Cult or Culture: Unveiling the Dynamics of Organisational Belonging and Beliefs

Questioning organisational culture

In today’s rapidly evolving business landscape, the concept of organisational culture has become a central tenet of successful enterprises. It is considered the heartbeat of an organisation, and the ethos that guides behaviour, decision-making, and interactions within the workplace.  We’ve even been told that “culture eats strategy for breakfast” - Peter Drucker. This both highlights its importance yet implies that the two concepts, culture and strategy, are distinct and separate. Is this really true or is culture both organically created and strategically orchestrated, across varying levels of consciousness? 

On the one hand, culture is hard to define, invisible and unconscious. It’s the feeling people have on Sunday night about Monday morning. It’s felt within our bodies as much as it is understood by our minds, with each of us describing our own workplace culture differently, based on our own lived experiences and the identities we inhabit.

On the other hand, culture is regularly, deliberately, orchestrated, as demonstrated by the billion dollar industry helping organisations to define and maintain the ‘ideal’ company culture. How many of us have participated in, or even led, sessions with our teams and organisations to ‘co-create’ our values and behaviours? I know I have, sometimes even just to file away after the session, not to be referred to again until the next team building day. This got me thinking; do these outputs still count as true culture, and what does ideal even mean? Furthermore, is it even possible to align on core values and behaviours anymore, given our increasingly diverse workforce and polarised society?

Is there such thing as an ideal culture?

Operating within a western, capitalist, framework, obsessed with growth, competition, and dominance, we often assume that the stronger the culture, the better. But is that always true? What happens when a culture becomes so rigid, so insular that it starts to exhibit characteristics more akin to a cult than a healthy, dynamic environment? Does culture have a risky side, and where is the line between helpful and harmful?

This article seeks to answer such questions and ultimately to explore the fine line between cultivating a thriving business culture and slipping into the dangerous territory of cult-like behaviour. Acknowledging the dynamic challenges of modern business, it draws on insights to help leaders and followers foster authenticity and inclusion.

The Good and the Bad of Organisational Culture

Organisational culture is more than just a buzzword; it’s the collective values, beliefs, and behaviours that shape how work gets done within an organisation. A helpful culture can foster innovation, drive engagement, and importantly, create a sense of belonging among employees. 

This connection with belonging is arguably one of the reasons culture remains so important. According to Brene Brown, belonging is an ‘innate human desire’ and has been woven into the fabric of humanity since the beginning of time. Although we’ve typically become less reliant on others for food and physical protection, our need for belonging has not diminished. In fact, a recent meta analysis concluded that loneliness continues to contribute to negative health outcomes and even death. With such severe consequences, is it any wonder that we often do anything we can to fit in?

Culture question: If company x was an animal, what animal would it be and why?

For me, culture is one of the number one factors I explore when deciding whether or not to work with a company. In fact I have been known to ask the following question in an interview or meeting - “if the company was an animal, what animal would it be and why?” Rather than simply trying to appear kooky or alternative (mimicking the abstract questions that were popular at many leading tech companies for a while) I am both trying to learn about the culture whilst simultaneously looking for evidence of it in real time. The answer to this question tells me far more than any direct question would. It also requires curiosity, creativity and an element of play - all qualities I find important in a company culture where I can thrive.

However, as with any powerful force, culture can have a harmful side. Academic research suggests that our need to belong may cause us to abandon self interest for the benefit of the group. A focus on fitting in and seeking approval causes us to behave in a way that aligns with the goals, values and norms of the group/organisation, even if they differ from our own. Sadly, when the drive for unity and alignment goes unchecked, it can morph into something far more sinister – a culture that stifles individuality, breeds conformity and exclusion, and silences dissent. This shift from a healthy organisational culture to a cult-like environment is subtle and often insidious, characterised by an overemphasis on loyalty, unquestioning adherence to norms, and an intolerance for dissent.

Let’s dig in. 

Power and Culture 

Culture is inherently linked with systemic power.

