Page 17 - Forbes - Asia (October 2019)

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What Business Leaders of
Tomorrow Need Today
apitalism and
business
innovations have
been the major
Cdriving forces
behind economic and social
progress. But concurrently,
they have contributed to
environmental risks, widening
social, economic and knowledge
disparity. Increasingly, businesses
are expected by society and their
own stakeholders to practise
a more responsible form of
capitalism—profit as the only
priority is no longer viable.
The Value of Steward
Leadership
Businesses of today and
tomorrow must demonstrate
they possess the moral and
social license to operate to be
successful over generations.
Steward leadership refers to the
leadership will to build such an
organization—translating vision
into action—to impact community
and society positively for a better
future for all. Steward leaders
lead with impact, safeguard the
future and drive social good
by focusing on people and
relationships.
By putting human purpose
at the center of business
activity and acknowledging
the interdependence of
our economic, social and
environmental needs, business
leaders will have more propensity
to integrate intergenerational
imperatives in their business
decisions. Well-stewarded
companies driven by an
ownership mentality will take
into consideration the needs
of the community, which will in
turn create and unlock value
over time. This goes against
the grain of today’s business
world characterized by a short-
term mentality, as seen from
governance requirements to
financial reporting standards
to shareholder expectations. It
would therefore entail collective
effort to change this prevailing
culture of short-termism.
The Virtuous Circle
of Leadership and
Governance
To embrace stewardship
throughout the management
process of an organization,
business leaders should adopt
an integrated approach to
guide them toward business
success through deepening and
strengthening of stakeholder
relationships integral to the
business model. Anchored by
the purpose and values of the
organization, the circular flow
approach requires business
leaders to:
• Define key relationships
• Define success, business
model and time horizon
• Live the values in all
relationships, creating an
ownership mentality
• Measure and reward
stewardship behaviors
• Communicate, learn, anticipate,
adapt and respond
Business is a part of society, not
apart from society. Entrusted with
the respective responsibilities and
resources, there is an urgency
for business leaders to become
steward leaders, acting today
with tomorrow in mind for the
long-term good of our society.
ENTRUSTED: Stewardship
for Responsible Wealth
Creation, the second book from
Stewardship Asia Centre, will help
business leaders:
• Understand the key stewardship
concepts and elements
• Redefine what business
success should look like
• Gear up for the transformational
shift required to build
organizations that focus on
the long-term success of the
company, and future value
creation for society and future
generations.
Find out more:
or visit:
bit.ly/entrusted_stewardship
www.stewardshipasia.com.sg