A definition and proposed solution for the problem of Toxic Leadership in the business world by establishing consequences for all licensed managers, CEO\'s and the like.

1. Detoxing Corporate America
Christy Parker
National University
2010

2. What Toxic Leadership Is
• Leadership by those who are “maladjusted,
malcontent…malevolent…[and] malicious.”
• Those who “rise to their situations in life over the
carcasses of those who work for them.”
• Leaders who by inflicting “pain…[strip] people of
their self esteem.”

3. Consequences of Toxic Leadership
• Humiliation, belittling & berating behavior destroys creativity,
collaboration and job satisfaction.
• Public embarrassment and harassment lead to mental and emotional
breakdowns and deviant behavior by subordinates
• Productivity slowed down or halted as subordinates try to emotionally
recover or exhibit deviant behavior to stop from being controlled (e.g. –
depression, fear, sabotage, absenteeism, and withholding effort)
• Destroys group morale over time with broken trust in the leaders ability to
cope with and work well with others

4. Enron: Organizational Break Down
• Bullying, “explosive tantrums”,
relentless criticism, disrespect,
ruthlessness, callousness, shunning,
manipulation, coercion, control and
arrogance.
• Brutal appraisal system called “rank
and yank”
• Enron corporation destroyed itself
systemically, along with the
financial firm Arthur Anderson
• Further research is needed to learn
how this can be prevented in the
future

5. The Army: A Change from Top Down
• Lower levels of toxic leadership in last 10 to 20 years due to creation of
Fieldbook 22-100
• 360 degree evaluations & climate surveys pros and cons
• Systemic and mandatory handbooks, training and certification for every
level of leadership
• An understanding of how toxic leadership destroys units and productivity
• Board of Review with strong punitive ability/consistently applied to
prevent inappropriate (toxic) leadership.

6. Military & Professional World
Compared
Military Toxic Level
• 1/3 to 1/2 of military
audiences stated they have
had a toxic leader (Reed,
2010)
Professional World Toxic Level
• 1/3 to 85% range of people
working in the corporate
world stated having toxic
leaders
• 90% of nurses reported
verbal abuse by physicians
• 100% of banking profession
stated having had a toxic
leader
– (Reed, 2009; Reed,2010)

7. Current Business Ethical Guidelines
• EEOC – prevents discrimination only
• BBB – oversees “consumer-to-business” and “business-to-
business” complaints only
• Legal Court System – No capacity to systemically prevent
psychologically abusive leaders and managers from retaining
leadership positions

8. Other Professions Compared
• Required Licensing (e.g. – psychotherapy,
physician, professor, accountant, engineer,
nurse, police officer, pilot, lawyer…)
• Training and Certification (e.g. – (above)
including trades as construction, tile setting,
brick laying, cabinetry making…)
• codes of ethics strictly enforced by an objective
board of ethics to ensure they do “no harm”

9. What Corporate World Is Missing
• Code of Ethics not systemic throughout corporate
America
• Profession of leadership and management has no
current law mandating licensing, training or
certification
• No objective Board of Ethics

10. Review Boards &
Systemic Objective Enforcement
Army
• Army Review Board Agency
provides unified, objective
governing body
• Mandatory training for each
level of leadership
• Required certification
• Unethical and abusive
behavior punished
Medical Field
• State medical boards
• Medical Agency & Hospital
Boards
• Regular mandatory re-
training and certification
within specialty
• Unethical and abusive
behavior punished by
objective system

11. Call for Research
• Government Leadership &
Management Act?
• State Board of Leadership &
Management?
• Independent training and
certifying agencies
• Mandatory licensing, training
and certification with annual
or regular renewal

12. Findings
• Business & corporate world have no adequate system in place to diminish
or prevent toxic leadership systemically throughout corporate America.
• Almost every other profession in the US has mandated licensing, training
& certification backed by boards who uphold and objectively punish
unethical behavior as outlined in their codes of ethics or codes of conduct.
• Unethical behavior including toxic leadership in the work place will not be
controlled and diminished in corporate America until some punishable
form of standardized licensing, training and certification becomes
systemically required, in order to hold certain positions of leadership and
management accountable.

13. References, 1 of 2
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