Indian-origin Chanel CEO Leena Nair says compassionate leadership important for growth; we ask a counsellor why

As a British-Indian executive at the helm of a major luxury brand, Nair’s focus on compassion stands out, especially in a competitive industry. In her LinkedIn post about the event, she encapsulated the heart of her approach, writing, “Compassionate leadership was one of many topics discussed during my View From The Top interview at Stanford University Graduate School of Business.”

Nair’s philosophy emphasises listening to every voice in a room, a practice she calls “collective intelligence.” “I truly believe in benevolence, in kindness, in compassion, in empathy,” she shared. “You’ve got to do tough things in business, but doing it compassionately is very important.” During the conversation with host Ayesha Karnik, Nair explained that her goal is to create a culture where diverse perspectives are welcomed and valued. She believes that too few role models embody this approach, making it all the more vital for her to champion leadership that intertwines empathy with ambition.

Psychologist Priyamvada Tendulkar elaborates on the positive effects of compassionate leadership, noting that it fosters “a sense of safety, connection, and belonging,” essential to employees’ well-being. Leaders who practice compassion create a workspace where team members feel valued, enhancing motivation and resilience. According to Tendulkar, compassionate bosses model understanding and empathy, which helps establish trust and fosters healthier team communication. This, in turn, creates an environment conducive to innovation, feedback, and open discussions.

Most crucially, compassionate leadership generates a sense of safety, a core factor in psychological security within organisations. When employees feel safe, they are more willing to voice concerns, offer valuable feedback, and approach challenges without defensiveness. Tendulkar explains, “Safety leads to more learning, experimenting, and growth—employees are not afraid to innovate or provide constructive criticism that could ultimately improve products, drive company growth, and stimulate creative problem-solving.”

Nair’s focus on compassionate leadership reflects a growing trend among modern executives who recognise that fostering safety and empathy can significantly impact a company’s success.

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