A conscious leadership model to achieve sustainable business practices

Business sustainability is a fundamental concern amongst business leaders and it is imperative that business defines an environmentally and socially sustainable path to financial prosperity. This focus on sustainable business practices has been caused by the perceived contribution of businesses to undesirable conditions such as environmental and social degradation including global warming and the global financial crises. This study suggests that a leadership style that differs from leadership that is currently causing business unsustainability is needed in order to achieve the goal of sustainable business practices. This study therefore proposes a new kind of leadership, called conscious leadership. The main contribution of the study is to increase the achievement of sustainable business practices by investigating the importance of conscious leadership in achieving this objective. Convenience sampling was used to select senior managers and directors from mainly JSE listed companies. This resulted in a total of 371 usable questionnaires (317 from listed companies and 54 from unlisted companies) being received. A quantitative approach was adopted to investigate whether conscious leadership would be related to increased sustainability competencies and more effective sustainability-related corporate governance and whether these in turn would increase sustainability behaviours which would generate sustainable business practices as measured by financial, social and environmental performance. Regression analyses were conducted to investigate the hypothesised relationships among these variables. Pearson correlations and descriptive statistics were also calculated. The empirical results showed that respondents in this study regarded conscious leadership, not as a separate construct, but as a way they governed their businesses. The empirical results showed that corporate governance and systems thinking competency had a strong interactive relationship and should therefore be cultivated within business firms. Corporate governance (including conscious leadership) and systems-thinking competency were positive influencers of employee relations, equal opportunities and workforce diversity. The empirical results however showed that corporate governance (including conscious leadership) had a negative influence on profitability. The present study cannot argue for the discouragement of corporate governance (including conscious leadership), as measured in this study, because reduced corporate governance would decrease healthy employee relations and the latter would decrease the achievement of equal opportunities and workforce diversity in these firms. A decrease in healthy employee relations would decrease profitability. The most important finding of this study is that senior managers and directors of big business firms, mostly JSE-listed companies, regarded conscious leadership as an important part of corporate governance. Corporate governance that includes conscious leadership must be developed to higher levels in business firms, so that the negative and not-significant relationships to profitability as viewed by lower and high conscious leaders respectively can be changed to positive relationships