Authentic leadership focuses on the moral aspects of being a leader. Authentic leaders know who they are and what they believe in, and they act on those values and beliefs openly and candidly. Their followers consider them ethical people and trust them as a result. Authentic leaders share information, encourage open communication, and stick to their ideals. Authentic leaders are also humble—leaders who model humility help followers to understand the growth process for their own development.

Authentic leadership, especially when shared among top management team members, creates a positive energizing effect that heightens teamwork, team productivity, and firm performance. Not only is authenticity important for leaders, it is important for followers, too. Both group and individual perceptions of authenticity have an impact on follower outcomes.