Building Trust and Loyalty: Moral Influence for Small Business Owners
(Lessons from The Art of War)
Leadership in small business goes far beyond strategy and execution—it’s about trust, loyalty, and the personal connections you create with your team and customers.
Have you ever struggled to get your team fully on board with a new project (or an old one, for that matter)? Or had to reassure a customer when things didn’t go as planned? These moments test your ability to lead in a way that inspires loyalty and confidence.
Unlike in larger organizations, small business leadership is immediate and deeply personal. Your team and customers see how you show up every day, and the trust they place in you is critical to your success.
This morning, I came across a passage about “moral influence” in Sun Tzu’s The Art of War. Sun Tzu describes moral influence as the kind of leadership that inspires people to follow you through tough times—not because they have to, but because they want to. He says moral influence is built on four key values: benevolence (kindness), justice (fairness), righteousness (integrity), and confidence (trust in your people).
These values resonate especially in small businesses, where leadership is as much about relationships as it is about results. Let’s dive into what moral influence means and how you can bring it into your business.
What Is Moral Influence?
Moral influence is Sun Tzu’s way of describing leadership that inspires loyalty by aligning the leader’s vision with their people’s trust and belief. It’s about creating a sense of shared purpose that inspires people to give their best because they believe in you and the goals you’re pursuing together.
In small business, you’re often in the trenches with your team. They see how you make decisions, handle stress, and treat others. When you lead with kindness, fairness, and integrity, they notice—and that trust becomes the foundation for loyalty and high performance.
Example: When I ran my home health company, we built a team that genuinely cared about our mission and one another. Turnover was remarkably low—something almost unheard of in our industry. Even employees who left often came back, saying they missed being part of what we had built. Why? I made it a priority to treat everyone with respect and follow through on my promises. That culture of trust created a shared sense of purpose, inspiring our team to work hard, deliver exceptional care and stay aligned with the company’s goals.
That’s moral influence in action.
How to Lead with Moral Influence
- Benevolence: Kindness Builds Loyalty
Kindness in leadership isn’t about being soft—it’s about showing empathy and understanding, which builds trust and strengthens relationships.
Example: Tom, a lawyer who runs a small firm, noticed that one of his paralegals, Lisa, was struggling with a long commute that made it hard to balance work and family life. Instead of ignoring the issue, Tom offered a simple solution: Lisa could work from home a couple of days a week. This small gesture didn’t just solve her problem—it made her feel valued and supported. Lisa became one of the firm’s most reliable team members, and the team grew closer, knowing their leader cared about their well-being.
Practical Tip: Look for ways to show kindness this week. It could be as simple as asking how someone is doing, actively listening to their concerns, or offering a small gesture of support when they need it most.
- Justice: Fairness Earns Respect
Being fair and consistent creates a sense of security and value within your team. When people trust that they’ll be treated fairly, they feel more connected and motivated.
Example: At a consulting firm I worked for, there was constant tension over favoritism. Promotions and rewards often felt arbitrary, which hurt morale and created resentment. Eventually, leadership introduced clear, written guidelines for promotions, raises, and project assignments. The change wasn’t easy—especially for those who had benefited from the old system—but it brought the team together. When everyone knew the rules applied equally, we were able to focus on client success instead of worrying about internal politics.
Practical Tip: Create clear, written criteria for promotions, rewards, or other major decisions. Share these standards openly with your team so everyone knows what to expect and feels confident in the process.
- Righteousness: Integrity Builds Trust
Integrity means doing the right thing, even when it’s difficult or inconvenient. It’s about staying true to your values and leading by example.
Example: An accountant I know turned down a lucrative project because the client’s values conflicted with her own. It wasn’t an easy decision—walking away from that kind of money never is—but it reinforced her commitment to doing business with integrity. Her existing clients noticed and respected her even more for it. Over time, her reputation for honesty attracted new clients who shared her values, helping her grow her business in a way that aligned with her principles.
Practical Tip: Write down your core values and share them with your team. Use these values as a guide for decision-making, especially during challenging times.
- Confidence: Trust Your Team
Trusting your team empowers them to take ownership and perform at their best. It also frees you to focus on higher-level priorities.
Example: The best boss I ever had (thank you, Teri!) trusted her team completely. She gave us the freedom to make decisions and viewed mistakes as opportunities to learn, not reasons for blame. This approach created a culture where we felt supported and confident, inspiring us to work harder and take pride in our achievements. Everyone on her team thrived because we knew she believed in us.
Practical Tip: Identify one task or decision you’ve been holding onto. Delegate it to a team member this week, and let them take full ownership. Follow up with feedback to build their confidence and reinforce trust.
Celebrate Shared Wins
Sun Tzu teaches that overcoming challenges together creates a sense of shared happiness that inspires loyalty and commitment.
Example: At my home health company, we had a tradition we called “high fives.” Whenever someone noticed a colleague going above and beyond, they’d recognize it in a team meeting and write it down on a board near the front office for everyone to see. It wasn’t fancy, but it became a cornerstone of our culture. We got into the habit of looking for things to celebrate, which boosted morale and strengthened our sense of teamwork.
Practical Tip: Create a way to celebrate your team’s successes, big or small. Whether it’s a thank-you note, a shout-out during a meeting, or a team lunch, these moments remind people that their efforts matter.
Building Your Foundation of Moral Influence
To build moral influence in your business:
- Define Your Values: Document what kindness, fairness, and integrity mean for your business.
- Communicate Openly: Share your vision in team meetings, one-on-ones, and informal conversations.
- Demonstrate Consistency: Align your actions with your values, especially during challenging times.
- Invest in Growth: Support your team’s development through mentorship, training, or new opportunities.
- Celebrate Together: Make recognition and celebration part of your company culture.
How Will You Apply Moral Influence This Week?
Moral influence isn’t about being perfect. It’s about showing up as a leader who inspires trust, loyalty, and confidence.
Practical Tip: Choose one area—kindness, fairness, integrity, or trust—and commit to strengthening it this week. Small, consistent actions build the foundation for lasting trust and loyalty.
Ask yourself: What step will you take today to strengthen moral influence in your business? That one step could transform your leadership—and your business’s future.
