Company culture plays a critical role in the success of any organization. It’s the shared values, beliefs, and behaviors that shape the way employees work together and ultimately impact the company’s overall performance. A strong company culture can attract and retain top talent, boost productivity and profitability, and foster innovation.

What Does Bad Culture Look Like?

Some examples of “bad” workplace culture traits which negatively impact the workforce impact include: a lack of inclusion and diversity, or failing to recognize and reward employees for their achievements; inadequate communication between colleagues or departments; employee micromanagement; unbalanced workloads or unrealistic deadlines; overly demanding work hours or conditions that create high levels of stress for employees; a lack of recognition for innovation or creative problem-solving; unhealthy competition among employees which leads to feelings of insecurity and resentment. All these factors can lead to decreased productivity and unhappiness in the workplace.

Real World Bad Company Cultures

Left unchecked, a toxic or weak culture can lead to low morale, high turnover rates, and even financial failure. Here are some real-world examples of failed company cultures and the lessons we can learn from them.

1. Enron, once the seventh-largest company in the United States, collapsed in 2001 due to its unethical business practices and a toxic corporate culture. The company’s senior leadership encouraged a cutthroat, win-at-all-costs culture that led to fraudulent accounting practices, inflated stock prices, and the loss of billions of dollars in shareholder value. Enron’s failure serves as a cautionary tale for leaders to prioritize ethical behavior and avoid the short-term gain at the expense of long-term sustainability.
2. Uber, the ride-hailing company, faced significant public scrutiny in recent years due to allegations of sexual harassment, discrimination, and a lack of accountability for its leadership. The company’s cutthroat, aggressive culture led to a high turnover rate among employees and negative publicity that affected its reputation and stock prices. The lesson here is that a company’s culture should prioritize respect, inclusivity, and accountability to avoid alienating employees, customers, and stakeholders.
3. WeWork, a co-working startup, was once valued at $47 billion but experienced a rapid decline after its failed IPO and the exposure of its CEO’s questionable behavior. The company’s culture was centered around its CEO’s vision, and its focus on growth at all costs led to unsustainable business practices, including excessive spending and a lack of transparency. WeWork’s example highlights the importance of a healthy corporate culture that encourages open communication, accountability, and a focus on sustainable growth.
4. Wells Fargo, one of the largest banks in the United States, faced significant public backlash after revelations of a fake accounts scandal. The bank’s aggressive sales culture, which incentivized employees to meet unrealistic sales targets, led to fraudulent activity and the opening of millions of unauthorized accounts. The scandal led to millions of dollars in fines, a tarnished reputation, and a loss of trust from customers. The takeaway from Wells Fargo’s example is that a company culture that prioritizes short-term results over ethics and customer trust can lead to long-term financial damage.

These real-world examples of bad company cultures serve as valuable lessons for leaders and employees alike. A strong, positive culture that prioritizes ethical behavior, inclusivity, open communication, and sustainable growth can help organizations achieve long-term success. On the other hand, a toxic or weak culture that prioritizes short-term results at the expense of ethics and long-term sustainability can lead to financial failure and reputational damage. As such, it’s crucial for leaders to prioritize the development and maintenance of a healthy company culture.

Learn More About Great Culture!

 If you want to learn more about these culture models and how to apply them in your own organization, join the waitlist for my new book “Culture Secrets”. This book will provide even more insight into inspiring companies such as WD-40 Company, Panasonic Global Automotive, the electric cooperatives of America, Menlo Innovations, and Mercedes-Benz Stadium and provide the valuable information needed to empower you on your journey towards creating a successful human-focused workforce culture.

Before you go….Here’s some more exciting news!

P.S. I’ve launched a podcast. It’s called Culture Secrets. It’s filled with a lot of information I couldn’t fit in the book and also gives you in-depth interviews with a lot of the experts who I introduce you to inside the pages of the book, too. So if you love learning about workplace culture, take a minute and subscribe. Also, feel free to share it out with others who you feel will enjoy the content too. You can find links to all the most popular listening platforms on my website.