Before we go any further we need to talk about power. Culture, by definition, is highly dynamic and contextual. It is itself a system (of rules, policies and practices) and a part of broader systems, for example embedded within formal and informal workplace hierarchies, as well as society as a whole. As such, culture is inherently interwoven with systemic power; who holds it, who shares it, who gives it, who enjoys it. For example teams such as HR or Legal will have some power to set the formal rules and policies that govern the organisation. Leaders then have some power to interpret the policies and further create the culture through the actions they take, and (often more importantly) those they do not. In fact, according to the HBR, leaders have by far the biggest impact on company culture through their actions and behaviours. Consider which behaviours are celebrated, punished or ignored within your organisation. I’m prepared to bet that all the speak out sessions, and free yoga is powerless against the norms surrounding accountability, recognition and progression - three concepts consistently shown to be important for employee engagement and wellbeing. When we then overlay systemic societal biases centred on power, such as racism, ableism, misogyny etc., you can begin to understand the challenging nature of creating a truly healthy workplace culture. It is therefore at culture’s intersection with power where we need to be most vigilant; where the risks of moving from helpful to harmful increase. Below we explore some specific behaviours to help identify when an organisation is starting to put the Cult in Culture. 

The Hallmarks of Cult-Like Behaviour 

or as I like to call it: 

“How to recognise if you accidentally work in a cult”

Charismatic Leadership

At the heart of many cult-like organisations is a charismatic leader. A charismatic leader? Surely this is a good thing, I hear you say. Well, yes; this is a real advantage as these leaders can inspire and motivate their teams to achieve great things and can influence and secure market confidence and funding. However, their influence becomes problematic when this strength becomes overdone. For example when leaders start to become worshipped, or demand absolute loyalty without question. In such environments, leaders are often viewed as infallible, and their vision is seen as the only path forward. This dynamic stifles innovation and breeds a climate of fear, where employees are reluctant to voice concerns or propose alternative ideas. This can impact organisations of any size, but smaller organisations, start-ups and scale-ups can be particularly susceptible, especially where there is closer proximity to senior leadership and/or the CEO is also the founder and the ‘brains’ behind the company’s inception. Perhaps understandably, if someone has put their livelihood on the line to ensure the success of a company, it is likely they will have many strong opinions about the way forward. 

Groupthink and Conformity

As discussed, we are hardwired to connect and therefore being part of a group can be extremely fulfilling. We enjoy being around like minded people as it makes us feel safer and smarter. However, just as with the previous risk, when this collective strength becomes overdone it can lead to Groupthink. Groupthink occurs when the desire for harmony and conformity within a group, results in irrational or dysfunctional decision-making. In a cult-like culture, the pressure to conform can lead employees to prioritise consensus over critical evaluation of ideas. Employees may suppress their true thoughts and feelings to fit in, leading to a lack of diversity in thought and perspective. 

Two unwanted consequences then emerge:

1. Very quickly, the employee base may lose the ability to think critically. As with any skill, if not utilised this can wither away making it harder to re-strengthen when it is most needed. This not only stifles innovation but can also result in poor business decisions leaving the company at risk from competitor threats or a dynamic external environment. 

2. Employee well-being may be dangerously impacted from feelings of isolation and otherness. This behaviour can be the most discrete, insidious and confusing. Given the importance of belonging and community, when we think differently to everyone around us, it can be isolating and may lead us to question the validity of our own beliefs. Teaching people that they need to “fit in or f**k off” (sadly I have heard this more than once in my 20 year career), however subtly, prohibits people from bringing their authentic selves to work. Over time this has a significant impact on wellbeing leading to burnout, depression, and other physical and mental health problems.

Beware of cultures that only recognise ‘positive’ emotions.

