We’re learning this week about the Sarbanes-Oxley Act. These regulations emerged after the big corporate scandals that rocked the U.S. economy. I say this because fraud is costly not only to the company or its victims, but also to national economies. In addition to increased regulatory oversight, there are other disciplines that emerged as a result of the fraud of this era.

Authentic Leadership is a concept that is gaining momentum in research because of corporate benefits that include increased corporate efficiency, job happiness among workers, enhanced communication, and shared information (Fusco, Siobhain, & Palmer, 2015). Research into support of authentic leadership development is relatively new; interest in the field began after the large scandals such as Enron and its accounting firm, Arthur Anderson, in 2001. One of the traits of an authentic leader is confidence.

Through developing the authentic leadership development model, leaders not only learn the importance of embodying the quality of being confident, but also qualities of high ethical standards emerge as required traits. I think that it is important now and in the future that confident leaders are trustworthy. The confidence that draws people to leaders should be truthful and non-harming to others with whom business transactions are made. I think the field of authentic leadership development is a positive response to the disappointments we as a society have experienced from trusted leaders.

Class: What can you add to this discussion? Are you aware of other important areas of thought that have emerged as a result of scandals? What more do you think can be done to reduce fraud? Please discuss.

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HCS 380 Disussion was first posted on February 23, 2021 at 10:01 am.
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