BUS 250
Week 5
Week 5 Instructor Guidance
BUS 250: Corporate & Social Responsibility
BUS 250
Week 5
BUS 250 Course learning map
Week 1: Society and the Organization
Week 2: The Global Community and the Equitable Workplace
Week 3: The Organization’s Environmental Impact
Week 4: Internal Issues
Week 5: Social Media, Philanthropy, and Ethical Dilemmas
3
Week 5 Learning ActivitiesTaskDescriptionDueDiscussion #1:Social MediaThurs, Day 3Discussion #2:Corporate PhilanthropyThurs, Day 3Final PaperOrganization Ethical DilemmasMon, Day 7
Assigned ReadingDescriptionSource Text: Chapter 10Leadership Challenges and Opportunities (Hammond & Christensen, 2016)Article: Matthew & HeimerMatthews, C., & Heimer, M. (2016). The 5 biggest corporate scandals of
2016. Retrieved from http://fortune.com/2016/12/28/biggest-corporate-scandals-2016/
Article: ShenShen, L. (2017). The 10 biggest business scandals of 2017. Retrieved from http://fortune.com/2017/12/31/biggest-corporate-scandals-misconduct-2017-pr/
4
Week 5: Important notes
Written Assignment:
Note the page requirement of 8-10 pages
Note resource requirements of at least four scholarly sources (in addition to text)
Note point value for this assignment!
Don’t forget your end of course survey!
LATE WORK is not permitted in week five!
5
This week you will learn to:
Evaluate the free speech of employees when giving opinions about their employers in a public forum.
Analyze how companies can direct their giving strategically.
Synthesize previous learning outcomes in a final project
Week 5 Learning Objectives
6
Chapter 10
Leadership Challenges & Opportunities
Concepts
Leadership as Monarchy and Divine Right
Great Man Theory
Trait Theories
Behavioral Theories
Process Theories
Challenges
Waste Reduction
Social Equality
(Hammond & Christensen, Chapter 10 , 2016)
7
Trait theory
There are several trait theories. Two of the most popular are
Big Five
Sixteen Personality Factor Model
The big five personality theory was developed by McCrae (Westerhoff, 2008). The five factors are extroversion, openness, agreeableness, conscientiousness, and neuroticism (Westerhoff). Based on how high an individual scores in each category, the trait theory can be used to describe personality. For example, a successful salesperson would likely score high in extroversion. Extroversion includes three measures: communicativeness, initiative, and cheerfulness. High openness scores are often seen in artists. Openness includes creativity and novelty. A good example of someone who should have a high agreeableness factor is an elementary school teacher. Agreeableness includes empathy, warmth, and friendliness. Those with high levels of conscientiousness include scientists and accountants. Conscientiousness factors include discipline, trust, and motivation. The final factor is neuroticism. This factor measures emotional stability. Individuals how score high in neuroticism are anxious, inhibited,.
1. BUS 250
Week 5
Week 5 Instructor Guidance
BUS 250: Corporate & Social Responsibility
BUS 250
Week 5
BUS 250 Course learning map
Week 1: Society and the Organization
Week 2: The Global Community and the Equitable Workplace
Week 3: The Organization’s Environmental Impact
Week 4: Internal Issues
Week 5: Social Media, Philanthropy, and Ethical Dilemmas
3
Week 5 Learning ActivitiesTaskDescriptionDueDiscussion
#1:Social MediaThurs, Day 3Discussion #2:Corporate
PhilanthropyThurs, Day 3Final PaperOrganization Ethical
DilemmasMon, Day 7
Assigned ReadingDescriptionSource Text: Chapter
10Leadership Challenges and Opportunities (Hammond &
Christensen, 2016)Article: Matthew & HeimerMatthews, C., &
Heimer, M. (2016). The 5 biggest corporate scandals of
2016. Retrieved from http://fortune.com/2016/12/28/biggest-
2. corporate-scandals-2016/
Article: ShenShen, L. (2017). The 10 biggest business scandals
of 2017. Retrieved from
http://fortune.com/2017/12/31/biggest-corporate-scandals-
misconduct-2017-pr/
4
Week 5: Important notes
Written Assignment:
Note the page requirement of 8-10 pages
Note resource requirements of at least four scholarly sources (in
addition to text)
Note point value for this assignment!
Don’t forget your end of course survey!
LATE WORK is not permitted in week five!
5
This week you will learn to:
Evaluate the free speech of employees when giving opinions
about their employers in a public forum.
Analyze how companies can direct their giving strategically.
Synthesize previous learning outcomes in a final project
Week 5 Learning Objectives
6
3. Chapter 10
Leadership Challenges & Opportunities
Concepts
Leadership as Monarchy and Divine Right
Great Man Theory
Trait Theories
Behavioral Theories
Process Theories
Challenges
Waste Reduction
Social Equality
(Hammond & Christensen, Chapter 10 , 2016)
7
Trait theory
There are several trait theories. Two of the most popular are
Big Five
Sixteen Personality Factor Model
The big five personality theory was developed by McCrae
(Westerhoff, 2008). The five factors are extroversion,
openness, agreeableness, conscientiousness, and neuroticism
(Westerhoff). Based on how high an individual scores in each
category, the trait theory can be used to describe personality.
