Forgiveness is a response to perceived negative experiences in the workplace in which the propensity toward harbored negativity is displaced or dissolved, allowing the forgiver to “refrain from causing the offender harm even though he or she believes it is morally justifiable to do so” (Aquino et al., 2003, p. 212). It is an important attribute of leaders because it buffers them against the potential harm and distraction that can result from the mistakes, misdeeds, and offenses of others (Bright, 2005). Forgiveness functions as a lubricant to the friction that occurs during the natural course of human interaction, in which the potential for inflicting or experiencing offense – via conflict, misunderstanding, hurt feelings, etc. – is an inherent possibility. Indeed, forgiveness is central to the establishment, preservation and maintenance of human relationships that make up and sustain organizations (Aquino et al., 2003).

This chapter addresses the question of why forgiveness is particularly relevant to leaders in organizations. Evidence from research on forgiveness in a unionized company, LTL Trucking, provides an illustration of (1) the three different modes of forgiveness and their effects on organizational performance, (2) differences in modes of forgiveness among different levels of employees in the organization, and (3) how greater forgiveness in the workplace has substantial organizational benefits. The chapter shows that forgiveness allows for the continuation of interpersonal connections even in the midst of conflict, turmoil, or change; in fact, it can be practiced to create lasting, transformative effects on the interpersonal relationships that make it possible for organizations to function at high levels.