Authentic Leadership in Banking: Ethics, Challenges and Solutions

This report delves into the theory and application of authentic leadership within the banking sector, particularly in the context of current challenges such as the COVID-19 pandemic, high workforce turnover, and ethical considerations. It highlights the importance of transparency, honesty, and genuine relationships in fostering trust and motivation among the workforce. The report examines various leadership models and their roles in navigating complex conditions, emphasizing the significance of ethical conduct and self-awareness. It provides recommendations for banks, such as Lloyds Banking Group, to enhance their ethical practices and adopt new leadership styles to improve market service and address current issues. The conclusion underscores the vital role of authentic leadership in promoting productivity and problem-solving within challenging environments.

Authentic leadership

Introduction
• Theory of authentic leadership consider leaders as
genuine and real and in simple terms. the term authentic
leaderships emphasis on transparency, honesty and
genuineness which aids leaders to identify key successful
factors for business.
• The main motive of authentic leadership is to generate or
formulate authentic relationship within the organisation
in order to inspire trust and motivation among
workforce.

Key-issue related with business
• In the current pandemic reverberate conditions this is challenging for business and industry to retain and
sustain same growth rate of the economic of country.
• High workforce turnover- But, UK financial conditions such as Lloyds bank also face challenges because of
high workforce turnover and this raise due to change in leadership style.
• Induce of change in organisation- Moreover, with examine of different factors this is also identified that the
organisation change in business is one of the major task that generate complexity for banks and other business
also, to add new value in the company systems
• Ethical perspective of banks- The main motive of each organisation is to enhance their profits but, due to the
competitive-market conditions this is complex for business to enhance revenue because profit has always
conflicts with ethical considerations.

Factors related with current pandemic
conditions
• With increase in the cases of coronavirus or Covid-19 this is understand that regulators and financial institutions
both are facing or steering through different challenges.
• Lowering Liquidity buffers- The main focus of authorities is to cover all those factors which is used by
management to accept and maintain appropriate level of liquidity ratio in the business.
• Reduction in countercyclical capital buffer- The main purpose to analyse capital buffer is to analyse and
understand that management has sufficient capital that support business activities to overcome from the impacts
of Covid-19.

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• Potential draw-down on credit facilities by
customers- Banks and financial institutions perform a
crucial role and they ensure that banks has sufficient
funds to support individuals without risking their
position in business.
• Compressed net-income margin- Interest rate are the
main factors which helps individuals to earn an extra
amount.

Model for understanding about leadership
• Leadership evaluation is considered as the framework to gather and generate reliable information which helps
the management to assess all those factors which are related with leadership development efforts.
• Impoverished leadership- Effective leadership style perform an important role and as per this leader is mostly
focused towards results formulation of better outcomes or results through motivating the employees for engage
in team-work activities
• Employing in right leadership style- By understand and analyse of different leadership style this is understand
that the organisation generate right and appropriate culture which helps to perform work in a better manner.
• Country club leadership- With this style of model authorities understand that which type of leadership is
followed by the leader.

Leadership Model and their role in
complex conditions
• Financial opportunities perform an important role for the
business organisation and to achieve success this is
important for the business to engage effective
management systems.
• Transformational- When a leader follow the
transformational model to manage workforce or
employees they provide the effective support to
operational manager and this helps to inspire workers.

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• Ethical- The main role of ethical leadership style is to perform work with
engage of right values, rules, regulations and ethics which provide right
and appropriate rewards to the workforce.
• Authentic Leadership- The authentic leadership follow and work
according to this principle and this aids the leaders for prove their
legitimacy through nurturing the relationship with other workforce and
this also give importance to their input.

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Some important aspects which are learned through the engage of authentic
leadership style in organisation are mention as follow:
• Self-awareness
• Focus on the long term results
• Distinct values

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• Relationship building
• Goals and Self-discipline

Recommendations for the
banks to engage ethics and
leadershipWith understand of this report, this is understand that Covid-19 conditions generate
pandemic environment for individuals. Some of the most appropriate recommendations
for Lloyds banking group to engage the ethics and new leadership style is mention as
follow:
• Bank Vision Statement
• To serve in the better market
• Identify of current solutions

Conclusion
From the basis of above report, this is concluded that authentic leadership
perform an important role for an organisation to promote and enhance their
productivity within the challenging environment. Leaders are the persons
who solve all issue that generate problems for individuals to complete their
job role.