How does Responsible Leadership relate to Retail?

Yesterday I caught up with an old friend who has recently retired after leading a key organisation in Australia and overseas.

We discussed thoughts on Responsible Leadership, particularly in relation to their global manufacturing and retail business as their business expands internationally.

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They began by suggesting that Responsible Leadership is an unusual description to apply to many businesses. "It has some conservatism attached to the thought.”

Responsible leadership is broadly viewed as part of governance in their manufacturing and retail areas of business.

Looking forward, leaders should always focus on adding value. This is their core responsibility.

Businesses who manufacture and sell products are not a utility or insurance company with governance that relates to those industries and their regulators.

Our business make and sell products people need, so as leading providers in that field, we have integrated responsible leadership into the structure of our business. We went on to look at the key areas where this has been done.

Responsible Leadership Adds Value to Stakeholders and Customers:

Firstly, “The term 'Responsible Leadership' is about adding value for all stakeholders.”

Shareholders want a good return on their investment. Staff want to be rewarded for their efforts. Retailers and suppliers also expect a good long term relationship that they can build with their supplier.

What ties shareholders, staff, retailers and suppliers together is the customer.

So, successful businesses focus on adding value for all stakeholders by ensuring the end customer is valued and are looked after.

After sales service is where many businesses fail to provide without realising this is where they can achieve their competitive advantage.

Customers automatically expect a product of good quality and value. Every customer expects the same. So how do they choose?

After care service is the point of difference that can be promoted via their retail network. When you buy a product in a shop - you know you are supported by their after care service.

Products from so many businesses are good quality, innovative and good value, including those provided by the global giants.

After sales service is what works to differentiate product from competitors by adding value to the customers purchase. This in turn adds value to all stakeholders as every customer learns from the retailer that your brand ensures products will work properly, and if there ever is a problem, they will have after sales service fix it for you.

Responsible Leaders Empower Staff: 

The second component of responsible leadership is built into supporting how staff are managed and focuses on empowerment.

Run the business through offering staff decision making power. This gives them empowerment to grow - an important attribute of a responsible leader. It also helps with succession planning as future leaders emerge through the actions they make and the outcomes they achieve.

The attributes of a future leader are:

• Having a care factor about what they are doing
• Passion
• Entrepreneurialism

If these are encouraged through developing a business culture that empowers staff to do well in these areas, then this philosophy becomes part of the DNA of the business - a touch point that transcends to the consumer via recommendation of the retailer.

Responsible Leaders Connect with The Community:

The third area of responsible leadership in business is connecting with the community.

Everyone would always like to do more with initiatives that focus on engaging with the broader community in ways that add value to society.

For example, having a sustainable approach to business.

Also try to be generous with the needy and charities. There are however so many causes to support.

Each market worldwide should be dealt with appropriately and differently when connecting with the local community to take into account different cultures and local idiosyncrasies. 

Responsible Leaders are Empathetic and Fair: 

Finally, we looked more broadly at the attributes of a responsible leader.

The core of a responsible leader is empathy and fairness. Good leaders can be sharp business people. Entrepreneurial is good as they take on quality risk. When this is balanced with fairness and empathy it is inspiring for staff.

As a leader you can be tough whilst keeping everyone accountable for their actions and the outcomes they achieve. By also being fair and empathetic you help to keep staff inspired.

Responsible Leaders can Communicate with Everyone: 

Common amongst all great leaders, including those who live an ethic of responsible leadership…

“As a responsible leader you need to be able to talk to the woman or man on the street. You shouldn't be above your station as people will always appreciate your open acknowledgement when you meet and greet them equally.”

This important concept of open communication has been a common theme shared by the leaders we have interviewed on the subject of Responsible Leadership to date. It helps leaders convey their values and beliefs to everyone in a simple method that everyone can understand and follow