Pistorio's Authentic Leadership

http://www.eco-business.com/features/sustainability-leaders-taking-csr-personally/

This article describes how Pasquale Pistorio personally took charge of ST Microelectronic’s sustainability efforts. ST Microelectronics, one of the world’s largest semiconductor companies, is considered a pioneer and visionary leader in sustainability. They have over 50,000 employees and operate twelve main manufacturing sites.

After reading the article, I feel Pistorio fits the criteria for an Authentic Leader. It’s understood that authentic leadership is examined from three different viewpoints: intrapersonal, developmental, and interpersonal. In this case, I feel Pistorio falls under the intrapersonal definition. I feel this way because Pistorio seems to have a solid internal moral compass. He initiated a program to increase environmental sustainability and energy efficiency well before business benefits were present in the industry. This shows how he exhibits genuine leadership and leads from conviction. It’s also notable that he had his sustainability managers reporting performance levels directly to him. By being a pioneer in sustainability, Pistorio shows us evidence of his originality.

Starbucks Australia - Making CSR work

http://www.ceoforum.com.au/article-detail.cfm?cid=6326&t=/Charlie-Baker-Starbucks-Coffee-Australia/Making-Corporate-Social-Responsibility-Work-Starbucks-Australias-Charlie-Baker

INTRO :

The article includes a great interview with Starbuck's Australian Managing director regarding CSR with in Starbuck's organization. It discusses how Starbucks approaches CSR, what the CSR role should be, and how CSR has been implemented into the organization. In many of ways, the leaders of Starbucks are using the components of the Hill's Leadership Model in Chapter 11 to guide an effective team and company.

HOW THE HILLS MODEL IS USED EFFECTIVELY :

First off, the leaders realize that they have to continually take action to fulfill their corporate social responsibility. The leader in this cases decided totake action both internally and externally. " You also need to clarify and define the framework and objectives of why you want to take CSR initiatives and what you hope to accomplish," stated Baker. This is a huge action that Baker sees needed internally. The task performance is increased in subordinates because he is clarifying goals and structuring for results. He also puts in place recognition programs to let all be aware of the initiatives going on. Baker creates a strong vision and inspires motivation amongst his workers and teams to continue the CSR of Starbucks.

Relationally, Baker does a really nice job taking action with in his teams as well. " I see my job as being very much an advocate and an example." This goes to show how Baker is satisfying individual needs by advocating how vital the CSR is to all and supporting them each step of the way while modeling principled practices. Baker even allows workers to take a day off work to volunteer for a charity of their choice which is rewarding to team members. " I also sometimes participate in the actual planning sessions so that I can understand what their thinking is." Involving is another huge action Baker takes to get team effectiveness in which he collaborates well with his 12 member team.

Externally, Baker realizes he has to take action in order to improve the environmental interface with the team. The team looks out into the environment and analyzes ways to remain a top competitive company and continually sustaining their CSR. Baker is constantly networking with other like Plant Ark, Balmain Hospital, and other charities to help increase influence while at the same time advocating their cause. Their "Green Team" or CSR team, helps develop annual programs on how they can contribute in a positive way to the environment such as recycling or donating efforts to charities.

In conclusion, Baker seams to be acting appropriately internally and externally to really get great team performance and development, thus creating the team effectiveness needed to sustain Starbucks CSR. Baker monitors the team and intervenes or takes action when needed. Are there any other actions he may need to take to help out, that are not mentioned? Also, according the Larson and LaFesto's or Hackman and Walton research on pg 252 of the Leadership book by Northouse, do you see any group effectiveness or excellence indicators that may be displayed from this article? Lastly, can you pinpoint any personality types shown by Baker and the pros or cons associated with them?

- Kyle

Wal-Mart's Green Attempt

http://www.grist.org/article/griscom-little3

The article I read involved an interview with Wal-Mart’s CEO, Lee Scott. This interview regarded Scott’s attempts and goals for the company to go green. Many people do not have many positive things to say about Wal-Mart; many thoughts come to mind such as “exacerbating suburban sprawl, burning mass quantities of oil, producing mountains of packaging waste, polluting waterways with runoff from its construction sites, and encouraging gratuitous consumption”. These only happen to be a few complaints regarding Wal-Mart’s environmental problems.