For example, a successful salesperson would likely score high
in extroversion. Extroversion includes three measures:
4. communicativeness, initiative, and cheerfulness. High openness
scores are often seen in artists. Openness includes creativity and
novelty. A good example of someone who should have a high
agreeableness factor is an elementary school teacher.
Agreeableness includes empathy, warmth, and friendliness.
Those with high levels of conscientiousness include scientists
and accountants. Conscientiousness factors include discipline,
trust, and motivation. The final factor is neuroticism. This
factor measures emotional stability. Individuals how score high
in neuroticism are anxious, inhibited, lack self-assurance, and
are often more moody (Westerhoff).
How can trait tests help an organization?
8
Chapter 10
Leadership Challenges & Opportunities
Next Generation Leaders
Systems thinkers
Emotional intelligence
Collaborative skills
Transparent communication
Ethical behavior
Steward for the environment
Nonhierarchical Leadership
Continuous learning
(Hammond & Christensen, Chapter 10, 2016)
9
Emotional intelligence
5. Emotional intelligence measures both personality and
behavioral characteristics. Factors measured can include
Persistence
self-awareness
Diligence
impulse control
motivation
(Plaude & Rascevska, 2011).
Corporate Philanthropy
“Philanthropy can often be the most cost-effective way for a
company to improve its competitive context, enabling
companies to leverage the efforts and infrastructure of
nonprofits and other institutions” (Porter & Kramer, 2002).
Porter and Kramer (2002) posited that organizations can utilize
corporate philanthropy as a competitive advantage. They
suggested that using Porter’s four elements of competitive
context as a foundation would be the best method. The method
is based on four key elements. First is factor conditions (Porter
& Kramer). Attaining high productivity is dependent upon
several factors including high-quality technological and
scientific institutions, the availability of natural resources,
acceptable physical infrastructure, trained workers and,
efficient and transparent administrative processes (Porter &
Kramer).
6. Second, demand conditions include the size of the local market,
the sophistication of the customers in the market, and the
suitability of product standards (Porter & Kramer, 2002). The
more savvy the local customers are the more competitive the
market is likely to be. This is because the customers are better
able to provide insight that can help in innovation. The third
factor is the context for strategy and rivalry. This factor is
related to governance because rules, incentives, and societal
norms affect competition and have influence on productivity.
The final factor is related and supporting industries. An
organization’s productivity can be boosted through nearby
first-rate supporting industries and services (Porter & Kramer).
11
Organizational Ethical dilemmas
Commonly organizational mistakes that lead to ethical
dilemmas
Leadership does not model the appropriate behaviors
Leaders act entitled
Cutting corners to meet misplaced incentives or being rewarded
for the wrong things
Employees feeling they must obey leadership even when they
know they are being asked to do something wrong.
Fear of conflict
Defensive logic – The everyone else is doing it theory
(Ceplenski, 2013)
Additional Resources
From Ashford’s Library –
Are we allowed to discipline employee who badmouthed boss on
7. Facebook? (2017, Mar. 11) HR Specialist: Minnesota
Employment Law Apr. 2016: 8. Business Insights: Global.
Lipton, J. (2007, August 14). Mattel gets the lead out. Forbes.
Retrieved from http://www.forbes.com/2007/08/14/mattel-
china-recall- markets-equity-cx_jl_0814markets12.html
Story, L. (2007, August 2). Lead paint prompts Mattel to recall
967,000 toys. New York Times. Retrieved from
http://www.nytimes.com
Story, L., & Barboza, D. (2007, August 15). Mattel recalls 19
million toys sent from China. New York Times. Retrieved
from http://www.nytimes.com
Update if applicable.
13
Additional resources
From Ashford’s Library – Films on Demand
Philanthropy, Inc.: The bottom line on corporate charity [Video
file]. (2012). Retrieved from
http://fod.infobase.com/PortalPlaylists.aspx?wID=100753
&xtid=53327
Philanthropy, Inc.: The bottom line on corporate charity [Video
file]. (2012). Retrieved from
http://fod.infobase.com/PortalPlaylists.aspx?wID=100753
&xtid=53327
Any questions?
Please post your questions in the Ask the Instructor thread.
8. References
Hammond, S. C., & Christensen, L. J. (2016). Corporate and
social responsibility: Road map for a sustainable future. San
Diego, CA: Bridgepoint Education, Inc.
Porter, M. E., & Kramer, M. R. (2002, December). The
competitive advantage of corporate philanthropy. Harvard
Business Review. Retrieved from https://hbr.org/2002/12/the-
competitive-advantage-of- corporate-philanthropy
Westerhoff, N. (2008, Dec. 17). The “big five” personality
traits. Scientific American. Retrieved from
https://www.scientificamerican.com/article/the-big-five/
16
16
Why Geography Matters
Discussion Points Template
Name: __________________________________
Chapter #: ____________
Directions: Use this form to prepare key points from the text for
in-class discussion. Under the analysis sections, include your
own thoughts and interpretations, why the quote or key point is
important, connections to other parts of the text or your own
experiences, etc. Also, be sure to cite any and all essential
elements or geographic concepts that apply as you discuss them.
