In this paper we argue that organizations and their leaders face profound challenges in a global and connected world. To navigate successfully in the 21st century, executives have to deal with an ethics challenge, a diversity challenge, a business in society challenge and a stakeholder challenge. These challenges also shape their leadership roles and responsibilities, which have a relational dimension. The need to interact with different stakeholders from vari-ous cultural backgrounds both inside and outside the organization, with different interests and values, requires leaders to connect and to act interpersonally and ethically competent. We therefore suggest that leaders need relational intelligence to cope emotionally and ethically mature with the leadership challenges at hand. We define relational intelligence as a combination of emotional and ethical intelligence, that involves the ability to be aware of and under-stand own and others' emotions, values, interests and demands, to discriminate among them, to critically reflect on them and to use this information to guide one's action and behaviour with respect to people. Based on this definition we suggest and introduce a preliminary model of relational intelligence. Drawing on case examples we show how relational intelligence (informed by emotional and ethical abilities) can guide leadership behaviour in interactions helping leaders deal with complex ethical and cultural dilemmas and make balanced and responsible decisions. We postulate that relational intelligence can support global leaders to meet the leadership challenges by guiding them to interact adequately across borders and to build sustainable and trustful relationships to various stakeholders.
In management theory and business practice, the dealing with diversity, especially a diverse workforce, has played a prominent role in recent years. In a globalizing economy companies recognized potential benefits of a multicultural workforce and tried to create more inclusive work environments. However, "many organizations have been disappointed with the results they have achieved in their efforts to meet the diversity challenge" [Cox: 2001, Creating the Multicultural Organization (Jossey-Bass, San Francisco)]. We see the reason for this in the fact that while much attention has been paid to the strategic dimension of diversity policies, systems, and processes, much less thought has been given to the normative dimension, the norms and values involved. Given the fact that diversity is essentially about cultural norms and values, appropriate reflection work becomes a fundamental task to create a truly inclusive work environment where people from diverse backgrounds feel respected and recognized. Therefore, we focus in this article on the challenge of building an inclusive diversity culture showing that such a "culture of inclusion" has to be built on solid moral grounds. We present a conceptual framework of inclusion based on a moral theory of recognition and introduce the founding principles of reciprocal understanding, standpoint plurality and mutual enabling, trust and integrity. After revealing barriers that hinder a culture of inclusion from emerging we shed light on the process of developing such a culture which involves four essential transformational stages: The first phase focuses on raising awareness, building understanding and encouraging reflection. The second phase deals with the development of a vision of inclusion as an important step to define the change direction. In a third phase key management concepts and principles should be re-thought. This leads to the fourth, action-oriented phase, that focuses on an integrated Human Relations Management (HRM)1 system that helps implement change by doing both, translating the founding principles via competencies into observable and measurable behavior and fostering the development, reinforcement and recognition of inclusive behavior.
