South Africa’s corporate world is facing a hidden crisis: toxic leadership at the highest levels.
“Almost 4% of business leaders may be psychopaths, with CEOs having the highest proportion outside prison inmates,” says Professor Renata Schoeman, the head of healthcare leadership at Stellenbosch Business School.
These leaders, armed with superficial charm, manipulation, and a lack of empathy, climb the corporate ladder swiftly but leave a trail of destruction that impacts employee mental health, productivity, and organisational stability.
Toxic leadership, marked by narcissistic and psychopathic traits, creates workplaces riddled with fear and mistrust.
“Narcissists and psychopaths have distinct, clinically identifiable traits: grandiosity, entitlement, superficial charm, and a lack of empathy or remorse,” Schoeman explains.
Narcissistic CEOs display arrogance and entitlement, often isolating employees or withholding critical information to maintain control.
Psychopathic leaders rely on bullying and direct manipulation, using their charisma to mask deceit.
Despite their harmful nature, people often mistake these traits for bold leadership, which allows these individuals to flourish in high-stakes corporate environments.
Environments of fear
The impact is staggering. In South Africa, “a third of employees quit due to toxic leadership”, Schoeman notes, while over 40% of workplace illnesses stem from work-related stress.
“One in four employees has been diagnosed with depression, underscoring the human cost of toxic workplaces.
“Toxic leadership creates environments of fear, mistrust, and reduced psychological safety, leading to stress, anxiety, depression, and high turnover,” she adds.
CEOs are particularly prone to these traits.
“Narcissists and psychopaths can easily rise to the top. They have charm; they are fearless and risk-takers – all perceived to be strong leadership traits.”
Unlike their criminal counterparts, successful psychopaths are less impulsive and better at avoiding being caught.
They manipulate communication networks to enhance their reputation while discrediting others.
Often from privileged backgrounds with higher IQs, these CEOs spread disinformation and foster rivalries while maintaining a polished self-image. “They’re masters at deflecting blame and taking credit,” Schoeman warns.
The consequences ripple across organisations. Toxic workplaces erode psychological safety, leaving employees anxious, disengaged, and unproductive.
Culture of dominance
Narcissistic leaders demand unparalleled commitment, overworking staff without regard for their well-being. Psychopathic CEOs create cultures of dominance, stifling creativity and collaboration.
“Their successes mask the long-term costs: suppressed innovation, low morale, high attrition, reputational damage, and eventually financial decline,” Schoeman cautions.
The result is a workforce struggling to cope and companies facing declining profits.
Employees aren’t powerless. Schoeman suggests setting clear boundaries, documenting interactions, and seeking support through HR or employee assistance programmes.
Prioritising self-care and leaning on emotional support networks can help mitigate the toll of toxic leadership.
Organisations must act decisively to curb this crisis:
- Screen smarter: Use psychometric tests to identify toxic traits in senior hires.
- Listen up: Anonymous tip-lines and exit interviews can expose harmful behaviours early.
- Promote fairness: Transparent policies and open-door cultures weaken manipulative tactics.
- Support staff: Wellness programmes, mental health resources, and flexible work arrangements boost resilience.
- Hold accountable: Clear consequences for abusive behaviour, backed by HR and legal action, are essential.
CEOs themselves must reflect. Self-awareness, professional guidance, and a commitment to emotional intelligence can curb harmful traits.
“Leadership is a privilege, not a playground for egos. As we mark Corporate Mental Health Week (1-5 July), it is time to confront the toxic leadership crisis head-on.
“Recognising and addressing problematic traits like narcissism and psychopathy is crucial for sustainable, mentally healthy workplaces,” says Schoeman.
