Article at a glance:

"Soft" leadership in business

• In this opening essay of The McKinsey Quarterly, 2006 Number 2, Ian Davis briefly discusses the reluctance of many CEOs to engage in debate on social and political issues: chief executives are often ill at ease exercising what Harvard's Joseph Nye calls "soft" forms of power—statesmanship, diplomacy, fostering relationships with stakeholders, and nurturing the corporate reputation. The essay goes on to look at the relevance of soft power to a number of other managerial challenges, including those posed by open innovation and the shift in developed economies toward activities involving complex interactions.