Critical thinking and the'cult'in culture

THE line between a strong company culture and a corporate cult is thinner than you think.

With unquestioning loyalty, the silencing of dissent, a false sense of superiority, and the exploitation of insecurities, even respected companies can succumb. When buzzwords replace logic and challenging the status quo is seen as disloyal, employees keep quiet. And the foundations of a oncehealthy company begin to crack.

The Emperor's New Clothes: The Arrogance of Infallibility When companies succumb to the intoxicating allure of their own 'superiority', convinced of their own perfection and immune to criticism, they are oblivious to threats. This hubris, where leaders demand 'allegiance', smothers facts.

Volkswagen, blinded by its own brilliance, ignored engineers' warnings creating an epic emissions tale that shows even emperors can't escape reality.

Breeding Blindness?

Ironically, the boardroom, intended for strategic deliberation, can devolve into a place where pressure to conform trumps the courage to challenge. BP's Horizon disaster, driven by a 'failure of management,' silenced critical voices.

This isn't just a corporate problem. Former president Trump's dismissal of inconvenient truths as 'fake news' illustrates how unchecked power stifles fact-checking.

Spotting the Signs: Is Your Company a Cult in Disguise?

Charismatic Leaders: Demanding unwavering devotion, peddling grandiose visions cloaked in jargon – think 'Let's Heal the World'– insisting on secrecy and control, where information is on a 'need-to-know'basis Echo Chambers: 'Yesmen and women' teams, where dissent is exiled and challenges punished.

Us vs. Them: Isolating dissenters and suppressing individuality, creates a fearful, suspicious atmosphere with differing opinions labelled as negativity.

Enron's downfall, preceded by the removal of Sherron Watkins, whistleblower, when she asked about unethical accounting practices, shows the dangers of stifling questioning voices. Ego: Leaders overselling expertise, demanding conformity, and making decisions based on whims or personal biases rather than sound judgement.

Think Trump's 'uniquely capable' team making disastrous, unchecked decisions.

Illusion of Belonging: Empty promises and a focus on fitting in rather than finding genuine solutions.

Boards withholding vital information, executives manipulating data – it all erodes trust and accountability.

Logic Takes a Backseat

Without psychological safety, where employees can voice concerns without fear, problems escalate. Transocean crew members surveyed on the rig weeks before the BP disaster revealed a staggering 46% fearing reprisal for reporting safety issues.

Cultures, where 'agreement' trumps evidence, should alarm anyone invested in good governance. As Daniel Kahneman noted, 'Our comforting conviction that the world makes sense rests on a secure foundation: our almost unlimited ability to ignore our ignorance.'The erosion of reason, even disguised as 'leadership development,' or wrapped in the cloak of 'company culture,' is a dangerous game.

Just as Jim Jones led followers to their deaths, corporate cultists poison decision-making, leading to disastrous outcomes.

The Seduction of Self-Delusion Don't dismiss the dangers of corporate cultism. Jonestown survivor and journalist, Tim Reiterman, recoiled when outsiders took the attitude they would never be crazy or vulnerable enough thinking they're too smart or too savvy to fall for such manipulation. Even the mightiest corporations, lulled into a false sense of security, have unwittingly surrendered their independent thought.

Cautionary Tales

House of Cards: Theranos' Holmes' fraudulent bloodtesting technology endangered patients' lives. Her obsession with emulating Steve Jobs sacrificed critical analysis. Staff jokingly guessed which chapter of his biography she'd read based on her nonsensical pronouncements: comical yet chilling.

Reliability Myth: The UK Post Office Board's mindless faith in a faulty system (another Horizon!), prioritising reputation over truth, led to wrongful convictions.

Wolves in Sheep's Clothing: Even organisations that seem benign can harbour cult-like dynamics. Paul Waugh's Lighthouse, a life coaching organisation, used manipulative tactics to cause dependency.

Teal Swan's 'Completion Process', promoted pseudo-scientific claims, and the veneer of respectability masked an alarming underbelly.

Clico's Collapse: Our Caribbean insurance giant, clearly not too big to fail, demanded a culture of unconditional allegiance and financial secrecy that enabled massive fraud.

A strong company culture isn't necessarily toxic. But leaders must be vigilant to ensure culture doesn't slip into 'cult'.

Trust your instincts-if something feels off, it probably is.

Corporate Carnage

These dynamics aren't limited to Silicon Valley startups or backalley scams. From financial institutions like Wells Fargo to seemingly reputable companies like Lighthouse, these environments prey on insecurities and exploit those who fear to challenge authority.

The 'cult' in culture flourishes when healthy scepticism and reason are surrendered.

Break the Cycle

An uncomfortable truth: the insidious patterns that underpin cults can take root in any organisation where power is unchecked and reason is abandoned.

Employees, shareholders, and regulators must demand transparency and accountability. Leaders must champion critical thinking and open communication, recognising that agreement alone isn't a business model.

In a world where 'cult' can masquerade as 'culture,' the most valuable asset any organisation possesses is the courage to question. Becausethecostofsilence can be catastrophic.

Angelique Parisot-Potter is a shareholder and employee advocate,TED speaker and former general counsel.

By Angelique Parisot-Potter