Sarcouncil Journal of Public Administration and Management

Abstract: Toxic organizational cultures, characterized by poor communication, distrust, and unethical leadership, present a pervasive global challenge, severely undermining employee well-being, engagement, and organizational sustainability. Despite widespread recognition of these detrimental effects, a significant gap remains in understanding systematic approaches to transform such environments. This concept paper addresses this gap by proposing Psychological Capital (PsyCap) as a transformative framework for counteracting workplace toxicity and fostering a positive organizational culture. Through a synthesis of existing empirical and theoretical literature, this paper examines the defining characteristics and costs of toxic cultures and contrasts them with the principles of positive psychology. The research establishes that by cultivating the four components of PsyCap, organizations can systematically build collective resilience, enhance employee agency, and promote a forward-looking, optimistic mindset. The study underscores the need for further empirical research to validate the proposed conceptual framework and provides practical implications for leaders and organizations seeking sustainable cultural transformation.