I propose a leadership theory with moral concerns at its core. SAttvika leadership (SL) is defined as a set of purposive leader actions comprising knowledge-driven cooperation that are initiated on the basis of positive and reasonably accurate assumptions and executed through morally responsible and sustainably fruitful means to secure the flourishing of followers and the collective. SL enhances psychological capital, psychological empowerment, and work engagement of followers while developing them into morally better persons. It enhances their trust on the leader and fellow followers. Further, it develops ethical climate of the organization.