Toxic Organizational Cultures and Leadership

1 Why Culture Matters

DOI: 10.4324/9781003330387-3

1.1 Introduction

The costs of a dysfunctional corporate culture are substantial.

Toxic cultures have been linked to higher cases of mortality, unethical behaviour, and even criminality. A Gallup study of more than 7,000 adults in the USA¹ revealed that one in two had left their job to get away from their manager in order to improve their overall life at some point in their career. BreatheHR (UK) estimated the cost of toxic workplace culture in SMEs alone is around £15.7bn per year (2020),² and the Society for Human Resource Management (SHRM) in the USA found that toxic workplace cultures cost an estimated $223bn over the five years prior to 2019.³

The Financial Conduct Authority, the UK’s ...