The need for sound and responsible leadership is now. Fundamental changes in demographics, geopolitics, access to natural resources, new technologies and the impact of unexpected global events have dramatically reshaped societies in recent years. ‘Business as usual’ no longer exists; disruption has taken its place. From managing inflation to addressing climate change, today’s leaders must be able to marry considered decision-making and bold action in an increasingly complex and rapidly evolving landscape.
Increasingly, that leadership responsibility extends beyond the confines of an organisation and the interests of its internal stakeholders. Surveys show that 81 percent of respondents want chief executives not just to speak out on social and political issues, but to lead the debate and show what their firms are doing to be part of the solution.
These stakeholders believe that business, far from overstepping the mark, needs to do more to tackle prevalent social ills. The message is clear: business must step up. Despite a sense that capitalism as an economic system has left too many people behind, many citizens want corporations to help improve society.
Faced with reputational damage and the potential loss of investors, employees and customers, companies have embraced stakeholder interests like never before. As a result, companies are now very effective agents of change. They require leaders equipped to respond accordingly.
A great example of this comes when we look at sustainability and the action required to address our climate challenge. Businesses have a significant impact on the environment. From manufacturing processes that generate greenhouse gases to waste disposal that contributes to pollution, a business’ choices can have far-reaching consequences.
For this reason, they are responsible for minimising their environmental impact and operating in a sustainable way. This includes adopting environmentally friendly practices and reducing their carbon footprint. We have already seen net zero commitments made by many corporates, and society will judge them on their progress towards achieving them.
There is convergence between leaders in both business and government on this issue. Progress towards the commitments of the Paris Agreement will be reported when the UAE hosts COP-28 later this year. But the global summit also offers an opportunity for actors from both the public and private sectors to demonstrate a mastery of good leadership and define tangible actions to seriously address climate change.
True leadership requires the ability to determine the vision, develop the roadmap to its realisation, and importantly ensure the momentum to deliver it.
As Dean of London Business School, I am incredibly fortunate to regularly welcome exceptional individuals pursuing their personal and professional growth with a view to meeting these types of challenges head on.
Through our degree and Executive Education programmes, we aim to create a generation of leaders with a global outlook, a strong sense of community and who lead with their hearts and heads. I never cease to be inspired by the women and men who join us; they are passionate about making a difference and inspiring change within their organisations and society at large.
On my recent visit to the UAE, I witnessed first hand the impact our alumni have on the world around them. One alum, His Excellency Mohammed Ali Al Shorafa Al Hammadi, Member of the Abu Dhabi Executive Council and Chairman of the Department of Municipalities and Transport, is a case in point. It fills me with pride to see his positive and transformational leadership in serving the people of Abu Dhabi – and the UAE overall – and to know the part our School played in his journey.
History shows that there has always been a need for effective leaders. Fast-forward to today, and it is clear that exceptional leadership is no longer a ‘nice to have’ but now a ‘need to have’. For any leader to operate effectively, it is vital that they invest in their professional development to ensure they remain equipped with the right skills, thinking, and tools to deliver exceptional leadership in a landscape dominated by complexity, disruption and varied interests.
These pressures will not abate in the near future.
In fact, they are likely to increase further. Effective leadership can drive innovation and creativity, build strong relationships and trust, foster personal and professional growth, and drive social change. By cultivating and practising these skills and traits, leaders positively impact their organisations, communities, and the world at large.