INSEAD: Can you summarise what responsible leadership is?

Nicola Pless: Responsible leadership is a complex phenomenon. It reflects that corporate responsibility is first and foremost a leadership challenge, which requires responsible leadership in organisations by people who care, who are morally conscious, principled and responsive to different stakeholder demands inside and outside the organisation - in essence who understand the responsibilities of business in society. This means to go beyond the financial bottom line and also include social and ecological value creation. To deliver on such a triple-bottom-line and achieve sustainable value creation leaders need a responsible mindset, vision and relational intelligence to mobilise followers and other stakeholders to achieve these high-performance objectives.

Ralf Schneider: Responsible leadership needs to be addressed at two levels. 1. At an individual level - What does the individual leader feel responsible for? A question that each leader should ask themselves. This drives you towards a better understanding of your individual values and the future if you want to create your authentic purpose. It also lets you out on a lifelong journey of discovery and learning. 2. As an organisation - What do we want to stand for, what are we recognised for and how do we build sustainable relationships and create an admired brand, one that is trusted by our stakeholders. It is important for a business to understand that it is part of society and has a purpose to fulfil that goes beyond profitability if it wants to be sustainable.

INSEAD: In your opinion what percentage of businesses educate their leaders to think globally and consider business ethics, corporate responsibility and sustainable development?

NP: This is very difficult to estimate. Awareness is rising. Business ethics and corporate responsibility are receiving more attention especially since recent business scandals. While the development of global leaders has been in discussion for a long time business schools are now recognising the importance of developing and preparing responsible leaders and integrating courses in business ethics and corporate responsibility into their curricula. I think responsible business education is becoming a major topic. An indicator for that is the recent agreement of leading academic institutions to join forces with the United Nations Global Compact to develop "Principles for Responsible Business Education".

INSEAD: This should also be divided geographically. For example, Scandinavian countries address these issues much more than countries in Asia. Ralf, what do you think?

RS: Yes that is true, there are different levels of awareness around the world and different approaches in terms of the integration of business and society.

In Europe there tends to be both a higher awareness and a higher level of integration. This has its roots in our different social and economical history. In Germany, for example, the idea of the social market economy has always assumed a social framework within which businesses and capital at large are held accountable to pursue broader goals than profit maximization. In many other parts of the world this is different. In essence this leads to very different views on the purpose of business.

As a consequence, global businesses find themselves in a very interesting dilemma. What is the 'right' assumption under which to operate. The answer will reveal the true values and 'character' of a global organisation.

I do agree with Nicola, awareness is rising around the world and it is largely facilitated through the global nature of our economies converging into a global economy. Global businesses who face this will need to find a response that mirrors their brand. In my view, businesses have a key role to play in overcoming the different levels of maturity and to create a global response. This will include an increasing amount of learning, development and education in this area based on a clear stake in the ground regarding their position on CSR. Ulysses at PwC is one of the first examples. More and more businesses and business schools are interested in this area today and are starting initiatives. I do believe CSR and Responsible Leadership willl become a mandatory part of each MBA curriculum in the near future.

INSEAD: How much do you think this will change in the next few years? Will it grow as awareness grows?

RS: Yes it will. There is much more awareness, more friction and more complexity. The stakeholder community is much more vocal. Legislation and regulations are kicking in on all fronts to respond where businesses have failed to be proactive. I think that there will be a lot more pressure on businesses to move in this direction, specifically on the more visible global businesses. This will present a key challenge in the next decade.

INSEAD: Can you tell us about the history of the PwC Initiative on High Performing Organisations and who it involves?

RS: We started this initiative 4-5 years ago with the objective to gain a better understanding of what it takes to create a high performing organisation and a high performing culture. PwC gave a research grant to INSEAD to launch research streams to explore various dimensions and to help PwC build thought leadership that would allow us to provide added value to our clients. The Ulysses Research Project on 'Developing Responsible Leaders for High Performing Organisations' is one of these workstreams.

INSEAD: Can you briefly summarise the 'Ulysses Programme' and its objectives?

RS: We started the Ulysses Programme as a response to three strategic business challenges that we anticipated would shape our future. The first one is the need to create a third generation leadership approach that responds to the challenge of running a global network operating in a multi-stakeholder environment. The question being, what is the appropriate leadership model and the base for developing people to create a competitive edge in such an environment.

The second is the diversity challenge. How do you embrace diversity in its broadest sense as a source of innovation and how do you help people to create the connectivity we need to drive innovation and improve responsiveness to our clients. How can we harness diversity as a competitive advantage, leading to better products and new solutions for complex problems and strong connectivity across the globe.

The third is the challenge of building a sustainable business and brand in a multi-stakeholder environment. How do we start to understand and embrace the long term role of our business and our ability to create a sustainable brand. What does this mean in terms of our strategy and the culture and relationships that we need to create.

