Leadership in the Modern Age: Tackling Toxicity and Leading Your Team to Success

In today’s fast-paced corporate world, leadership isn’t just about hitting targets or boosting profits; it’s about creating a culture that fosters respect, trust, and well-being. Many CEOs and leaders focus on metrics and KPIs but fail to recognise one critical factor that can undermine their entire organisation: toxicity.

Ignoring toxic behaviour in the workplace is like ignoring a leak in your roof. Eventually, it will cause irreparable damage to the structure. And just like a leaky roof, letting toxicity slide within your team can erode your company from the inside out. It’s often more costly than any missed financial goal. Leaders who prioritise results over people are unknowingly sowing seeds of failure.

Here’s the harsh truth: Tolerating toxicity is a leadership failure. It sends a clear message that results matter more than respect, and that culture is nothing but a buzzword. However, the cost of this mindset is severe — declining morale, increased employee turnover, and ultimately, damage to the company’s reputation.

So, how can leaders and CEOs effectively combat toxicity while fostering a culture that leads employees to success and a better life?

The Cost of Ignoring Toxicity: Real-Life Examples

To understand the true impact of toxic behaviour in the workplace, let’s look at some real-world examples:

1. Uber's Culture Crisis: In 2017, Uber faced a major scandal when reports of a toxic work environment, including allegations of sexual harassment and discrimination, surfaced. Employees at the company described a workplace culture where toxic behaviour was tolerated and even rewarded as long as it produced results. This led to massive reputational damage and the resignation of its CEO, Travis Kalanick. The fallout was severe: public trust in the brand plummeted, and Uber’s leadership had to overhaul its culture to rebuild its image. Uber
2. Enron’s Fall from Grace: While most people associate Enron with financial fraud, at its core, the company’s failure was due to a toxic culture where unethical behaviour was tolerated at all levels. Leadership incentivised cutthroat behaviour, leading employees to take excessive risks without regard for the consequences. The result was one of the largest corporate collapses in history, and it serves as a cautionary tale of what happens when leadership disregards toxicity. Enron
3. ICICI Bank: Allegations of Leadership Misconduct: ICICI Bank, one of India’s largest private sector banks, faced significant scrutiny in 2018 when its then-CEO, Chanda Kochhar, was accused of unethical practices and conflicts of interest. Kochhar allegedly facilitated business loans with ties to her family, raising questions about transparency and governance. The leadership's handling of these allegations led to a loss of trust and a tarnished public image. ICICI Bank
4. Jet Airways: Toxic Work Environment Amid Financial Crisis: Before its eventual shutdown in 2019, Jet Airways, once a leading airline in India, was reportedly plagued by a toxic work environment, especially in the years leading up to its collapse. Employees experienced uncertainty, delayed salaries, and poor management practices. Many employees reported that the leadership was disconnected from their concerns, which exacerbated the stress and negativity within the company. Jet Airways reportedly failed to address employee concerns during its financial crisis, contributing to a toxic atmosphere of uncertainty and fear. Leadership’s lack of communication, transparency, and support during tough times created a culture where employees felt undervalued and insecure about their futures. Jet Airways
5. OYO Rooms: Allegations of Overwork and Mismanagement: OYO, the hospitality startup that rapidly expanded across India and globally, has faced multiple allegations of fostering a toxic work environment. Reports from former employees have cited extreme working hours, unrealistic targets, and a high-pressure environment as contributing factors. Many employees felt overworked and undervalued, leading to widespread burnout and dissatisfaction—the fast-paced growth and pressure to meet targets often overshadowed employee well-being. The unrealistic demands and overwork reports suggest that OYO’s focus on aggressive expansion may have come at the cost of employee satisfaction and mental health. Such practices can lead to high turnover and a culture of fear and stress. OYO Vacation Homes
6. TCS (Tata Consultancy Services): Criticism of Long Work Hours and Lack of Work-Life Balance: Although TCS is one of India’s largest and most successful IT companies, it has not been immune to criticism regarding its workplace culture. Some employees have complained about long working hours, high workloads, and a lack of work-life balance, especially in specific departments. While this may not be as severe as other examples, prolonged stress and overwork can lead to toxicity. A culture where long hours and constant pressure are normalised can lead to burnout, low morale, and disengagement. When employees feel they are constantly overworked and underappreciated, it fosters resentment and contributes to a toxic atmosphere. 塔塔咨询服务公司
7. Cognizant: Allegations of Toxicity Amid Downsizing: Cognizant, a major player in the IT services industry, has faced challenges related to layoffs and restructuring in recent years. Many employees reported feeling insecure, overworked and undervalued during this period. The uncertainty surrounding job security and the stress of increased workloads due to downsizing contributed to a hostile work environment. The combination of job insecurity, layoffs, and high work pressure often leads to a toxic environment where employees feel anxious and stressed. Poor communication from leadership during restructuring efforts can further exacerbate this, making employees feel disconnected and unsupported. 高知特 Cognizant

