Building Trust Through Authentic Leadership

Authentic leadership fosters trust as the cornerstone of successful organisations. Rooted in ancient wisdom and bolstered by modern insights, it emphasises transparency, ethical behaviour, and empathy. Leaders who model authenticity build deeper connections and create cultures of psychological safety and resilience. This approach transforms relationships from transactional to meaningful, empowering employees and driving innovation, engagement, and sustainable organisational success.

Trust in the corporate life is a peculiar beast. It takes years to build, seconds to break, and sometimes invokes an all-hands meeting just to explain why it's been lost. Leaders who misunderstand trust—or worse, assume it comes with their job title—often find themselves the subject of hushed water cooler conversations or, more ominously, exit interviews. Authentic leadership, however, offers a way to not only safeguard trust but to cultivate it as the foundation for meaningful relationships within organisations.

Imagine a CEO who waxes poetic about teamwork but spends meetings glued to their phone. Trust evaporates faster than muffins from the kitchenette. Authentic leadership avoids this trap by emphasising transparency, humility, and ethical consistency, giving employees a reason to believe their leaders are the real deal.

A Trust Deficit

The origins of authenticity trace back to antiquity. The Delphic Oracle famously exhorted people to 'Know thyself', a call to embrace self-awareness and moral integrity. A self-awareness which was as much about discovering our capabilities and understanding our limitations. The Stoics furthered this concept, urging individuals to align their actions with their values. Put another way, leaders must walk their talk.

Unlike the transactional or charismatic styles that can sometimes ring hollow, authentic leadership thrives on consistency between words and actions. This is both a boon and a challenge for leaders who like the idea of authenticity but lack the self-awareness to truly implement it. This is because employees are quick to perceive hypocrisy, and leaders who fail to embody their stated values risk eroding trust irreparably.

authentic leadership development involves ongoing processes whereby leaders and followers gain self-awareness and establish open, transparent, trusting and genuine relationships, which in part may be shaped and impacted by planned interventions such as training.

Avolio and Gardner (2005)

Corporate life has no shortage of trust failures, from financial scandals like Enron's collapse to cultural upheavals triggered by unethical practices at tech giants. Gallup State of the Global Workplace reports consistently find low employee engagement at work, with trust in leadership cited as a key factor. Not only does this contribute to major mental health issues among staff—21% of employees report feeling loneliness—it also undermines productivity, which piles more pressure onto the broader economic stresses that abound:

Gallup estimates that low employee engagement costs the global economy US$8 9 trillion, or 9% of global GDP.

Given it is with no hyperbole that I say all leadership days stress the importance of trust—there are even entire workshops dedicated to the topic—it begs the question: why is trust so fragile?

Part of the issue is that trust tends to be expected or demanded in exchange for wages because many managers take a role based approach to organisational behaviour. This means they lean into their job title and believe that—and here I use believe with all the connotations of faith that come with it—authority and the benefits that accrue to a great leader are givens. "I am the CEO; therefore I have the organisation's best interests at heart; therefore, you should trust me".

We've all worked for a manager who says, "My door is always open", but spends more time locked in their office than a medieval monk in a scriptorium. Such lip service erodes trust faster than a scandal on X. Authenticity requires more than platitudes; it demands presence, both physical and emotional, and acknowledgement of the very real issues facing an organisation. Not merely a desire to address what is embarrassing and an exhortation to "stay on massage" when times get tough.

The problem with this approach is that interpersonal relationships don't work like that—particularly in countries like Australia where both free thinking and no small degree of cynicism abounds. As a result, the average manager is plagued by the illusion of transparency, whereby people with positional authority mistakenly believe their integrity is self-evident. Employees, however, require tangible evidence of ethical behaviour before they are willing to exchange the kind of deep trust needed for effective leadership. Leaders must, therefore, communicate openly, admit mistakes, and demonstrate moral courage—actions that signal authenticity.

