We have a simple definition: smart leaders become wise when they address business dilemmas in a holistic and responsible way. They do not only create and capture economic value, but assure a more sustainable – and legitimate – organization.

Wise leaders exercise their fiduciary duty of care not only to the organization, but to all who are impacted by its activities. Not only capturing value for shareholders, but stakeholders.

They unite short-term interests with a long-term vision. Blending System 1 and System 2 thinking: intuition with analysis.⁶

Amrop’s mission: ‘shaping sustainable success through inspiring leaders,’ is rooted in this concept. In 2017, we published our seminal global study on ‘Wise Decision-Making’. Our framework focused on factors within the leader’s scope of control: ‘self-leadership’ (how leaders exercise self governance), ‘motivational drivers’ (what drives leaders’ choices), and ‘hygienes’ (how leaders nourish their decision-making health).

In reality, wise leadership is difficult: affected by biases and context. Our study revealed that leaders are on the path from smart to wise, but miss vital opportunities.

In 2023, Amrop further developed the theme. Drawing on the study findings and thousands of interactions with CXOs and boards, we translated the overarching ‘wise’ concept into the ‘Purposeful Leadership’ model. This is a practical approach for boards, leadership hiring and development teams, and leaders themselves.

“No man is an island.” ⁷ No leader can be divorced from their operating context – the board and C-suite, shareholders, multiple other stakeholder groups. And, unless a leader is the founder, its legacy and culture. “No individual leader can make things happen alone,” says Preety Kumar, Managing Partner of Amrop in India. “Collective inputs drive outcomes.”

For self-preservation, it is tempting to shrug off personal blame for failure. But a wise leader is a responsible leader. “Accountability requires separating the professional from the personal, thinking about stakeholders and society. The future depends on these decisions,” says Juan Pablo Román, Managing Partner of Amrop in Chile.

Wise, purposeful leadership may sound utopic. Many executives are feeling overwhelmed. But it actually boosts resilience. Many leaders are resisting today’s counter-currents. And there are several key factors a leader can control. In this series, we present them.

“Leaders must create the conditions for success; they shouldn’t be victims of their environment,” says Jimmy Chen, Managing Partner of Amrop China. On the contrary, leaders play an increasingly important societal role.

According to the 2026 Edelman Barometer, people now position their employers and CEOs among the most trusted institutions – an uptick the past 5 years – in contrast to national government leaders, major news organizations and foreign business leaders.

CEOs who “lead by example, consult diverse groups, and engage constructively,” are particularly well-positioned to influence trust. Moreover “42% [of people] would rather switch departments than report to a manager with different values than them.” ⁸

The greater the number of wise role models, the greater the critical mass of this force for good.

“Role models, and how we construct environments, change how we behave, says Victor Reis, Partner at Amrop Sweden. “This reinforces the case for strong ethics and morals shown in everyday acts and norm setting. Other leaders then cascade those behaviors.”

“Disseminating wise leadership is about the signals leaders send out – their conduct, style, and communication,” agrees Fredy Hausammann, Amrop's Global Chair. “Can they steer in a calm and collected way? Analyze threats clearly and still mobilize people? Credibly communicate the belief in the goals and the future?”

“Boards and leadership teams must act top‑down,” confirms Jimmy Chen. When people do the wrong things right, it’s value‑destroying – worse than having managers who don’t do the right things."

Read the full Report.