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Social Impact on Leadership


This Report is based on evidence-based research that was done utilizing available readings and case evidence. This report also makes use of case studies such as "The Bendigo Community Bank Initiative" and "The Mangrove Community Bank." Under the Leadership for Social Effect part, this study emphasizes leadership for social impact and distributed leadership, which include the Definition of Social Impact Due to Leadership, Community Bank as Leadership for Social Impact, and Leadership Traits of Rural Social Enterprise Leaders. In an organization, leadership is critical because it inspires, influences, and guides other individuals or members of the organization. A competent leader has a certain leadership style that he or she adheres to throughout the administration of the workers. The influence of leadership on the social aspect of individuals is explored. A dynamic structure of dispersed leadership emerges when various people seek and are awarded authority for different leadership roles, either tacitly or overtly. As the team's demands change over time, different leadership styles emerge. The case study of "the Mangrove Community Bank" was discussed under Distributed Leadership, and the concept of distributed leadership was evaluated.

Leadership for Social Impact

Definition of Leadership for Social Impact

“Leadership differs from management, but not in the way most people believe. Leadership isn't magical or enigmatic. It has nothing to do with charisma or other unusual personality characteristics. Leadership is neither always superior to management or a substitute for management; rather, leadership and management are two separate and complementary tasks. In an increasingly complicated and dynamic corporate world, both are required for success.” (Richard, 2004)

According to our general observations of the various definitions found in the literature, aspects of social entrepreneurship comprise of the following factors: the character traits of individual social entrepreneurs (Light 2009), their sphere of operation, the systems and processes used by social entrepreneurs, and the social entrepreneur's mission. Several writers in the social entrepreneurship literature, including (Dees,1998), (Light ,2006, 2009), (Mair and Marti, 2006), and (Martin and Osberg , 2007), mention some or all of these aspects in describing their definitions. In an examination of definitions of social entrepreneurship, (Dacin et al. 2010, p. 41) argue in a study of social entrepreneurship definitions that “defining social entrepreneurship by individual-level traits, processes, and actions will surely lead to still further discussion and disagreement over what these characteristics should be; It is a never-ending argument since it is doubtful that a single set of qualities can be applied to all types of social entrepreneurial behavior in all circumstances.”. Leadership development as an investment in social capital is not the same as growing the human capital of individual leaders. At the very least, it necessitates awareness of the larger social and political environment in which leadership happens, as well as an endeavor to establish and preserve social relationships rather of focusing just on individuals' particular talents. Furthermore, it demonstrates the flexibility and conductivity of managerial and group limitations in that the social capital on which people and communities can draw (and, in most cases, rely) extends far beyond the direct business environment through a complex network of linkages that spans multiple societies (Kirkpatick and Locke, 1991). The identification of leadership as a socialization process and leadership development as a method for creating meaningful relations and shared understandings opens up new possibilities for both roles in community developing strengths and powers.characterizes leadership as a "process of transformation in which individuals' ethics are incorporated into the mores of a society." According to this viewpoint, leadership development is inextricably linked to community development and provides a forum for the articulation and debate of societal values and purposes (Dacin, Dacin, and Tracey, 2021). leadership plays a vital role in building social construction which is the deployment of a specific kind of power legitimized by the social construction of the problem. Ambitions, beliefs, and viewpoints among social groupings are increasingly divergent, making it difficult to find obvious and agreed-upon the challenges related to “Social or policy planning” that could create a negative impact on the organization due to the lack of leadership. (Brookes and Grint, 2010)

