Businesses today have come to realize that they must create a positive impact not just on their bottom line but also on the world around them. The corporate world has witnessed a significant shift where the pursuit of profits is no longer the sole driving force. Companies that extend their vision beyond financial gains to embrace an impact model are not only growing faster but also fostering deeper loyalty among consumers and employees, attracting and retaining top talent.

How can companies effectively infuse purpose into their leadership and operational practices? If they are serious about creating a tangible impact, they must seek out, evaluate, and place purposeful leaders at the helm.

“ESG now heads the corporate agenda. Companies are under pressure to deliver. Yet a company is not a decision-maker. Behind companies are people, making decisions by the hour. This is why corporate ESG starts with individual leaders. Role-model leaders are no longer profit-optimizing, domineering, and inflexible. Today, they must not only drive profits, but also to give purpose to their companies and inspire their teams to work for a common goal,” notes Gabriela Nguyen-Groza, Founder and Managing Partner at Amrop Luxembourg. This statement underscores the fundamental truth that behind every corporation and boardroom decision, there are individuals who hold the power to make impactful choices. In the quest for purposeful leadership, these individuals must be recognized, nurtured, and empowered.

Guillaume Sarkozy, Senior Advisor at Amrop Luxembourg says: “Purposeful leadership hinges on the understanding of what people expect today – a balance between the collective goal and individual aims. To achieve this balance, organizations need to implement new strategies, raise awareness. These values are not just words, they must be disseminated. Purposeful leadership demands leaders who not only talk the talk but walk the walk.”

Within the Amrop international network, Purposeful Leadership is defined by three essential pillars that must be interwoven to unlock its full potential:

Individual Purpose: expressed by the personal experiences, passions, characteristics, and traits of a leader.

Social and Environmental Purpose: expressed by a leader who sees beyond their primary role, engages with diverse stakeholders, and prioritizes the societal impact of the company.

Business Purpose: Expressed by a leader’s ability to connect their individual purpose and the company’s social and environmental purpose to the operational and strategic priorities of the company.

To understand how Purposeful Leadership plays out in the real world, Amrop Global has identified five core competencies to look for in Purposeful Leaders:

1. Courage: The willingness to take risks and make bold decisions to achieve a purpose-driven agenda.

2. Openness to Learning and Collaboration: A continuous thirst for knowledge and a commitment to working collaboratively to achieve goals.

3. Accountability: Taking responsibility for actions and outcomes, ensuring alignment with purpose.

4. Vision: A clear, forward-looking vision that inspires others to follow.

5. Empathy: The ability to understand and connect with diverse stakeholders and show genuine concern for their well-being.

In conclusion, says Gabriela Nguyen-Groza, “The way leaders lead has a huge impact on their organizations and their people. We cannot transform companies, unless we reflect on who we are as leaders. So, let’s start with ourselves, by finding our own purpose as leaders and be the change we want to see.”

This article originally appeared in Delano magazine.