Despotic Leadership and Ideological Manipulation at Theranos: Towards a theory of hegemonic totalism in the workplace

Abstract

This paper addresses despotic leadership and ideological manipulation in the workplace, and explores their detrimental consequences for employees and other stakeholders. The notion of ‘hegemonic totalism’ is advanced to account for how employees are often subordinated to the will of powerful elites. Our argument is illustrated through a case study of Theranos, a high prolife Silicon Valley biotech company that promised a revolution in healthcare diagnostics but which was declared bankrupt in 2018. Its once much-feted founding CEO, Elizabeth Holmes, has been sentenced to eleven years in prison for fraud. Analysis of empirical material on the company illustrates how business leaders may engage in despotic practices, while simultaneously invoking apparently positive ideals to enforce the performance of consent by employees. Following an exploration of the paradoxes and pathologies of hegemonic totalism, our study identifies three primary countervailing forces that act to limit its effects.