July 2, 2025 • 10 mins
Abstract: This article explores how authentic leadership can positively impact organizational culture by building an ethical foundation, fostering psychological safety, and maximizing employee engagement. Authentic leadership is defined as leadership that is transparently self-aware, guided by strong internal values, and considers the needs of all stakeholders. The article argues that a disconnect between leadership rhetoric and reality can undermine trust and damage culture, but authentic leadership can align rhetoric and reality. It is discussed how authentic leaders establish an ethical culture by defining and modeling core values. Examples are provided of how authentic leadership fosters psychological safety so employees feel safe contributing freely. It is also explained that authentic leadership considering individual needs within a shared purpose leads to high employee engagement. Research and the author's consulting experience supports these arguments. In conclusion, authentic leadership is positioned as key to shaping sustainable culture when it aligns values with behaviors.
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Episode Transcript
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Authentic Leadership (00:00):
Building an Ethical Culture for Long-Term Success Abstract
(00:13):
fostering psychological safety,and maximizing employee engagement.
Authentic leadership is defined as leadership that is transparently self-aware,
guided by strong internal values,and considers the needs of all stakeholders.
The article argues that a disconnect between leadership rhetoric and reality can undermine trust and damage culture,
(00:36):
but authentic leadership can align rhetoric and reality.
It is discussed how authentic leaders establish an ethical culture by defining and modeling core values.
Examples are provided of how authentic leadership fosters psychological safety so employees feel safe contributing freely.
It is also explained that authentic leadership considering individual needs within a shared purpose leads to high employee engagement.
(01:04):
Research and the author's consulting experience supports these arguments.
In conclusion,authentic leadership is positioned as key to shaping sustainable culture when it aligns values with behaviors.
As a leadership consultant with experience working with organizations across multiple industries,
one of the most common challenges I observe is the disconnect between leadership rhetoric and leadership reality.
(01:30):
Too often,leadership values expressed in annual reports and mission statements do not match the day-to-day behaviors and decision-making processes that shape organizational culture.
When employees notice this disconnect,it can undermine trust in leadership and damage an organization's culture.
However,research shows that authentic leadership - leadership that is transparently self-aware,
(01:55):
guided by strong internal values,and considers the needs of all organizational stakeholders - can powerfully and positively shape culture by aligning rhetoric and reality (Avolio & Gardner,
2005;
Walumbwa et al.
, 2008).
Today we will explore how authentic leadership can impact organizational culture by building an ethical foundation,
(02:22):
fostering psychological safety,and maximizing employee engagement.
Authentic Leadership and Building an Ethical Culture A critical first step for authentic leadership to impact culture is establishing an ethical foundation,
or set of shared values,within the organization (Walumbwa et al.
, 2010).
(02:43):
Research shows that authentic leaders who demonstrate transparent self-awareness and conscientious decision-making help define and model core ethical values such as integrity,
care,and justice through their daily actions (Gardner et al.
, 2005;
Peus et al.
, 2012).
(03:05):
In turn,these defined and demonstrated values serve as a compass to guide decision-making across all levels of the organization.
For example,during a recent engagement with a global manufacturing company,
I observed authentic leadership play a key role in establishing an ethical foundation as the organization went through a period of rapid growth and cultural change.
(03:28):
The CEO and executive team transparently shared their own self-reflections and struggles with balancing short-term gains and long-term sustainability.
They solicited employee feedback to define a clear set of shared values around product quality,
environmental responsibility,and fair treatment of all stakeholders.
(03:50):
These values were then integrated into hiring practices,
performance reviews,and strategic planning.
As a result,the influx of new employees and managers were socialized into a strong culture anchored by these authentic values established from the top.
My research and experience suggest three practical ways authentic leaders can build an ethical culture (04:07):
Transparently define and model core organizational values.
Directly communicate the reasoning behind chosen values and how they align with personal principles.
Integrate values into all HR processes.
