Abstract

So-called “Hidden Champions”—little-known German companies that occupy global leadership positions in specific B2B markets—have received significant attention for their business acumen and ability to retain specialized workforces in predominantly rural areas. In this chapter we explore the extent to which humanistic leadership, focused on employees’ freedom and well-being, might be considered a core ingredient in this recipe. We begin by analysing the German business context in which the Hidden Champions phenomenon arose. Is the success of Hidden Champions driven primarily by the institutional and sociological context of the country or by the leadership styles of individual managers? Citing relevant German case study examples, we engage critically with discourse on “humanistic leadership”, discuss possible tensions between humanism and profitability, and reflect on the extent to which managers can and should convey normative ideas (i.e. preach).