Developing the next generation of leaders is one of the major levers in answering these questions. The Ulysses Programme is a laboratory for us, experimenting at a very practical level, helping us to understand how to develop the next generation of leaders and a leadership culture that will make us distinct. After only a few years, we already have a lot of answers. The research is action based linked to the Ulysses programme. Nicola will explain.

NP: Our research in the Ulysses programme has focused on the question "How does the programme contribute to the development of responsible leaders?" To answer this question we conducted in-depth interviews with each participant before and after the programme using the appreciative inquiry technique. These interviews help participants to make sense of their deep project experiences and to relate them to the learning dimensions of the programme. They also contribute to the transformation of experience into learning. This is one example of our action research approach. We also distill patterns from the learning stories which participants share during the week and feed them as frameworks directly back into the group.

INSEAD: Is there any connection between the Ulysses Programme and Genesis Park, a programme launched by our Dean, Frank Brown during his career at PwC?

RS: Yes there is. First of all, they are both obviously looking at developing the next generation of leaders within PwC. The Ulysses Programme does this at the partner level, whereas Genesis Park does this at the staff level. Both programmes are very experiential, meaning they take people out of their daily routine and their comfort zone, putting them into different settings, specifically focusing on different cultures with a lot of emphasis on coaching at an individual level. The other connection is that we bring our alumni networks together. The alumni from both programmes have had similar experiences and share the ambition to sustain their quality of leadership, operating as agents of change. We also hold an annual alumni reunion to reconnect, reinforce and re-engage the dialogue with the firms leadership.

INSEAD: Are, or have you been involved in Genesis Park?

RS: Yes, quite a bit. As a speaker, for example we run our network meetings together. We also exchange our experiences and models for organising project work and leadership.

INSEAD: How are participants chosen for the Ulysses Programme?

RS: We ask the leadership teams in each country to send us a select few participants per year. The participants would have between 3 - 10 years of experience as a partner and in the opinion of the leadership team, they would have real leadership potential, capable of rising to the top of the organisation.

INSEAD: How much does it cost the company?

RS: Ulysses is a three months fulltime programme. If you just look at the programme cost it is about €24,000 (US$ 30,000).

INSEAD: The Ulysses Programme sends participants to organisations in developing countries facing challenges such as poverty, environmental pollution, human disease and political conflicts. I would imagine that this experience is incredible. What kind of feedback do you receive from participants?

NP: Most participants have a very deep learning experience. Many see the programme as a once in a lifetime opportunity to step out of their usual professional environment and have the chance to contribute as agents of world benefit to cross-sector service projects. They are confronted with a number of challenges which become catalysts for learning. These challenges include experiences like working in a developing country sometimes without basic infrastructure like electricity or phones. It also involves interacting with people from different cultures and sectors and being confronted with communities and people for whom problems such as poverty, hunger, HIV/AIDS, Malaria, lack of clean water etc. are a daily reality. These experiences teach humility and let people reconnect to and understand the significance of fundamental human values like human dignity and respect for each other. They broaden and deepen their understanding of the social and humanitarian challenges and responsibilities of doing business in a global stakeholder society. Participants also develop multicultural and relational competencies. So, participants really receive a holistic experience that helps them in their professional life, for instance in leading multicultural teams, but also in understanding what corporate citizenship means for the firm and for them as future global leaders. It is indeed a global experience for people to connect to different realities and cultures in the world, to interact with different stakeholders and to build up a network among leaders.

RS: To add to Nicola's comments, this is not just a once in a lifetime opportunity but actually a life changing experience and for many, a sort of reframing for the way they look at life and their purpose as a leader. It is a trigger for people to move to the next level in terms of awareness. It puts them in touch with themselves and with the human spirit. Participants develop a stronger connectivity to a broader set of issues, leading them to understand why and how responsible, sustainable and value based relationships are core to them as emerging leaders in a network organisation.

INSEAD: How do you assign projects to participants?

RS: This is quite a complex process. Firstly, we identify the projects we have received from existing and sometimes new partner organisations. These organisations would have already had a briefing about the kind of projects that we are looking for. Our participants are not there for free advice or consulting. The projects must offer a learning opportunity that the participants can carry with them. Secondly, we short list the projects and actually visit each one in the field to see whether it is really suitable. The final list is then produced and circulated for the participants to choose from based on their priorities and particular interests. When selecting the projects, we make sure there is plenty of choice concerning different issues such as health, environment, capacity building, education, etc. A final process to form the teams is then carried out.

INSEAD: Do you receive feedback from the organisations that participants work for during their field assignments?

RS: Yes we do. The best feedback we can receive is when a partner organisation wants to provide more projects and work with new teams each year. We have very positive feedback in terms of the contribution that teams have made at the grass root level and the quality of the relationships they leave behind - many times longterm friendships.

INSEAD: How do the participants from this programme use this experience?

