Abstract

Society is looking to business to help solve our most complex environmental and social challenges as we transition to a more sustainable economic model. However, without a fundamental shift in the dominant virtues that have influenced business decision making for the past 150 years to a new set of dominant virtues that better fit today's environment, it will be more natural for companies to resist the necessary changes than to find the opportunities within them. We use the term “virtues” quite broadly to describe dispositions to think, feel and act in skillful ways that promote the aims of a practice. Addressing this deeper level of cultural change is essential to cultivating new instinctive behavior in business decision making. In this article, we describe five clusters of virtues that facilitate effective response to the transition challenges—adaptive, collaborative, frugality, humility, and systems virtues. To illustrate the application of these virtues, we present a detailed case study of Green Mountain Power, a Vermont electric utility that has embraced the shift to renewable energy and smart-grid technology, and is creating an innovative business model that is disrupting the industry. After distilling key findings from the case, we outline an approach to leadership development that can help accelerate the infusion of transitional virtues across an organization.