CEO Lee Scott announced his goal of transforming Wal-Mart into a company that runs on 100 percent renewable energy and produces zero waste. Since the comment, Lee has made specific statements saying he would like to “cut the corporation's greenhouse-gas emissions by 20 percent over the next seven years, double the fuel efficiency of its truck fleet within 10 years, reduce solid waste from U.S. stores by 25 percent in the next three years, and double offerings of organic foods this spring, selling them at prices more affordable to the masses”. Scott realized that with Wal-Mart being such a large company, this meant the company had quite the large footprint in the environment. Scott realized many benefits of being green, one major benefit being reducing cost. Scott became conscious of many costs that were not necessary throughout the company, such as packaging and energy usage. Cutting costs is important to Scott, he states that Wal-Mart has always prided itself on offering the lowest prices to customers, and cutting costs throughout the company is one way to deliver customers the lowest price possible.

The positive of Wal-Mart being such a large company is it tends to have a large impact on the market and manufacturers. Such a large change in companies such as Wal-Mart, this could cause a “ripple effect” throughout other companies and manufacturers. Scott states that with the size of Wal-Mart, it enables them to create markets for clean technology that exists today, but may not have a fully established market. Scott is interested in the question of, if Wal-Mart decides to sell, or decides to implement a system such as solar panels, what will this do to the cost of solar panels in the market? Will this giant implementation of such a system make this affordable to everyone?

The chapter I could best relate this article to is Northouse’s chapter nine, Transformational Leadership (TL). “[Transformational Leadership] is concerned with emotions, values, ethics, standards, and long-term goals. TL involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them” (Northouse 2010). Scott is a very transformational leader in the sense that he is hoping that Wal-Mart’s change to better environmental business practices could potentially affect the entire market for green products and processes. Scott is attempting to influence other markets and manufacturers by the actions of Wal-Mart. Going green is definitely an ethical choice that involves many long-term goals. “Going green” is not a choice that can be made, and have change being accomplished overnight. Scott has goals that he hopes to set by 2015, keep in mind the article was written in 2006, making him set a goal 9 years in the future. Values come into play when thinking about the ‘green movement’. Going green is not something that is forced on companies, but rather a change purely to better the environment and world we live in.

In looking at personality characteristics, behaviors, and effects on followers of charismatic leadership in chapter nine, Scott possesses many characteristics and behaviors of a charismatic leader. Scott has a large desire to influence, as well as strong moral values. His behaviors show that he articulates goals by the very specific goals he set for Wal-Mart, and also that he communicates high expectations.

What I pose to my group members is, how would the situation be different if Scott was more of a transactional leader versus a transformational leader? Do you think it takes one or the other to be a successful leader in the green movement, or does a leader need to possess potentially both factors?

THE GOOD: Susan G. Komen CEO

http://www.forbes.com/sites/meghancasserly/2011/10/21/susan-g-komen-ceo-too-much-pink-is-never-enough/

I stumbled upon this article by accident on forbes.com, and it happened to relate to a lot of leadership topics we have discussed in class. It also relates to The Good and The Future parts of our blog theme.

Have you heard of Nancy Brinker? Honestly, I did not know who that was, but I certainly know Susan G. Komen for the Cure. Brinker is actually CEO of Susan G. Komen for the Cure and is Susan's sister. She has held many leadership positions in the past. These include U.S. Ambassador for Hungary, Chief U.S. Protocol under the Bush Administration, and perhaps her largest role being CEO and founder of Susan G. Komen for the Cure. For the past 34 years she has been working on the deathwish of her sister. She is on a mission to cure breast cancer.

Who are her followers? When we discuss followers in class it usually pertains to subordinates or those in the same organization. While those people are followers in this case, her followers are also ordinary people like you and me. Have you ever given money to this cause? It does not have to be a straight donation, but haven't you ever bought a breast cancer shirt, wristband, or anything for that matter? Those people are followers too. Without those people her organization would not be around.

