generational wisdom is increasingly seen as a key asset.
Broader leadership research also supports this, as seen in a Harvard Business Review study, revealing that reverse-mentoring programs can increase retention, help senior executives become more sophisticated about social media, drive culture change, and promote diversity.
Leading Through Paradox
McGrath's final insight may be the most important: effective leadership often requires holding paradoxes in tension.
'I'm an introvert who knows I have to be extroverted when I'm dealing with people. I have to calibrate my own particular tendency towards introversion with a willingness to have these good, engaging conversations with people,' he says.
This ability to be both analytical and intuitive, confident and humble, directive and collaborative, may be the defining characteristic of leadership in our complex world.
While McGrath may come from the world of theology, his reflections on belief, identity, and purpose speak directly to the challenges of modern leadership. In a time when data cannot answer every question and uncertainty shapes our reality, the leaders who draw on a deeper sense of meaning and direction will be best prepared to move forward.
'Faith is cognitively permissible and existentially necessary,' concludes McGrath. His message is clear: the leaders who will thrive are those who can navigate beyond pure data analysis to tap into the deeper human needs for meaning, purpose, and connection.
The most important leadership qualities, it turns out, may be the most fundamentally human ones.
