Companies where employees may be forced into engaging or witnessing illegal, unethical activities often have toxic environments for workplace well being. If the criticisms being leveled against Valeant are true, it would be unsurprising to discover a poisonous corporate culture at play. For more on the unhealthy work environment at Enron, check out the documentary “Enron: The Smartest Guys in the Room.” Read more on Valeant here.
Is Your Corporate Culture a Ticking Time Bomb?
Corporate cultures that discourage employees from reporting wrongdoing are ticking time bombs. Situations like the Volkswagen scandal should be keeping senior executives up at night – what if there are legal and ethical breaches in their organizations that they’re not aware of? What if the employees in the know are too afraid to bring issues to their attention for fear of retaliation? Questions like these prove that creating a psychologically healthy workplace isn’t just in the best interest of employees – it’s another form of risk-management for CEOs who want to avoid becoming the next VW. Whistle blowers will only feel comfortable coming forward with essential information if the workplace culture is based on trust and encouragement. Here are two great reads on the VW scandal: Volkswagen says Whistle-Blower Pushed It to Admit Broader Cheating and VW Lost its Moral Compass in the Quest for Growth.