The culture of any organization is shaped by the worst behavior the leader is willing to tolerate

– Steve Gruenert and Todd Whitaker

Imagine walking into a workplace where people are consistently late to meetings, colleagues speak rudely to one another, or some team members take credit for others’ work.

Now imagine the leader of this team doesn’t address these issues. Over time, these behaviors become the norm, and before you know it, they start defining the company culture. This scenario brings to life a powerful idea: the culture of any organization is shaped by the worst behavior the leader is willing to tolerate.

In this article, we explore why many leaders tolerate bad behavior, the negative impact it can have, and how leaders can improve their workplace by addressing problematic behavior head-on.

Why Do Leaders Tolerate Bad Behavior at Work?

It’s easy to assume that any bad behavior or even toxic behavior would be addressed quickly in any professional environment to avoid a bad workplace culture. Still, many leaders allow it to persist for various reasons.

1. Fear of Conflict: Some leaders are afraid to confront bad behavior because they dislike conflict. It’s uncomfortable to address issues with employees, especially if the person involved is seen as strong-willed or difficult to manage. Leaders might avoid difficult conversations to keep the peace, but this short-term peace comes at the cost of long-term problems.

2. The “Star Performer” Dilemma: Sometimes, the person displaying bad behavior is one of the company’s top performers. Leaders may hesitate to take action because they fear losing that individual’s skills or contributions. They might think, “This person brings in great results, so maybe we can overlook their behavior.” However, this tolerance can lead to a toxic environment for the rest of the team.

3. Lack of Awareness: Some leaders may not realize how damaging certain behaviors are to the team because they are not closely involved with day-to-day interactions. If bad behavior is subtle, like exclusionary actions or passive-aggressive communication, it might go unnoticed until the culture has already shifted in a negative direction.

4. Pressure for Results: In fast-paced environments where hitting targets and deadlines is critical, behavior can take a back seat. Leaders may prioritize performance over people, tolerating poor conduct if the team delivers results.

The Impact of Tolerating Bad and Negative Behavior

Bad behavior creates a negative culture in the workplace. Hence, the consequences of allowing bad and even toxic behavior to continue are significant and can ripple throughout the organization.

1. Erosion of Trust: When leaders don’t address poor behavior, trust within the team erodes. People may feel that their concerns aren’t valued or that there is no accountability. This can lead to disengagement, lower morale, and a lack of respect for the leadership.

2. Lowered Standards: If employees see that certain behaviors are tolerated, even rewarded, it lowers the overall standards of behavior in the organization. What starts as one person’s bad habits can soon spread to others, as people begin to believe that such conduct is acceptable.

3. Loss of Good Talent: High performers who are team players often leave toxic environments because they do not want to be part of a culture where negative behavior is allowed to thrive. This can lead to high turnover rates, which affect the organization’s productivity and reputation.

4. Damage to Diversity and Inclusion Efforts: Bad behavior that goes unchecked can undermine a company’s efforts to build an inclusive environment. If certain groups are marginalized or mistreated, they may feel unwelcome or unsupported, which can lead to a less diverse workforce.

What Leaders Can Do to Address Bad Behavior and Create a Positive Work Environment

Leaders must take active steps to address negative behavior to create a positive and high-performing work environment. Here’s how:

1. Lead by Example: Leadership starts from the top. Leaders need to model the behavior they expect from their teams. If you, as a leader, demonstrate respect, openness, and professionalism, your team is more likely to follow suit.

2. Have the Difficult Conversations: While it can be uncomfortable, addressing bad behavior directly is essential. Approach the conversation with the goal of improvement, not punishment. Be specific about the behavior that needs to change, provide examples, and offer support for how the individual can improve.

3. Set Clear Boundaries: Establish clear expectations for behavior and communicate them to the entire team. Employees need to know what is and is not acceptable in the workplace. It’s important to apply these boundaries consistently—everyone should be held to the same standards.

4. Encourage Positive Behavior: Reward and recognize positive behavior. When employees see that professionalism and collaboration are valued, they are more likely to engage in these behaviors. Creating a culture of recognition can shift the focus from tolerating bad behavior to celebrating good conduct.

As the quote at the start of this article says: the culture of any organization is shaped by the worst behavior the leader is willing to tolerate. Considering the damage of bad behavior; whether it comes across as aggressive behavior, inflated egos (often due to a low degree of self-worth), a liking to authoritative acts, intolerance towards specific groups, or something completely different – handling hurtful behavior is of utmost importance for the organization and the well being of all employees.

Some leaders may find it too difficult to confront people who are hurting the team and thus the organizational culture – for various reasons as described above. Then it is time to consider if a leadership position is the right role for you. A ‘leader’ who does not ensure the psychological safety of the team is not fit for a leadership role. Leadership is not for everybody.

The Long-Term Benefits of Addressing Bad Behavior

When leaders address bad behavior, they are not just solving an immediate problem—they are shaping the future culture of the organization. Over time, addressing issues head-on leads to:

• Increased Trust: Teams are more likely to trust leaders who hold everyone accountable and are transparent about expectations.
• Improved Team Morale: When employees feel respected and know that toxic behavior won’t be tolerated, they are more likely to be engaged and motivated.
• Stronger Performance: A positive culture where people feel safe and supported leads to higher productivity and innovation. Employees can focus on doing their best work rather than dealing with internal conflicts or toxic dynamics.

Let’s take two examples to illustrate the consequences of how you as a leader handle bad or toxic behavior (names are fictitious).

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FURTHER READING: What is Psychological Safety and How to Create it?