Community Bank as Leadership for Social Impact

The Bendigo Bank (previously Bendigo Building Society) is formed on the values of personal responsibility, community participation, and financial literacy, self-help, and providing protection to members and the Bendigo Community Bank Initiative which is a direct example of leadership for social impact. Personal responsibility will be represented by all members of the organization as an activity that will encompass all persons who will play a key part in the Bendigo community bank is evident in the case study. Non-executive directors were able to function as a responsible actor with leaderships in community bank businesses, and they were able to volunteer as a leader to provide engagement and integrity so that they could serve ethical excess of self-authenticity and connectedness to the local society. Non-executive directors were able to function as a responsible actor with leaderships in community bank businesses, and they were able to volunteer as a leader to provide engagement and integrity so that they could serve ethical excess of self-authenticity and connectedness to the local society. As a result, research on rural social business has produced mixed results in terms of who co-produces social entrepreneurship and if the required human capital is available in these locations. It's as if rural social corporate leaders must be both transactional and transformative, implying that they must be flexible in the application of their unique set of leadership characteristics and talents (Bass, 1997). This is an example of social impact leadership since these leaders and volunteers are assisting locals who are in charge of social businesses in driving the development process by overcoming difficulties that the local community is facing, such as a shortage of funds and reliance on foreign supplies. These practitioners exhibited dispersed leadership qualities while collaboratively working for the welfare and giving assistance to the Community Bank and rural social enterprise. On the bright side, practitioners' strong connections in their communities provide their social businesses with the resources and reputation they require to generate social good that benefits them. The Community Bank business has also begun to take on larger initiatives aimed at providing a better service.

It provides a benefit to the communities it feeds. The organization's "signature community initiative" is the Saltmarsh Community Recreation Facility. This example demonstrates that the practitioners were eager to assist the local community-run social businesses in order to develop and put them in a strong position. It also shows that, rather than functioning as a single individual, the requirement for social entrepreneurship necessitates a distributed leadership approach which helped the volunteer to act as a responsible person for supporting local community social enterprise. This shows that the Bendigo community bank initiative was to help the rural social enterprise which was evident by the case study.

Leadership traits

From the evidence of the case study "leadership through rural social enterprise the bendigo bank community bank initiative" It was seen that the rural social enterprises were managed by the local community people and are responsible for showing the leadership styles in the community.

  • It has been seen that the leaders of the rural enterprise’s community were totally relied on themselves and on the innovation response of the narrow market and restricted government services.
  • One of the traits which were noticeable that the Leaders in rural social businesses must be transactional as well as transformative, which means they must be flexible in how they use their resources. A one-of-a-kind combination of leadership qualities and abilities.
  • The leaders of the Rural social Enterprises are ‘characterized by a strong desire to make a social change at the local community level, whether by one individual or a group'.
  • ‘Rural communities tend to conceal debate because of role rigidity.' As a result, the rural social business literature suggests that social enterprise practitioners' interdependence, such as those working in Community Bank enterprises, can have both good and negative consequences on their activities.

These traits are never going to help the rural social Enterprise as it is counted as not effective leadership. They are reluctant to accept that they are not be able to stand alone and that hinders the development of the rural social enterprise. The transformational leadership style will help the community to grow but due to the lack of finances community won't be able to stand for that it will need the support of another entity that will help them to manage the rural social enterprises. It was evident in the case that with the help of practitioners of BENDIGO BANK COMMUNITY BANK initiates the rural social enterprises were able to retrieve the position. ‘Rural communities tend to conceal debate because of role homogeneity which was not set as a good trait of the leaders. This was the only reason that the community was not able to generate profit but after the initiatives taken by the BENDIGO BANK COMMUNITY BANK, it was able to generate the profit and use them for the welfare of the organization.

Distributed Leadership

Definition of Distributed Leadership

Distributed leadership is neither something a single person does ‘to' others, nor is it a collection of individual activities that people take to contribute to a group or organization. Rather than solo action, it is a communal activity that operates through and within connections (Harris, 2013). When people at all levels take action and assume leadership in their own areas of competence, distributed leadership is most successful. It necessitates resources that support and allow collaborative workspaces, as well as a flexible approach to space, time, and finances, as a result of the institution's many contextual contexts (Giovagnoli and Vandekerckhove, 2015). It also depends on an open culture, which means that the company must create the necessary conditions for such leadership to take place. Consider a culture that encourages people to share and create new ideas. The goal of distributed leadership is to share power (Head and Alford, 2013). For example, not everyone will be a decision-maker, but everyone will be involved in the decision-making process (Giovagnoli and Vandekerckhove, 2015). The nature of distributed leadership, according to the author, includes two key concepts: distributed leadership as work distribution and distributed leadership as distributed influence processes. The first is based on the idea that leadership is "an influence process that changes how others think or act with respect to the content of the influence." The second is based on the idea that leadership is "an influence process that changes how others think or act with respect to the content of the influence." Distributed leadership necessitates a fundamental shift in how formal leaders think about their work and their function as leaders. Active leadership is what distributed leadership entails. It does not imply, as some would have you believe, that everyone leads or is a leader (Shava, 2018). This is to return to the idea of leadership as a set of roles and responsibilities, in which authority is divided and shared. According to recent evidence, high-performing organizations in a variety of industries participate in dispersed leadership in a purposeful and well-managed manner. Shared leadership and reciprocal responsibility are the foundations of such organizations’ lateral and vertical teams (Routhieaux, 2015). Evidence also suggests that how leadership is practiced and shared within an organization has an impact. Much relies on whether individuals in formal leadership positions create opportunity for others to reach their full potential as leaders (Harris, 2013). The evidence revealed that the most effective leaders, across a wide range of industries, deliberately created and cultivated dispersed leadership as a purposeful strategy for increasing organizational performance (Harris, 2013).