What Can Leaders Learn from These Examples?

1. Transparency and Communication are Critical. Leaders who fail to communicate openly during crises or major changes risk creating a toxic environment. During financial struggles, layoffs, or rapid expansion, leaders must be clear and transparent about their decisions and how they will impact employees.
2. Employee Well-Being Shouldn’t Be an Afterthought. As seen in OYO and TCS, companies that focus solely on aggressive growth or performance without considering the well-being of their employees can quickly create a toxic work culture. Leaders must prioritise work-life balance and mental health to maintain a motivated, engaged workforce.
3. Leadership Integrity Sets the Tone The ICICI Bank example shows how ethical lapses at the leadership level can have widespread repercussions throughout the organisation. Leaders must lead by example, as their actions reflect the company’s values and set the tone for the entire workplace.
4. Support Employees During Uncertainty: Job insecurity, financial struggles, and restructuring can severely impact employee morale. As seen with Jet Airways and Cognizant, failure to address employee concerns during these times can create a culture of fear and stress. Leaders must support their employees, communicate openly, and ensure they feel valued, even in difficult times.

Building a Winning Culture: Lessons from Companies with Exemplary Leadership

There are several real-life examples of companies that have successfully built and maintained a positive culture. These examples offer valuable insights into how a strong organisational culture can drive long-term success:

