Trust forms the foundation of successful partnerships and thriving workplace environments in the intricate tapestry of stakeholder relations. However, the abuse of authority—a dark undercurrent in corporate life—poses a significant threat to this foundation, especially for internal stakeholders such as employees, contractors, and even middle management.

Abuse of authority refers to the misuse of power by individuals in leadership or supervisory roles to unfairly control, exploit, or dominate others. It often involves exerting excessive influence over subordinates, disregarding ethical norms, and prioritising personal gain or arbitrary control over organisational values.

This misuse of authority can take many forms in professional settings. Leaders might micromanage every minor detail of employees’ tasks, stifling creativity and independence. Favouritism and discrimination often rear their heads when undue advantages are granted to a select few while others are sidelined based on personal bias. Workplace bullying is another common manifestation, where power is used to intimidate or harass employees through unreasonable demands, verbal abuse, or isolation. Leaders may deliberately withhold resources or information necessary for team members to succeed or unfairly distribute workloads, overburdening certain employees while allowing others leniency.

Real-life examples of such behaviour abound. In 2017, Uber faced allegations of workplace harassment and bullying under its then-CEO, Travis Kalanick. The toxic work culture led to high employee turnover, lawsuits, and reputational damage. Similarly, the Wells Fargo scandal saw employees pressured to meet unrealistic sales targets, leading to unethical practices such as opening unauthorised accounts. This misuse of authority harmed customers and created a hostile work environment for employees, many of whom were fired for failing to meet these unreasonable demands. In public organisations worldwide, there are repeated instances of leaders suppressing whistleblowers, demonstrating how authority abuse can stifle accountability and transparency.

The ripple effects of authority abuse extend far beyond individual stakeholders. Employees working under oppressive conditions often feel undervalued and demotivated, which leads to decreased morale and engagement. Talented employees are likelier to leave organisations where authority abuse is prevalent, resulting in high turnover costs. The reputational damage that comes with news of toxic leadership erodes stakeholder trust and tarnishes a company’s brand image. Furthermore, disengaged employees directly impact operational efficiency, hitting the organisation’s bottom line.

For those receiving authority abuse, survival and eventual thriving require resilience, strategy, and support. Stakeholders should maintain detailed records of abusive behaviour, including dates, times, and descriptions of incidents, as these records can be invaluable if formal action becomes necessary. Engaging with trusted colleagues, mentors, or human resources can help to discuss concerns and explore solutions. Setting personal boundaries—politely but firmly—protects mental and emotional well-being. Whistleblowing through designated channels may be appropriate if the abuse violates company policies or laws. In addition, focusing on self-improvement through professional development enhances personal value and opens doors to alternative opportunities. For those grappling with the emotional toll of authority abuse, seeking counselling or therapy can help process feelings and build resilience. Preventing authority abuse is a shared responsibility. Organisations must foster a culture of accountability, establish robust grievance mechanisms, and provide leadership training to ensure ethical conduct. Abuse of authority is not just a moral issue but a business imperative. The organisation bleeds for every stakeholder who suffers—in trust, talent, and performance. Addressing this issue head-on is a moral obligation and a strategic necessity in today’s competitive world.