1. The True Role of Leadership Titles
Leadership titles such as manager, executive, C-suite executive, or board member are designed to reflect specific role functions, expectations, accountability, and authority within an organisation. These titles provide clarity and structure, ensuring that leaders understand their responsibilities and the scope of their influence. However, a troubling trend continues to be present where some individuals view these titles not merely as roles but as symbols of personal power. This shift in perspective can lead to the misuse of authority, where leaders take liberties and even abuse their positions through intimidation, manipulation, control, and even fear.
"Titles in leadership are like a compass—they are meant to guide leaders in fulfilling their roles responsibly. But when these titles are misinterpreted as badges of power, the compass no longer guides; it dictates, intimidates, and controls."
2. The Misuse of Authority: When Titles Become Tools of Power
The misinterpretation of leadership titles can lead to their misuse. Instead of serving as a guide for role function and accountability, these titles can become tools of power. Leaders who view their titles as defining their personal authority may begin to exert undue control over their teams, leading to a culture of fear and compliance rather than one of collaboration and innovation.
The distinction between role function and personal power is crucial. When leaders confuse the two, they often resort to behaviours that harm the organisation, such as micromanagement, coercion, punitive measures, and unprofessional conduct. 79% of employees who leave their jobs cite a lack of appreciation as a key reason, often linked to toxic leadership practices rooted in the misuse of power (StratX ExL).
3. The Impact on Organisational Culture and Employee Well-being
The effects of leadership abuse reach far beyond individual relationships; they can profoundly shape the broader organisational culture. When leaders misuse their authority, they create a toxic environment where fear, distrust, and low morale become the norm. This kind of atmosphere doesn’t just harm individual employees—it poisons the entire workplace, leading to disengagement, high turnover, and a gradual erosion of the organisation’s very foundation.
In such environments, employees are more likely to feel undervalued and unsupported, which can diminish their sense of purpose and belonging. This isn’t just about numbers on a spreadsheet—it’s about people’s lives, their well-being, and their ability to contribute meaningfully to their work. In Australia, poor leadership and management practices have been significant drivers of job dissatisfaction, with 9.5% of the workforce changing employers in the year leading up to February 2023. This figure underscores the deep dissatisfaction that stems from environments where leaders fail to foster trust, open communication, and recognition (Business Record) .
These trends are not isolated to Australia. Globally, 70% of U.S. employees report dissatisfaction with their jobs due to poor management practices, reflecting a widespread crisis in leadership that impacts millions. Such widespread dissatisfaction signals a clear and urgent need for ethical leadership—leadership that values and prioritises the well-being of employees over the mere exertion of control .
Leadership should be about empowering and uplifting those around you, not instilling fear. When leaders act with integrity, they not only inspire those they lead but also lay the groundwork for a culture of trust, resilience, and collective success. The well-being of employees isn’t just a metric—it’s the heart of any thriving organisation.
4. Recognising the Signs: When Power Corrupts Leadership
Recognising the signs of misuse of authority within leadership is essential for maintaining a healthy organisational culture. Leaders who overstep their bounds can create a toxic environment that stifles innovation and damages team morale. Common behaviours indicative of such misuse include:
- Lack of Transparency: Making decisions behind closed doors without clear communication, leading to confusion and mistrust.
- Use of Fear or Threats: Leveraging fear to maintain control, which fosters a culture of anxiety rather than collaboration.
- Undermining Employee Feedback: Ignoring or dismissing the insights and concerns of team members, which discourages open communication and devalues contributions.
- Prioritising Personal Agendas: Making decisions that serve the leader’s interests rather than the organisation’s goals, often at the expense of the team’s well-being.
- Inconsistent Communication: Delivering different messages to employees and senior executives, creating a divide that undermines trust and cohesiveness.
For example, imagine a leader who consistently dismisses team members’ contributions, making unilateral decisions that leave employees feeling powerless and undervalued. This behaviour not only erodes team morale but also cripples the organisation’s ability to innovate, grow, and effectively respond to challenges. When leaders prioritise control over collaboration, the entire organisation’s resilience and adaptability are compromised.
5. The Path to Ethical Leadership: Restoring Integrity and Trust
Shifting towards ethical leadership requires a deliberate and sustained effort to restore integrity and confidence within the organisation. True leadership is not about exerting power but about fulfilling responsibilities with integrity and a commitment to the well-being of the team and organisation.
To begin the journey of fostering more ethical leadership, organisations can implement several practical and actionable steps, including:
- 360-Degree Feedback Systems: Providing leaders with honest insights into their behaviour from all directions—peers, subordinates, and superiors—can highlight areas where they may be overstepping their authority.
- Clear Ethical Guidelines: Establishing and communicating clear ethical guidelines and expectations for all leadership roles helps set a standard for behaviour that aligns with the organisation’s values.
- Leadership Development Programs: Encouraging leaders to engage in regular self-reflection and participate in leadership development programs is crucial. Additionally, providing leaders with access to coaches or mentors can offer guidance and support, helping them navigate challenges and maintain ethical standards.
- Skip-Level Sessions: Holding skip-level meetings, where employees meet with higher-level managers rather than their direct supervisors, can offer valuable insights. However, these sessions should only be conducted in a safe zone, where employees feel secure in speaking out without fear of retaliation. This approach ensures that leadership remains in touch with the realities of the workplace while fostering an environment of trust and openness.
- Aligned KPIs: Implementing KPIs that reflect the behaviours and outcomes the organisation desires from its managers and leaders is essential. These KPIs might include measures of employee engagement, turnover rates, team collaboration, adherence to ethical guidelines, and the frequency and quality of feedback provided. By aligning KPIs with desired behaviours, organisations can ensure that leaders are held accountable not just for what they achieve, but for how they achieve it.
By integrating these strategies, organisations can cultivate a culture of ethical leadership, where titles are respected as symbols of responsibility rather than power, and where the well-being of the team is prioritised over personal agendas.
6. Conclusion: The Ripple Effect
Leadership titles should serve as a guide for role function, expectations, accountability, and authority—not as a personal source of power. The decisions, actions, and inactions of C-suite executives and board members are pivotal in determining the organisation’s culture and long-term success. As the custodians of the organisation’s values and mission, it all starts with them—both in strategy and in leading by example.
C-suite and board members set the tone for the entire organisation, but their influence must cascade through every level of management. Their commitment to strong and ethical leadership, and their ability to model the behaviours they wish to see throughout the company, are crucial. When these leaders choose to use their titles to uplift and guide their teams, they empower managers at every level to do the same. This creates an environment where confidence, innovation, and collaboration can thrive from the top down.
Conversely, when power is misused at the highest levels, it breeds a culture of fear and disengagement that permeates through all tiers of management, ultimately undermining the organisation’s potential. The ripple effect of leadership, whether positive or negative, is felt throughout the entire organisation, impacting not just individual teams but the company’s overall health and success.
The long-term success of an organisation depends on choosing the path of strong and ethical leadership. It begins with the highest levels of leadership and flows through every layer of the organisation. By embracing this responsibility, C-suite executives and board members can inspire all managers to lead with integrity, fostering a culture of trust and sustained success that benefits everyone in the organisation.
Stay informed with more insights on leadership, ethical practices, and organisational health. Be proactive in shaping a positive future for your organisation. If you haven’t already, subscribed to ‘Unearth Risk Insights,’ now is the time. Remember, the true strength of your leadership is not defined by your title, but by your actions and the integrity you uphold.
