Why The Right Leadership is Key to Creating Positive Social Change as a Business

Businesses are under pressure like never before to create positive social change. There’s an increasing expectation from consumers, employees, and other stakeholders for businesses to be purpose-driven and to make a positive difference in the world.

However, many businesses struggle to achieve success when it comes to creating positive social change. In fact, nearly 98% of business sustainability initiatives fail often because they lack the right leadership.

What is Positive Social Change?

Positive social change can be defined as any purposeful effort to improve and transform behaviour, social relationships, and social structure to generate positive results for the well-being of individuals, communities, or society.

For businesses, it means taking proactive measures and changes that generate value beyond legal compliance or a response to specific events. This means it goes beyond just the usual activities companies implement, like volunteering days or office waste reduction programs, but implements a holistic and sustainable approach to the entire business model.

Some common examples of positive social change include:

• Improving access to education and healthcare
• Preserving the environment
• Advancing gender equality
• Promoting social inclusion and diversity
• Upholding employee welfare
• Leadership for positive social change

Leadership is critical for businesses seeking to create positive social change.

The right leaders can inspire employees and other stakeholders, drive innovation, and make tough decisions necessary to effect real change. Many different leadership styles can be effective in creating positive social change. However, the most important thing is that leaders take a holistic and long-term view of social change movements rather than thinking about isolated incidents or quick fixes.

Some leadership qualities that are important for creating positive social change include:

• Strategic thinking
• The ability to inspire others
• Change management skills
• Strong communication skills
• Passion and commitment

How Can Leaders Initiate Change and Achieve Success

Here are 5 ways businesses can achieve success and create positive social change with the right leader:

1 - The right leaders have a clear vision.

Most successful businesses start with a clear vision for change. This means clearly understanding what needs to be changed and why it’s essential to make those changes.

The right leaders also have the ability to communicate this vision to others in a way that inspires them to take action. They can rally people around a shared goal and get them excited about making a difference.

For example, when Tim Cook took over Apple as CEO following Steve Jobs’s death, he started a major shift in the company. From being the biggest tech innovator, Cook led the company to invest in the environment, factory working conditions, the advancement of health measurements, and more. His vision for change within Apple resulted in the increase of Apple’s stock by 480% since he became CEO in 2011.

2 - The right leaders take action.

The best leaders don’t just talk about change. They take action. They’re willing to experiment and try new things to create positive social change. They understand that sometimes initiatives fail, but they know that failures can be used as learning opportunities to help them improve their approach. The key is never to give up and always keep moving forward.

For example, Nike faced criticism for its sweatshops in the 1990s because of allegations that its global supply chain involved poverty wages, human trafficking, and child labour. Nike could have chosen to ignore the problem and hoped it would disappear.

Instead, under the leadership of then chairman and chief executive Phil Knight, Nike took action and implemented a series of reforms that improved working conditions in its factories. The ability to immediately take action and continued efforts to prevent the same issue from happening again made Nike one of the leading sports brands in the world.

3 - The right leaders are adaptable.

The ability to adapt is another essential quality of successful leaders. This is because the world is constantly changing, and businesses need to be able to change with it. The best leaders constantly learn and try new ways to improve their approach. They’re also open to feedback and willing to make changes based on their learning.

Netflix is an excellent example of a company that has adapted to the changing landscape of the entertainment industry. When it started in 1997, Netflix was a DVD rental service that opened through the mail. However, when streaming became popular, Reed Hastings, co-founder and CEO of Netflix, led the company to transition to online streaming. As a result, in 2021, the company had an operating profit of $5.1 billion—an 85% increase year-on-year.

4 - The right leaders are inclusive.

Inclusive leaders understand that businesses need to reflect the diversity of the world around them. They’re working to create an environment where everyone feels welcome and included.

This is essential because when people feel they belong, they’re more likely to be engaged and productive employees. According to Bernard Coleman III, head of Diversity & Inclusion for Uber, diversity may be achievable without inclusion but will not be sustainable. A lack of belongingness from employees adversely impacts the company’s bottom line.

For example, L’Oreal is a company that has been working to become more inclusive since the early 2000s. They intend to have a workforce of people coming from every culture, background, and lifestyle.

L’Oreal focused on recruiting and retaining a more diverse workforce to achieve this. As of 2021, 69% of L’Oreal’s total workforce are women, with 47% holding key strategic positions. Plus, they directly hired 1,509 employees with disabilities and have 45 full-time employees via their suppliers who are certified LGBTQIA+-owned companies in the USA.

This approach resulted in increased employee satisfaction and engagement, helping L’Oreal continue to grow as a business.

5 - The right leaders value their employees.

The best leaders understand that their employees are their most important asset. They know that happy and engaged employees lead to a more successful business. That's why they strive to create an environment where employees feel valued and appreciated. Also, they offer competitive salaries and benefits and opportunities for professional development.

According to Gallup research, companies with highly engaged employees have 21% greater profitability. So, having a leader that realises the importance of employee experience and that doing so benefits the staff and helps the company grow bigger and faster.

Campbell's Soup is an excellent example of this. In 2000, the soup company lost over half its market value and rock-bottom employee engagement scores. So, in 2001 when Doug Conant took over the CEO role, he prioritised employee experience by listening to them and creating a positive culture at work.

By 2009, the company achieved a staggering 23:1 engaged-to-disengaged employee ratio. In the same decade, Campbell's Soup stock increased by 30%, while other S&P 500 stocks lost 10% of their value.

Right Leaders Can Drive Significant Social Change

Businesses want to achieve positive social change because it promotes better work environments and profits. Like the companies we mentioned, having the right leaders who can drive change and innovation within their organisation saw better gains and employee engagement.

So, to achieve positive social change within your company and the world, you must have leaders who can influence and implement necessary adjustments. When choosing a leader, it's essential to consider their values and how they align with the company's mission.

Remember: The best leaders are adaptable, inclusive, and value their employees.

Do you have the right leader who can help your company create a positive social change?

Marlin Human Capital can help in looking for the right talent to lead your journey towards creating a positive impact. We broker pioneering executive and technology leadership appointments for organisations like your own.

Get in touch with us today!