For the first time I have examined a CEO of a nonprofit organization. Fairtrade Foundation, based in the U.K., is a company that strives to give farmers in developing countries "sustainable" prices for their crops, which intern improves their overall quality of life. Harriet Lamb, CEO, is not set out to increase shareholder value or create record profits. Her job is to make an actually difference in the world through the improvement of people's lives that are less fortunate than many of us.
It is quoted in the article in the Wall Street Journal, that Ms. Lamb "wants to stress that it isn't charity that tugs at the heart strings. It's not charity. It's commercial common sense." At one point in the article, Ms. Lamb tells a story about how she brought a chief executive of a major cocoa and chocolate manufacturer to some Ghana cocoa producers in 2009. The chocolate executive saw first hand the poverty farmers where enduring and how it could endanger his business. To create this sense of urgency and the need for these large profitable companies to invest back in the producers that supply them would be a huge step in the long-term success of this industry and many more.
In analyzing concepts from out text to this situation, transformational leadership comes to mind. Ms. Lamb fits into the definition of this process which changes and transforms people through emotions, values, ethics, standards, and long-term goals. To further examine her transformations leadership qualities, I will use the four leadership factors that are apart of this process.
The first, idealized influence, is something that describes leaders who act as strong role models for followers. Ms. Lamb displays this factor by way of ethical marketing. She wants to do the right thing and give these farmers the right wage for a comfortable and productive life. In doing the right thing, many have followed her actions, not only in the Fairtrade Foundation, but large companies such as McDonald's and Starbucks. Consumers have also recognized the need for ethically sourced products and a boost in profits have been recognized. The second factor, inspirational motivation, is descriptive of leaders who communicate high expectations to followers, inspiring them through motivation to become committed to and a part of the shared vision in the organization. In this article, Ms. Lamb is quoted with "We have high standards," stating that she is confident and expects results. Another way she motivated people in and around her company is with the trip that she took the cocoa executive on, showing him first hand the need for these fair trade standards. The third factor, intellectual stimulation, deals with stimulating followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader and organization. Ms. Lamb uses this factor by way of recognizing that commitment to ethical supply will cost businesses more. This is their obstacle that they have to work together to improve the prices that farmers receive. She is not shying away from the issue, but challenging people to work at it head on. The final factor in transformational leadership is individualized consideration, which deals with a supportive climate in which leaders listen carefully to the individual needs of followers. She gets others to do this first of all because this is a non-profit organization which is set out to improve the lives of others, not to make money. She then listens to the demand of a growing consumer segment, and strives to give them more fair trade products.
http://online.wsj.com/article/SB10001424052748704608504576208123457763158.html?KEYWORDS=CEO+news
By: Jon Pieper
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