Why Caring About Corporate Culture Could Save Your Company from Ruin

Let’s delve into the concept of toxic work cultures, something many of us have encountered at some point in our professional lives.

A toxic workplace culture is akin to stepping into a realm of negativity, where harmful behaviors, attitudes, and practices thrive. Bullying, harassment, discrimination, favoritism, and micromanagement become unwelcome companions on your Monday morning journey to work.

The Impact of Toxic Work Culture: Lessons from Uber

One prominent example that epitomizes a toxic work culture is Uber. In 2017, a former employee took to the internet to share a scathing account of her distressing encounters with sexual harassment and discrimination within the company. This blog post quickly went viral, triggering a cascade of similar stories from other employees. As a result, an internal investigation took place, culminating in the resignation of CEO Travis Kalanick.

The toxic work culture at Uber took a severe toll on the well-being of its employees and the company’s overall success. Reports of harassment and discrimination tarnished the company’s reputation, with female employees feeling unwelcome and unsupported. The consequences were profound, with high turnover rates and low morale causing a ripple effect of costly problems.

The toxicity permeated even the upper echelons of the company: Travis Kalanick’s aggressive leadership style and disregard for regulations led to legal and regulatory challenges. Furthermore, negative publicity and high turnover rates made it difficult for Uber to attract and retain top talent, affecting the company’s financial performance.

Addressing Toxic Work Culture: Steps Taken by CEO Dara Khosrowshahi

In response to these challenges, new CEO Dara Khosrowshahi implemented several measures. He established a zero-tolerance policy against harassment and discrimination, demonstrating his commitment to cultivating an inclusive and supportive workplace culture. Changes to policies and procedures, such as expanding parental leave and increasing transparency around compensation, were also implemented.

These initiatives had a profound impact on Uber’s culture and bottom line. Employee morale improved, and turnover rates decreased. In addition, legal and regulatory issues were mitigated, and financial performance showed signs of improvement.

Nonetheless, the effects of toxic work cultures can linger, and their resolution requires persistent effort. Uber continues to grapple with the aftermath of its previous toxic culture. Repairing the damage wrought by broken trust takes time and unwavering dedication from leadership.

One common mistake leaders make is failing to connect the need for urgency in advancing progress with the importance of fostering a healthy culture. Instead, they often focus on strategic changes, mistakenly assuming that altering processes or systems alone will remedy the culture. However, this approach falls short.

Creating a Positive Work Environment: Best Practices for Leaders

The slow pace of change may dishearten leaders who genuinely strive to improve toxic cultures. Urgency is recognized, and fast results are desired, but trust cannot be rebuilt overnight. This can lead to frustration for leadership teams who genuinely care about their employees.

Ideally, toxic cultures should be preempted altogether through intentional action. Leaders must model the behavior they wish to see and establish clear expectations for all employees. Open communication should be encouraged, creating a safe space for employees to voice their opinions and concerns. Responsiveness to employee needs and concerns and swift action, when issues arise, is crucial. Actions, not empty promises, are what employees truly seek.

Investing in employee development is vital for businesses to stay competitive. By providing opportunities for learning, skill expansion, and personal growth, companies empower employees to become more effective, efficient, and satisfied with their work. This investment results in heightened productivity, higher-quality output, and increased employee loyalty, engagement, and retention rates.

Furthermore, investing in corporate culture is equally imperative, as it permeates every facet of an organization. A healthy corporate culture fosters trust, transparency, and open communication, leading to an engaged and productive workforce. It also safeguards a company’s reputation, positively influencing how customers, partners, and investors perceive it. Conversely, a negative culture can damage one’s reputation and lower morale.

If your organization is struggling with a toxic culture, or even a disengaged one, CAREtoLead® for Organizations can help. Learn more about it here.


  • Huet, E. (2019, October 22). Uber’s cultural turnaround: A case study. Forbes. Retrieved from https://www.forbes.com/sites/erikhuet/2019/10/22/ubers-cultural-turnaround-a-case-study/?sh=633e7380497c


Share your thoughts:


Submit a Comment

Your email address will not be published. Required fields are marked *