When Culture Goes Wrong: Lessons from High-Profile Failures
Culture isn’t just a side project for HR—it’s the foundation of a company’s success or failure. When culture is toxic, it creates cracks in the organization that eventually lead to public scandals, employee burnout, or even collapse. By looking at high-profile cases of cultural failures, leaders can learn valuable lessons about what went wrong and, more importantly, how to avoid making the same mistakes.
Uber: The Price of a Toxic Environment
Uber, under its early leadership, became a poster child for toxic workplace culture. Reports of harassment, discrimination, and unethical behavior emerged from within the company, creating an environment where employees felt unsafe and undervalued. This toxic culture wasn’t confined to the workplace—it bled into the company’s public image, sparking boycotts and backlash.
What Went Wrong:
Leadership tolerated and, in some cases, encouraged unethical behavior to prioritize growth at all costs.
Employees lacked trust in leadership, with little accountability or support for addressing internal concerns.
A win-at-all-costs mentality eroded collaboration and trust, both internally and externally.
The Lesson:
Leaders must prioritize ethical behavior and create safe environments for employees to voice concerns. Accountability starts at the top, and a lack of transparency or support can quickly spiral into a full-blown cultural and PR crisis.
Wells Fargo: When Pressure Breeds Corruption
Wells Fargo’s cultural failure centered on its aggressive sales-driven environment. Employees were pressured to meet unrealistic quotas, leading to widespread unethical practices, including the creation of millions of fake accounts. The toxic culture of fear and pressure didn’t just harm employees—it severely damaged the company’s reputation and resulted in billions in fines.
What Went Wrong:
Unrealistic expectations drove employees to unethical behavior as they feared losing their jobs.
Leadership failed to listen to concerns and foster a culture of accountability.
A short-term focus on sales undermined long-term trust with customers and employees.
The Lesson:
Unrealistic demands and pressure kill trust and morale. Leaders must balance high expectations with support and ethical practices to ensure the long-term health of the organization.
WeWork: When Vision Overpowers Reality
WeWork’s early promise as a disruptor in the coworking space was overshadowed by its cultural issues. Under its previous leadership, WeWork promoted a culture of excess, with lavish spending and a lack of focus on accountability. The company’s internal dysfunction ultimately derailed its IPO and led to massive layoffs.
What Went Wrong:
Leadership’s excessive spending and lack of financial discipline created instability.
The culture prioritized hype and growth over sustainability and employee well-being.
A lack of checks and balances within leadership led to decisions that harmed the company’s long-term viability.
The Lesson:
Vision is critical, but it must be grounded in reality. Leaders need to set a culture of discipline, accountability, and sustainability to ensure long-term success.
How Leaders Can Avoid These Pitfalls
These cases show that toxic culture doesn’t just harm employees—it creates ripple effects that damage trust, reputation, and the bottom line. Leaders can learn from these failures by:
Building accountability into leadership at every level.
Fostering open communication where employees feel safe to share concerns.
Prioritizing ethical behavior and long-term growth over short-term wins.
Culture goes wrong when leaders neglect it. By focusing on creating environments of trust, collaboration, and accountability, leaders can ensure their organizations avoid the pitfalls of toxic culture and instead build a foundation for sustainable success.