Opinion - Professor Michael Powell, PVC Business
Developing globally responsible leadership
The development of globally responsible leadership in business and politics is crucial as our planet faces shortages of water and oil, environmental degradation, climate change and continued population growth.
Business and political leaders also face a crisis in legitimacy. Recent studies have shown a growing lack of confidence in our leaders, especially among younger people, and a marked scepticism about the motivations and behaviours of businesses.
The succession of corporate failures such as HIH, Enron and WorldCom, where it appears business leaders have enriched themselves at the expense of shareholders, investors and employees, has contributed to such scepticism. More recently, the Cole Inquiry with its revelations of alleged illegal behaviour by top executives of the Australian Wheat Board has focussed considerable local attention on appropriate corporate behaviour.
Consequently, there is a sense in which business has been put under the microscope. There has been a renewed interest in responsible and ethical business practices, and in what might be broadly termed sustainable business practices. Internationally, Corporate Social Responsibility has become the new mantra with the emergence of various corporate responsibility indexes such as the influential Dow Jones Sustainability Indexes and the Australian Corporate Responsibility Index.
More and more companies are seeking to be recognised for their responsible practices through these avenues. CEOs are beginning to understand that sustainable practices are not necessarily in conflict with profit and shareholder returns. In this sense, the contemporary business interest in sustainability and responsible practice is actually driven by long-term commercial self-interest, and that is not a bad thing. While there is not a great deal of evidence to indicate changed customer loyalty as a consequence of demonstrated good or poor performance in this area, it is clear that the reputational effects are considerable and need to be taken into consideration.
Businesses, government and communities in Australia need leaders aware of the challenges of global sustainability and responsibility. Griffith Business School is taking the challenge of preparing such leaders seriously.
We want to develop not just socially responsible "leaders" but globally responsible "leadership" where all our graduates are aware of the issues associated with sustainability and responsible practice. We believe that this will be of considerable benefit not just to our students, who come from all around the globe, but also to their future employers. Together with our business partners and our students, we are committed to ensuring we demonstrate responsibility for the well being of our planet while developing excellent business skills and capabilities.
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