The way we perceive and make sense of the world is a process that involves the brain's cognitive functions and body’s sensory and motor functions as well. The term embodiment describes how cognition has its basis in the physical body. This builds on an understanding of the brain as constituted by: a) the sensory systems, which regulate perception of a current situation, b) the motor systems, which make action possible, and c) the introspective systems, which govern cognitive operations and conscious experiences of emotion. Today, the development of these intergrated systems are thought to be important for the cultivation of wellbeing and for leadership in work. The arts draw from all three systems and there is a growing interest in how different artistic activities i.e. music, dance and art, can enhance empathy and compassion in our societies. We examine the particular power of arts-based interventions to foster embodied skills, such as compassion, for the development of wellbeing and leadership capabilities. The needed social transformation into embodied compassion at work will require some cultural change.