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Business Basics

Toxic culture

  • Created by Henry Stewart Talks
Published on January 28, 2026   3 min

A selection of talks on Management, Leadership & Organisation

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Toxic culture refers to the underlying norms and behaviors within an organization that foster negativity, mistrust, unethical behavior, or harm. Instead of encouraging openness and innovation, a toxic workplace often creates fear, anxiety, and disengagement. Employees may feel unsupported or afraid to speak up, leading to a breakdown in communication and collaboration. Cases like Enron, Wells Fargo, and NASA's shuttle disasters illustrate how ingrained toxic cultures can lead to disastrous outcomes, often due to poor leadership or flawed incentives. A toxic culture often reveals itself through interconnected symptoms such as high staff turnover, frequent absenteeism, and low morale. Employees may manage up, telling superiors only what they want to hear while avoiding honest discussions of risks or failures. There is often an over emphasis on achieving targets at the expense of ethical practices, fueled by pressure to make the numbers at all costs. Psychological safety is absent, and whistle blowers risk punishment or isolation leading to widespread silence. Toxic cultures often arise from unchecked power dynamics and misplaced priorities. Leaders may signal intentionally or not that results matter more than integrity or employee well being, leading to ethical fading, where questionable decisions become accepted. Silo departments, lack of transparency, and rigid hierarchies reinforce toxic norms.

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