Finally, include a key geographic understanding—or
takeaway—that you gleaned from the chapter, explaining the
connection to the geography and why it resonated with you.
9. Page #:
Author Quote or Key Point:
Analysis:
Page #:
Author Quote or Key Point:
Analysis:
Page #:
Author Quote or Key Point:
Analysis:
Chapter Key Geographic Understanding:
11. 1. The concept and meaning of leadership has remained
relatively constant over time. T/F
2. Trait theories of leadership opened the door for leadership
training. T/F
3. Waste reduction and social equity have always been the
concerns of corporate
leaders. T/F
Answers can be found at the end of the chapter.
Introduction
Every generation defines and redefines the concept of
leadership as it faces the challenges
of its era. Certainly, some time periods provide more material
and opportunity for reflection
than others. For example, in 1862, as the fractured United States
fought the Civil War, Presi-
dent Abraham Lincoln said, “The dogmas of the quiet past are
inadequate to the stormy pres-
ent. The occasion is piled high with difficulty and we must rise
with the occasion. As our case is
new, so we must think anew and act anew” (as cited in Woolley
& Peters, 2015).
Part of Lincoln’s legacy stemmed from his ability to “think and
act anew.” While the issues
facing our globalized world significantly differ compared to the
1800s, some themes remain
the same: When it comes to issues like CSR and sustainability,
it seems necessary for brave
people to think and act anew. This chapter examines how the
next generation of leaders can
begin this process. If society is to face new problems in a novel
way, completing such tasks is
13. Leadership as Monarchy and Divine Right
Western cultural norms about leadership have strong roots in a
patriarchal and monarchical
social structure—a male-dominated social order in which royal
families prevailed. In this
property- and lineage-based mind-set, the fundamental
assumption was that kings and
queens (or other monarchs) were entitled to the positions they
held (in some cases such posi-
tions were considered to be appointed, or at least approved, by a
deity). Typically, in monar-
chies positions of power are transferred based on lineage. The
average person has little access
to the monarchs; rather, he or she has to contribute significantly
to the well-being of more
powerful people. In monarchies, leadership historically came
from “an outside source, the
power of the original source of delegation or control—divine,
delegated, hereditary, or raw
force” (Miller, 2004, p.110). In other words, leadership came as
a divine right but was often
maintained by brute force.
In a world dominated by divine right, lead-
ership was completely self-justified. It was
more about authority and control and less
about collaboration and information. A
king, queen, emperor, sultan, or shogun
each had authority over the local world, and
most sought to expand access to resources
in competition against other kingdoms or
principalities. In other words, it was the role
of the monarch to obtain as many resources
as possible and protect his or her people
from other monarchs who also wanted
to acquire more resources. This changed
14. as leadership theory evolved and moved
toward a CSR mind-set and generated an
expectation of sustainability.
Great Man Theory
As a result of the historical dominance of certain families and
monarchies, it is not surprising
that the first management theories about leadership were called
“great man theories.” These
assume that a leader is both born in the right place and
developed to protect against the chaos
of nature and malevolent others. Also, despite exceptions such
as Joan of Arc or Queen Eliza-
beth, as a cultural by-product of the times, it was typically
assumed that all leaders would be
men. In terms of how this relates to CSR, such thinking
suggests that dominance and compe-
tition define and characterize leaders. While leadership thinking
has changed and matured,
such a mind-set may still characterize lingering attitudes about
nature and larger society.
Monarchies gave way to forms of democracy and capitalism, but
conceptualizations of lead-
ership did not really change at first. Great man theories of
leadership replaced the idea that
leaders were simply leaders by birthright, though they continued
to imply that leaders were
special people, and usually men, who developed leadership
traits.
Stefan Wermuth/AP
Despite sharing more leadership and power,
Queen Elizabeth II and her family are an exam-
ple of a monarchy.
16. century’s social order—at the time
almost all leaders were White males with access to property and
sources of wealth.
In 1948 one of the first trait theorists, Ralph Stogdill, published
an article in the Journal of
Psychology titled “Personal Factors Associated With
Leadership.” Stogdill’s research showed
that leaders’ characteristics included capacity, achievement,
responsibility, participation, and
status. Other trait theories, whether based on research or not,
argued that leaders must have
subjective characteristics like charisma, be smart in specific
ways, and generally be male.
Trait theory maintained that leaders are born but also suggested
that leaders must develop
certain traits to leverage their birth advantages into effective
leadership. Trait theories led to
the suggestion that leaders demonstrate consistent behaviors and
tendencies in certain situa-
tions and popularized the idea that people can enhance their
natural skills and abilities. Trait
theories also opened the door to the democratization of talent
and leadership. Scholars and
philosophers began to argue that leadership traits could be
learned and replicated by differ-
ent people, perhaps even those who are different from the
majority.
