Organisations are integrally connected to the society and the natural environment in which they operate.

They employ people; they consume natural resources; they generate money and prosperity. Businesses therefore need to manage relationships with wider society, and this should go beyond the realms of simple compliance with legal obligations and market demands.

There is a growing awareness of this link and — while certainly not a new concept — the recent rise of Corporate Social Responsibility (CSR) as a focus for many businesses has increased attention on what is required to be a socially conscious leader.

Organisations can face immense challenges and limitations as they strive to implement CSR programmes, often relating to political pressures and organisational concerns that are deeply entrenched in their culture. The complexities of operating in diverse global societies also place new demands on organisations, and on their leadership structures.

This can mean that CSR agendas are left unmet, with a principle driver being a lack of corporate governance and ethics. There is also a challenge in ensuring there is the capacity to fully engage in social leadership practices, engaging major stakeholders in the design and implementation of CSR agendas, and then to hold them fully to account.

In effect, many firms have espoused CSR as a concept, but far fewer have moved to a state of applied corporate social responsibility. There has also been a perception that, even where this has happened, the role of corporate leaders has been ignored during the development of CSR initiatives.

Because of this, the further advancement, adoption and success of CSR is, arguably, more concerned with leadership than it is with sustainability.

But is it worth investing in developing leadership talent in this direction? Part of the answer to this is in considering whether it is possible to be socially responsible and, in doing so, still be a profitable entity.

It perhaps runs slightly counter to the spirit of CSR to suggest, but one major business advantage that comes with operating within a socially responsible framework is the positive social and business image that it creates. The company is viewed as a more ‘legitimate player’ in its operational environment, and its key stakeholders can be more willing to enter partnerships and long-term arrangements as a result of an increased credibility where they operate.

There is the potential for a virtuous circle, where the wider community and the organisation continually benefit as an organisation increasingly focuses on its CSR agenda.

As a result, an organisation is often viewed as being more attractive to current and prospective employees, with an increased pride in the value of their work that stems from the fundamental satisfaction of working for a socially responsible organisation.

This is especially important for younger members of the workforce, who rank trust and contribution from their employers as being extremely important for them; a notably distinct priority from that of older generations.

There are, then, solid business reasons why focusing on socially conscious leaders is a worthy development objective. The goal should be a leader with the highest levels of integrity, and with the commitment and capacity to develop a sustainable organisation in partnership with other stakeholders.

Moreover, they should be led by their own core values and be capable of translating a purpose and vision into concerted action from energised employees.

Leaders need to be clear on how their organisation intends to engage in business within its environment; as well as the business practices and values that drive and inform the way business is conducted.

They must also be clear on how this will be reflected in the relationships they need to develop to bring key stakeholders together to fulfil CSR goals.

In terms of their own skills, there is a large crossover between the skills a leader needs to operate globally and the skills they need to be a true socially conscious leader. These include aspects such as the ability to use skills and qualities closely allied to the values and culture of the stakeholders they will be interacting with.

They must also be able to demonstrate self-awareness and self-management, and be able to create trust in their leadership through their own moral integrity and the values they work by.

In an increasingly globalised economy, the case for the socially conscious leader will only become stronger. While companies might operate on an international scale, they still have responsibilities to the locality they exist in.

Socially responsible leaders are an increasingly essential element in the constant challenge to balance the maximisation of profits against stakeholder calls to act ethically and responsibly.

The writer is Executive Development Director, Abu Dhabi University Knowledge Group.