(04:28):
Define how values impact hiring, feedback, recognition, and development.
Empower managers as ethical role models.
Provide training and support for managers to demonstrate values through their own leadership.
Through personal conviction and consistency,authentic leaders establish an ethical foundation upon which culture and sustainable success can be built.
(04:52):
Authentic Leadership and Psychological Safety Building upon an ethical culture,
authentic leadership can further positively impact organizational culture by nurturing psychological safety - a shared belief among team members that it is safe to take interpersonal risks such as asking for help or speaking up about mistakes and problems (Edmondson,
(05:14):
1999,2018).
Authentic leaders who openly share vulnerabilities,
value diverse perspectives equally,and demonstrate caring and supportiveness help create psychologically safe environments where employees feel respected,
confident,and willing to contribute fully without fear of reprisal (Walumbwa & Schaubroeck,
(05:37):
2009;
Guenole, 2018).
For example,during my work with a technology startup,
I saw firsthand how the authentic and vulnerable leadership style of the CEO built high psychological safety among a small but growing team.
In one-on-one meetings,he was transparent about his own self-doubts,
(06:00):
actively solicited employee feedback without defensiveness,
and personally helped struggling team members to improve.
As an authentic leader, he modelled admitting mistakes without blame.
This fostered an atmosphere where employees felt heard,
respected as equals,and willing to propose creative ideas or improve through candid two-way feedback.
(06:24):
As the company has scaled rapidly,psychological safety has continued to be a core asset enabling innovation,
problem-solving,and retention of top talent.
Some tangible steps authentic leaders can take to foster psychological safety include (06:35):
Admitting vulnerabilities and mistakes personally.
Show imperfections are accepted and learning from errors is valued.
Soliciting diverse perspectives respectfully.
Actively seek out quieter voices and facilitate dissenting views equally.
(06:58):
Focusing feedback on behavior, not people.
Separate performance from personal attributes to encourage risk-taking.
By role-modeling trust,respect and caring through authentic leadership,
psychologically safe cultures where people feel comfortable contributing fully can emerge.
Authentic Leadership and Employee Engagement When an organization develops a strong ethical culture and psychologically safe environment grounded in authentic leadership,
(07:29):
it enables the ultimate positive cultural outcome - highly engaged employees who are motivated to contribute their best efforts toward organizational success (Avolio et al.
, 2004;
Gardner et al.
, 2011).
By considering diverse employee perspectives and empowering people through transparency and fairness,
(07:52):
authentic leaders foster greater meaning,impact,and connection to work (Ilies et al,
2005;
Hmieleski et al.
, 2012).
For instance,during my consulting engagement with a nonprofit organization,
the authentic and mission-driven leadership of the executive director was key to energizing and retaining employees.
(08:18):
She personally met with all staff to understand what motivated each person and how their unique strengths could fit the shared purpose.
She encouraged teams to co-design programs that blended personal passions with community needs.
This fostered high employee engagement as people felt they owned their roles and made meaningful impacts.
(08:38):
Even during challenging times,staff maintained optimism and extra effort due to their self-described "authentic connection" to the leadership and shared mission.
Practical steps authentic leaders can take to maximize employee engagement include (08:49):
Understanding what motivates each person uniquely.
Invest time in learning individual job fulfillment factors.
Empowering meaningful impact and autonomy.
Allow employees agency in applying their strengths to address core problems.
(09:11):
Connecting work to a shared, inspiring mission or purpose.
Rally around a unifying vision that transcends any one person.
Through authentic leadership that considers individual needs within a greater purpose,
engaged discretionary effort emerges organically from cultural foundations of trust,
(09:31):
ethics and respect for people.
Conclusion Based on both research and real-world experiences,
I strongly believe that authentic leadership holds tremendous potential for positively shaping organizational culture in sustainable ways.
When leadership rhetoric and realities align through personal integrity,
(09:52):
transparency and moral direction,it establishes an ethical foundation upon which a psychologically safe culture of empowered employee engagement can take root and thrive.
