In 2001, one of the biggest companies in the U.S., Enron, filed for bankruptcy amid one of the biggest corporate scandals in the U.S.
The management of Enron hid its mountains of debt and toxic assets from investors and creditors to the tune of $690 million, manipulating their finances to fool regulators dating back to 1997. Enron's corporate culture played an essential role in its collapse. A culture of greed with little regard for ethics or the law infused the whole company.
Toxic cultures don't magically appear; it's a series of ignored behaviors by management that eventually turns into toxicity, which becomes the prevailing norm in the company. When a company lacks leadership, it breeds an unhealthy, toxic work environment, which eventually leads to the detriment of that organization while negatively affecting the lives of people who work there professionally and personally.