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Examples of Bad Behavior and its Effect on the Workplace Environment

The following presents two examples of how a leader may address or fail to address harmful workplace behavior and the consequences thereof:

Example 1: A Company That Lets Bad Behavior Slide

Company: “InnovateX”

InnovateX, a medium-sized tech company, was known for innovation and growth. However, under the surface, a toxic environment was brewing. One of their top developers, Mark, had been delivering outstanding results, consistently meeting targets and pushing the company’s product line forward. But Mark also had a bad reputation in the office. He regularly interrupted others in meetings, belittled teammates, and took sole credit for work that was often collaborative. His behavior made others feel undervalued, but his skills were so highly regarded by management that they turned a blind eye, afraid of losing their star performer.

Over time, the effects of Mark’s behavior became apparent. High-performing team members began to leave the company, citing stress, poor morale, and the toxic atmosphere. New hires struggled to fit into the team and were quickly discouraged. Despite delivering strong financial results in the short term, InnovateX began to see a long-term decline in employee retention and innovation. Talented employees were moving on to companies where they felt appreciated, and InnovateX struggled to maintain the same level of creativity and productivity.

By the time leadership recognized the depth of the problem, it was too late. They had lost some of their best people, and the company’s reputation as a toxic workplace made it difficult to attract top talent. InnovateX had prioritized short-term success over long-term culture, and it cost them dearly.

Example 2: A Leader Who Took a Stand

Company: “GreenWave Solutions”

At GreenWave Solutions, a mid-sized environmental consultancy, a similar situation arose. Their project manager, Sarah, was highly skilled and consistently delivered results on time. However, Sarah’s leadership style involved micromanaging and publicly criticizing her team members. Her colleagues began to feel demoralized, and several considered leaving the company due to the toxic environment she was creating.

GreenWave’s CEO, David, was aware of Sarah’s value to the company but also recognized that her behavior was hurting the broader team. Rather than ignoring the problem, David decided to address it head-on. He sat down with Sarah and had a frank conversation about the impact of her behavior, providing specific examples of how it was affecting the team. He offered her the chance to work with a leadership coach to improve her management skills, focusing on building trust, communication, and team empowerment.

At first, Sarah was resistant, but with time and support, she began to change her approach. She learned to give her team more autonomy and started providing constructive feedback in private rather than publicly shaming her colleagues. The change in Sarah’s behavior had a noticeable effect on the team: morale improved, employees felt more valued, and productivity increased. GreenWave’s culture became one of mutual respect and collaboration, which attracted new talent and strengthened the company’s reputation in the industry.

David’s willingness to address the issue and offer support, rather than simply dismissing Sarah, resulted in a stronger team and a more positive work environment. It also sent a clear message to the rest of the company that toxic behavior wouldn’t be tolerated, no matter how skilled the employee was.

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FURTHER READING: How to Lead, Manage and Motivate Knowledge Workers

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Summing Up the Cases:

These two examples illustrate two different paths a company can take when faced with poor behavior that harms the company culture.

InnovateX chose to ignore the issue, prioritizing short-term gains over long-term culture, which ultimately led to talent loss and declining performance.

On the other hand, GreenWave Solutions took a proactive approach by addressing the behavior and offering support. This resulted in a more engaged and productive team.

Leaders addressing bad behavior early thus strengthen their team and, thereto, build a more resilient and positive company culture.

Leadership Courage is Key to Building a Strong Culture

Creating and maintaining a positive company culture requires leadership courage. It can be challenging to confront bad behavior, especially when it involves high performers or difficult personalities. However, addressing these issues is critical to the long-term success of both the team and the organization.

Leaders must be willing to make the hard choices and have the difficult conversations, knowing that the culture they build today will define their organization’s future. The standard of behavior a leader sets and enforces will be the foundation upon which the company’s culture stands.

Showcase the behavior and the culture you want to experience.

Further Reading

Here is a list of relevant research for you who are interested in learning more:

Booth, J. E., Shantz, A., Glomb, T. M., Duffy, M. K., & Stillwell, E. E. (2020). Bad bosses and self-verification: The moderating role of core self-evaluations with trust in workplace management. Human Resource Management, 59(2), 135–152.

Feijó, F. R., Gräf, D. D., Pearce, N., & Fassa, A. G. (2019). Risk factors for workplace bullying: A systematic review. International Journal of Environmental Research and Public Health, 16(11). International Journal of Environmental Research and Public Health.

Hassan, M. M., Bashir, S., Raja, U., Mussel, P., & Khattak, S. A. (2021). Personality and balanced psychological contracts: The mediating roles of epistemic curiosity and rule-following behavior. Business Ethics, the Environment & Responsibility, 30(1), 102–115.

Leymann, H. (1996). The content and development of mobbing at work. European Journal of Work and Organizational Psychology, 5(2), 165-184.

Matos, K., O’Neill, O., & Lei, X. (2018). Toxic leadership and the masculinity contest culture: How “win or die” cultures breed abusive leadership. Journal of Social Issues, 74(3), 500–528.

Sarwar, A., Naseer, S., & Zhong, J. Y. (2020). Effects of bullying on job insecurity and deviant behaviors in nurses: Roles of resilience and support. Journal of Nursing Management, 28(2), 267–276.

Wiernik, B. M., & Ones, D. S. (2018). Ethical employee behaviors in the consensus taxonomy of counterproductive work behaviors. International Journal of Selection and Assessment, 26(1), 36–48.

Yang, L. Q., Zheng, X., Liu, X., Lu, C. Q., & Schaubroeck, J. M. (2020). Abusive supervision, thwarted belongingness, and workplace safety: A group engagement perspective. The Journal of Applied Psychology, 105(3), 230–244.