Though cultural change takes perseverance over time,
authentic leadership offers practical,start-today actions any organization can take to nurture long-term success by designing cultures where people feel valued,
(10:18):
heard and motivated to contribute their best efforts.
Though leadership alone does not determine culture,
authenticity in leadership may be the starting point for building high-performing,
values-driven organizations where both business goals and human well-being prosper together.
Building an Ethical Culture for Long-Term Success Abstract
(00:13):
fostering psychological safety,and maximizing employee engagement.
Authentic leadership is defined as leadership that is transparently self-aware,
guided by strong internal values,and considers the needs of all stakeholders.
The article argues that a disconnect between leadership rhetoric and reality can undermine trust and damage culture,
(00:36):
but authentic leadership can align rhetoric and reality.
It is discussed how authentic leaders establish an ethical culture by defining and modeling core values.
Examples are provided of how authentic leadership fosters psychological safety so employees feel safe contributing freely.
It is also explained that authentic leadership considering individual needs within a shared purpose leads to high employee engagement.
(01:04):
Research and the author's consulting experience supports these arguments.
In conclusion,authentic leadership is positioned as key to shaping sustainable culture when it aligns values with behaviors.
As a leadership consultant with experience working with organizations across multiple industries,
one of the most common challenges I observe is the disconnect between leadership rhetoric and leadership reality.
(01:30):
Too often,leadership values expressed in annual reports and mission statements do not match the day-to-day behaviors and decision-making processes that shape organizational culture.
When employees notice this disconnect,it can undermine trust in leadership and damage an organization's culture.
However,research shows that authentic leadership - leadership that is transparently self-aware,
(01:55):
guided by strong internal values,and considers the needs of all organizational stakeholders - can powerfully and positively shape culture by aligning rhetoric and reality (Avolio & Gardner,
2005;
Walumbwa et al.
, 2008).
Today we will explore how authentic leadership can impact organizational culture by building an ethical foundation,
(02:22):
fostering psychological safety,and maximizing employee engagement.
Authentic Leadership and Building an Ethical Culture A critical first step for authentic leadership to impact culture is establishing an ethical foundation,
or set of shared values,within the organization (Walumbwa et al.
, 2010).
(02:43):
Research shows that authentic leaders who demonstrate transparent self-awareness and conscientious decision-making help define and model core ethical values such as integrity,
care,and justice through their daily actions (Gardner et al.
, 2005;
Peus et al.
, 2012).
(03:05):
In turn,these defined and demonstrated values serve as a compass to guide decision-making across all levels of the organization.
For example,during a recent engagement with a global manufacturing company,
I observed authentic leadership play a key role in establishing an ethical foundation as the organization went through a period of rapid growth and cultural change.
(03:28):
The CEO and executive team transparently shared their own self-reflections and struggles with balancing short-term gains and long-term sustainability.
They solicited employee feedback to define a clear set of shared values around product quality,
environmental responsibility,and fair treatment of all stakeholders.
(03:50):
These values were then integrated into hiring practices,
performance reviews,and strategic planning.
As a result,the influx of new employees and managers were socialized into a strong culture anchored by these authentic values established from the top.
My research and experience suggest three practical ways authentic leaders can build an ethical culture (04:07):
Transparently define and model core organizational values.
Directly communicate the reasoning behind chosen values and how they align with personal principles.
Integrate values into all HR processes.
(04:28):
Define how values impact hiring, feedback, recognition, and development.
Empower managers as ethical role models.
Provide training and support for managers to demonstrate values through their own leadership.
Through personal conviction and consistency,authentic leaders establish an ethical foundation upon which culture and sustainable success can be built.
(04:52):
Authentic Leadership and Psychological Safety Building upon an ethical culture,
authentic leadership can further positively impact organizational culture by nurturing psychological safety - a shared belief among team members that it is safe to take interpersonal risks such as asking for help or speaking up about mistakes and problems (Edmondson,
(05:14):
1999,2018).