Brinker is a transformational leader. According to Northouse, "transformational leadership is the process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. This type of leader is attentive to the needs and motives of the followers and tries to help them reach their fullest potential" (172). There is no doubt that she has engaged with others and created a connection. Proof of that is the internationally recognized pink ribbon. It is hard to go shopping without seeing that symbol. Furthermore, when we see that symbol we know exactly what it stands for without thinking. The symbol is on cereal boxes, North Face jackets, and television programs, to name a few. If a family member or friend dies of breast cancer often I have seen tattoos of the pink ribbon. When followers buy the product they feel like they are doing their part and making a difference because part of that money goes to the cause. Brinker raises the hopes of billions of people that one day breast cancer will be cured. She realizes and pays attention to the needs of her followers as her organization provided 700,000 mammograms and helped over 100,000 victims with social and financial support.

As we know factor four of the transformational factors is individualized consideration. After reading the article I immediately thought of this factor because it represents leaders who provide a supportive climate in which they listen to their followers' needs. No one was there for her sister during her battle with breast cancer. In turn, she wants to be there in anyway she can for the victims, and she also wants her followers who are not cancer victims to show support. Brinker says, "We have a very special talent as an organization to understand that people with breast cancer need a community. You have to bring people into the community with hope, an understanding of your mission and an ability to have them join the effort. People want to do something about this."

I feel like this article has a lot of topics for everyone to address. I focused on transformational leadership to start out, but I also think Brinker exhibits authentic leadership as well. What do you guys think?

Treat Your Employees Like Neighbors

http://www.businessweek.com/management/treat-your-employees-like-neighbors-10212011.html

With permission of Dr. Sheep, I have decided to write about an article a little bit outside of our normal blog posts. I stumbled upon an article in Business Week that correlates with chapter four in our book, Style Approach. The article deals with what style a leader should have his/her company most emulate: a family, a neighborhood, a hierarchy, or a market.

Chapter four stresses the fact that there are basically two general kinds of behaviors leadership can compose of: Task behaviors and relationship behaviors. Where task relates to the goal or task, and relationship relates to interpersonal relationships with employees and how to try and combine those two behaviors together. The book says, “the central purpose of the style approach is to explain how leaders combine those two kinds of behaviors to influence subordinates in their efforts to reach a goal” (69). 

With that being said, in the Business Week article “Treat Your Employees Like Neighbors: Successful companies have elements of both hierarchies and neighborhoods” written by Art Markmen, who references Alan Page Fiske, a successful leader will combine the concept of a Hierarchy (Task Behavior) and a Neighborhood (Relationship Behavior). Markmen to a certain degree associates Hierarchy and Task Behavior by saying, “Most companies establish levels of management with the expectation that higher levels take on more responsibility for guiding the company—in exchange for higher pay and benefits. The hierarchy can be particularly effective when people can work their way up through the organization”. In other words, having a structured hierarchy will initiate a structure of organized groups, defined responsibilities, and that will stress technical and production aspects of a job. However, that is just half the style needed.

 

The other half is creating a Neighborhood (Relationship Behavior) so not to just be a structured organization without any consideration to others. Markmen states a leader can create this Neighborhood by, “Seemingly small actions like supporting families going through difficult times and providing education opportunities for employees create a general sense of community. This investment in community is repaid in behaviors that ultimately affect the company’s bottom line”.  Basically stating that building a relationship with employees is key so that there is camaraderie, respect,  and trust. There needs to be a liking or possibly even as far as to say a “human” side to the leader so that the employees don’t perceive the leader as heartless.

One of Markmen’s thoughts did have a bit of say “controversy” in my mind. He stated that, “A family relationship with your employees isn’t optimal either. Everyone has to shoulder a fair share of the burden. Indeed, this is one reason why many companies have strict rules about nepotism. Hiring family members (or treating employees like family) blurs the lines between relationships in ways that can cause trouble down the line”. I actually have to disagree with this statement to a certain extent. I myself am working for a family business that was established in 1949. With both family members at the head of the company, and employees that seem like family members. The company does only have 72 employees, nevertheless, there is a family like setting within the company and the CEO makes an effort to actually keep it that way. Now, this company of course is a private company and does not have a board of directors, but still if a company is effectively running well, is it that bad to be more of relationship behavior company? Does the answer may have to do in part with how large a company or organization is?

Combining a Hierarchy and Neighborhood, or in other terms task and relationship behaviors together is what the style approach preaches for effective leadership. This article, despite the different terminology, actually states the same correlation that our book Leadership by Peter Northouse states in chapter four. Does Markmen’s make a point here of Task and Relational behavior can simply be swapped out with the terms Hierarchy and Neighborhood?

