Transformational leadership is a style where leaders inspire and motivate employees to innovate and effect change for the company's future success, fostering a culture of creativity and independence. Expanding on concepts introduced by James V. Downton and James Burns, this leadership approach emphasizes ethical standards, authentic communication, and employee ownership. Transformational leaders are characterized by their charisma and vision, facilitating conversations among stakeholders to drive positive change, often effective in times of organizational challenge.