Practice lead to superior investment returns-credit ratings

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Reference no: EM131567263

Research studies indicate that public companies (in a variety of industries) whose managers adopted the Servant-Leader model have achieved higher long-run ROCE, greater free cash flows, and higher credit ratings than those achieved on average by the S&P 500 and the S&P Global 100. (Companies that have adopted the Servant-Leader model include FedEx, Marriot International, Inc., Southwest Airlines Co., Starbucks Corporation, and Toro Co.) Of course, statistical correlation does not necessarily mean that the leadership model used by a company’s managers necessarily caused its better-than-average financial performance or condition. Identify a characteristic or practice of servant-leaders, as described in Greenleaf’s essay. How might that leadership characteristic or practice lead to superior investment returns and credit ratings?

Reference no: EM131567263

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