This week marks Challenge Poverty Week in Scotland. For too many people, work is not yet a route out of poverty.

Many groups continue to face structural barriers in the labour market which prevent them from entering into good quality paid roles, and progressing within those organisations.

But it doesn’t have to be that way. Businesses, Scottish Government and third sector organisations can work together to make a wellbeing economy a reality in Scotland. As Nations Director in Scotland for the Institute of Directors, much of my time is spent challenging existing perceptions of the IoD. Our membership is not made up of stereotypical leaders - suited, booted and stepping off a London red-eye. Thankfully, leadership comes in many forms. Three-quarters of our members are from the private sector, mostly SMEs. The majority employ fewer than 25 people, and their employees live in the immediate vicinity of their workplace.

When chatting with members, I frequently hear about the power of local; local communities, local economies, and local connections, with leaders outlining how their organisation is deeply rooted at the epicentre. Therefore, as local leaders, IoD Scotland members have a key role to play in supporting their communities to thrive, not just survive.

In August, IoD Scotland joined other businesses, public and third sector representatives in attending a Scottish Government roundtable with Neil Gray MSP, Cabinet Secretary for Fair Work and Wellbeing Economy. The session explored how to engage businesses in discussions around eradicating child poverty.

Following the discussion, the solution was clear to me: leadership.

Leadership from Government through strong progressive policy; from third and public sectors on the anti-poverty services we need; and from private sector business through buy in, attitudinal and eventual culture change.

As an organisation representing leaders from a range of sectors, we need to encourage and support our members to have conversations about fair work, and how leadership can create positive and purposeful employers.

These conversations won’t be easy, especially following the turbulence of Brexit, an energy crisis, and inflation. However, leaders can set a tone in their organisations which:

• Encourages a supportive and inclusive workplace;

• Ensures employees across all levels and roles feel valued and trusted;

• Explores how to equally support wellbeing and productivity, and

• Creates an environment where every voice and opinion matters.

Over 3,300 employers in Scotland are now Living Wage-accredited, which has given a pay rise to more than 63,000 workers across the country. The success of the programme proves that leaders are willing to volunteer, support and promote fair work practices, if given the right tools and guidance. When asked if they would continue to support the living wage movement, a large majority of leaders said they would, as the scheme was contributing to the reduction of working poverty both in their own organisations and beyond.

A Scotland free from poverty is possible, but we need to work collaboratively with business, government and third sector to put structures and practical solutions in place to provide realistic routes out of poverty and create a thriving Scotland.

Catherine McWilliam is Nations Director, IoD Scotland