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Are corporations bad? Exploring the role of leadership in shaping organisational impact

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Are corporations inherently harmful, or are they simply reflections of the leaders who run them?

It’s increasingly fashionable – particularly on the political fringes – to dismiss corporations as inherently harmful: exploitative, profit-driven and destructive to society.

But I don’t think there’s anything inherently wrong with companies. They’re neither good nor bad. The problem lies in the mindset of the people who run (some of) them.

Because organisations are an amplifier for the people who lead them.

An organisation’s culture reflects the values and behaviours of its leaders more than anyone else.

And the impact of the organisation is channelled in the direction those leaders choose.

When leaders are decent, well-intentioned, thoughtful and balanced, organisations can become powerful levers for positive change. They can create value not just for shareholders, but for their communities, the environment and – just as importantly – their people.

Corporations are flexible in how they can be used. They’re social structures capable of creating good (e.g. Patagonia) and for providing meaningful livelihoods (we only need to look as far as our local small businesses to see this).

Organisations can cause great harm. Many have. And many do. These organisations must be held accountable by society, governments, courts and stakeholders.

But corporations also have immense potential to support positive growth and solve society’s biggest challenges.

That’s why leadership matters.

It’s important to get the right leaders with the right mindset in place. The kind of leaders who will cultivate strong, positive cultures and set a direction that becomes a force for good. Not just for their shareholders, but for their people, communities and the environment.

Because, over the long term, what’s good for a corporation’s people, communities and the environment will also be good for their shareholders. Shareholder returns cannot be sustained when they come at the expense of other stakeholders.

And likewise, corporations cannot sustainably make a positive impact for their people and other stakeholders, if they’re not meeting the needs of their investors over the long term.


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