Behavioral Theories
As leadership behaviors were identified as a key factor of a
firm’s success, behavioral theory
began to emerge in the 1950s as a way to promote corporate
success. Rather than focusing
on traits intrinsic to an individual, behavioral theories look
outside the leader and focus on
18. from these male-dominated, trait-dominated, and command-and-
control orientations toward
process theories of leadership, which bring workplaces closer to
the concept of sustainability
and CSR.
Process Theory
The next leadership theory to emerge employed concepts related
to sustainability. In 1991
scholar Margaret Wheatley wrote Leadership and the New
Science. The book is a primer for
systems theory and complexity theory in leadership, and it
emphasizes a process theory
of leadership. This theory posits that leadership cannot simply
be observed (think of traits
or behaviors), nor does it flow in one direction, from leader to
follower. Rather, leadership
occurs when leaders apply knowledge and skills to their
interactions with others. Impor-
tantly, process theories view leadership as bidirectional, where
learning flows between
leader and follower; in fact, the very construct of “leader” and
“follower” are less useful and
thus downplayed in process theories. Wheatley (2006)
postulates that leadership should be
viewed through the lens of chaos theory to best understand how
organizations really work—
the result of using such a lens is that leaders will take a systems
view of the organization
and seek to involve as many stakeholders as possible in
decision-making processes. Prior
to Wheatley, other relationship-based mind-sets, including those
put forth by scholars who
discuss servant leadership (Greenleaf, 1977) or theory Z
leadership (Ouchi, 1981), argued for
a more holistic view of what leadership is and could be, which
19. brings us closer to a sustain-
ability and pro-CSR model.
A process theory of leadership remains central to those who
embrace the concept of sustain-
ability. It encompasses the idea of traits, in that all leaders must
have certain traits or capaci-
ties that match the challenges they face. But process theory also
encompasses a contingency
theory of leadership because certain traits match certain
environments, and no single trait
ensures success in all environments. The process theory of
leadership puts managers beyond
the “win–lose” traditions of older theories and toward a more
holistic approach that pays
attention to important social and environmental relationships.
For example, research from author Jim Collins argues for what
he calls level 5 leadership. In
his best-selling book Good to Great, Collins (2001) shows why
some companies remain simply
functional and “good,” as opposed to becoming “great,” which
tends to mean highly profitable
and composed of engaged and loyal employees. Collins claims
that level 5 leadership reflects
a general concern for a leader’s character and motivation and
for all involved in the process.
He proposes that everyone should be involved in the process of
leadership, including share-
holders, employees, suppliers, customers, and people in the
community.
Process theories of leadership are potentially more compatible
with the challenges of the
future, which are likely to be entirely different from challenges
of the past. The next sections
21. contemporary ideas such as waste
reduction, social equality, and environmental responsibility, all
of which matter to many mod-
ern corporate leaders.
Waste Reduction
The rise of the corporation began about 250 years ago, when
social interests led to the cre-
ation of hospitals, and political–business interests such as those
of the British East India Com-
pany (Rao, 2011) or the Hudson’s Bay Company became tools
for economic conquest. Accord-
ing to Rao, globalization created the corporation because large-
scale enterprise was needed
to dominate in a world where competition remained unchecked.
In such corporate environ-
ments, leaders were expected to compete and dominate.
Moderation, social responsibility,
and waste reduction were not visible or important to governing
boards or investors.
For example, the Hudson’s Bay Company, one of the oldest
corporations in the world, was
charted by the British to trade with North American natives and
secure a steady supply of
fur. It was also used to politically and economically dominate
North America, at one time
claiming more than 15% of the continent as its “territory.” But
as hunting grounds in the east
were depleted and fur became scarce, the trappers and traders
working for the corporation
moved west to find new territories. There was no leadership or
discussion of topics such as
conservation, waste reduction, care for the environment, or even
care for the native people
who supplied the fur (Carlos & Lewis, 1993). The Hudson’s Bay
23. history, the issue remains alive
today as corporations, particularly in global environments,
grapple with how people, even
children, are compelled to work. The question of social equity
and work participation is a
permanent challenge for corporations.
Similarly, labor relations and workers’ rights are permanent
leadership challenges. Corpora-
tions have a long and deep history of challenging what is now
regarded as workers’ right to
organize in a labor union. In 1894 presidential candidate
Eugene Debs worked to unionize
the Pullman railroad car company in Chicago. The local workers
were convinced to strike, and
other rail workers’ unions also went on strike in support of their
colleagues in Chicago. By
summer, more than 125,000 workers were on strike, shutting
down the ever-important rail
system in the United States. There were riots, clashes, and an
eventual resolution, but more
than 60 people died and more than $80 million in damages was
caused in an effort to deny
workers the right to organize (Papke, 1999).
