A Higher Form of Personal Leadership

At a conference in November 2022 with 350 business and government leaders, I shared stories from Faber-Castell , Tata , and the Doi Tung Development Project to illustrate a crucial point about leadership and sustainability. I introduced the E/S Action Spectrum, a framework that highlights various motivations behind environmental and social actions, and posed a question: what motivates true environmental and social (E/S) champions to create long-lasting positive impacts? The overwhelming response was that proactive, genuine leadership intent, rather than external incentives, is the key driver.

This insight was supported by a broader survey conducted across 25 countries with 10,000 respondents. The survey confirmed that regulations, incentives, and cheaper capital, while important, do not adequately address environmental or societal challenges. Instead, proactive, genuine leadership intent is essential for driving positive environmental and social action and innovation.

The top challenges of the 21st century identified in the survey included climate change, cyber vulnerability, crime, corruption, and socioeconomic inequality. Despite the urgency of these issues, only 13% of respondents believed that the corporate world is extremely sincere in proactively addressing them. This highlights a critical need for a different type of leadership to tackle these pressing challenges effectively.

The Pillars of Steward Leadership

To address these challenges, we need a higher form of personal leadership—steward leadership. Steward leadership is characterized by a genuine desire and persistence to create a collective better future. This approach integrates the needs of stakeholders, society, future generations, and the environment, going beyond traditional definitions of leadership and stewardship. Four specific values underpin steward leadership:

Interdependence: Steward leaders see the world as an interconnected web where the success of each constituent is coupled with that of others. They strive for win-win outcomes, understanding that their own success is tied to the well-being of others. For instance, Paul Polman , former CEO of Unilever , recognized early on that addressing societal issues like poverty and climate change was essential for Unilever's long-term success.

Long-term View: These leaders prioritize enduring returns over short-term gains, considering the impact on future generations. Environmental sustainability is a pressing issue that demands long-term thinking. Companies like Orsted , Chr. Hansen Holdings , and Neste Oyj exemplify this by leading in sustainable business practices. Polman’s decision to stop providing quarterly earnings guidance signaled Unilever's commitment to long-term sustainability.

Ownership Mentality: Steward leaders take personal responsibility for creating an inclusive better future. They embody the mantra "If it’s to be, it’s up to me" and act with the mindset of an owner, even if they are employees. This ownership mentality was evident in Polman's transformation of Unilever and John Mack's efforts to save Morgan Stanley during the 2008 financial crisis.

Creative Resilience: Creativity and resilience fuel the pursuit of steward leadership. These leaders constantly seek innovative solutions and persist despite failures. Polman's vision for Unilever required both creativity and resilience, leading to initiatives like the Unilever Sustainable Living Plan, which significantly enhanced the company's sustainability and financial performance.

Becoming a Steward Leader?

To become a steward leader, one must integrate the four stewardship values within their personal belief system. This requires deliberate practice and a commitment to these values until they become an automatic response. Leaders should also define a personal stewardship purpose that aims to create a collective better future for a wide range of stakeholders.

Using values and purpose as a personal compass to guide decision-making is crucial. Real steward leaders walk the talk and never compromise their values, even if it hurts their short-term interests. For example, Nelson Mandela's steadfast commitment to his values and purpose allowed him to forgive those who oppressed him and pursue a vision of a united South Africa.

Leading the Change

Embracing steward leadership is not only about creating value for shareholders but also about addressing the pressing challenges of our time. It requires a genuine desire to make the world a better place and the resilience to persist despite obstacles. As leaders, we must ask ourselves how we can help solve today’s most pressing problems and create a better future for humanity. The journey towards steward leadership begins with a commitment to values, purpose, and the collective good.