Authentic Leadership as a Foundation forPurpose-Driven and SustainableOrganizations

Authors

  • Nenad Huđin University of Zagreb, Faculty of Economics and Business, Croatia
  • Domagoj Hruška University of Zagreb, Faculty of Economics and Business, Croatia

DOI:

https://doi.org/10.54820/entrenova-2025-0023

Keywords:

Authentic leadership, organizational purpose, self-awareness, positive psychology, organizational trust

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.

Author Biographies

  • Nenad Huđin, University of Zagreb, Faculty of Economics and Business, Croatia

    Nenad Huđin is the Eastern European and Baltic Market Manager at Abbott with many years of experience in sales management and market development in the healthcare sector. He currently holds the position of Regional Manager with responsibility for several international markets, including team management, strategy development and financial results. During his career, he has participated in leading complex projects and developing and implementing sales strategies in several countries in Central and Southeastern Europe. His professional experience also includes training and developing sales teams at the regional level. He is a PhD candidate at the Faculty of Economics, University of Zagreb, where he is researching the impact of authentic leadership on affective organizational commitment through the affirmation of organizational purpose. His research interests are focused on the connection between authentic leadership, organizational purpose and organizational behavior. In his scientific work, he focuses on understanding how to manage organizational purpose as a mechanism for encouraging and maintaining affective organizational commitment. The author can be contacted at email: nenad.hudin@yahoo.com.

  • Domagoj Hruška, University of Zagreb, Faculty of Economics and Business, Croatia

    Domagoj Hruška, PhD, is a Full Professor at the Faculty of Economics and Business, University of Zagreb, specializing in corporate and leadership with over 20 years of experience. He holds a PhD in Economics and Business and has completed international training at the University of Strathclyde and the University of Huelva. In addition to his academic career, he has significant entrepreneurial experience as the founder and director of Hruška staklenici d.o.o., which he successfully managed through its full life cycle until its sale. Professor Hruška is deeply involved in executive education, leading programs for board members and collaborating with institutions such as the Zagreb Stock Exchange and major corporations like INA and Podravka. He currently serves as the Head of the Department of Organization and Management and leads several graduate and specialist programs. His recent research focuses on the transformation of corporate boards in the era of artificial intelligence, a project he leads under the NextGenerationEU framework. The author can be contacted at email: dhruska@efzg.hr.

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Published

2026-07-04

Issue

Section

Business Administration & Business Economics, Marketing, Accounting

How to Cite

Authentic Leadership as a Foundation forPurpose-Driven and SustainableOrganizations. (2026). ENTRENOVA - ENTerprise REsearch InNOVAtion Journal, 11(1). https://doi.org/10.54820/entrenova-2025-0023