Editorial
The much-discussed memo from AT&T CEO John Stankey isn’t just a signal that the old corporate social contract is broken. It’s a troubling reminder that many senior leaders still operate under outdated assumptions about loyalty, control and employee commitment.
Stankey calls into question the age-old employer-employee agreement, essentially suggesting that loyalty is dead. But if it is, leaders like him are partly to blame. We’ve spent decades rewarding short-term profits over long-term relationships. As the social contract has frayed, many organizations have continued to demand total commitment from employees, while offering comparatively little in return.
The result? Record levels of disengagement, employee cynicism and organizational fragility.
In “The Authentic Leader,” we make a simple — but urgent — argument: Edicts don’t create loyalty. Loyalty is created when leaders show up. They earn it by fostering trust, fairness and psychological safety. And if leaders can’t or won’t commit to their people, they shouldn’t expect commitment in return.
That’s not idealism. It’s strategy.
Strong Culture Attracts and Retains Talent
Many of the companies attracting and retaining top talent today have one thing in common: they don’t treat culture as a side project. They design systems of leadership that align with human needs. At these companies, trust isn’t a buzzword. They embed culture, mission and vision in how decisions are made, feedback is given and people are promoted. They understand that building an emotionally intelligent culture is not a tradeoff against performance. For culture-first organizations and leaders, the focus becomes a multiplier.
Research from “The Inclusive Leadership Handbook” affirms that trust and belonging are essential to sustainable performance. Psychological safety – the belief that employees can speak up, take risks and be themselves without fear of humiliation or punishment – isn’t a luxury. It’s a strategic and business imperative. Psychological safety just makes good sense in a chaotic world where the battle for talent defines success and potential failure.
Unfortunately, many executives still interpret psychological safety as coddling. In truth, though, it enables accountability, innovation and resilience. As noted in “The Inclusive Leadership Handbook,” “In psychologically safe environments, people speak truth to power, admit mistakes early and solve problems faster.”
Leadership, Not Edicts, Inspire
Stankey says employees need to “recommit.” But recommit to what, exactly? Unspoken layoffs? Burnout culture? A boss who writes loyalty memos while planning restructures?
Employees are not machines. They don’t perform simply because they’re asked to. They rise when they’re led — not commanded. That distinction matters now more than ever.
Let’s be clear: psychological safety doesn’t mean low expectations or a lack of performance pressure. In fact, it allows for higher expectations because people feel safe to stretch, challenge norms and take initiative. This freedom to engage from a spirit of collaboration and intellectual curiosity is the difference between compliance and commitment. Poor culture leads to bare-minimum output, while psychological safety unlocks passion, creativity and resilience, which every organization needs to thrive.
Leave Command-and-Control in the Past
The path forward will not be a reincarnation of the command-and-control style that has dominated most of management history. Instead, let’s use the Stankey memo as an opportunity to redefine leadership for a world facing increasing complexity and contradiction. And, let’s be honest: employees today want autonomy, meaning and shared commitment. They want leaders who listen, acknowledge uncertainty and lead with both courage and compassion.
From our own experiences as leaders and as community members, we know this to be true: Loyalty isn’t dead. It’s just waiting for leadership to catch up.
Organizations that treat people with dignity, build inclusive cultures and create safe environments for performance will outpace those clinging to control. Psychological safety doesn’t undermine accountability. Rather, psychological safety creates a foundation for enhanced innovation, creativity and collaboration, the fundamental traits that help establish workplace excellence.
Ask: 'Am I an Authentic Leader?'
Leaders reading this should ask themselves a straightforward question: “Would I want to work for me?” Would your team describe you as someone who listens with intention, encourages honest conversations and makes them feel safe to speak up? If not, now is the time to reset. It may not be easy, but it is also not too late. Leadership is no longer about power over others. Shift your perception and actions to focus on fulfilling your responsibility to others.
This is the deeper call of authentic leadership. That’s the real leadership challenge of our time.
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Editor's Note: Read more about the kind of leadership we need today:
- Leadership at a Crossroads: Thriving Through Change in 2025 — The pressure to invest in technological innovations might lead you to believe it should come at the expense of workforce investments. That's a false dichotomy.
- AI Is Your Leadership Test: Will You Build a Future-Ready Culture or Get Left Behind? — AI is transforming the way business gets done, with or without you. Will your people be part of this revolution or sidelined by it?
- From Wanting to Doing: Move Your Organization From Vision to Action — Companies crave growth and transformation. But when it's time to act, they resist the very changes that would get them there.
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