Unfortunately, groupthink is not that easy to spot, especially from the inside, making it one of the sneakiest and dangerous risks. It can also sometimes hide behind an alignment around a seemingly ‘helpful’ quality. For example consider cultures in organisations fighting for an important social cause. What harmful employee behaviours might be tolerated or ignored in support of the greater good? Additionally, consider cultures that pride themselves on being extremely jolly, positive, and can-do. On the face of it, this can appear to offer a welcoming, supportive culture. However, if the desire for positivity means that ‘negative’ emotions are judged harshly or even punished, this can create a confusing environment for many of us who experience a full range of emotions, as is healthy for a human. Instead of a positive culture, we end up experiencing toxic positivity in which we mould ourselves to emote only a part of our feelings. As any healthcare professional will agree, long term suppression of emotions is rarely a healthy and helpful behaviour. Additionally, in doing so, it means that we are prohibited from bringing our authentic selves to work causing the organisation to lose out on our full range of skills, thoughts and ideas. When such behaviours go unchecked this also leads to the next hallmark of a cult-like culture, suppression of dissent. 

Suppression of Dissent

If the groupthink is allowed to persist it can become increasingly sinister leading to suppression of dissent. Healthy organisations thrive on diversity of thought and encourage open debate. In contrast, cult-like cultures suppress dissent and often punish (though it is rarely this obvious) or ostracise, bully and quietly silence those who challenge the status quo. This creates a toxic work environment where employees feel undervalued, demoralised and bullied, leading to decreased morale, productivity, and reduced employee health and wellbeing. The suppression of dissenting voices prevents the organisation from addressing critical issues and making necessary changes whilst wasting plentiful employee talents. Overtime, as well as the employee impacts discussed above, this can have both significant financial and legal implications for the company.

Ethical Lapses

When loyalty to the organisation or its leaders trumps ethical considerations, companies can find themselves embroiled in scandals, legal issues and may even cause serious harm or threat to life (e.g. Boeing). Cult-like cultures may justify unethical behaviour in the name of the greater good or the leader’s vision, compromising the integrity of the organisation. This can have devastating consequences, not just for the organisation, but for its employees, customers, and stakeholders.

Case Studies: Lessons from the Edge

Enron

Enron’s spectacular collapse serves as a cautionary tale about the dangers of a cult-like corporate culture. The company’s culture, which emphasised aggressive risk-taking and unwavering loyalty to leadership, discouraged employees from questioning unethical practices. This environment of fear and conformity ultimately led to one of the largest corporate frauds in history. The lesson here is clear: when a culture prioritises loyalty and conformity over ethical behaviour and critical thinking, disaster is often not far behind.

Theranos

Theranos, the health technology company led by Elizabeth Holmes, is another example of a company that fell into the trap of a cult-like culture. Holmes’ charismatic leadership and visionary promises created an environment where employees were pressured to conform and discouraged from raising concerns about the viability of the company’s technology. The lack of transparency and suppression of dissenting voices contributed to the company’s dramatic downfall. This case underscores the importance of fostering a culture of transparency and encouraging employees to speak up.

Ethical breaches with a small e

Ethical breaches with a small e are more common than we think.

The two companies above are well known examples where the cult-like behaviours ultimately led to catastrophic financial and ethical failures. However it may be argued that with the rise of workplace bullying, mental health complaints, and discrimination, the occurrence of everyday ethical failures is far more commonplace, perhaps even normalised, than it may first appear. Perhaps you can already identify cult-like behaviours in your own company. Perhaps, we could even go as far as to argue that capitalism itself, with its pursuit of growth and wealth regardless of its environmental or human consequences, shares many of the hallmark behaviours found within a cult. Therefore, should we be surprised at the lengths companies will go to in order to retain success within such an environment?

Well in my opinion, whilst we may not be surprised, we do not have to also be accepting. Instead let’s explore how we organise ourselves to protect from such behaviours and seek to create healthy, inclusive cultures. 

Building a Healthy Organisational Culture - the ideal culture

So what is the ideal culture? How might this vary for a large multinational vs. a small local charity? How might this vary across countries, sectors and timeframes?

Having worked across multiple companies and continents, I’m not convinced there is such thing as an ‘ideal’ culture. Indeed, perhaps it is not for me to define; what works for me, may not work for you; what works today may not work tomorrow and what works here may not work there.

Humanity is the only sustainable answer to culture creation.

