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Leadership Styles: Ethical Challenge for the Next Unilever – Weleda Leaders Introduction Leadership style and actions of senior management can also make a difference in whether or not the merger or acquisition is successful and therefore needs to be considered during the initial planning phase (Covin et al., 1997; Lind and Stevens, 2004). This theory applies to Unilever-Weleda acquisition that has occurred. Leaders have to realise the challenging nature of acquisition1 and acknowledge that it is special circumstance. Objectives This paper is defining the different styles that are suitable for Unilever-Weleda after the acquisition, with special emphasis on corporate ethics, since Weleda is a strong natural, ethical, organic beauty products producer. Leadership: The Styles If leadership is a process of influencing other people’s attitude and behaviours, as it is defined by Chaney (2004, p 180), then it has to be proficient to influence them in a positive way, directing them in their path of wilderness, and finally, helping them to achieve the corporate. As a leader (Kouzes and Posner, HBR Magazine, 2009), one of the most essential characteristics is honesty. Second is forward-looking – having a vision. These two characteristics are the least two things that have to be in the leadership styles for Unilever-Weleda. Furthermore, the styles require a thorough understanding to overcome confusion, demotivated employees, or uncertainty about the future, because of the acquisition. In Monash Business Review [online], it is stated that the leaders should be “very A KPMG survey found that “83 percent of mergers were unsuccessful in producing any business benefits regards shareholder value” (KPMG, 1999, cited at Bertoncelj and Kovac (2007) [online[) 1

relationship driven, which enables them to listen effectively and not to jump at making judgement.” With various theories about leadership (styles) and literatures listing many different leadership styles, the writer can finally suggest four different leadership styles: 1. Transformational Leadership The essential style is transformational, because transformational leaders are those who can motivate their followers – giving vision and inspiration - to do more than originally expected based on their original level of confidence towards accomplishing desired outcomes. Transformational leadership occurs when a leader: raises the level of awareness about the importance and value of desired outcomes, alters or expands the wants and needs of followers, and/or gets followers to transcend their own self-interest for the sake of the group (Bass, 1985). 2. Situational Leadership According to Work Solution [online] most transformative leadership can switch between different leadership styles depending on context requirements, which make them having situational leadership. Lind and Stevens (2004) have argued that leaders need to take a contingency approach and adapt their leadership styles as required to best achieve this acquisition objectives. 3. Charismatic Leadership Beside the first two-essential styles, leaders have to be charismatic. Charismatic leadership style is highly enthusiastic and motivates others with energy – which is needed in this particular situation (Work Online [online]).

4. People-Oriented Leadership In this situation, leaders need to be relationship-driven, as stated above. Thus, the focus is more on people management rather than task management. It will result in strong employee engagement (Work Solution [online]), as the nature of Weleda corporate culture. Yet, since situational leadership style is too important, the leaders have to be capable to switch: people and task – because task (postacquisition works) is also important. Leadership and Corporate Ethics When it comes to corporate ethics – the state of what is right or wrong – leadership style cannot be “situational”; leaders need to have integrity. According to Frank Navran (cited in Coady, 2009, Power Point Presentation Internal Communication), leaders are required to apply PLUS2: Policies, Legal, Universal and Self. Having a firm stand point, leaders will be an example in regards to corporate ethics. Staffs will see behaviours that are exhibited by leaders or senior managers, with which they model themselves on as an indication of what is expected by the organisation and what is most likely to result in success (Coady, 2009). The strategies and systems which leaders develop and implement also play a crucial role in defining the context for decision-making, such as: •

Which behaviours are rewarded?

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Which activities are governed by strict guidelines and procedures?

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Are actions consistent with documented codes of conduct?

P = Policies: Is it consistent with my organization's policies, procedures and guidelines? L = Legal: It is acceptable under the applicable laws and regulations? U = Universal: Does it conform to the universal principals/values my organization has adopted? S = Self: Does it satisfy my personal definition of right, good and fair? 2

Thus, in short, leaders are crucial to creating an ethical culture. In this case study, leaders of Unilever-Weleda need to pay attention on creating a new code of conduct – since Weleda has a strong Corporate Social Responsibility practise – which will apply to both Unilever, and especially for Weleda. Some issues that have to be addressed related to ethical dilemma, such as ethical behaviours and gender issues (Swiss has high masculinity (Hofstede [online]), which makes them strong in gender differentiation; and Dutch is a feminine country, which treats women equally),