Internal Reputation Management: The Impact of Authentic Leadership and Transparent Communication

Abstract

The aim of the study is to illuminate the internal reputation management process by examining the impact of authentic leadership and transparent organizational communication on employee evaluation of the organization. Drawing upon extant literature of public relations, marketing, business and management on corporate reputation, the study suggests that authentic organizational leadership and transparent organizational communication are effective drivers for a favorable reputation in the eyes of corporate insiders. Through a web survey of 400 employees randomly selected from a variety of large and medium corporations in the United States, the study demonstrated that authentic leadership plays a critical role in nurturing the organization’s transparent communication system, which, in turn, shapes the organization’s internal reputation. An organization’s day-to-day transparent communication practice characterized by information substantiality, accountability and employee participation largely contributes to employees’ positive evaluation of the organization. Significant theoretical and practical implications of the findings are discussed.