What's the big idea? The power of authentic leadership.

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What's the Big Idea is an exclusive series of insights celebrating the launch of new qualifications from ABE Global and The Institute of Leadership. Each article relates to a unit topic within the new ABE  Level 5 Diploma in Business Management and Leadership. 

The Power of Authentic Leadership

Trust in business leadership is at an all-time low. Scandals, corporate irresponsibility, and short-termism have left many employees, consumers, and investors feeling disillusioned. According to the Edelman Trust Barometer, trust in CEOs remains stubbornly low across many sectors, with nearly 60% of respondents believing that most business leaders are driven by selfish motives rather than the common good.

In today’s fast-paced, disruptive world, the old-school, top-down leadership models - rooted in hierarchy and control - are falling flat. To truly thrive in this climate of uncertainty, leaders must pivot to a more human-centred approach. 

Enter Authentic Leadership: a style grounded in transparency, self-awareness, and moral clarity. It's proving to be a game-changer, offering a powerful remedy to the widespread mistrust and disengagement that afflicts many modern organisations. What sets authentic leaders apart isn’t just their results - it’s how they achieve them and why. They lead with purpose, build trust through openness, and inspire by being genuine, not just authoritative. This shift is reshaping the leadership landscape, transforming not only how companies operate but how they succeed in the long run. In this article, I’ll talk about three pillars of authentic leadership and how following this approach has helped to shape my own leadership style. 

Self-awareness and values alignment

Authentic leadership starts with one fundamental principle: being true to who you are. But can you easily name three core values you live by? In the whirlwind of modern life, it takes serious effort to pause and reflect. I’ve made it a habit to regularly check in with myself and ask: “What are my true values?”, and “Am I fiercely defending them?” That’s because, every day, subtle forces - people, events, emotions – will chip away at your integrity if you let them. These pressures can distort your identity if you’re not vigilant.

Authentic leaders, though, know themselves inside out. They align their actions with their values, leading from a place of clarity and confidence. Authentic leaders know that you must go to work on yourself before you go to work on a business. When you’ve defined your values, you can lead with purpose, not ego or insecurity, bringing consistency and authenticity to every decision.

Purpose-driven leadership

The expectations of today’s workforce, particularly millennials and Generation Z, are profoundly different from previous generations. Younger employees prioritise meaning and purpose in their work. They are far more likely to ask, “What does my company stand for?” and “Does this organisation’s mission align with my personal values?” According to the 2024 Deloitte Global Millennial Survey, the majority of Gen Zs (86%) and millennials (89%) say having a sense of purpose is important to their overall job satisfaction and well-being – and by extension, their productivity. These generations are increasingly willing to reject assignments or employers which don’t align with their values: over 50% of millennials have chosen not to take on a job or have left an organisation because it conflicted with their ethical principles.

Authentic leadership meets this demand for purpose-driven work by creating a culture of meaning and alignment. Leaders who are clear about their own values and purpose can more effectively inspire others, fostering a sense of shared mission across the organisation. These leaders understand that aligning corporate strategy with personal and societal values isn’t just good ethics - it’s good business. As my chairman once remarked: “Doing what is morally right, is never commercially wrong.” Companies whose leaders follow this doctrine are better positioned to attract and retain top talent.

Many companies understand what they do, and some excel at how to do it. But I’m consistently struck by how many lack a clear sense of why they do what they do. Too often, purpose is reduced to a slick mission statement disconnected from the company’s daily culture and operations. This is especially true for organisations navigating layers of technocracy, and regulation, or for those which are coasting along, doing ‘just fine.’

It’s easy to ignite passion when a business is starting up or fighting for survival. But what about during times of stability? When I joined ABE, the primary focus was on optimising the routine mechanics of providing qualifications and managing the logistical challenges of complex global markets. It was relentless work. But why do it?

We dug deep and uncovered our true passion: providing inclusive access to economic opportunity, globally. This realisation shifted everything, including how we thought about our products and our audiences, and even how we described ourselves as a business. Authentic leadership isn’t just about operational acumen - it’s about embodying emotional intelligence, ethical clarity, and the ability to inspire. At ABE Global, our why is now a key performance metric. We actively measure how connected our employees feel to our mission through continuous pulse surveys, and most employees consistently report a strong alignment with our values. But this is an ongoing effort. Authentic leaders know that keeping values front and centre is a relentless pursuit, not a one-time achievement.

Bringing your moral compass into your work is essential. Authentic leaders avoid companies and job offers that will clash with their ethical beliefs - even if those decisions aren’t the most profitable in the short term. But this doesn’t mean that certain sectors or industries are off-limits. By embracing the principle of "starting with why," authentic leaders can usually transform any company that appears to churn out ordinary products into one that resonates with deeper purpose.

