The industrial age forged leaders who commanded and controlled. But, in the face of the looming climate crisis, rapid tech advances, and profound societal transformations, sticking to a top-down approach just doesn’t cut it anymore. The need of the hour is a new kind of leader—one who champions collaboration, sustainability, and shared prosperity.
Leadership rooted in the industrial era was synonymous with command and control. Organizations were rigid hierarchies. This traditional ego-centric model is challenged by the complexities of the 21st century. But we’ve seen a paradigm shift in recent times. We heard about that at TechHR India earlier this month, where People Matters CEO Ester Martinez spoke about the concept of eco-centric leadership.
The industrial era was a period of relative stability where businesses operated predictably. Leaders steered organisations towards profit maximisation. These ego-centric leaders, focused on personal or organisational gain, often resist change and innovation. This stifles creativity, restricts the flow of ideas, and promotes a culture of conformity. As a result, short-term gains often overshadow the long-term impacts on society and the environment.
In contrast, the 21st century presents a landscape, where traditional ego-centric leadership falls short amidst tech disruptions and environmental challenges. Instead, we must turn to the eco-centric leadership approach , which redefines both the leader’s role and the organisation’s position within the broader ecosystem. By acknowledging the interconnectedness of business, society, and the environment, eco-centric leaders prioritise the well-being of all stakeholders.
One such example of eco-centric leadership is Zhang Ruimin, CEO of Haier. He views his role not as a conventional CEO but as an architect of the company’s ecosystem. As Zhang puts it, “Our previous goal was to build a self-contained enterprise. Today, we strive to develop a thriving ecosystem.”
Under Zhang’s leadership, Haier transformed from a struggling company to a global appliance giant and innovation pioneer. With a 99,000-strong workforce, the company has achieved a remarkable 18% annual growth since 2015, generating $37 billion in smart home revenue.
Technology is democratizing innovation
AI and other advancements are empowering individuals across industries, creating new skills, new knowledge, and new ways of working. In a world of work connected and uplifted by technology, leaders are no longer a single source of truth. Instead, they are part of a greater connected ecosystem in which every person matters, every person can have a say, and every person can innovate.
What does this mean for a leader’s role? It’s no longer to stand out at the front barking orders and taking the entirety of the spotlight, but rather to be in the midst of the network, encouraging and fostering collaboration among all the other parts of the system. That’s the only way to truly leverage the potential of today’s technology-empowered workforce.
Businesses are under pressure to address societal challenges
Even before the pandemic upended every preconception we held about work, change was overtaking many societal norms we had taken for granted. From #MeToo to mental health, geopolitical conflict to geographical diversity, workplace is a part of the wider society and reflects the challenges faced in the global and local communities alike.
And employers must recognize this. Leaders cannot bury their heads in the sand and imagine they and their business operations are the only important factor of the workplace. Rather, they must remain aware that the workplace is just a segment of the broader community, one that occupies at least a third of people’s lives and a large proportion of their social interactions. And as part of the broader community, businesses have a responsibility to behave as good community members: bringing their resources and credibility to the table to address the pain points faced by the wider system, understanding that their actions affect others and taking care accordingly.
Eco-centricity is good business
The fears of negative business impact have been debunked decades ago. Research has long since proved that genuinely sustainable and inclusive companies outperform competitors in innovation, long-term profitability, and business image. It’s not just about sustainability alone, nor about DE&I alone; it is the full mindset of acknowledging that business is a system in itself and part of a larger system, recognizing the value of each part of that system, and harnessing collective intelligence to drive the organization into a future where not just one person or one business thrives, but the entire system.
So, how can leaders initiate this shift?
The journey to eco-centric leadership begins with a mindset transformation. Leaders must establish a clear, compelling purpose that extends beyond profit. By fostering collaboration and engaging all stakeholders, they can co-create innovative solutions. A long-term perspective is essential to consider the broader impact of decisions.
On a personal level, aspiring eco-centric leaders can focus on influencing what they can control while maintaining a positive outlook. Prioritizing actions aligned with broader goals is crucial.
Ultimately, organisations that thrive will be ecosystems of collaboration and purpose. Leaders who understand that success comes from nurturing this ecosystem will shape the future of business.
Shifting to eco-centric leadership isn’t just about changing how we manage—it’s a moral imperative. It requires us to rethink a company’s role in society and commit to people and the planet as much as to profit. This isn’t just good business; it’s a serious responsibility that will shape the future of leadership.