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ABSTRACT. There is a leadership crisis in the world today that is affecting government, business, and education. Young people and Millennials are especially troubled over the lack of values displayed by leaders. This paper demonstrates why it is important for organizations to practice compassion, empathy, and caring and make them core values. This means that organizations that want to thrive must be run by compassionate leaders. A culture of compassion and caring must permeate the entire organization. This is especially crucial in toxic organizations and/or where employees are disengaged. pp. 160–175
JEL codes: D73; L2; J21

Keywords: leadership; compassion; corporate fraud; accounting scandals; care ethics; Conscious Capitalism; empathy

How to cite: Friedman, Hershey H., and Miriam Gerstein (2017), “Leading with Compassion: The Key to Changing the Organizational Culture and Achieving Success,” Psychosociological Issues in Human Resource Management 5(1): 160–175.

Received 13 July 2016 • Received in revised form 13 August 2016
Accepted 13 August 2016 • Available online 30 August 2016

doi:10.22381/PIHRM5120175

HERSHEY H. FRIEDMAN
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Department of Business Management,
Murray Koppelman School of Business,
Brooklyn College,
City University of New York
MIRIAM GERSTEIN
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Department of Accounting,
Murray Koppelman School of Business,
Brooklyn College,
City University of New York

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