This major paper examines compassion and its importance in the workplace. Scholars have noted that in the past managers did not promote compassionate workplaces because it was viewed as “weak” and “soft”. It was believed that compassion had no place when it came to business competitiveness and further career advancement. However, recent literature indicates the importance of compassion and ways in which it can help a business reach sustainable growth and success. Much of the research shares benefits of a compassionate workplace at both the organizational and personal level, indicating that a compassionate workplace is advantageous. This major paper also addresses the importance of compassionate leaders in an organization and highlights some of the tools that can be used to introduce a more compassionate work environment. To contrast this research, factors that complicate compassion in the workplace are also identified. This is included to ensure that leaders understand what behaviours should not be exhibited in the workplace if the goal is to create a compassionate environment. The paper concludes with recommendations for future research directions, some of which include: measuring levels of compassion in the workplace and how it affects employees, managers and the bottom line of a business, as well as further data collection for the development of compassion training programs