The Culture You Tolerate: Leadership’s Role in Shaping Organizational Behavior

"The culture of any organization is shaped by the worst behavior the leader is willing to tolerate."—Gruenter and Whitaker

Culture doesn’t happen by accident. It is created, reinforced, and perpetuated by what leaders permit, reward, and ignore. This powerful quote by Gruenter and Whitaker serves as a reminder that leaders are the gatekeepers of organizational culture. The behaviors you allow, whether actively or passively, set the tone for what is acceptable and what is not.

The Leader’s Role in Shaping Culture

Culture is not defined by mission statements or glossy values on a website; it’s defined by daily actions and interactions. Leaders influence culture not just by what they say, but by what they do, and by what they allow others to do. When poor behavior goes unchecked, it sends a clear signal: “This is acceptable here.”

What leaders tolerate becomes the norm.

• If toxic behavior like bullying, gossiping, or undermining goes unaddressed, it will thrive.

• If unethical practices are overlooked, they will become embedded in the organization’s DNA.

• If accountability is absent, mediocrity and dysfunction will follow.

The reality is, culture isn’t shaped by the best behavior in an organization; it’s shaped by the worst behavior that is tolerated.

When Leaders Are the Problem

It’s not just about tolerating others’ bad behavior, sometimes, leaders contribute to the problem through their own actions. Leaders who exhibit poor behavior themselves, or fail to uphold the organization’s values, create a double standard that erodes trust and morale. Examples include:

• Micromanagement: Stifling creativity and autonomy.

• Favoritism: Rewarding loyalty over competence, creating resentment.

• Gossip or Criticism: Undermining individuals in private or public forums.

Even worse, some leaders tolerate toxic individuals because the behavior doesn’t directly affect them. Siding with known bullies, turning a blind eye to their actions, or excusing them because “I like them” is one of the most harmful forms of enabling. This not only perpetuates a toxic environment but also alienates employees who feel unsupported and unprotected.

The Consequences of Tolerating Poor Behavior

1. Erosion of Trust:
   When employees see leaders ignoring or excusing bad behavior, it undermines their trust in leadership. They may feel unsafe or unvalued, which leads to disengagement.

2. Increased Turnover:
   Talented employees won’t stick around in an environment where toxicity is tolerated. They’ll leave for organizations where they feel respected and supported.

3. Mediocre Performance:
   Poor behavior distracts from productivity, stifles collaboration, and lowers morale, ultimately impacting the organization’s bottom line.

4. Damaged Reputation:
   Toxic cultures don’t stay hidden. They damage an organization’s reputation, making it harder to attract top talent and maintain customer trust.

How to Build a Culture That Thrives

1. Set Clear Expectations:
   Define acceptable and unacceptable behaviors and ensure everyone, including leadership, is held to the same standard.

2. Address Issues Promptly:
   Ignoring bad behavior allows it to fester. Address it directly, whether it’s coming from an employee, a peer, or even yourself.

3. Lead by Example:
   Demonstrate the behaviors you want to see. Integrity, respect, and accountability must start at the top.

4. Create Safe Channels for Feedback:
   Encourage employees to report concerns without fear of retaliation. Transparency and openness are key to fostering trust.

5. Stop Rewarding Toxicity:
   Leaders often overlook poor behavior in high performers. However, allowing toxic individuals to thrive sends the wrong message. Address the issue, no matter how “valuable” the person appears to be.

6. Commit to Self-Awareness:
   Regularly assess your own behavior. Are you modeling the culture you want to create, or are you contributing to the problem?

A Final Thought

Leaders shape culture not just by their actions but by their inactions. Tolerating poor behavior, whether from others or yourself, creates a ripple effect that erodes trust, stifles performance, and damages morale. Siding with bullies or overlooking toxic individuals because they don’t target you is a dangerous trap that creates an uneven, unsafe environment for others.

The culture of any organization reflects the values its leaders are willing to enforce. Ask yourself: What am I tolerating, and what message is it sending? Because in leadership, what you permit is what will persist.

Choose to be a leader who sets the standard, holds everyone accountable, including yourself, and builds a culture where respect, integrity, and excellence thrive.