Wondering why it might be worth showing your authentic self as a leader? Does it even pay? Or are you better off donning that ‘mental suit’ I was recommended wearing as a leader in the early 2000’s? (Please don’t.)
Needless to say, but worth stating anyway: I did not wear that imaginary suit. My teams found me available as a leader, in times of stress and others. Not always easy. The temptations and recommendations to ‘put on a happy face’, ‘grow thicker skin’, etc… were strong. And I am sure i gave in to them too. When I have most effective as a leader, and as a business coach and trainer, is when I am my authentic self. There for whatever questions are asked, whatever challenges posed, as my whole self. Does that mean I do everything my teams or customers want? Of course not. Just because you are there, doesn’t mean you do everything you are asked or challenged to do.
Lets’ look at what authentic value-based leadership is
Authentic leadership, as described by Walumbwa et al. (2008), is characterized by four key behaviors:
- self-awareness,
- transparency in relationships,
- balance in processing,
- and an internalized moral compass.
Combining these four factors creates a leadership style that is consistent, credible, and deeply influential. Add that to leading based on your core values, and you have strong leadership.
Value-based leadership adds an essential dimension. Clearly defined principles, not short-term metrics or external pressures, guide decisions and strategies. For corporate leaders, this means building cultures where ethics and results coexist, and where long-term reputation is prioritized over quarterly returns. I don’t know about you, but that is something that I would like to see more of in the big tech companies of this world. It definitely is something I look for in my clients as a business coach. And I know something my clients find very attractive when considering employment options.
Why authenticity pays off – the business case for authenticity
Authenticity drives business outcomes. A comprehensive meta-analysis by Hoch et al. (2018) found that authentic leadership correlates strongly with employee engagement, satisfaction, and performance. People work better when they trust their leaders. And authenticity gives employees what they need as a basis for trust. Based on my experience as a business coach, it also builds loyalty.
Self-determination theory (Deci & Ryan, 2000) explains why this works from a scientific psychological perspective. Employees thrive in environments where organisations meet their needs for autonomy, competence, and connection. Authentic leaders support these needs by being transparent, fair, and consistent—qualities that reduce workplace anxiety and enhance collaboration. Leading authentically, and based on your values, lets your employees get a better understanding of you and your actions.
At a time when ESG (Environmental, Social, and Governance) criteria are reshaping investment decisions, companies led by value-driven leaders are seen as more credible, forward-thinking, and trustworthy.
How to do authentic leadership
Authenticity isn’t something you either have or don’t—it’s cultivated. Here are three ways corporate and other leaders can practice value-based leadership:
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Clarify and communicate core values: Make values visible, not just on office walls, but in decision-making and team interactions.
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Model integrity and transparency: When leaders own their decisions—even tough ones—they build psychological safety and loyalty.
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Align culture with purpose: Create systems and incentives that reinforce the organization’s mission and values, not just performance KPIs.
A business coach can provide valuable support in implementing these three points.
Especially for corporate leaders, authentic value-based leadership isn’t a soft skill—it’s a differentiator. Keeping your best employees around is key.
Authentic leadership strengthens organizational culture, enhances brand reputation, and drives performance in ways that traditional command-and-control leadership style cannot.
In a business world that’s increasingly driven by trust, transparency, and purpose, authentic leadership is key. Leading from within and not from the top is what your teams and potential employees are looking for. Want to know how i can support you as a business coach in developing your authentic leadership skills? Get in touch!
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