Bring on the Conscious Leadership Decade!
In the past decade, we have seen many of the world’s biggest companies thrive- such as Starbucks and McDonalds - when their actions reflect dedication and commitment to their stated Core Values. On the contrary, in cases such as Wells Fargo, Boeing & Perdue Pharmaceuticals, their values seemed to be just words on the wall, as their leadership compromised these words in lieu of profits and a focus simply on shareholder value. As you read through the glowing examples- and cautionary tales- mentioned above, keep in mind who has survived and continues to thrive, and who will have a tainted reputation for the foreseeable future. The most successful companies pay attention to stakeholder value, knowing that shareholder value will surely follow and be more robust in the long term.
As a result of the many recent examples of values gone wrong, and even more importantly the amazing businesses that emerged from 2020 stronger than before, it is clear that there continues to be a massive shift in priorities within successful organizations as they embrace what I believe will be the Conscious Leadership Decade. We will see a new, more conscious style of leadership that is much more values-based and driven by the good that the company does for the world. Like we have seen with Starbucks and McDonalds, we will see brands state their values & stand by them. Patagonia is of course another glowing example.
But what does it look like when we take care of our stakeholders, whether they are investors, employees, customers, vendors or the communities we operate in? Am I asking businesses to sacrifice the bottom line and shareholder value? The answer is NO! When we take care of the stakeholders, the shareholder value is only affected positively. By considering stakeholders FIRST and shareholder value SECOND, the shift in the business will be evident from the inside-out. Creating this passion and meaning for each and every stakeholder in your organization is imperative to success. A more conscious leadership also generates a better culture for everyone involved and clearly communicates a CorePurpose™ or Why that explains the good that the company does for the world.
It’s not an understatement that 2020 was a difficult year for each and every organization around the world. From the global pandemic to an economic downturn, businesses showed their true colors when it came to their stakeholders, and the stakeholders took note. The businesses who were more consumed with their bottom line than employee wellness lost the faith and trust of their employers, which is not something easy to gain back. And of course, once your stakeholders lose that trust in their organization, shareholder value is negatively affected.
Bring on the Conscious Leadership Decade! Many businesses have already begun the shift to this conscious style of leadership where people care about their communities and the good they are doing for the world, and it is showing to be imperative in their success. In fact, brands such as Starbucks and McDonalds created a fortress, if you will, of dedicated, impassioned stakeholders who are leading them to victory. And if you haven’t made the shift yet, it's never too late to lead your organization towards a values-based culture.
Which companies would you consider to be standard bearers for living true to their CoreVals™?