Why People Believe Their Leaders — or Not

Leadership is the relationship between people who aspire to lead and those who choose whether or not to follow.  And it hinges on the leader’s credibility, which is difficult to build and easy to lose.  In recent years, numerous corporate executives —including the CEOs of BP, Wells Fargo, and Volkswagen — have learned that tough lesson through high-profile scandals that swiftly damaged their reputations.

But what’s at the heart of credibility?  Two critical elements:

  • Perceived competence; that is, people’s faith i.....
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