When Is It Okay for Leaders To Lie? (1k Employee Interviews)


Employees have always been at the mercy of unscrupulous leaders and bosses, especially those that lie. The saying, “If their lips are moving, they’re lying,” applies to many leaders. But is there a time when it’s okay to lie, or should leaders always tell the truth?

Officially, it’s never okay for leaders to lie, but unofficially, it can be okay if the lie protects someone’s reputation or feelings. However, even in those situations, it’s better to responsibly tell the truth in a non-accusatory way. 

This article discusses whether leaders can lie, the employee’s perspective, and how leaders can regain their employees’ trust after being caught in a lie. So stick around!

Full disclosure, the subject of lying in the workplace is inflammatory; this article uses employee surveys and studies in an attempt to understand the employee's perspective on lying.

Do Employees Think It’s Okay for Leaders To Lie?

Employees lie to their employers, and employers lie to their employees. It happens all the time, according to this survey from SimplyHired. They interviewed 1,000 employees and their employers about who tells “white lies” and what lies are better than others. The results were…interesting, to say the least. 

The white lies, or harmless lies, that were considered the most acceptable include:

  • “I have plans after work.”
  • “You look good today.”
  • “I’m just tired.”
  • “Let’s look at this later.”

Respondents to the survey agreed that the above lies were the most harmless of all the lies told at work. Both employers and employees tell these lies, and if it keeps the company morale up, then it’s most likely okay.

However, there are other lies that the study uncovered that can damage morale, which include the following:

  • “It was my idea.” When employers tell this lie, they take credit for their employees’ work.
  • “We don’t have the budget for your request.” Leaders that tell this lie often cover up the fact that they’re aiming for a higher salary.
  • “It wasn’t my fault.” Leaders telling this lie often try to blame an employee for their screw-ups.

While employees might think it’s okay for leaders to lie sometimes, the company’s overall culture depends on honesty and transparency from the top down. Otherwise, it can damage the company, and another “Enron” happens (more on that below).

Should Leaders Always Tell the Truth?

Leaders should always strive to tell the truth whenever possible (here’s a test to see if you are practicing honest leadership). Employees with bosses who lie more often will also lie, as they take their example from the leader. But this can destroy the work environment and the company’s reputation.

Employees look to their employers and bosses to be the moral compass of their organization, and when leaders lie and twist the truth, it can damage not only the trust between employees and leaders but between customers and the company.

Sometimes dishonest leadership can be really hard to spot!

The Enron Scandal

Enron is a perfect example of how dishonest leadership impacts a business. After several accounting lies, they were slapped with a 40 billion dollar lawsuit from its shareholders. But what did the leaders do to warrant this lawsuit?

They lied, pure and simple.

When you look deeper into the suit, the executives, or leaders, hid billions of dollars through accounting “loopholes” and “poor financial reporting.” Enron’s founder encouraged his employees to do this, and even the CFO encouraged the team to lie to the board about where the money was going. 

What Should an Employee Do When Their Boss Tells Them To Lie?

As an employee, it’s difficult to go against a toxic boss when they tell you to lie, as you could face disciplinary action. And if it’s a lie about something minor, such as taking the last doughnut in the breakroom or ducking out a few minutes early, this probably isn’t anything to worry about.

But if your boss asks you to lie for them when they’re hiding or misusing company funds or stealing office property, that might be something you need to come forward with to HR. You might receive immediate disciplinary action from your boss, but if you tell the truth when confronted by your boss’s boss, you won’t get in trouble. Usually. 

However, if the lies and thefts go all the way up to the top, it might be better for you to resign and find a different job with a reputable company.

It’s really about who you want to be as a person; lying to someone also means being untrue to yourself in some real sense.

To your help, there are some simple strategies to increase honesty on your team.

What Happens When Leaders Lie To Employees?

When leaders lie to their employees, it erodes trust and creates a stressful environment. Employees figure that if their bosses lie, it’s okay for them to lie, and it can spiral from there. Soon, employees are lying to customers, becoming a free-for-all lying fest. 

That might not actually happen, but it demonstrates how little “white lies” can erode trust and solidarity among the team

But what happens when a leader has already lied and affected the team?

How Leaders Can Redeem Trust With Their Employees

Leaders who want to redeem trust with their employees must understand that it’ll take time and work. They can’t exactly say, “I’m sorry, I’ll never lie again,” and have their employees believe them. 

While they can apologize for their lies, they need to be willing to work at restoring trust. Here’s how they should do it:

  • Apologize for the lies.
  • Listen to employee feedback about the impact of the lies.
  • Strive to tell the truth, no matter how inconsequential it might seem.
  • They should acknowledge their lie, apologize for it, and get back on track if they lie.

Trust and respect are earned, not given, so leaders should do everything they can to earn both, especially after lying.

Should Employees Lie to Their Boss?

When bosses lie to their employees, it might encourage employees to lie when it suits them. However, it’s not a good idea to lie to your boss, even if they lie to you. 

While you can get away with “white lies,” such as taking a sick day when you need a mental health day or saying that you have plans after work when asked to work overtime, lying about work projects can impact the entire organization. 

You wouldn’t want your employer to lie about these things to you, so you may also want to tell the truth. 

Conclusion

It’s not okay for leaders to lie, as it can impact the entire organization, including your customers’ opinions. This, in turn, can cause a scandal like Enron and destroy the entire company. 

While their lies might not cause this, they can still cause stress, tension, and uneasiness among their team.

Gabriel "Gabo" von Knorring

Gabo is the founder of Sancus Leadership; he´s half Swedish, half Spanish, and an Army Officer with 12 years of experience. His leadership has been tested in many different situations, including as Explosive Ordnance Disposal (EOD) team leader on multiple deployments, instructor and teacher, sports coach, HR manager, logistics manager, and business owner/online entrepreneur.

Recent Posts

Do You Have an Ever-Expanding To-Do List?

My free "How to Prioritize" guide has taught leaders, just like you, how to prioritize all their tasks in just 5 min, so you can finally go home knowing you've spent your day in the most impactful way possible!
Privacy Policy: We hate SPAM and promise to keep your email address safe.