Market Basket: A Profile in Compassionate Leadership
If you got fired today, would your employees fight for your reinstatement? Would your customers boycott to make it clear they want you back? Who would fight for you? I know who fought for Arthur T. Demoulas: his employees, customers, and vendors. They demanded his reinstatement in 2014 and won.
Ten years ago, Market Basket was at the center of a major labor dispute and public relations battle. The conflict began when the company's board of directors fired the beloved CEO, Arthur T. Demoulas. His firing led to immediate, widespread employee protests, strikes, and customer boycotts.
The story captured significant media attention, including a panel discussion by MIT Sloan School of Management, which deconstructed Arthur’s compassionate leadership style. Ultimately, the ongoing protests led to a resolution and Mr. Demoulas was reinstated as CEO.
This event was pivotal for Market Basket, strengthening its reputation as a company that values its employees and has a strong community connection.
Mr. Demoulas recently made headlines again. This time it was to celebrate the 10-year anniversary of those fateful events by giving significant bonuses to his employees. The bonuses were part of a special recognition for their hard work and dedication over the past decade.
The Market Basket story vividly illustrates the real business impact from “soft concepts” such as: psychological safety, civility, gratitude and belonging in the workplace. These principles, though they might not always sound business-like, play a crucial role in shaping a positive work environment and driving success.
Psychological Safety: Employees disregarded their own needs to voice their support for Demoulas and protest against the board’s decision. This open environment allowed them to express their concerns and demonstrate their loyalty, which was pivotal in the company’s resolution. The employees' willingness to risk their jobs to support Demoulas and their company speaks to the power of psychological safety. It shows that when employees feel secure in their workplace, they are more willing to take risks and stand up for what they believe in, including protesting leadership decisions.
Civility: Demoulas’ respectful and empathetic approach fostered a culture of civility within the company. This mutual respect between leadership and employees created a strong, supportive work environment that encouraged engagement and commitment. Demoulas demonstrates that true civility is about recognition and unity. His leadership style—marked by respect and care for his employees—helped build a culture where everyone felt part of a shared mission.
Gratitude: Demoulas’s recognition and appreciation of his employees contributed to a sense of being valued. When leaders show genuine gratitude, it reinforces employees’ dedication and motivates them to go above and beyond. Gratitude plays a role in reinforcing the emotional contract between leaders and employees. When employees feel valued, they reciprocate with dedication and loyalty, which became a pivotal factor in the collective action taken by the employees during the Market Basket dispute.
Belonging: Arthur Demoulas’ leadership was, and is, not based on top-down authority or transactional relationships. Instead, he nurtures a culture where employees, vendors, and even customers feel they are a part of something bigger—a community. When Arthur was fired, the overwhelming response from employees, vendors, and loyal customers was not just a reaction to a business decision; it was a testament to the deep sense of loyalty and belonging he had cultivated.
Belonging is often elusive because it goes beyond simple engagement. It’s when individuals feel seen, valued, and respected for who they are as unique individuals.
Arthur didn’t just manage people; he cared for them, and that made all the difference. The collective uprising after his dismissal showed that belonging transcends paychecks or roles—it is about being a part of a shared purpose.
The Market Basket story indeed serves as a powerful example of how "soft" leadership qualities like psychological safety, civility, and gratitude can drive real business outcomes. These human-centric values created an environment of trust, loyalty, and engagement, which proved to be key assets during a crisis.
Demoulas created a deep reservoir of goodwill that had a direct impact on business results. While traditional business strategies like cost-cutting or operational efficiencies are important, this example demonstrates that a strong, supportive, and appreciative workplace culture contributes measurable impacts to organizational health and longevity.
When leaders demonstrate genuine care for their employees, it creates an emotional connection—a sense of belonging that motivates individuals to go beyond their job descriptions and see the organization’s success as their own.
If you got fired tomorrow, who would fight for you? It’s easy to answer by asking another question: WHO is it that YOU fight for? Watch WHO people fight for because it tells you a lot about what they care about.
For the record, I do not know Mr. Demoulas! However, 10 years ago, I was so inspired by this story that I wrote a leadership case study for a course we created around the leadership brand experience.
Sandra Alessi
Founder, Learnscape Design, LLC