However I do believe that the answer to many of today’s most important questions is usually, humanity; a refocus on what makes us human, and therefore connected to one another. In my opinion there are in fact universal human commitments or behaviours that have the ability to span multiple identities and beliefs, and provide the foundation from which to define healthy and inclusive strategies, and importantly, to innovate, create and grow, according to any individual company’s purpose. Indeed, such a focus can be so powerful that even company’s actively harming people or planet could still benefit from such a focus internally.

So what do I mean by humanity? Well, I’m referring to the inherent human skills of compassion, curiosity, and playfulness. These form the foundation of what it means to be human, and whether you choose to focus on one or all, these can strengthen any culture. Let’s dive in. 

Compassion

Compassion is critical for emotional well-being and interpersonal relationships, extending its impact into both self-care and interactions with others. Self-compassion becomes a crucial element in navigating life's challenges, promoting resilience, and fostering a change or acceptance mindset. In interpersonal dynamics, compassion forms the bedrock of meaningful connections, enabling individuals to empathise, understand, and support one another. Importantly, compassion is an active verb, sometimes called empathy in action. Practising compassion not only enriches personal well-being but also contributes to the creation of a more empathetic and cooperative society. The enduring importance of compassion lies in its ability to nurture both individual and collective emotional health, creating a more interconnected and equitable world.

Curiosity

An important sister concept to play, curiosity fuels discovery and continuous learning. Aside from its role in innovation, curiosity plays a lesser known but equally important role to support flexibility and empathy. By embracing new, perhaps difficult situations, with curiosity, we can free ourselves from preconceived ideas and judgements. This enables us to let go of expectations and limitations in the pursuit of exploration. Within relationships, curiosity supports a desire to understand other perspectives and an openness to collaboration and reconciliation. This is powerful fuel to create an inclusive workplace and societal culture. 

Play

Play is integral to human development, fostering learning, creativity, and social bonds from childhood and throughout adulthood. In early years, it promotes cognitive and motor skills growth, while also cultivating social competencies. As adults, play remains crucial for life and work. It is a core component of creativity, innovation and mastery, and critical for organisational problem solving and building a strong workplace culture. In our personal lives, it serves as a vital stress-relief mechanism, provides a sense of optimism and contributes to overall wellbeing. The enduring importance of play lies in its ability to stimulate curiosity, encourage innovation, build relationships and enrich the human experience across various stages of life. A play deficit has been likened to a sleep deficit; without play we simply cannot flourish.  

Fortunately, bringing these three concepts to life is easy. Given the inherent human nature of these skills, to some extent, activating them is merely about intentionally choosing them everyday. This means considering the way we engage with our own thoughts, our behaviours, and how we interact with each other. To get really practical, here are a few key considerations on how to apply them within an organisational setting to foster a healthy culture that avoids the pitfalls of cult-like behaviour.

Encouraging Diversity of Thought

Promoting a culture that values diverse perspectives and encourages critical thinking is essential. This can be achieved through initiatives that celebrate and systemically reward different viewpoints and create forums for open dialogue. Disagreements must be encouraged and celebrated, rather than squashed and feared. Learning to disagree in a healthily and collaboratively manner, is often a specific skill that needs to be practiced. Unfortunately, it doesn’t always come easily. For example disagreeing across levels of seniority can bring challenging power dynamics, and individuals of any level may carry their own personal fears around disagreements and/or the importance of people pleasing. 

Therefore there are two critical elements within this, leaders and policies.

Leaders must role model disagreements and debates.

Leaders should model this behaviour by actively seeking input from a wide range of employees and acknowledging their feedback in decision-making processes. They must model how to disagree and debate effectively. Brene Brown refers to this as the rumble. Within her company they specifically request that they would like to rumble on a specific topic and invite people to join. This can normalise the behaviour and helps to remove anxiety by providing clarity and transparency. Importantly, leaders must become comfortable recognising the limits of their knowledge and ability and how this can be enhanced by listening to a diverse range of voices. They must role-model how to proactively disagree for the improvement of business strategies and relationships. 

Policies must systemically reward diverse thinking.

