Throughout my career in leadership roles across various organizations and regions, I’ve observed a wide range of workplace cultures. Some inspire and empower employees, while others merely function, and a few create toxic environments that harm both performance and people.
At one end of the spectrum, there are organizations with healthy cultures built on transparency, trust, and mutual respect. These workplaces encourage open communication at all levels. Authority is appropriately delegated, and decisions are made collaboratively. Mistakes are seen as opportunities for growth. This type of culture motivates individuals, energizes teams, and sparks innovation.
In these environments, employees wake up excited to go to work, feel a sense of ownership over their tasks, and are driven by a clear sense of purpose. Creativity is valued, managers offer guidance rather than micromanaging, and mental and emotional well-being are prioritized.
Then, there are organizations with what I call a “mixed” culture. These workplaces are neither toxic nor inspiring. While they get the job done, they lack emotional connection and often operate like machines. Rules around attendance and performance are rigid. Communication is functional, with little focus on building relationships. Training opportunities are limited, and creativity is stifled. Leadership tends to follow an outdated, top-down approach. Employees do their work without much emotional investment, and the potential for growth remains untapped.
At the extreme other end of the spectrum are toxic organizations, where the culture is not just ineffective, but actively destructive.
In these companies, one individual—usually the owner, CEO, or managing director—controls every decision. Micromanagement is the standard. Even senior professionals have little to no autonomy. Internal operations are driven by fear rather than trust, and communication is top-down, often involving public criticism, humiliation, and shouting. A circle of informants keeps the leader updated on internal gossip, further creating an atmosphere of paranoia and distrust.
Delegation is practically non-existent, and leadership is authoritarian at best, abusive at worst. The situation is exacerbated when the top leader lacks formal education or management experience, dismissing the expertise of professionals with phrases like “Finance is just common sense” or “Strategy is nothing new.” Senior executives are often ridiculed in front of their teams, and all major decisions—whether in procurement, sales, or finance—are made by one person.
In these organizations, the leader takes credit for successes but shifts blame for even the smallest failures onto department heads, sometimes penalizing them financially for trivial mistakes. There is little reward for hard work, only reprimands. Those with the option to leave do so quickly, while others remain, suffering from constant stress and, over time, severe mental health issues.
Although some of these companies may seem successful externally—boasting strong products, decent infrastructure, or profitability—they are internally chaotic and toxic. There is no clear organizational structure, no role clarity, and no empathy. The workplace becomes a psychological battlefield, damaging careers and eroding dignity. Mental well-being becomes an afterthought.
What makes this situation even worse is the lack of regulatory oversight. Many of these organizations are unlisted, family-run, or led by a single promoter with no independent board to monitor their actions. Governance is informal, and professionalism is often overlooked. It’s time for change.
Just as we have financial audits and quality inspections, there is an urgent need for mechanisms that assess organizational culture and psychological safety. A regulatory framework, perhaps modeled in developed countries, could help certify companies based on factors like ethical leadership, employee well-being, governance structures, and managerial accountability.
Such a system could identify toxic workplaces, enforce necessary reforms, and prevent long-term damage to human capital. Investors, professionals, and job-seekers deserve not only to see balance sheets but also to understand the culture within a company.
Workplaces should inspire, not intimidate. Mental health is no longer just a personal concern; it’s a workplace responsibility. Toxic cultures do not only break people—they eventually break organizations.
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