The vital importance of nurturing a healthy workplace culture

Written by Mills & Reeve

At Mills & Reeve we regularly advise clients on the importance of a strong, healthy and supportive workplace culture.

There are many benefits that flow from a workplace where psychological safety is promoted and defended throughout the organisation, from the top down.

Sadly, however, high profile examples of organisations which have been seriously damaged as a result of workplace culture failings have become increasingly common.

In this article, Shuabe Shabudin (pictured), employment law specialist from Mills & Reeve, highlights two case studies and shares top tips to avoid any pitfalls.

Getting it wrong: two recent examples from the US

Two high-profile cases – the Astronomer CEO scandal and the US Coast Guard’s report into the Oceangate Titan submersible tragedy – highlight the serious consequences of poor workplace culture.

The reputational, financial, and cultural damage suffered by these organisations cannot be overstated.

The Astronomer situation, sparked by an affair between CEO Andy Byron and the company’s Chief People Officer, raises complex questions about professional boundaries.

While the morality of workplace relationships is often debated, the key issue here is the breach of trust and accountability – especially when senior leaders are involved.

Employees rightly expect HR leaders to model the behaviours that underpin a positive workplace culture.

When those in C-suite or HR roles fail to uphold the values they promote, the damage to trust is profound.

Senior leaders must “lead from the top,” setting the tone for acceptable behaviour and embodying the organisation’s stated principles. Without this, trust – hard-earned and easily lost – quickly erodes.

Beyond the affair, further allegations emerged about Astronomer’s culture: a negatively hierarchical structure, executive privilege, and unenforced policies.

These issues suggest a broader failure to maintain a healthy workplace environment.

The interim CEO’s dismissive LinkedIn comment, implying “no such thing as bad publicity,” only reinforced perceptions of a leadership team out of touch with employee concerns.

The Oceangate case is even more harrowing.

The Coast Guard’s Marine Board of Investigation’s report revealed a toxic culture that contributed to the Titan submersible’s catastrophic implosion. Employees described flawed safety practices, an ineffective whistleblower process, and intimidation tactics – all of which undermined psychological safety.

This lack of psychological safety meant employees feared retribution for raising concerns, even about life-threatening risks. The consequences were tragic. While few organisations face stakes as high as Oceangate’s, the underlying issue – failure to foster mutual trust and safety – is far more common than many would like to admit.

How to get it right

So how can organisations avoid these pitfalls?

It starts with visible management buy-in. Leaders must be seen to support cultural initiatives – not just in words, but in actions.

From there, organisations need to engage in honest self-assessment. Without a clear understanding of the current culture, it’s impossible to know what needs to change.

Once the culture is understood, organisations can measure it against where they want to be – and, sometimes more usefully, where they believe themselves to be.

This gap analysis helps identify areas for improvement.

Issues should then be broken down into manageable themes and grouping them - by location, business area, or employee group for example – can also be helpful.

Cultural change takes time, and a staged approach allows organisations to demonstrate progress and build trust.

We’ve worked with organisations across sectors and sizes to support cultural transformation.

This includes delivering workshops to senior managers and advising Boards on the legal risks of cultural failings.

Sometimes, this follows investigations into alleged misconduct – where cultural issues have already surfaced.

Please contact our employment team if you would like to discuss your D&I journey further.