What is authentic leadership? Insights all leaders should know

If a US CEO takes the helm at a major Japanese company, they might bring with them a natural inclination toward directness and open debate, encouraging employees to challenge ideas in meetings. But in Japan, where group harmony is valued, this communication style may create awkwardness rather than participation. So, the CEO adapts—not by compromising their values, but by finding new ways to encourage open dialogue, such as one-to-one discussions. This is authentic leadership in action: staying true to one’s principles while navigating cultural differences with nimbleness and respect. 

In today’s volatile and uncertain world, authenticity has become a defining characteristic of effective leadership. A new paper by Marc Correa (Esade), Bill George (Harvard Business School) and Dana H. Born (Harvard Kennedy School) explores how authentic leadership operates on individual, interpersonal, team, and organizational levels. Their research, published in Organizational Dynamics, presents a pathway for leaders who want to develop trust, motivate teams, and drive sustainable achievements. 

What is authentic leadership?

Authentic leadership, as exposed by Correa and his co-authors, it’s about “reflecting genuineness, a deep commitment to purpose, and staying true to one's values—engaging both heart and mind to build meaningful relationships”. This approach establishes trust, which forms the base for high-performing, engaged teams. 

The four fundamentals of authentic leadership are self-awareness, transparency, openness, and moral integrity

The concept isn’t new. Authenticity is derived from the Greek word authentikos, meaning ‘genuine’ or ‘true to oneself.’ Philosopher Immanuel Kant expanded this idea, arguing that our values, to be truly valid, must be universalizable—that is, if everyone acted according to them, the outcome would be good for all. Authentic leadership ensures that decisions support not just personal values but also ethical responsibility.  

Essentially, authentic leadership comprises four key fundamentals: self-awareness, transparency, openness, and moral integrity. It’s about making decisions that serve the collective good—much like bees in a hive, where each action supports the survival and prosperity of the whole group. Leaders who exemplify these principles create environments where trust, collaboration, and long-term success flourish because they serve others and not just themselves. 

Research shows that authentic leadership outperforms other leadership approaches when it comes to creating trust and long-term success. Unlike charismatic leadership, which relies on personal magnetism, or transformational leadership, which unites people around a vision, authentic leadership is based on self-awareness and reliability. It also differs from ethical leadership, which is guided by external moral frameworks. Authentic leadership involves acting in alignment with deeply held personal values and engaging in the reflective process that examines and reinforces those values. 

Leading authentically: A multi-level approach

Correa and co-author's study outlines a structured method to utilize authentic leadership throughout different levels of an organization. 

Interpersonal leadership: Building trust through openness

Authentic leaders can win trust by being transparent about their thoughts, values, and even vulnerabilities. The researchers introduce the TRUST framework, which highlights five key components of interpersonal leadership: 

• True North – The process of clarifying and linking personal values and purpose with the corresponding values and purpose at the organizational level..
• Relationships – Prioritizing active listening and mutual respect.
• Understanding – Recognizing each team member’s strengths and motivations.
• Support – Providing tailored feedback and mentorship.
• Thriving – Creating an environment where people feel valued and empowered. 

Correa and his co-authors explain, "Research suggests that experiencing rejection activates the same brain regions as physical pain." In other words, leaders who promote psychological well-being through authentic interactions not only improve engagement but also reduce workplace stress and staff turnover. 

Team leadership: The power of shared purpose

Teams thrive when they align around shared objectives. The paper presents the COACH framework to guide leaders in working with their teams: 

• Care – Demonstrating sincere interest in team members’ well-being.
• Organize – Shaping roles to leverage individual strengths.
• Align – Fostering alignment around shared purpose and values among team members.
• Challenge – Encouraging people to step outside their comfort zones.
• Help – Providing support when needed. 

Microsoft CEO Satya Nadella utilises this leadership approach. By fostering a ‘growth mindset’ and emphasizing empathy, he transformed Microsoft’s culture, improving both innovation and collaboration. The authors argue that authentic leadership is particularly valuable for global teams, with diverse cultural expectations and communication styles. 

Organizational leadership: Embedding authenticity at scale

At the highest level, authentic leadership shapes corporate culture and long-term strategy. The CARES framework outlines how leaders should implement organizational-wide authentic leadership through five steps: 

• Collaborate – Co-creating a shared purpose involving teams and organizational members.
• Articulate – Clearly defining organization’s dynamics around organizational values, coherently connect processes, decision-making culture, and teamwork.
• Reflect – Ensuring that external stakeholder engagement matches with internal principles.
• Example – Leading by example, demonstrating integrity and consistency.
• Systemic thinking – Viewing the organization as a connected network. 

Leaders need cultural agility to adjust their leadership approach while maintaining authenticity. As the authors observe, “cultural agility refers to a leader’s ability to engage with cultural nuances in a way that honors both the leader’s own values and the values of the diverse people they serve.” It means more than simply understanding and respecting cultural differences—it’s about adapting one’s behavior to build trust and foster collaboration across diverse cultural settings. 

The importance of aligning organizational and individual goals is paramount in retaining employees. 

Why authentic leadership matters

Leaders who practice authenticity don’t just build better workplaces—they drive quantifiable business success. Authentic leadership boosts employee engagement, improves retention, and cultivates resilience in times of crisis. It also helps organizations navigate complex global environments, where trust and adaptability are crucial competitive advantages. 

However, authenticity doesn’t mean simply ‘being yourself’ without a filter between your thoughts and your words. As Correa and his colleagues emphasize, authentic leaders balance personal integrity with the collective good through a reflective process. This means being self-aware, receptive to feedback, and willing to modify their approach when required. 

Conversely, inauthentic leaders quickly lose their employees’ trust. It’s a well-known adage that people leave bad managers, not companies—and once trust is gone, employees will soon disengage and possibly quit altogether. 

Practical tips for leaders

Becoming a great authentic leader isn’t something you can master overnight—it’s more of a continuing effort than an instant achievement. It requires reflection, adaptability, and meaningful exchanges. 

Even the most authentic leader can’t operate successfully unless the organization itself advocates the same traits

The foundation is self-awareness. Successful leaders take the time to reflect on their values, motivations, and the impact they have on others. But it’s not just about knowing yourself—it’s also about how you work with your team. They’ll spot inauthenticity a mile away, so managers who align their words with their actions build trust faster than those who rely on authority alone. 

But even the most authentic leader can’t operate successfully unless the organization itself advocates the same traits. Cultures that encourage open communication, respect diverse perspectives, and create psychological safety make it easier for leaders to lead authentically. And let’s not forget adaptability. Authenticity requires flexibility; it means knowing when to maintain core values and when to tweak your approach to different cultural and business contexts. Tact and diplomacy are indispensable abilities. 

Leading the way forward

Leadership challenges today demand authenticity as an essential attribute. Through the three leadership frameworks of TRUST, COACH and CARES, leaders can establish trust while developing successful teams that produce resilient organizations with purpose. 

As the US CEO in Japan learned, leading with authenticity isn’t about rigidly sticking to one style—it’s about staying true to your values while adapting to different contexts. By embracing this approach, leaders can unlock the full potential of their teams and organizations, creating workplaces where both people and businesses thrive.