Gender inequity is another permanent leadership challenge. One
hundred years ago, women
did not generally participate as corporate employees. In World
War II many women took
over factory positions held by men who were called into
combat. By the 1950s women were
not just on the floor of the factories but in their boardrooms. By
the 1970s the wage equity
debate was raging, and it continues today. Achieving gender
equity and creating appropriate
work environments for people of all gender identities are an
25. Table 10.1: The evolution of a next-generation leader
Old Leadership Style New Leadership Style
Leader as: Head, director
Top of the hierarchy
Colleague, collaborator
Systems thinker
Scale: Loyal to local
Zoom in
Global citizen
Zoom out
Critical skills: Expert
Impose
Emotionally intelligent
Empathy
Lead by: Control
Sole problem solver
Collaboration
Problem clarifier; joint problem solver
Communication: Top down
Dialectic
Transparent
Dialogic
Ethics: Bigger is better Leaner is better
26. Environment: Exploit
Polluter
Explore
Steward
Organize by: Hierarchy
Geography
Information flow
Virtual proximity
Learning is: A prerequisite
A luxury
A cost
An ongoing process
A necessity
An investment
Source: Hammond, S. and Christensen, L. (2016). “The New
Generation Leader [unpublished paper].” Reprinted with
permission.
Systems Thinker
This entire text emphasizes the value of systems thinking. Here,
we specifically emphasize
that next-generation leaders cannot skip developing this mind-
set. For decades, the opposite
of systems thinking—a mind-set called scientific
reductionism—was considered the way lead-
ers could solve most problems. Reductionism was based on the
philosophy of René Descartes
and Isaac Newton. It was popularized by other scientists as they
explored an ever-smaller
universe looking for miniscule molecules, atoms, or quarks to
28. how deep to investigate, inspect,
and verify the connections.
As discussed in Chapter 2, systems thinkers view a business
enterprise or corporation as part
of a complex and dynamic whole. In a dynamic system,
corporate actors interact with govern-
ment, the environment, individuals, the community, and other
entities under the principles of
complex systems. Energy and materials flow into a complex
system. These are processed and
flow out of the system through boundaries that define the
system. However, those boundaries
are always problematic. For example, it can be challenging for
an employee to know the exact
boundary between work and social life. For a company, it can
be difficult to know the bound-
ary between the corporation and the community. The truth is
that our social lives are tied up
at work and are part of a community. In other words, every
system is part of a larger one, and
it is often difficult to distinguish the boundaries between the
two. Helping define, protect,
and clarify boundaries may be one job for future leaders who
support colleagues in creating
a socially responsible and sustainable world.
Features of systems thinking that next-generation leaders will
need to consider include the
following:
• Systems function with lots of information. In business,
raw materials are useless
unless one knows how to turn the raw product into something
more valuable. Accord-
ingly, systems thinkers spend considerable time talking about
29. learning organizations.
New knowledge is essential to keep a system alive (Senge,
1990).
• Systems also seek equilibrium. Certain patterns are visible
in the behavior of any
system, but patterns are subject to interpretation and are often
unclear. Also, some
amount of randomness or chaos influences the behavior of every
system. This makes
challenges of leadership particularly difficult, because while the
leader is trying to
bring equilibrium to the system, he or she cannot fully take into
account the patterns
that influence it; nor can he or she or account for random
events.
• Systems are composed of many parts. A leader who adopts
a systems theory per-
spective understands that the system has many parts that
interact through rela-
tionships. Corporate systems are nested inside other systems
with which they
overlap. Over time, systems change, as do inputs, processes,
and the ability to
provide a value-added output. Some of those changes are out of
the leader’s control
(Skyttner, 2006).
How does being a systems thinker make a next-generation
leader different from the leaders
of the past? Good advice has emerged from Colonel George E.
Reed, the director of Command
and Leadership Studies at the U.S. Army War College. When
contemplating how tomorrow’s
leaders can adopt and apply systems thinking, he suggests the
31. are generally areas
where the corporation performs a service or adds value. For
example, a hospital
performs surgery (among other things).
Step 4: Create a way to visually represent the corporate system
that could be shown
to any of its stakeholders. Your map should show the following:
The types of key stakeholders.
The relationship between key stakeholders.
The relationship between key stakeholders and critical
processes.
Critical process in the form of inputs, processes, and outputs.
The system’s relationship with the broader environment.
Step 5: List all critical relationships and processes. Ask:
How can the corporation’s leader better manage key
relationships?
How can critical processes improve?
How is the corporation impacting the environment?
Global Citizen
Becoming an active and effective systems thinker means
considering factors beyond one’s
own neighborhood, corporation, or immediate work
environment. One has to look at the
broader communities and ecosystems in which these elements
reside. For most, this means
becoming a global citizen. Doing so does not mean giving up
citizenship in one’s own local
community, nor does it mean abandoning any kind of nationalist
or patriotic spirit. Being
a global citizen means taking responsibility for problems that
require local and potentially
global solutions. A global citizen understands the needs of the
whole and considers those
33. The UN defined what it means to be a global citizen by
authoring and publishing the Dec-
laration of Emerging Human Rights. Being a global citizen
means taking both a critical and
transformative perspective regarding corporations, society, and
the environment. The docu-
ment argues that a global citizen has both rights and
responsibilities. Advocates of the Dec-
laration of Human Rights elaborated on it, extending its reach to
create a more harmonious
world motivated by citizens unafraid of oppression and willing
to adopt innovative thinking
(O’Sullivan, 2008).