Authentic leaders who openly share vulnerabilities,
value diverse perspectives equally,and demonstrate caring and supportiveness help create psychologically safe environments where employees feel respected,
confident,and willing to contribute fully without fear of reprisal (Walumbwa & Schaubroeck,
(05:37):
2009;
Guenole, 2018).
For example,during my work with a technology startup,
I saw firsthand how the authentic and vulnerable leadership style of the CEO built high psychological safety among a small but growing team.
In one-on-one meetings,he was transparent about his own self-doubts,
(06:00):
actively solicited employee feedback without defensiveness,
and personally helped struggling team members to improve.
As an authentic leader, he modelled admitting mistakes without blame.
This fostered an atmosphere where employees felt heard,
respected as equals,and willing to propose creative ideas or improve through candid two-way feedback.
(06:24):
As the company has scaled rapidly,psychological safety has continued to be a core asset enabling innovation,
problem-solving,and retention of top talent.
Some tangible steps authentic leaders can take to foster psychological safety include (06:35):
Admitting vulnerabilities and mistakes personally.
Show imperfections are accepted and learning from errors is valued.
Soliciting diverse perspectives respectfully.
Actively seek out quieter voices and facilitate dissenting views equally.
(06:58):
Focusing feedback on behavior, not people.
Separate performance from personal attributes to encourage risk-taking.
By role-modeling trust,respect and caring through authentic leadership,
psychologically safe cultures where people feel comfortable contributing fully can emerge.
Authentic Leadership and Employee Engagement When an organization develops a strong ethical culture and psychologically safe environment grounded in authentic leadership,
(07:29):
it enables the ultimate positive cultural outcome - highly engaged employees who are motivated to contribute their best efforts toward organizational success (Avolio et al.
, 2004;
Gardner et al.
, 2011).
By considering diverse employee perspectives and empowering people through transparency and fairness,
(07:52):
authentic leaders foster greater meaning,impact,and connection to work (Ilies et al,
2005;
Hmieleski et al.
, 2012).
For instance,during my consulting engagement with a nonprofit organization,
the authentic and mission-driven leadership of the executive director was key to energizing and retaining employees.
(08:18):
She personally met with all staff to understand what motivated each person and how their unique strengths could fit the shared purpose.
She encouraged teams to co-design programs that blended personal passions with community needs.
This fostered high employee engagement as people felt they owned their roles and made meaningful impacts.
(08:38):
Even during challenging times,staff maintained optimism and extra effort due to their self-described "authentic connection" to the leadership and shared mission.
Practical steps authentic leaders can take to maximize employee engagement include (08:49):
Understanding what motivates each person uniquely.
Invest time in learning individual job fulfillment factors.
Empowering meaningful impact and autonomy.
Allow employees agency in applying their strengths to address core problems.
(09:11):
Connecting work to a shared, inspiring mission or purpose.
Rally around a unifying vision that transcends any one person.
Through authentic leadership that considers individual needs within a greater purpose,
engaged discretionary effort emerges organically from cultural foundations of trust,
(09:31):
ethics and respect for people.
Conclusion Based on both research and real-world experiences,
I strongly believe that authentic leadership holds tremendous potential for positively shaping organizational culture in sustainable ways.
When leadership rhetoric and realities align through personal integrity,
(09:52):
transparency and moral direction,it establishes an ethical foundation upon which a psychologically safe culture of empowered employee engagement can take root and thrive.
Though cultural change takes perseverance over time,
authentic leadership offers practical,start-today actions any organization can take to nurture long-term success by designing cultures where people feel valued,
(10:18):
heard and motivated to contribute their best efforts.
Though leadership alone does not determine culture,
authenticity in leadership may be the starting point for building high-performing,
values-driven organizations where both business goals and human well-being prosper together.
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