SA bosses that make their workers happy also make less money: study
A recent study published by Nelson Mandela Metropolitan University’s Business School examined conscious corporate governance in South Africa and revealed that the country’s bosses have a tough choice between creating a friendly work environment and making money.
The results were based on a sample of 371 senior executives from 167 JSE-listed, and 54 unlisted companies in South Africa who participated in a study focused on the role of conscious leadership in the achievement of sustainable business practices.
“Conscious leadership is a powerful but relatively new and understudied area in leadership studies. It is a form of leadership which draws on holism, creativity and inspiration to allow companies to solve business issues in a more ethical way through increased leadership consciousness,” said Professor Cecil Arnold, Graduate School Director at NMMU Business School.
“It differs from traditional leadership where leaders manage their firms through authority structures and relationships through the use of force, intimidation, manipulation and political-power relationships.”
“Conscious leadership, employs inspiration, evocation of greatness, mutual trust and truth-telling where leaders have strong levels of trust in themselves and in their followers,” said Arnold.
According to the study’s findings, conscious corporate governance was positively related to healthy employee relations and the achievement of equal opportunities and workforce diversity. However, the study also found that conscious corporate governance was also directly negatively related to profitability.
While these traditional roles of leadership still exist across the world and South Africa, Arnold noted that they were becoming increasingly unsustainable.
“The expense of employee relations, and the achievement of equal opportunities and workforce diversity, meant not leading consciously was not a viable option in any firm – especially in a South African context,” he said.
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