Consider these companies that have successfully rediscovered their why:

• Unilever produces everyday essentials like soap and cleaning products with a mission to "make sustainable living commonplace." Their commitment to sustainability and ethical practices fuels global initiatives focused on environmental responsibility and social impact.
• Patagonia manufactures outdoor clothing and gear, declaring, “We’re in business to save our home planet.” They are trailblazers in environmental activism, championing sustainability and conservation on a global scale.
• Coca-Cola is known for its soft drinks, but their mission goes deeper: “To refresh the world in mind, body, and spirit; to inspire moments of optimism and happiness through our brands and actions.” This vision has driven Coca-Cola to embrace sustainability initiatives, water conservation, and community engagement worldwide.

These companies may offer everyday items, but they embody progressive values and missions that foster positive change, sustainability, and social impact. They are led by authentic leaders committed to making their work more meaningful than it may appear at first glance.

Radical transparency and openness

One of my favourite business books is Principles: Life & Work by Ray Dalio. I even bought my team copies because his philosophy offers a blueprint for authentic leadership - even if he doesn’t label it that way. Dalio’s cornerstone idea is radical transparency: for a team to truly thrive, leaders must create a culture of open, honest dialogue where employees are empowered to challenge ideas and offer candid feedback. Instead of masking weaknesses, leaders should embrace their vulnerability to build stronger relationships. This kind of openness drives better decision-making. But it doesn’t stop there - leaders must commit to constant self-reflection, seeking feedback, and adapting. I make mistakes every day, and that’s just part of growth. What’s unacceptable is not learning from them. Authentic leadership means fostering a culture that moves beyond ‘blame’ and ‘credit’, and instead sees work as an iterative and integrated learning process. When mistakes are seen as opportunities for improvement and clarity, it builds a foundation of trust which is essential for high-functioning teams and corporate cohesion.

An influential figure in shaping the concept of authentic leadership is Bill George, a former CEO of Medtronic and a senior fellow at Harvard Business School. George's framework for authentic leadership included the idea of ‘Balanced processing’.  Authentic leaders are adept at considering multiple perspectives before making decisions. They actively seek out diverse opinions and are comfortable being constructively challenged, making them more inclusive and better equipped to make informed choices.

In today’s hyper-competitive environment, agility is key to survival. Businesses must be able to pivot quickly in response to market changes, customer needs, and technological advancements. Yet agility doesn’t thrive in top-down, rigidly controlled environments. It flourishes in organisations where employees feel empowered to take risks and experiment. During the pandemic, most of ABE’s product adaptations and operational contingencies were bottom-up innovations, whilst the leadership team set about creating the conditions to facilitate ideation.

This is called creating a culture of psychological safety - an environment where employees feel comfortable voicing new ideas, challenging the status quo, and sharing constructive feedback – not just during a business crisis. This is essential for innovation and long-term adaptability. When leaders are open and transparent about their own uncertainties and challenges, employees are more likely to follow suit, contributing to a collaborative, dynamic workplace where ideas flow freely. Authentic leadership is not about having all the answers - it’s about facilitating a process where the best ideas can come to the surface, irrespective of where they originate.

Navigating ethical dilemmas in the age of transparency

The pressure on companies to act ethically has never been higher. In an age of social media, whistleblowers, and increasing regulatory scrutiny, business decisions are analysed in real-time by employees, customers, and activists alike. From supply chain practices to carbon footprints, organisations are being held accountable not just for what they do, but for how they do it.

Authentic leaders, guided by an internalised moral perspective, are better equipped to navigate these challenges. Their commitment to ethics is not performative; it is deeply rooted in their leadership style and organisational strategy. Rather than reacting to external pressures, authentic leaders proactively align their business practices with their ethical values. This approach not only helps to mitigate reputational risks but can also create new opportunities for differentiation in the market. Companies that demonstrate genuine leadership in sustainability or social impact issues often enjoy enhanced brand loyalty and competitive advantages. The question for today’s executives is not whether they can afford to be ethical - but whether they can afford not to be.

The future of leadership is authentic

As businesses move forward into an increasingly uncertain future, the need for authentic leadership will only become more pronounced. Leaders who can balance performance with purpose, profit with ethics, and strategy with empathy are those who will succeed in building resilient, adaptable organisations. 

Authentic leadership is not a soft skill, and it isn’t a trend - it’s a transformation in how we understand what it means to lead. It requires a commitment to self-awareness, transparency, and integrity that challenges traditional notions of power and control. In today’s complex, disrupted world, this approach to leadership may well be the most enduring source of competitive advantage.

Authentic Leadership is an elective unit in the ABE Level 5 Diploma in Business Management and Leadership. Click here if you are interested in learning more about this qualification or enquire at your nearest ABE centre.

References:

www.edelman.com/trust/trust-barometer

www.deloitte.com/global/en/issues/work/content/genz-millennialsurvey

Dalio, R., 2017. Principles: Life and Work. New York: Simon & Schuster.

George, B., 2007. True North: Discover Your Authentic Leadership. San Francisco: Jossey-Bass.

Sinek, S., 2009. Start with Why: How Great Leaders Inspire Everyone to Take Action. London: Penguin.