Cliff Bars Solo Climb

http://money.cnn.com/magazines/business2/business2_archive/2004/12/01/8192527/index.htm

For years I have been eating Cliff Bars because they are all natural and taste better than other energy bars. After reading this article taste and the fact that they are all natural won't be the only reasons I choose Cliff Bars over the competition.

Cliff Bar is a privately held company owned and managed by founder Gary Erickson. The company competes with global giants in the food industry; including Nestle, owner of PowerBar, and Kraft, owner of Balance Bar. It may seem like Cliff Bar is destine for failure competing in this market, but that's far from the reality. Cliff Bar owner, Gary Erickson has done the opposite of what most business owner's would do. He has turned down multiple substantial offers from food industry giants to ensure the success of his company. Erickson is not focused on the money, he is focused on becoming the industry leader while standing by the ideals of corporate social responsibility.

Despite the doubt from industry experts, Erickson stood by his values and decided to keep the company under his control. As a result business partner and co-CEO, Lisa Thomas demanded a buyout and left the company, leaving Erickson to manage the company on his own. By making this decision Erickson proves he has what it takes to be a leader. He also shows signs of the five major leadership traits-including, intelligence, self-confidence, integrity, sociability, and determination. As a result of a buy out the company would have to make drastic changes Erickson was not comfortable with. For starters, the company would be moved from California to the Midwest, forcing Erickson to part with his 65 current employees. Also, many of the unique qualities Erickson worked so hard to establish at Cliff Bar would be at jeopardy. Including, twice-a-month three-day weekends, a twenty foot climbing wall in the office, and his commitment to backing multiple social issues. Erickson also shows signs of emotional intelligence. He continually shows signs of how the a leaders personality supports the leadership process.

It's all about reusing.

http://www.youtube.com/watch?v=zO7a9wS_K2k&feature=related

The video I picked to discuss was an interview conducted with the CEO of UsedCardboardBoxes, Marty Metro at one of his warehouses. UsedCardboardBoxes is a company that buys cardboard boxes from major companies. Metro tells how cardboard boxes that are recycled here in the United States are actually shipped over to China, where there is a high demand for the fibers in the boxes. China then takes the fibers and makes cardboard boxes of their own to ship valuables all around the world. What UsedCardboardBoxes actually does is buy cardboard boxes, inspects them to make sure they are reusable, and sells them as moving boxes for the 43 million families that move in the United States every year. Metro explains how in the past few years, “reduce, reuse, and recycle”, has been a phrase commonly used, but over the course of time has been a saying that has been blended down into the term recycle. He poses the question, “Why break something down if it can be reused in its own form?” Metro takes reuse to a whole new level. He points as “green” as reducing cardboard boxes may seem, the fuel cost to ship the boxes across seas, to have large machines and plants use fuel and energy to break these boxes down and use fuel again to ship these boxes back, is not really a green way. Keeping the boxes domestically, and not having to do a thing to these boxes, the most the families that buy these boxes have to deal with is miscellaneous company names on their boxes.

This interview really opened my eyes as to how some forms of recycling actually are not necessarily green. This makes me wonder what other forms of going green are not necessarily environmentally friendly and what possible extra steps could be taken by major businesses to avoid issues like this.

Looking at Metro, he definitely encompasses leadership qualities in the sense that he has produced a major change in the way the cardboard box industry works, and hopefully he is producing movement along with the change. He’s inspired many companies that he buys the boxes from to donate them to his company instead of ‘recycling’ them to China. Since it is not a very large company, he also possesses manager qualities because he still has a good grip on the company through controlling and problem solving many day to day activities throughout the company.

And also looking at the Comprehensive Skills Model , Metro seems to have many qualities off of the model. His problem solving skills are what led his business to be what it is today. He discovered a major problem in the cardboard box recycling industry, and decided to make a major change. His knowledge about the issue, what was being done before he stepped in really helped him when he was creating a business. Metro also has incredible motivation for what he is doing. His motivation drives him to make his business bigger and better every day. What I’m posing is, does it take someone with many skills to do what Metro has done? Are all of these competencies and individual attributes necessary to start and run a business? If not, are there other possible ways to be a leader and make a difference without possessing all of these skills?