NP: Apart from bringing the experience and knowledge back into their organisations, some participants go on to create foundations in their respective countries and others have even launched local initiatives based on the Ulysses Project in order to give other people within their organisation the opportunity to learn in this manner.

RS: Many times the experience has enabled them to change the quality of their relationships with their clients and how they interact with them.

INSEAD: Nicola, tell us about your book, Responsible Leadership, co-edited with Thomas Maak, Research Director at the University of St. Gallen, Switzerland. NP: It addresses responsible leadership in an integrated and systematic way, asking three questions. What is responsible leadership? What makes a responsible leader? How to develop responsible leaders in business? The book consolidates research material from many sources and contributors coming from INSEAD, Harvard, Kellogg and other renowned institutions and organisations. INSEAD: Who has contributed to this book? NP: It was important for us to collect research from a large and diverse group of distinguished experts in order to frame the topic from a broad

perspective. Our contributors include professors from different educational areas such as psychology, business ethics, business management, decision science and leadership, as well as practitioners - learning and development experts, consultants and some company executives.

INSEAD: A responsible leader must be global - understanding different cultures and religions. How does the book address this?

NP: Most of the contributions have a global perspective on responsible leadership. There are also specific chapters that address diversity issues, such as religion, multi-cultural diversity, etc.

INSEAD: How does the book address business ethics, sustainable development and corporate responsibility in leadership?

NP: These are all topics that responsible leaders have to deal with. So from an ethical perspective some authors look into the inner theater of leaders asking: "What are the values and virtues of a responsible leader?" Another author suggests from a strategic perspective that CSR creates a world of competing values and that leaders therefore need to understand and anticipate competing value-orientations. Thomas and I also introduce a relational approach to responsible leadership. It addresses the relationships between leaders and stakeholders and discusses the different roles leaders take to lead responsibly in these relations, such as to be a custodian of values, a servant to others and an agent of responsible change.

INSEAD: Is there such a thing as a natural leader?

NP: Are leaders made or born? This is a huge discussion topic. There are some biological qualities that people are born with. For example, cognitive intelligence, which is necessary but not sufficient for a successful and responsible leader. Leaders also need to have emotional and cultural abilities to interact with and lead people in and across cultures. They also need ethical abilities to deal responsibly with conflicts of interests and reconcile ethical dilemmas. And they need relational abilities to build sustainable relationships with different stakeholders. Research in developmental psychology, sociology and neurobiology indicates that emotional, ethical and relational abilities are developed over time and lifespan. This means that education, learning and experience at all stages in life play an essential role in developing responsible leadership qualities. So while there are some natural leadership talents, there are no born leaders.

INSEAD: The book also refers to past leaders such as Ghandi, Mandela and Alexander the Great. Why is it important for us to look at past leaders to learn about leadership in today's world and going forwards?

NP: It is possible to learn from past leaders. Both cases of bad and good leadership teach us about the importance of moral principles and human values. Yet, the leadership context has changed and with it the challenges that leaders face like leading a multicultural workforce, reconciling ethical dilemmas, engaging with multiple stakeholders and contributing to tackling the world's most pressing global problems like poverty, disease and global warming. Hence, looking back at the past will not necessarily provide us with answers to questions such as "what is the role of business in tackling these challenges?" and "how to lead a successful and responsible business today and in the future?". Secondly, looking at past leaders does not necessarily help us explain new forms of leadership such as leadership in network organisations, or stakeholder leadership. I think that we need to look more closely at responsible leaders in the present and learn from them.

INSEAD: I believe the book gives examples of responsible leaders. Can you expand a little on this?

NP: Yes of course. There is for instance a chapter on Fabio Barbosa, the CEO of ABN AMRO Real in Brazil who has been instrumental in the corporate social responsibility endeavors of the bank. Then there is a chapter of Shell's training approach to preparing leaders for sustainable business. And of course there is also a case study on PricewaterhouseCoopers' Ulysses programme as a best practise example for responsible leadership development through cross-sector partnerships.

INSEAD: Are you involved in the Ulysses project?

NP: Yes, I have been conducting research with Thomas Maak on the programme since 2003. We are also members in the design team and facilitators in the programme teaching aspects of responsible leadership and sustainability.

INSEAD: What advice would you give to INSEAD alumni about being a responsible leader?

RS: Ask yourself regularly, what do I as a leader ultimately feel responsible for? Make sure you follow through by evaluating your actions and whether you are doing what is consistent with the future you want to create. Create sustainable relationships with a multitude of stakeholders and thrive on feedback.

NP: Responsible leadership as a topic is receiving a lot of attention nowadays. If alumni want to prepare themselves for the challenges of leading responsibly in a global stakeholder environment then the book can provide insights of what responsible leadership means in theory and practice. For instance, which qualities are required of a responsible leader and how these qualities can be developed in current and future leaders.

Read the quotations for this book. If you wish to buy a copy online, click here.