The Collaborative Leader Action Model
In a stirring blog post, Dr. Stephen Rhinesmith—author of several books including Head, Heart, and Guts: How the World's Best Companies Develop Complete Leaders—brings to the surface an argument concerning the paradox of corporate profits and the leadership required to ensure its continuance.
Rhinesmith states the following:
While philosophically many would agree to the expansion of corporate responsibility from maximizing shareholder value to creating shared value for society, the current forces in place allow little deviation from a corporation's original responsibility to maximize shareholder value. The vast majority of these forces are not Wall Street greed (although this is obviously a factor), but the fact that our global economic system has built a dependency of investors, including pensioners around the world, on a consistent return on investment from the corporate sector. As a result, the pressure from the investment community to keep corporations focused on maximization is relentless.2
He believes, as do I, that a new definition of leadership is the answer. Rhinesmith goes on to indicate the only way to solve our paradox is through “leadership that is committed to managing the paradoxes of profit and purpose and short-term vs. long-term needs.” But what is committed leadership? In part, it is what we've already uncovered ...