Policies and practices must demonstrably reward diverse thinking. To have any real impact this must be more than a tick box exercise. It starts with a meaningful strategy around DE&I which is supported and embodied throughout all levels of the organisation. This strategy must be specifically developed to meet the needs of each individual company including clear measurement criteria to ensure accountability rather than a tick box exercise, too often seen. If all levels of your organisation do not represent the diversity found in your customer base and/or society more broadly, consider which policies and practices may be restrictive and/or discriminating, and therefore need reviewing. 

Promoting Transparency and Accountability

Transparency in communication and decision-making fosters trust and empowers employees. Organisations should ensure that information flows freely and that decisions are made openly. Accountability mechanisms should be in place to ensure that everyone, including leaders, is held to the same ethical standards. These must include prevention as well as cure. For example regular training opportunities can ensure leaders are equipped for the constantly evolving needs of the world and the workplace. Training must be meaningful and honest, providing opportunities to ‘get it wrong’ in carefully managed (to avoid re-traumatisation) imaginary environments thus reducing the occurrence of harm in real life. In parallel, clear policies must detail the consequences of any real life breaches and be universally upheld to build trust and psychological safety amongst all. 

Empowering Employees

Empowered employees are more likely to feel valued and engaged. This empowerment comes from giving employees demonstrable and actionable autonomy in their roles, real opportunities for professional development, and a voice in the organisation’s direction (even if that voice is challenging). Encouraging employee participation in shaping the company’s culture can lead to greater buy-in and commitment to organisational values. Ensure that empowerment is more than a PR exercise - employees will tell you if they feel empowered or not. Conduct at least one annual employee engagement survey and ensure that the feedback is acted upon. Clearly identify what you have heard, what you will do about it and when - even if you don’t know. For example, as a leader you could say “we heard these 5 things. We’re going to begin by tackling 1-2, because they are most important, or they are the easiest (that’s ok too, just own it); 3-4 we’ll address in H2; and truthfully we don’t know how to tackle point 5”. Owning your skills and your gaps will increase trust in the employee base and also invite further collaboration as often the employees know exactly how they want to fix things, even if the leaders do not. Encourage written feedback as well as questionnaires. The numbers may tell if and where there is a problem but only the comments will tell you why. Additionally ensure employees from all groups and levels benefit from all opportunities, not just those who look or behave in certain ways. 

Cultivating Ethical Leadership

Leaders play a crucial role in setting the tone for organisational culture. Ethical leadership involves leading by example, making decisions based on integrity, and prioritising the well-being of employees and stakeholders. Leaders should be approachable and open to feedback, demonstrating that they value and respect the contributions of all employees. This does not happen by magic. Ensure that all leaders are clear on their own beliefs and values, and how this translates into their leadership style. Encourage them to share this with their team and invite them to hold the leader accountable if actions do not align. Explore such conversations within the initial recruitment process and support leaders to continue to evolve and grow throughout their leadership career. Having provided robust training and had ongoing conversations about values and code of conducts, if and when breaches occur, demonstrate, swift and clear accountability.

Everyday visible behaviours will always override mission statements, and creative cultural commitments. 

Conclusion

Culture can be actively defined and moulded but everyday visible behaviours (especially by leadership) will always override mission statements, and creative cultural commitments. 

The culture must be dynamic to work for the people in it, both now and those who join it in the future. It must be held carefully, but loosely, to enable ongoing growth, as our collective (emotional and cognitive) intelligence improves. It must be adaptable to reflect the dynamic role of the workplace and changing needs of the market. It can be centred on any enduring core human values, but I recommend compassion, curiosity and play, due to their ability to unite across multiple identities and provide a foundation from which to create. 

“A strong culture is a significant business advantage, until it isn’t”

A strong culture is a significant business advantage, until it isn’t. Even within seemingly healthy cultures, navigating the fine line between a thriving business culture and a cult-like environment requires vigilance, self-awareness, and a commitment to core values - especially by leaders. By fostering diversity of thought, promoting transparency, empowering employees, and cultivating ethical leadership, organisations can build resilient, values-driven cultures where innovation and collaboration flourish. In doing so, businesses not only safeguard against the risks of cult-like behaviour but also create environments where every individual can thrive and contribute meaningfully.

For help analysing and enhancing your own organisational culture please contact katie@re-humanise.com