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The Risks To Business Culture Of Bullying as A Leadership Tactic

The Risks To Business Culture Of Bullying as A Leadership Tactic

Forbes08-04-2025
business executive yelling at subordinates in office.
Over the last two decades, leadership behavior has evolved toward building a foundation of effective interpersonal communication, empathy, and inclusivity. Research has overwhelmingly supported the benefits of these approaches, demonstrating that they improve employee engagement, retention, and overall business performance. However, we are witnessing a resurgence of authoritarian leadership styles, where bullying, intimidation, and coercion are used as primary tools of influence. From high-profile corporate leaders like Elon Musk, criticized for his management tactics at X (formerly Twitter), to political figures who use fear and division to consolidate power, we see concerning examples of leadership styles prioritizing dominance over collaboration.
Business leaders must ask themselves: Should we abandon the tremendous progress made in workplace culture in recent years in favor of a more authoritarian approach to management and leadership? And if we do, what are the consequences?
Despite years of research focused on the importance of emotional intelligence, empathy, and effective communication skills in improving trust and engagement in the workplace, authoritarian leadership styles may be escalating. This shift may be driven by the desire for fast results and a belief that intimidation leads to compliance.
However, toxic leadership behavior—bullying, shaming, intimidation, and fear—has negative consequences for workplace culture. The 2024 U.S. Workplace Bullying Survey found that 32.3% of U.S. workers surveyed had been bullied, affecting over 52 million employees. An additional 26% had witnessed it firsthand. These statistics highlight that there is still much work to be done to eliminate these oppressive behaviors in the workplace. It matters because the toll is significant. Bullied employees report higher stress, anxiety, and burnout, with 62% ultimately losing their jobs due to resignation, termination, or transfer. This turnover drains organizations through lost productivity and increased hiring costs.
When leaders rule by coercion, employees disengage—and businesses suffer. Gallup's annual State of the Global Workplace Report repeatedly asserts that organizations with high employee engagement are 23% more profitable than those with disengaged employees. Engaged employees contribute more ideas, take greater ownership of their work, and are less likely to leave, all of which drive organizational success.
Psychological safety plays a critical role in cultivating this engagement. McKinsey's researchhighlights the point that employees in psychologically safe environments—where they feel comfortable expressing concerns, admitting mistakes, and offering ideas—are more collaborative, innovative, and productive. When leaders create fear-based workplaces, employees withdraw, innovation stalls, and turnover rises. Workplaces prioritizing psychological safety outperform those relying on intimidation and coercion. The bottom line is that sustainable business success depends on trust and inclusion, not fear and dominance.
While authoritarian leadership is generally considered harmful to employees, specific environments require a directive style that demands strict compliance (unlike bullying, which may include intimidation, threats, and undermining someone's work). These leaders often need to make quick, unilateral decisions without extended discussion in high-stakes, high-pressure fields—such as the military, emergency services, or crisis response teams. Tight control is essential for safety and efficiency in these environments.
However, compliance-driven decision-making should not mean resorting to bullying, even in these settings. Effective leaders in high-pressure workplaces must still prioritize respect, team cohesion, and trust. The challenge is ensuring that leadership remains directive without becoming oppressive.
Leaders can protect employees in these environments with the following:
• Clear guidelines on acceptable leadership behavior to prevent abuse of authority.
• Strong reporting structures that allow employees to report toxic behavior without fear of retaliation.
• Leadership training programs that teach how to balance authority with psychological safety and trust.
In all industries, leaders must balance decisiveness with empathy, setting firm expectations while cultivating trust and engagement. Leadership is not just about being in charge—it's about influence, bringing out the best in people, and creating an environment where employees can thrive. Using bullying and intimidation as a leadership tactic is a step backward, jeopardizing businesses, employees, and workplace culture. Organizations must prioritize trust, respect, and inclusion to achieve lasting success.
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5 annuity strategies for high net worth individuals
5 annuity strategies for high net worth individuals

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5 annuity strategies for high net worth individuals