Distributed Leadership: An effective model for social impact?

Distributed leadership offers an effective model of leadership for the Mangrove Community Bank’. Yes, I agree with this statement. There are three reasons which support the statement as follows:

  1. Mangrove Community Bank Enterprise operates Bendigo Bank's Saltmarsh and Gardenville Community Bank branches, as well as the Intertidal Inlet, Swampy Marsh, and Chambers franchise branches, which serve a diverse range of communities spanning the Swampy Marsh swamp at the top of Westernport Bay and further inland to Melbourne's south-eastern suburbs. It fulfills the definition of the distributed leadership as “Distributed leadership is neither something a single person does ‘to' others, nor is it a collection of individual activities that people take to contribute to a group or organization. Rather than solo action, it is a communal activity that operates through and within connections.”
  2. Mangrove Community bank faces the challenge of not getting profit. To overcome this challenge, the mangrove community bank chose to close the bank on Saturday mornings. The discussion and the decision is not taken by individual, it’s the decision which has been taken by a group and taken all suggestions and discussions and also give the liberty to employee, if they want to work on Saturday they can. The strategic response resulted in savings of $15,000 per annum. As a result, the branch made a profit for the first time in 2017 because to these savings and the beneficial impact of a modification to the revenue sharing arrangement with Bendigo Bank. It shows that sharing the power and resources to others result in benefit to the company which distributed leadership actually signify (Spillane, 2005).
  3. To take an initiative which directly or indirectly benefits the local community. ‘At the 2017 VIC Metro Conference in Torquay, a concept called the Unite Project was proposed to the [Community Bank] Network. It entails the installation of a small refrigerator stocked with bottled water, as well as an honest (sic) box. All money received will be used to help young people who are homeless. It shows that how the community together makes an effort by taking an initiative towards the local community (Hollenbeck, McCall and Silzer, 2006). As they benefit the company by taking initiative and also the local community also by donating the money to help young homeless people. As distributed leadership approaches appear to promote higher leadership development, i.e. the creation of social capital or interpersonal networks across the organization and all of its social systems (Hassard and Wolfram Cox, 2013).


This is the conclusion of the evidence-based report which response in an analytical and critical way to each of the questions. It concludes the leadership style for the social impacts and also covers the different initiatives as an example of the leadership for social impact. It describes leadership for Social Impact as a constructivist education approach for businesses looking to enable their employees to participate constructively in social problems. For example, it has a positive impact on the communities it feeds. The Saltmarsh Community Recreation Facility is the organization's "signature community effort." This case illustrates how practitioners were keen to support local community-run social companies in growing and strengthening their positions. It also demonstrates that, rather than requiring a single person to function, the need for social entrepreneurship required a distributed leadership strategy, which enabled the volunteer to act as a responsible person for supporting local community social enterprise. Distributed leadership is distinguished from traditional leadership theories by three factors. For instance, it emphasizes leadership as an emergent feature of a group or network of interconnected people. Second, it implies that the lines of authority are open. Third, it necessitates the distribution of different types of knowledge among the many, rather than the few. To be truly successful and have the impact that it promises, however, the concept of Distributed Leadership must connect in a meaningful way with the experiences and aspirations of leadership practitioners, as well as explicitly recognize the inherently political nature of leadership within organizations and power and influence imbalances.


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