Authors Graham Pike and David Selby offer leaders a slight
twist on the concept of global citi-
zenship. They have developed the concept of world-mindedness,
which involves understand-
ing the world as one unified system. Global citizens have a
responsibility to advocate not only
for their own interests, but for the interests of the whole planet.
This holistic understanding
attends to a broader set of human values and beliefs and
encourages people to appreciate
broader global systems and issues and to have better cross-
cultural understandings (Pike &
Selby, 2000).
Previous chapters described the elements of cross-cultural
difference. What we term the
“next-generation leader” will navigate cultural complexity, with
all its nuances and difficul-
ties. It would be inaccurate to assume there is a unified culture
anywhere. Many cultures are
individualist, while others are collectivist. Some are
34. universalist, while some remain particu-
larist (see Chapter 4.3). Next-generation leaders will have to
navigate these differences and
find a “third way” or viable path that can blend the virtues and
vices of multiple cultures. The
third way is one that does not violate any one cultural
perspective. It is a cocreated option
where people with unified intentions but different cultural
values come together to make
progress despite cultural differences. The ability to search for
and find a third way remains
the ultimate task of a global citizen.
Emotional Intelligence
Older concepts of leadership regarded intelligence as having
expertise in math, language, or
an organizationally specific technical skill. People of older
mind-sets often assumed that the
smartest person in the room would make the best leader. Author
and scholar Daniel Goleman
(Goleman, Boyatzis, & McKee, 2003; Goleman, 2004) provides
a different perspective, specifi-
cally regarding the concept of emotional intelligence, which he
says is an essential character-
istic of effective leaders.
According to Goleman’s research, emotional intelligence
primarily involves being self-
aware, which is different from being globally aware (Goleman
et al., 2003). That means having
social skills that involve empathy and considering others’
feelings when making leadership
decisions. It also means, on a personal level, that the leader has
self-awareness and under-
stands his or her own emotions, strengths, weaknesses, and
motivations. Goleman (2004)
36. Collaborative Skills
Collaborative skills may be among a leader’s most critical as he
or she works to create a sus-
tainable corporation. Leaders must be able to seek, hear, and
integrate the expertise of oth-
ers to find optimal solutions to problems. In doing so, they
often face task ambiguity, which
describes situations that are constantly changing. Leaders often
do not know which prob-
lems demand time, the significance of these problems, or how to
get past them to focus on
more important matters. Sometimes the best way to emerge from
such ambiguity requires
collaboration.
Research by Gratton and Erickson (2007) found that
collaboration improves when individu-
als’ and team members’ roles are clearly defined and well
understood. In other words, col-
laboration improves when leaders create an environment where
others’ expertise is known
and valued. Without role clarity, team members are likely to
waste time negotiating roles and
protecting turf rather than focusing on the problems at hand.
Gratton and Erickson (2007)
also found that team members are more likely to want to
collaborate in environments where
there is some degree of ambiguity. In such situations, leaders do
not define the problem and
simply tell others to tackle known solutions. Instead, ambiguous
situations feature team
members helping after leaders describe priorities. Through
dialogue, the team creates solu-
tions together. In this way, collaboration enables problem
solving (Gratton & Erickson, 2007).
38. solve complex problems. A com-
plex problem is one that is more complicated than any one
person can solve alone. Most prob-
lems that leaders face today require multiple experts to solve. In
addition to finding such
experts, a leader must also motivate people to implement
solutions. Research shows that
people are more likely to embrace and successfully implement
solutions when they are part
of defining the problem and finding its solution (Hammond,
Cissna, & Anderson, 2003).
Transparent Communication
Working with others requires strong communication skills, and
both parties must be open,
honest, and transparent about their incentives, biases, and
motivations. Corporations of the
future face increased public scrutiny and government
regulation, which requires greater
transparency from the organization and all of its
representatives. Transparency will also be
an issue within corporations, in terms of how employees relate
to each other and employee
rights (discussed in Chapter 3)—particularly in corporations
over which employees have
some ownership. Partial owners expect to know more about how
and why decisions are
made; this trend will likely continue in the future. Relatedly, as
discussed in Chapter 6, leaders
have strong obligations to act as fiduciaries. When issues of
equity (see Chapter 7) add to the
complexities of fiduciary relationships, next-generation leaders
face the additional challenge
of balancing relationships with transparency while maintaining
competitive standing in the
marketplace.
39. Interestingly, people are conscious of what others are watching;
transparency allows others
to see and be seen making choices. For next-generation leaders
it will be difficult but essential
to create an environment that fosters values and practices
transparency—and the best way to
encourage such behavior is to personally model it.
Researchers Schnackenberg and Tomlinson (2014) suggest there
are three kinds of impor-
tant transparency: information disclosure, clarity, and accuracy.
Information disclosure means
that people within a system must have access to all other
information generated by that sys-
tem. Clarity refers to information that is clear, understandable,
and usable. Accuracy means
that information generated by the system is correct enough for
consumers to make sound and
informed decisions. While many corporations are concerned
about keeping trade secrets and
protecting intellectual property, some stakeholders encourage
leaders and others to practice
radical transparency. This is a leadership practice whereby the
majority of decision making
is public. In other words, documents, arguments in support or
against a proposal, and final
decisions are public and remain publicly archived
(Schnackenberg & Tomlinson, 2014).