1. Netflix: The Culture of Freedom and Responsibility: Netflix is known for its “culture of freedom and responsibility,” where employees are given the autonomy to make decisions but are held accountable for the results. Netflix’s culture encourages risk-taking and innovation while reinforcing the need for accountability and transparency. Their famous culture deck, which outlines the company’s values, emphasises that employees are expected to act in the company’s best interest without the need for heavy supervision. Netflix
2. Zappos: The Customer-Centric Culture: Zappos has built its success on a culture centred around delivering happiness to customers and employees. The company’s CEO, Tony Hsieh, was a strong advocate for a positive work environment, believing that happy employees lead to happy customers. Zappos is famous for offering new hires money to quit if they feel the job isn’t the right fit. This ensures that those who stay are genuinely passionate about the company’s culture and values. Zappos Family of Companies
3. Patagonia: The Purpose-Driven Culture: Patagonia’s company culture is rooted in its mission to save the planet. The company is well-known for its strong environmental and social values, and it attracts employees who are passionate about sustainability. Patagonia's leadership has created a culture where employees feel empowered to contribute to the company's purpose, with initiatives like paid time off for environmental activism. This alignment between company purpose and employee passion drives high levels of engagement and retention. Patagonia
4. Google: The Innovation Culture: Google’s culture is famous for encouraging innovation and collaboration. Employees are given the freedom to spend 20% of their time on projects they are passionate about, which has led to some of the company’s most successful products (e.g., Gmail). Google promotes an open, transparent environment where employees can voice their ideas and concerns directly to leadership through forums, internal Q&A sessions, and regular feedback loops. 谷歌
5. Salesforce: The Ohana Culture: Salesforce refers to its company culture as “Ohana,” the Hawaiian word for family. This culture promotes equality, inclusivity, and giving back to the community. Salesforce consistently ranks as one of the best workplaces because of its focus on employee well-being and social responsibility. The company offers generous benefits, volunteer time off, and wellness programs. Additionally, Salesforce works to close the gender pay gap and promotes diversity at all levels. Salesforce
6. Tata Group: A Legacy of Ethics and Employee Welfare: Tata Group, one of India’s largest conglomerates, is renowned for its ethical business practices and employee-centric culture. The company’s strong values of integrity, fairness, and social responsibility are deeply ingrained in its operations. Tata’s commitment to employee welfare is evident in its numerous healthcare, education, and work-life balance initiatives. During times of crisis, such as the 26/11 attacks in Mumbai, Tata’s leadership took extraordinary steps to support both their employees and their families, offering financial and emotional aid to those affected. Tata Group
7. Infosys: Fostering Innovation and Continuous Learning: Infosys, one of India’s leading IT companies, has cultivated a culture of continuous learning and innovation. It emphasises the importance of employee development and offers numerous opportunities for skill enhancement through its Infosys Global Education Center. The company promotes an open-door policy, allowing employees to voice concerns and ideas directly to leadership. This transparent communication structure and commitment to growth have helped Infosys maintain its reputation as an employee-friendly organisation. 印孚瑟斯
8. Wipro: A Culture of Inclusivity and Social Responsibility: Wipro is recognised for its focus on diversity, inclusivity, and social responsibility. The company’s leadership is committed to creating an inclusive environment that values diversity. Wipro’s initiatives to close the gender gap and promote women in leadership roles, along with its focus on sustainability and corporate social responsibility (CSR), have made it a leader in ethical business practices. Employees are encouraged to participate in social impact projects, aligning personal values with the company's mission. 维布络
9. Mahindra & Mahindra: Empowering Employees and Emphasizing Work-Life Balance: Mahindra & Mahindra, one of India’s leading automotive companies, has developed a culture prioritising employee empowerment and work-life balance. The company encourages employees to take ownership of their projects and gives them the autonomy to make decisions. Additionally, Mahindra promotes wellness programs that support physical and mental health, recognising that a healthy work-life balance is crucial to sustained employee performance. Mahindra Group
10. Mindtree: People-First Approach and Collaboration: Mindtree has built a people-first culture focusing on employee collaboration and teamwork. The company emphasises inclusivity and encourages open communication, inviting employees at all levels to share their insights and feedback. Mindtree’s commitment to building a sense of community within the organisation has led to high employee engagement and satisfaction levels. The company also supports career development and has a strong mentorship program. Mindtree
11. HCL Technologies: Employee-Centric and Value-Driven Culture: HCL Technologies has implemented the "Employee First, Customer Second" (EFCS) philosophy, which empowers employees to take ownership and be leaders in their roles. The company believes that motivated and satisfied employees will naturally deliver better results for clients. HCL also values transparency and has created platforms where employees can provide feedback, suggest changes, and participate in decision-making processes. HCL Enterprise HCLTech

What Can Leaders Learn from These Cultures?

1. Prioritise People Over Profits Successful cultures are built around putting people first. This can mean employees, customers, or even broader social causes. The long-term benefits of happy, engaged employees far outweigh the short-term gains of focusing solely on numbers.
2. Align Values with Performance In each of these examples; the companies tie success to both performance and adherence to core values. Leaders should avoid promoting employees solely based on results and instead recognise those who embody the company’s culture and values.
3. Encourage Transparency and Accountability Strong cultures foster environments where communication is open and feedback is encouraged. Leaders should ensure they’re approachable and that employees feel safe to speak up about concerns, including toxic behaviour.
4. Empower Employees with Purpose and Autonomy Employees thrive when they’re given the freedom to innovate and the ability to connect with the company’s larger mission. Leaders should focus on empowering their teams by aligning individual goals with the company's broader purpose.
5. Ethics and Integrity Build Trust Tata Group exemplifies how ethical leadership and supporting employees in need can foster loyalty and long-term success. Leaders must prioritise integrity in decision-making and cultivate a culture of fairness.
6. Investment in Employee Development Pays Off Infosys demonstrates the power of continuous learning and employee development. Leaders who invest in their employees’ growth through training and skill-building programs will cultivate an engaged and innovative workforce.
7. Inclusivity and Social Responsibility Matter Companies like Wipro and Mahindra show that a commitment to diversity, inclusivity, and social responsibility creates a workplace where employees feel valued and motivated. Leaders must ensure that their culture reflects these values and encourages participation in meaningful CSR initiatives.
8. Empowerment Drives Innovation HCL and Mahindra illustrates how giving employees autonomy and encouraging ownership can lead to more innovative solutions and better overall performance. Leadership should create an environment where employees feel empowered to make decisions.
9. Work-Life Balance and Employee Well-being are Crucial In today’s demanding corporate environment, work-life balance is essential. Companies like Mahindra prioritise employee wellness and balance, ensuring their teams can perform at their best over the long term.