Trust failures often stem from perceived hypocrisy and inadequate communication.
Leaders must back words with actions, demonstrating openness and accountability.
Avoid corporate clichés—they're trust killers.
Authentic leadership emphasises self-awareness, relational transparency, and consistency between values and actions.

Building Trust Through Authentic Leadership

Building trust is more art than a science, requiring intentional actions grounded in empathy, ethics, and clarity. Authentic leadership, which emphasises aligning values with actions, provides a sturdy foundation for cultivating trust. However, trust is not a one-time achievement, much less a formula which can be invoked with a team. Trust is a dynamic process that requires continuous reinforcement. For leaders, this means paying attention not only to what they do but also how they do it and how what they do is perceived. Bellow "people are idiots, can't they see I'm doing what is right" all you like, it will not move the needle on peoples' trust levels.

At its core, trust-building revolves around demonstrating genuine care and competence. Employees want leaders who are not only capable of making tough decisions but also mindful of their impacts on people. Simply being a 'hard ass' impresses few and is very poor foundation for trust. Authentic leaders understand this and instead achieve balance by being transparent about their reasoning and admitting mistakes when they occur. These moments of vulnerability, when handled skilfully, can deepen trust rather than diminish it. After all, employees are more likely to trust leaders who acknowledge their humanity than those who cling to an illusion of infallibility.

The path to trust is paved with deliberate, transparent actions which inspire trust by:

Modelling Ethical Behaviour: Ethical lapses, however minor, can undermine years of credibility. Leaders who consistently act in alignment with stated values set a powerful example.
Fostering Psychological Safety: Amy Edmondson's work on psychological safety highlights its importance in trust-building. When employees feel safe to voice ideas and concerns without fear of reprisal, trust flourishes.
Practising Empathy: Empathy transforms leadership from hierarchical to relational. As Abraham Lincoln—arguably America's first Chief Empathy Officer—remarked, 'If you would win a man to your cause, first convince him that you are his sincere friend'.
Doing What is Necessary: Authentic leaders tackle what needs to be done rather than addressing what might impact their personal brand. When a manager ignores organisational issues, only addressing them when someone more senior casts a critical eye in their direction, it leads employees to think they care more about their personal brand than the organisation or their team.

But authenticity is not without its pitfalls. Leaders who overshare personal struggles, for example, risk appearing unsteady. There's a fine line between vulnerability and burdening others. The key is balance—being human without losing authority.

Ethical consistency, psychological safety, and empathy are pillars of authentic leadership.
Authentic leaders balance vulnerability with professionalism, avoiding the pitfalls of oversharing.

Authentic Leadership's Ripple Effect

Authentic leadership has a ripple effect on organisational culture. Trust is contagious; when leaders model authenticity, employees feel empowered to reciprocate. This fosters collaboration, innovation, and resilience. As Dr Stephen Covey noted, 'Trust is the glue of life', binding teams together through shared purpose. However, as Dr Covey also emphasised that trust is a mutual commitment, requiring effort and integrity from both parties. When leaders demand high trust and complete transparency from their followers, yet remain tight-lipped and always take things 'offline', they erode what trust may have been established. In its absence, relationships devolve into mere transactions, stripped of emotional investment and meaningful accountability. In short, they are inauthentic.

The ripple effect of authentic leadership extends beyond individual relationships, shaping the broader organisational culture. By fostering psychological safety, practising empathy, and maintaining ethical consistency, authentic leaders enable teams to operate with greater cohesion and resilience. This is not merely a soft skill; it is a strategic advantage. Employees who trust their leaders are more engaged, committed, and willing to contribute their best efforts. Organisations led by authentic leaders are better positioned to navigate challenges and seize opportunities in a rapidly evolving world.

At its core, authentic leadership is a call to lead with courage and humanity. It requires leaders to embrace their imperfections while striving to act with integrity and purpose. Trust, the ultimate currency of leadership, is earned through deliberate actions that reflect care, competence, and consistency.

Good night, and good luck.