This study set out to explore the current status of the South African economy in relation to how organisations within the fast moving consumer goods industry (specifically Unilever South Africa) can enhance their operational activities in order to remain ahead of competitors, thus stimulating organisational success, whilst simultaneously diminishing their carbon footprint.
The study further sought to analyse the shift from historical leadership methods to modern day leadership deployment, and how the concept of change management and sustainability may be incorporated in improving operational strategies towards the attainment of organisational progression.
Given the history of South Africa and despite the recent socio, economic and political developments which have been achieved, we find ourselves positioned within an undesirable predicament. South Africa, being a developing country and an emerging market, continues to battle the major external economic issues of poverty, unemployment, corruption, cost of living, (Mbele, 2014), all contributors to the overall hindrance and detriment of South African economic health. The nature of the South African economic environment is one of high instability demonstrating substantial difficulties for organisations seeking a sustainable position. The country, being a developing nation, and burdened by the effects of historic inequality occurrences as well as current economic challenges (such as discrimination,
179 | P a g e unemployment, corruption, poverty, and the like), has not developed environmental policies as a major priority. However, despite these challenges, organisations realise the importance of the shift toward a greener society in order to remain competitive and ahead of the market. Unilever has extensively implemented global green standards and strives to offer products which benefit the end user by adding value whilst simultaneously enforcing positive societal impacts.
Organisations must strive to maintain and sustain a positive brand status which is a key driver in influencing consumer behavior (KPMG, 2011). In order to achieve environmental sustainability alongside competitiveness, the type of leadership strategy employed is critical.
Total company functionalities must be thoroughly analysed in order to determine the type of leadership essential for ensuring success.
A successful strategy involves organisational alignment as a necessity and with the integration of sustainability, change must be effectively managed. Further to this, it has been found that effective management of change continues to exist as an essential ability. Past incidences have shown that the regulation of change needs to be more reactive. Subsequent to reviewing a wealth of literature, it was found that numerous theories suggested an unclear and conflicting perspective on change management, which could possibly reveal a fundamental absence in an effective structure required for the successful execution of change (Todnem, 2005). More recent literature suggests a fundamental shift in the management of change, comprising the following:
A social and cultural shift from management to leadership indicating the rise of change leadership, instead of observed evidence (Hughes, 2015).
Emphasis is currently being placed upon favouring change leadership over change management (Hughes, 2015).
In terms of prospective future avenues, organisations must learn to embrace and sustain the basic elements (leadership excellence, employee recognition, understanding consumer behaviour, etc.) resulting from both management and leadership and integrate these concepts so as to realise enhanced benefits (Hughes, 2015).
180 | P a g e Further to this, it has been deduced that the effective deployment of a viable leadership strategy must be instituted within organisational operations. Sustained company performance is determined by the extent to which a leadership strategy necessitates the effective implementation of change leadership and institutes the elements of sustainable development.
Effective leadership must be commanded by a “leader” who inspires change, encourages and stimulates organisational progression and who displays extraordinary abilities. Additionally, it must be noted that the nature of sustainability assumes its own complexities, and a leader of this nature must have the capacity to comprehend, evaluate and successfully resolve the following:
The intricacy regarding the dynamics of sustainability (Metcalf and Benn, 2013).
The complexity of multifaceted problem solving, and
The complexity of the concept and implementation of leadership (Metcalf and Benn, 2013).
This type of leadership must incorporate a sustainable inclination as well as a transformational disposition which allows for refinement against organisational goals and objectives. Thus, success may only be achieved once efforts are made to enhance all stakeholder benefits, i.e.
environmental, societal and organisational (Šimanskienė and Župerkienė, 2014). Through the integration of the elements of effective leadership execution which engenders successful change and a business model that incorporates sustainability, organisations can enhance their competitive advantage resulting in a diminished carbon footprint and simultaneous growth in organisational performance.
Furthermore, in relation to maintaining a sustainable competitive advantage which will inevitably enhance organisational performance, companies need to attract the growing green consumer market. Firstly, campaigns need to be developed and directed at friends and family of consumers in an effort to impact and stimulate consumer attitudes (via the use of social influence). Secondly, green awareness needs to be cultivated within the mind of the consumer and finally consumers are heavily cognisant of market pricing, thus organisations need to implement more low-cost, economical pricing strategies for sustainable products due the price sensitivity frequently related with greener products. Organisations can only progress if their
181 | P a g e actions positively impact the wellbeing and stability of their society (Kapstein, 2008). Thus, in order to stimulate economic progress progressive influences, companies need a thorough understanding of businesses current effects and the methods to improve them. It is crucial that organisations be part of the solution to combat major global and local economic and social challenges (Kapstein, 2008). Sustainability has been deemed an essential element in affording organisational growth and innovation, hence the emphasis placed on this concept. Unilever South Africa will continue to remain one of South Africa’s leading FMCGs provided that appropriate leadership strategies are implemented (neo-charismatic) in conjunction with a sustainable business model which benefits all organisational stakeholders; additional methods are put in place to assist in bridging the gap between consumer attitudes and their subsequent sustainable behavior, and increased emphasis on Unilever forming strong partnerships with further possible stakeholders (additional NGOs, governmental agencies, customers, etc.) in order to stimulate their progress in order to maintain a sustainable competitive advantage.