Original scientific paper
https://doi.org/10.54820/entrenova-2025-0023
Authentic Leadership as a Foundation for Purpose-Driven and Sustainable Organizations
Huđin Nenad
; University of Zagreb, Faculty of Economics and Business, Croatia
*
Hruška Domagoj
; University of Zagreb, Faculty of Economics and Business, Croatia
* Corresponding author.
Abstract
The increasing complexity of modern organizational environments has intensified the need for leadership approaches that foster trust, resilience, and sustainable organizational development. Authentic leadership has emerged as a contemporary leadership concept that emphasizes self-awareness, transparency, ethical decision-making, and consistency between personal values and actions. The purpose of this paper is to examine the theoretical foundations of authentic leadership and its significance for contemporary organizations. Particular attention is given to the key dimensions of authentic leadership, including self-awareness, relational transparency, balanced information processing, and value-based decision-making. The paper further explores the role of positive psychological capacities and leader self-regulation in the development of authentic leadership behaviors. In addition, authentic leadership is compared with transformational and charismatic leadership to identify its distinctive characteristics. The analysis suggests that authentic leadership contributes to the creation of purpose-driven organizations by strengthening trust, positive organizational climate, employee engagement, and long-term organizational effectiveness.
Keywords
Authentic leadership; organizational purpose; self-awareness; positive psychology; organizational trust
Hrčak ID:
348879
URI
Publication date:
1.12.2025.
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