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They can generate tax-deferred growth with no annual IRS contribution limits, shield assets from creditors and ensure a surviving spouse receives stable, long-term income. Here are several ways high-net worth individuals can use annuities strategically — and when you might be better off exploring other options. 1. Tax-deferred growth Once you've contributed the maximum to your 401(k), IRA, HSA and other tax-advantaged accounts, there aren't many places left to park money where it can grow tax-deferred. Additional funds are usually funneled into taxable brokerage accounts, but this can create a growing annual tax bill on interest, dividends and potentially capital gains. A nonqualified annuity — that is, one purchased outside a tax-advantaged retirement plan — can step in to fill that gap. They allow gains to grow tax-deferred and there's no annual IRS contribution caps. 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Income protection for a spouse In many relationships, one spouse takes the lead in managing investments and financial decisions. But if that person dies first, the surviving spouse may be left with a complex portfolio and little experience managing it. By choosing a joint life annuity, you can ensure payments continue for as long as either spouse is alive. It can help reduce the burden of financial decision-making for the survivor during an otherwise overwhelming transition. Of course, a life insurance policy can also provide for your spouse after you're gone, but annuities offer a distinct advantage over a lump sum life insurance payout, says Willie Jones, managing director of member success at DPL Financial Partners, an online annuities marketplace for fee-only advisors. 'Only annuities can set up a guaranteed income stream for the rest of their life,' says Jones. 'You can set up an annuity that covers at least their basic expenses for life, and have that built-in peace of mind.' 3. 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Fixed payments also may not keep pace with inflation, and your child's needs or your own financial goals could evolve over time. So, while annuities can be a powerful planning tool, they're best used as one part of a broader strategy. 5. Stretching an inheritance Before 2020, wealthy families could rely on a 'stretch IRA' strategy to pass wealth to the next generation in a tax-efficient way. Under the old rules, non-spouse beneficiaries could take required minimum distributions (RMDs) over their own life expectancy, allowing the assets to grow tax-deferred for decades. The Secure Act of 2019 largely eliminated that strategy. Now, most non-spouse beneficiaries must liquidate inherited IRAs within 10 years, which shortens the window of compounded growth and often results in higher tax bills for heirs. However, nonqualified annuities aren't subject to the same rule. Beneficiaries still get the option to extend their withdrawals over their own life expectancy. 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On the other end of the spectrum, individuals with limited assets or income may find annuities too expensive and restrictive. Many types of annuities require a sizable upfront investment, often $10,000 or more. And to generate any sort of meaningful monthly income in retirement, you'll likely need to put down much more than that — think $100,000 and up. That's capital some households simply can't afford to tie up, especially if access to emergency funds is a more pressing priority. And once money goes into an annuity, it can be hard to get out without facing surrender charges and/or tax penalties. For someone without much financial cushion, that loss of flexibility can be risky. Generally, the most appropriate use cases for annuities tend to fall somewhere in the middle. They can be a powerful tool for what's known as mass affluent households — people with assets ranging between $100,000 and $500,000 — who want to lock in future income, manage taxes or diversify their broader portfolio. So while billionaires might not view annuities as a go-to financial product, annuities can still fill important gaps for high-net worth clients that traditional investment accounts and retirement plans don't cover. Get started: Match with an advisor to help you achieve your financial goals Bottom line Ultimately, annuities are best viewed as one option in a toolkit — not a one-size-fits-all solution. When structured intentionally, they can defer taxes, safeguard wealth and create a predictable income stream. The key is to match the product with your specific need. Don't base your decision on income or net worth alone, but instead on your goals, risk tolerance and how much control you want over your money. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio

People Are Upset AriZona Iced Teas May Increase Prices
People Are Upset AriZona Iced Teas May Increase Prices

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time2 hours ago

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People Are Upset AriZona Iced Teas May Increase Prices

I'm sorry to have to be the one to tell you this, but... it's happening: companies have continued dealing with the consequences of President Trump's tariff war, and they're finally beginning to pass tariffs on to consumers as a result. And as a regular consumer of Arnold Palmers, I'm even sorrier to tell you that one of the victims of these tariffs could potentially be the one and only 99-cent AriZona canned iced teas. The New York Times reported this week that Don Vultaggio, the CEO of AriZona, has spent weeks contemplating something he thought "he would never do: raise the 99-cent price of its canned iced teas," which has stayed the same since 1997. They noted that "About 80 percent of the aluminum AriZona uses to make its tallboys comes from recycled material produced in the United States. The rest is imported from Canada, and subject to a 50 percent import duty."The prices haven't officially been raised just yet, and Vultaggio is supposedly "clinging to cautious optimism." On X (formerly Twitter), people were absolutely devastated by the possible price increase. "my faith in society is gone. even the arizona iced tea couldn't escape the tariffs." "YOU'VE TAKEN THE ONE GOOD THING IN MY LIFE" "if Arizona tea has to increase their can prices, its a sign we should just go extinct as a species." "this literally the only thing left that stayed true to their code." "True sign of a recession." "this is an apocalypse indicator, end times are nigh." And finally, this person had a liiiiiiiittle history lesson for us all: "You know what happened last time Americans were mad about tariffs raising the price of tea?" At least we'll still have the $1.50 Costco hot dogs. Right? Right?

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