In business, we often talk about toxic assets in financial terms — bad loans, distressed inventory, obsolete tech. But in truth, the most corrosive asset on the books isn’t financial. It’s cultural. When toxicity takes hold in a workplace, it quietly eats away at trust, cohesion, and purpose. Left unchecked, it puts an organisation’s very going concern at risk. 

The headlines may focus on individual scandals but make no mistake: what we’re seeing isn’t episodic. It’s systemic. The recent implosion at Sentebale— a charity founded on healing — is a reminder that even the most mission-driven organisations are not immune. 

Case in Point: Sentebale 

Sentebale was established to support children in Southern Africa. But in March 2025, it became a cautionary tale. Allegations of bullying, infighting, and board dysfunction made their way into the public domain, prompting the Charity Commission to open a formal case . Trustees resigned. Prince Harry, once its figurehead, withdrew. And the damage wasn’t just reputational — it went to the heart of Sentebale’s legitimacy and continuity. 

This wasn’t just a personnel issue. It was a governance failure. And when governance fails, the whole organisation pays. 

The Real Cost of a Toxic Culture 

Toxic culture is rarely visible in the early years. It doesn’t show up on a balance sheet — at least, not right away. But over time, its symptoms become hard to ignore: 

• Staff churn accelerates. Institutional memory walks out the door. 

• Innovation stalls. No one takes risks when the environment punishes candour. 

• Reputational capital dwindles. No stakeholder wants to be associated with dysfunction. 

It’s no coincidence that organisations grappling with toxic culture often struggle with growth. Culture underpins strategy. If the internal climate is fraught, even the best strategic plan will wither. 

Why Governance Must Take the Lead 

Culture isn’t a “soft” issue. It’s a strategic one — and governing bodies need to treat it as such. Toxicity thrives in the gaps: between policy and practice, between values and behaviour, between power and accountability. 

If boards are only focused on financial oversight or compliance, they’re missing the bigger picture. Psychological safety, leadership conduct, conflict resolution — these are governance issues. Not HR footnotes. 

When culture is neglected, misconduct becomes predictable. And when leadership tolerates misconduct, it ceases to lead. 

Governance as Culture Custodian 

So how do we shift from being reactive to preventive? Here’s a governance-forward framework: 

• Mandate regular culture audits. Culture isn’t static. It needs assessing — anonymously, and with rigour. 

• Create feedback loops that work. Whistleblowing shouldn’t feel like a career risk. 

• Model leadership at the top. Board behaviour sets the tone for the entire organisation. 

• Treat culture as capital. If your board spends time on risk, budget, and growth, it should spend equal time on culture. 

The Going Concern Question 

Ultimately, organisations are communities of people. When those people are burned out, unheard, or mistreated — governance must intervene. Not for optics, but for survival. 

Culture is not a distraction from business. It is the business. And like any other form of capital, it must be stewarded with care, integrity, and a long view. 

If we ignore the warning signs, we’re not just inviting scandal — we’re risking the viability of the entire enterprise.