Unveiling Authentic Leadership: Inspire, Empower, Succeed

While the concept of authenticity traces back to ancient Greece, embodying the idea of being true to oneself, its application in leadership emerged more prominently in recent years. The term authentic leadership began to be widely used after 2003 when it was used by Bill George, Harvard Business School professor and former CEO of Medtronic, who said that "we need leaders who lead with purpose, values and integrity, leaders who build long-term sustainable organizations, motivate their employees to provide superior customer service and create long-term shareholder value.”[1]

the effect of authenticity

Authenticity fosters an 'optimal' level of self-esteem in individuals. This occurs when individuals are aware of their strengths and weaknesses, accept themselves as they are, remain consistent with their values and beliefs, and cultivate positive and open relationships with others, independent of external opinions. [2]

authentic leadership

In one of the earliest definitions of authentic leadership, Luthans and Avolio describe it as 'a process based on positive psychological capacities and a highly developed organizational context.' This process results in strengthened self-awareness and self-regulated positive behavior in both leaders and employees while also encouraging self-development.[3]

authentic leaders

Authentic leaders are characterized by being whole, credible, honest with themselves and others, transparent, and dedicated to developing authenticity in their followers while expanding their thinking framework. They respect moral values and possess the ability to make moral judgments and ethical decisions.

Many authors, such as Avolio and Gardner, Gardner, Avolio, Luthans et al., Chan, Hannah, Gardner, Eigel and Kuhnert, Hannah et al., and Luthans and Avolio, as well as May et al., argue that achieving authenticity in leadership requires a higher level of moral development. Conversely, a smaller number of authors, such as, believe that a higher level of moral development does not necessarily affect the authenticity of a leader. [4]? Shamir and Eilam propose that leaders can still be 'honest with themselves' without reaching a higher level of moral development or adhering to high standards of ethical behavior. ?According to these authors, authentic leaders remain consistent with themselves, motivated by personal beliefs rather than striving for status, honor, or other personal benefits. They are seen as original individuals with their own worldviews, leading based on their personal values and beliefs. [5]

Such a viewpoint is rejected by most authors, including Gardner, Avolio, and Walumbwa, who believe that a high moral character is a prerequisite for authentic leadership. They argue that self-awareness and self-acceptance are incompatible with a low level of moral development.[6] However, according to Kegan and Kohlberg, individuals at lower levels of moral development can still be honest with themselves. Nevertheless, they lack the capacity for introspection, meaning they cannot observe their own experiences, emotions, and thoughts to truly understand themselves.[7] Therefore, narcissistic individuals, characterized by their self-indulgence, lack of empathy, and frequent amorality, cannot be authentic leaders.

Leadership, by definition, encompasses influence over people, which can be positive, manipulative, or negative. Therefore, it is evident that morality must form the foundation of leadership. Walumbwa et al. agree with this perspective, asserting that "authentic leadership development would be incomplete and misguided if it did not emphasize ethical responsibility as an integral aspect of leadership." [8]? This ethical dimension enables authentic leaders to maintain higher levels of honesty and integrity in their relationships with their followers. As followers perceive authentic leaders as role models, they emulate them, fostering greater transparency, trust, positive emotions, and optimism. This, in turn, leads to increased employee commitment, satisfaction, and engagement, ultimately contributing to the overall success of the company.

the effectiveness of authentic leadership

Authentic leaders enhance leadership performance by cultivating respect and trust among their followers. Their leadership style inspires followers to align their behavior with their own values. Authentic leaders empower and motivate them to innovate and deliver exceptional products and services by instilling a sense of purpose and value in their followers. This approach prioritizes intrinsic motivation over purely economic incentives, leading to greater job satisfaction and improved work performance. Consequently, authentic leadership positively influences employees' attitudes, commitment, sense of meaning, and engagement, indirectly enhancing overall work performance.

According to the definition, authenticity means being 'true to oneself,' which does not imply that an authentic leader disregards others. Quit the opposite; they prioritize others over themselves; they think less of themselves, refrain from relying on external opinions, are less receptive to situational factors, demonstrate self-awareness, objectively evaluate their strengths and weaknesses, and remain open to new ideas and knowledge.

*This is a part of the book Vig, S. (2023). Business ethics, second edition. Codupo. Zagreb. The book is written in Croatian.

[1] George, B. 2003. Authentic leadership: Rediscovering the secrets to creating lasting value. John Wiley & Sons.

[2] Walumbwa, F. O; Avolio, B. J; Gardner, W. L; Wernsing, T. S; Peterson, S. J. 2008. Authentic leadership: Development and validation of a theory-based measure.?Journal of management,?34(1), 89-126.

[3] Ibid.

[4] Shamir, B; Eilam, G. 2005. What's your story? A life-stories approach to authentic leadership development.?The leadership quarterly,?16(3), 395-417. U: Walumbwa, F. O.; Avolio, B. J.; Gardner, W. L.; Wernsing, T. S.; Peterson, S. J. 2008. Authentic leadership: Development and validation of a theory-based measure.?Journal of management,?34(1), 89-126.

[5] Ibid.

[6] Walumbwa, F. O; Avolio, B. J; Gardner, W. L; Wernsing, T. S; Peterson, S. J. 2008. Authentic leadership: Development and validation of a theory-based measure.?Journal of management,?34(1), 89-126.

[7] Ibid.

[8] Ibid.

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