PurposeThe increasing interest of organizations to innovate and survive in the market, combined with a decreasing level of trust in their leaders, has now led thinkers and researchers to begin exploring beyond traditional leadership theories. The literature indicates that, due to the lack of a strong and explicit moral dimension, positive leadership may be incomplete. The purpose of this study is to understand the creativity mechanism that is fostered by authentic leadership through empowerment and commitment to the supervisor.Design/methodology/approachThe data of 214 employees were collected from the strategic units (product generation, customer services, marketing and sales) of all five telecoms which are currently operating in Pakistan. The parallel mediation model was used to analyze the hypothesized model.FindingsResults confirmed that authentic leadership leverages creativity. Mediation results further confirmed that creativity increases when employees feel empowered and are committed to an authentic leader. However, contrast analysis indicated that empowerment has a stronger role in increasing creativity.Research limitations/implicationsNot limited to theoretical debate, the present study emphasized that organizations improve creativity by adopting a management model which delivers moral values along with an efficient, transparent system and empowered culture. Managers should be trained to develop authentic traits so that they can then identify and address critical areas which will serve to nurture creative and innovative behavior in their followers.Originality/valueAuthentic leadership is an emerging concept, yet debate on authentic leadership and creativity is in the establishment phase. The present study highlights that authentic leadership is not simply a consequence of success or the development of a pool of loyal subordinates; rather, empowered leadership at all levels is at the heart of a successful organization.