In a 2012 article published in the Harvard Business Review,
Smith and Tabibnia claim that
radical transparency could be good for business. As evidence,
they cite the private research
firm Qualtrics, whose leaders make performance appraisal data
on every employee available
41. the overall stated goal of lean management is to create a more
efficient company, the Six
Sigma system and the Shingo model described in Chapter 1
articulate important principles
that also reflect deep ethical values about how people should
treat each other.
Michael Ballé (2015), executive coach, author, and cofounder of
Institut Lean France, identi-
fies 10 practical choices that “lean” leaders often make. Each
has an ethical or socially respon-
sible principle at its core and an organization’s long-term
sustainability as its goal.
The first practical choice of lean leadership is to put customer
satisfaction over company
interests. Always acting in the company’s self-interest instead
of putting customers first can
lead to unethical or socially irresponsible behaviors. Attending
to the customers’ needs in the
short term helps build a long-term relationship, which in turn
ensures satisfaction and can
lead to greater sustainability when firms gain customer loyalty.
The second practical choice in lean leadership is that facts are
preferred to data. Data are sub-
ject to interpretation, while facts are imbued with context and
are thus capable of directing
action. Employees are more likely to give input when they know
they will be protected by a
corporate culture that relies on facts rather than on the
interpretation of data.
The third practical choice of lean leaders is to see problems as
learning opportunities, rather
than occasions for blame. Lean organizations place a high value
43. contributions from individual members.
The sixth practical choice is to fix problems when they occur
and avoid succumbing to a cycle
where people work first and fix later. This allows employees
and leaders to take responsibility
for their part of the system. They need to understand how they
are part of the system (sys-
tems theory) and how each part impacts other parts. Failing to
fix problems immediately can
amplify an issue.
The seventh principle involves seeking continuous improvement
instead of focusing on pro-
cedural stability. Managers should acknowledge that ongoing
improvement is essential for a
sustainable and socially responsible company.
Ballé’s (2015) eighth practical choice is that leaders should
understand work details, instead
of having a mere general overview. A detailed understanding of
work acknowledges that a
leader needs and values others’ expertise. It also acknowledges
that all workers contribute
important understanding to work processes. Leaders are more
likely to handle ethical issues
successfully when they are close to the work and to employees.
The ninth practical decision is to value instruction and
improvement over command and con-
trol behaviors. Lean management systems value nonhierarchical
organizational structures
rather than the command and control often created by a
hierarchy.
The tenth decision involves leaders focusing on value-adding
44. employees rather than finan-
cial aspects. Ballé (2015) acknowledges that ideas from value-
adding employees constitute
an important asset of any corporation. This leads to treating
employees more ethically and
humanely and acknowledges their contribution. It may also lead
to fairer compensation,
including allowing them to share in the risk of venture. It
essentially suggests that investing
in individuals makes more sense than investing in big ideas
without knowing who or how
they help.
Ballé (2015) discusses the difficulty of imposing such ethics on
any organization. He acknowl-
edges that some employees and managers simply do not want to
work in ways that adhere to
these ideals. However, these choices suggest how management
principles such as Six Sigma
can guide the creation and manufacture of products, as well as
leaders’ humane and ethical
behavior (Ballé, 2015).
Steward for the Environment
Treating others with respect, leading with humility, reducing
pollution and waste, and pro-
tecting the environment by minimizing impact make a business
more efficient—but they also
make it more ethical in terms of humans and the environment.
Implementing these strategies
as well as lean management principles indicates that one is
oriented toward ethical behavior
and focused on being a steward.
In Chapter 1.4 we discussed reducing waste, which led us to the
more in-depth discussion in
46. he or she acts on behalf of the
organization and if he or she forwards the causes that matter to
the majority within the orga-
nization. Under such a paradigm, the new leader could be you.
In this new model of leadership, leaders are not simply
clustered at the top of the organiza-
tion— they are dispersed throughout it. Communication flows
not just through a hierarchy
but is based on need. Older models of leadership reinforced
hierarchies that controlled and
distributed information. For the most part, old models of
leadership depended on singular
individuals framed as heroes and saviors. Margaret Wheatley
and Deborah Frieze (2011) dis-
cuss this issue in their article titled “Leadership in the Age of
Complexity: From Hero to Host.”
They argue that next-generation leaders who advocate for
sustainable systems will more
likely be hosts (people who gather others) rather than heroes
(people who work in relative
isolation). Wheatley and Frieze suggest that humans build
hierarchies and organizations that
are top heavy in order to glorify people above and pass
responsibility on to them. The authors
suggest that, in contrast to such a top-leaning bias, corporate
responsibility is distributed
among all stakeholders—no one should wait for a heroic leader
to stand out. People should
convene others or initiate change themselves.
