Learning Objectives: Summarize the conclusions of trait theories of leadership; Contrast contingency theories of leadership

Learning Outcome: Summarize the major theories of and approaches to leadership

AACSB: Reflective thinking

Founded in $1933$ in Trieste, Italy, by Francesco Illy, the Illycaff coffee dynasty is led today by the third generation of the family, with Chairperson Andrea Illy at its head. The firm operates in over $140$ countries and has a turnover of about $500$ million. More than $100,000$ retailers serve Illy coffee, and the aim is to double that figure by $2027$but not at any cost. Mr$.$ Illy is a firm believer in responsible business.

The $56-$year$-$old has emerged as one of the most outspoken Italian business leaders. He has long espoused a sort of pick$-$and$-$mix version of capitalism, resolutely refusing to focus only on sales and profits. However, he rejects the notion his style of capitalism is charity, arguing instead that what he does is just good business.

This view has been shaped by the coffee sector itself, where issues such as sustainability have become a major concern. For decades, the company has paid its growers $30$ percent higher than the average market value in order to maintain its supply of top Arabica beans. This is not just good for society and workers but it is good for business, Illy says. It is about shared values. It builds a long$-$term relationship with growers, which is good for customers, because of the quality of the coffee, and for our business too.

This is about social responsibility, he insists, but the real one and not the fake one. This is about being a stakeholder model and not a shareholder one. The business

$1$

leader is always asking people to do things for him, but instead he should be asking: What can I do for you?

The Illy family is a supporter of arts and culture, including Triestes annual sailing regatta, the Barcolana, where hundreds of boats race across the bay. Illy says this creates a virtuous circle: the more attractive Trieste becomes, the more talented people Illy can attract to work for the company, and the more visitors come to the city, raising its brand profile.

A portrait of his father Ernesto, one of his leadership heroes, hangs opposite his desk. I put the painting there to ask him to control what I do$,$ Illy says. But what has Illy learned from his family? Society is made by the private sector, mostly, he says. And if you want to improve society, then we need to be able to pursue long$-$term goals which are beyond profitability, and then you have to be free and accountable only to yourself.

Questions

$12-13.$ Based on the concepts in this chapter, what is Andrea Illys approach to leadership?

$12-14.$ What evidence is there to suggest that his approach can be successful?

$12-15.$ Identify some other business leaders who have similar leadership ideas. Have they been successful?

$12-16.$ What arguments can you offer against responsible leadership?

Answer rating: 100% (QA)

Based on the information provided Andrea Illys approach to leadership can be summarized as follows 1 ... View the full answer