Why Cultural Intelligence Determines the Success of Sustainable Leadership: An Analysis with Recommended Actions for Companies

Abstract

In an increasingly complex and globalised business world, the relevance of responsible and sustainable leadership is growing. This development is justified not only by public- and political environmental considerations, but also by a management point of view with regard to economic robustness, long-term viability and social perspectives. Legal requirements, such as the obligation to report on corporate social responsibility or the “Supply Chain Duty of Care Act”, are increasing the pressure on companies and reinforcing the need for a transformation in leadership. Cultural intelligence is a crucial key competence for promoting and improving sustainable leadership, as the majority of companies today operate in transnational value chains and increasingly have a culturally diverse personnel structure.