New survey research lays the framework for a new Stewardship Climate Scale that, in one of its first applications, reveals that stewardship is more likely (and more potent) in family firms than in non-family firms.
CEOs who have lived through disasters resulting in significant loss of life are likely to be risk-averse executives. Those, on the contrary, who live through disaster that did not result in significant loss of life tend to be less sensitive to the consequences of risk — and thus more risk-tolerant than the norm.
Policy makers are worried that U.S. companies are using Permanently Reinvested Earnings (PRE) as a tax loophole rather than legitimately trying to grow their overseas operations. They are also concerned about cash trapped overseas instead of being invested in the U.S. economy. The SEC is focused on whether companies are using the rules concerning PRE as a means to overstate their profits. New research shows that a majority of companies are serious about overseas growth rather than looking for tax loopholes. However, cash trapped abroad is still a problem for the U.S. economy.
Understanding and relying on traditional Western models of leadership alone is no longer sufficient in a world where most companies operate globally. Progressive organizations need to accommodate cultural differences and approaches to leadership. It is crucial that their managers learn to understand and adapt to this and work hard to acquire the competencies needed to prosper.
