DON’T LET YOUR CULTURE DESCEND INTO DISASTER When evidence of a toxic culture goes public, it’s disastrous for the entire institution involved. Leaders must take steps to mitigate against its emergence and invest in building the right environment, says Colin Ellis
T oxic culture is the story about culture every week in the media, many senior leaders refuse to take it seriously. For the benefit of clarity, a person can consider a culture to be toxic if they witness or are subject to, one or more of the following elements: bullying; harassment; racism; sexism; misogyny; misandry; homophobia; ageism; unwanted physical contact; verbal or emotional abuse; lack of workforce diversity; non-inclusive environment or behaviour; inequity of pay; inequity of conditions; a lack of trust; fear; favouritism; employee monitoring; and micromanagement. biggest risk facing every organisation today. Yet, despite there being a If just one of these elements is evident, it’s enough to bring an organisation or institution and its leaders to their knees. Look no further than the Confederation of British Industry (CBI) for a recent example of what can happen when you don’t actively manage the risk of toxic culture. WHEN TOXICITY IS EXPOSED In March, The Guardian reported that CBI CEO Tony Danker had stepped down amid investigations into his conduct. But it didn’t end there and it was only when The Guardian exposed the cultural issues that had taken root at the organisation
the independent review, the actions have yet to produce a meaningful restoration of the organisation’s reputation and revenue. THE NUMBER ONE DETERMINANT OF SUCCESS This is just one example of what can go wrong when an organisation, its board and senior leadership team either take their eyes off their culture or choose to
ignore its issues completely. Culture is, and always will be, the number one determinant of team and organisational success. Every piece of research will tell you this, yet there are those who have not yet caught up to how the world has changed. Parents are raising their children to expect better from the employers that they work for. Through their own experience, they recognise the importance of working for and with people who show respect, empathy and kindness, but who also know how to collaborate and behave in the right way to deliver results. It has always been possible to create a high-performance, values-based culture that gets the job done. Unfortunately however, few seem to have the stamina
that the CBI began to take them seriously. More than a dozen women then came forward with allegations of various forms of misconduct by other senior CBI staff members, including an allegation of rape at a staff party. An independent review was subsequently commissioned that shone a light on the practices of the organisation, which were made public and led to a mea culpa from then chairman Brian McBride. He hoped to stem the tide of more than 50 organisations that chose to terminate their membership with CBI. Earlier this year, the organisation reported a loss of £8.3m for 2023 due to the toxic workplace scandal, with membership income falling by 12 per cent. While CBI has now implemented a response to
34 Business Impact • ISSUE 4• 2024
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