Business leadership has become synonymous in the public eye with unethical behavior. Widespread scandals, massive layoffs, and inflated executive pay packages have led many to believe that corporate wrongdoing is the status quo. That's why it's more important than ever that those at the top mend relationships with customers, employees, and other stakeholders. Professor Gardner has spent many years studying the relationship between psychology and ethics at Harvard's Graduate School of Education. In this interview with HBR senior editor Bronwyn Fryer, Gardner talks about what he calls the ethical mind, which helps individuals aspire to do good work that matters to their colleagues, companies, and society in general. In an era when workers are overwhelmed by too much information and feel pressured to win at all costs, Gardner believes, it's easy to lose one's way. What's more, employees look to leaders for cues as to what's appropriate and what's not. So if you're a leader, what's the best way to stand up to ethical pressures and set a good example? First and foremost, says Gardner, you must believe that retaining an ethical compass is essential to the health of your organization. Then you must state your ethical beliefs and stick to them. You should also test yourself rigorously to make sure you're adhering to your values, take time to reflect on your beliefs, find multiple mentors who aren't afraid to speak truth to your power, and confront others' egregious behavior as soon as it arises. In the end, Gardner believes, the world hangs in the balance between right and wrong, good and bad, success and disaster. "You need to decide which side you're on," he concludes, "and do the right thing."

We highlight 20 ideas just bubbling up to the surface in 2006. Howard Gardner contends that the ability to synthesize information will be the most valued trait for leaders. Dan Williams explores how body area networks can lower health care costs and improve safety. William McDonough describes China as a seedbed for environmental innovation. Nitin Nohria and Thomas A. Stewart say the next frontier for business will be managing incalculable uncertainty. Jeff Cares outlines the challenge confronting business as networks face off against networks. Claire Craig reports how scientists are going beyond the lab and using the world outside as their petri dish. Ted Halstead recommends that every newborn in America receive $6,000 as a down payment on a productive life. Georg von Krogh warns that customer-collaborators are starting to demand a stake in IP. Ged Davis envisions an OPEC-like organization to benefit consumers instead of producers. Nancy M. Dixon describes a model for peer-to-peer leadership development. Harris Allen and Sean Sullivan contend that investment in employees' health can pay for itself. David Weinberger says that stores should imitate Web design. Gerd Gigerenzer shows how a leader's personal rules of thumb influence employees. Zachary Karabell discusses the growing gap between nations' and companies' economic performance. Paul Hemp tells why avatars make good customers. Philip Parker explains why creating private labels for your retail customers is smart strategy. Judith Samuelson and Claire Preisser describe how companies are combating short-term thinking. George Stalk Jr. explains why many firms aren't benefiting from China sourcing. Michael S. Gazzaniga punctures inflated expectations about what neuroscience can do for business. E.L. Kersten says employees shouldn't expect their jobs to provide meaning. HBR also offers a list of important business books due out in 2006.