Like many leadership scholars, Wheatley and Frieze (2011) see
that the complexity of prob-
lems requires leadership at all levels of an organization. But it
may also require fewer levels
in each organization. No longer can we completely trust in the
48. number has steadily grown for
decades. In addition, the number of hours that employees spend
in corporate-sponsored
learning is also increasing. The average employee now spends
more than 1 week per year
in company-sponsored training (“2014 Training Industry
Report,” 2014). Next-generation
leaders will likely continue to emphasize continuous learning
for themselves and those
they influence.
Leadership scholar J. B. Ritchie (Ritchie & Hammond, 2005)
discusses the differences between
students and scholars in the article “We (Still) Need a World of
Scholar–Leaders.” He notes that
many teaching practices use the downloading metaphor from
computer science to describe
the relationship between professor and student (Ritchie &
Hammond, 2005). Interestingly,
the downloading metaphor follows the outdated great man
model of leadership, with the
assumption that an employee takes direction from the leader and
the leader expects employ-
ees to implement directions.
As an alternative, Ritchie and Hammond (2005) suggest that
both managers and employees
adopt the purview of scholar by asking questions in anticipation
of learning how to handle
future problems. A scholar acts as if he or she owns the future
and assumes responsibility
for it (Ritchie & Hammond, 2005). This observation implies
that the world needs more lead-
ers who are scholars—versus leaders who want someone else’s
approval. Followers who
are students are abundant, but leaders who assume
50. the company was one of
the earliest examples of pioneering CSR and sustainability.
Such a focus was important
because clothing manufacturing creates air and water pollution
and generates human
health concerns for workers. To learn about the extent of the
problem at Patagonia,
Chouinard commissioned LCAs (see Chapter 8) on 150 of its
most popular products,
which represent 80% of Patagonia’s sales (Chouinard &
Stanley, 2012). For example,
manufacturing a Patagonia polo shirt emits 21 pounds of carbon
dioxide, which is emitted
when product materials travel from a farm to a warehouse
(Chouinard & Stanley, 2012).
Using this information, Chouinard supported strategies to
increase efficiency in the supply
chain to reduce greenhouse gas emissions and landfill space.
Today Patagonia’s actions to
increase CSR and sustainability include the following:
• Using cotton, down insulation, and wool that can be
traced back to its original
source
• Promoting the idea that consumers should reuse and
recycle Patagonia products
by offering to repair used items
• Offering a living wage and good working conditions for
factory workers
• Participating in fair trade growing and purchasing
behaviors for raw materials
(Patagonia, n.d.)
51. Patagonia’s success illustrates how a leader can turn passion for
the environment into
business practices that defy current norms, exemplify systems
thinking, and reflect
modern-day leadership.
Chapter Summary
In this chapter we examined traditional views of leadership and
contrasted them with more
modern ideas about distributed leadership. We described how
such early theories can be
inadequate in helping leaders meet the challenge of building
socially responsible and envi-
ronmentally sustainable corporations. Society may need new
ideas about leadership in order
to creatively lead for a different future.
Next-generation leaders will face a world with more connection
and public accountability
for some choices, so men and women who participate in the
workforce will face some of the
challenges described in this chapter. This chapter specifically
addressed characteristics that
may help those who consider themselves as having leadership
potential and opportunities
address ongoing challenges. While these qualities and
considerations are not comprehen-
sive, they do underscore the importance of systems thinking,
collaboration, ethical behavior
through environmental responsibility, global citizenship, and
continuous learning. It is not an
accident that both this chapter and book end on an appeal for
continuous learning. In an ever-
changing world, the only way to keep up with that change is to
constantly learn and respond
in collaboration with others.
54. suggests everyone can be a
leader? If so, is that bad? Explain your reasoning.
3. Think about a leader you know. What are his or her positive
traits? Positive behav-
iors? Is he or she a systems thinker?
4. In older theories of leadership, why were women excluded?
How does including
women change our definition of leadership?
5. Can you think of a leader who has exhibited emotional
intelligence? What about one
who has not?
6. What does a systems thinker leader see and do that is
different from a leader who
is not?
7. Why is continuous learning critical to leadership success?
8. Transparency can be considered a good and bad thing. What
are the advantages and
disadvantages of transparency?
Additional Resources
Additional information on leadership theories can be found at:
http://www.referenceforbusiness.com/management/Int-
Loc/Leadership-Theories-and-
Studies.html
Learn more about servant leadership here:
https://www.greenleaf.org/what-is-servant-leadership
Learn more about emotional intelligence and effective
leadership here:
56. first.
5. The leaders of the future will be faced with many challenges,
but the rising cost of
land is not a major issue and was not addressed in the text.
6. The organization of the future will hold everyone within the
organization responsible
but will also likely provide ownership incentives.
Key Terms
behavioral theories Leadership theo-
ries based on behaviors that can largely be
learned.
collaborative skills Skills that allow one to
work well with other people.
continuous learning A commitment to
lifelong learning regardless of organizational
position.
divine right The assumption that leaders
are made by right of birth and chosen by
God.
emotional intelligence A leadership trait
involving self-awareness and empathy.
global citizen A leader who accounts for
his or her global and local relationships.
great man theory A theory of leadership
that assumes that some elite men are born
to be leaders.