Creating conditions that foster both ownership and authenticity in an organization is an example of authentic leadership. Authentic leaders have a deep understanding of their personal values and ethical principles, as well as genuine awareness of their weaknesses and strengths (researchers call this “optimal self-esteem”). Instead of being pulled in different directions by external oughts and shoulds, these leaders are guided by their own internalized standards, formed through inquiry and self-reflection.

Besides being open to feedback, authentic leaders can process negative input in a non-defensive way. Ultimately, what sets them apart is not just the maturity of their thought processes, but the coherence and ethics of their external behavior. That is, these leaders walk the talk and relate to others in a transparent way, without misrepresenting their motives or manipulating information.