Redefining business competence

William Boulding DURHAM- One of the most interesting parts of my job as a business school dean is engaging in candid conversations with leaders across industries. A few years ago, I started hearing a troubling refrain: business leaders are feeling the type of public disdain once reserved for politicians. The problem is one of trust – or lack thereof. The 2014 Edelman Trust Barometer reveals that less than one-fifth of the global public believes that business and government officials will tell the truth when confronted with a difficult issue. That public sentiment is affecting business worldwide. The such teams outperform others, which means that this approach can lead to a tremendous competitive advantage. In short, collaboration not only matters; it wins. Imagine the immense potential we would have to solve some of the world’s toughest challenges if business leaders adopted this strategy. Consider the global threat posed by Ebola. Efforts are underway to research, manufacture, and distribute experimental drugs that could treat the disease. But until now drug companies had largely ignored Ebola, because there appeared to be little profit in developing a drug for populations that could not afford to pay for it. The New York Times reported last month that United States officials are planning to scale up the production of one experimental drug, but it is still not likely to meet demand. If some of the brightest minds in business and health care had found a way to encourage the production of an Ebola drug before the outbreak, thousands of lives might have been saved. The type of leadership that I am advocating poses no threat to a company’s bottom line. On the contrary, it is the starting point for scaling a business to its full potential. As former Proctor & Gamble CEO and current US Secretary of Veterans Affairs Bob McDonald is fond of saying, leaders have a responsibility to make sure that their organization can “do well and do good.” Business can be the common thread that weaves positive change throughout the world. In order to reach that goal, we need business leaders with the vision, skills, and commitment to make a profit and a difference. A new standard for business competence that incorporates more than the bottom line will go a long way toward winning back the public’s trust. William Boulding is Dean of Duke University’s Fuqua School of Business and a member of the World Economic Forum’s Global Agenda Council on Values 2014-2016. Copyright: Project Syndicate.

Opinions

Redefining business competence