By learning from these real-life examples, leaders and CEOs can cultivate a healthy, high-performing workplace culture that values success and well-being. Toxicity, when left unaddressed, can destroy teams and organisations. But everyone wins when leaders actively build a culture of respect, accountability, and purpose. Leadership isn’t just about hitting targets or generating profits—it’s about creating an environment where employees can thrive, innovate, and feel proud of their work. By adopting practices that focus on ethical leadership, inclusivity, employee development, and empowerment, leaders can combat toxicity and foster a culture that drives business success and employee well-being.

Why Leaders Ignore Toxicity?

Many leaders are tempted to ignore toxicity, especially from high performers. A salesperson who brings in the most revenue or a manager who delivers projects on time might be challenging to let go, even if their behaviour is disruptive. But here’s the key takeaway: One toxic employee can poison an entire team.

In most cases, leaders rationalise toxic behaviour because the individual delivers results. However, promoting performance over people is a short-term strategy with long-term consequences. As CEO, the ultimate goal should be to align values with success. This means fostering a culture where respect, integrity, and collaboration are valued as much as hitting targets.

The Leadership Playbook: How to Address Toxicity?

Addressing toxicity in the workplace requires courage, consistency, and a clear action plan. Here are the steps leaders should take:

1. Address Toxic Behavior Immediately The longer toxic behaviour is allowed to fester, the more damage it will cause. As a leader, addressing issues as soon as they arise is crucial. This shows your team that you prioritise respect and well-being over short-term performance.
2. Tie Promotions to Both Results and Values A toxic employee who delivers results is still a liability. When evaluating performance, it’s essential to consider what the employee achieves and how they achieve it. Promotions and rewards should be tied to both measurable outcomes and adherence to the company’s core values.
3. Be Willing to Let Top Performers Go This is perhaps the most challenging step for leaders, but it’s also the most important. No matter how high-performing, keeping a toxic employee sends the wrong message to the rest of your team. You’re essentially saying that results matter more than integrity. In the long run, it’s better to part ways with a disruptive individual than to risk the entire team's morale.

Leadership for the Future: Building a Culture of Respect and Accountability

The most successful leaders understand that culture is their competitive advantage. A healthy, positive workplace culture improves employee well-being and drives higher levels of innovation, engagement, and performance.

1. Prioritize People Over Results Building a successful company doesn’t just mean hitting financial targets—it means creating a culture where people feel valued and respected. Mahindra & Mahindra excels at this, focusing on employee empowerment and work-life balance. Mahindra fosters a productive and healthy environment where employees can thrive by giving them autonomy and creating wellness programs.

2. Lead by Example: Your team is always watching. As a leader, your actions speak louder than any mission statement. Your team will follow suit if you demonstrate that respect, integrity, and accountability are non-negotiable. At Patagonia, leadership leads by example with its strong commitment to sustainability and social responsibility. This alignment between corporate values and employee purpose fosters a culture of engagement and accountability.

3. Create Safe Spaces for Open Communication A culture of respect and accountability thrives when employees feel safe to voice concerns. Mindtree, for example, has built a collaborative culture where employees are encouraged to provide feedback and share ideas. This open communication strengthens the company and fosters a strong sense of community among employees.

Leadership is About More Than Just Results

Ultimately, the role of a CEO or leader isn’t just to drive profits — it’s to create an environment where employees can thrive, innovate, and grow. Toxic behaviour is a direct threat to that environment. By addressing toxicity head-on, tying success to values, and leading with integrity, leaders can build a team that isn’t just productive but fulfilled.

A healthy culture isn’t just the right thing to do — it’s smart. Because when you build a culture of respect and accountability, everyone wins.

Take Action: Build a Better Workplace Today

As a leader, you hold the power to shape your organisation's future. Don’t let toxic behaviours derail your team’s potential.

Take a stand today!

Address toxicity, prioritise values, and create a culture where your employees feel empowered to grow and succeed. Your team is watching, and your leadership will determine whether they thrive or survive.

What steps will you take to build a healthier, more successful workplace?

Join the conversation!

Please share your thoughts, experiences, or questions in the comments below. Let’s work together to create environments where people and businesses can flourish. Leadership isn’t just about results—it’s about creating a legacy of respect, trust, and accountability.