We often hear people described as “power-drunk” in social circles. The harms of being intoxicated by power can have far-reaching consequences, frequently more damaging than many forms of inebriation. But what exactly does it mean to be “power drunk,” and why is it so dangerous, especially in dealing with stakeholders?

Power drunkenness refers to the state in which individuals, often leaders or people in positions of authority, become overly intoxicated by their influence and control. They begin to wield power without regard for its effects, believing themselves to be infallible or above others. This arrogance, born from excessive authority, not only blinds them to the needs and perspectives of their stakeholders—whether they are employees, partners, or the public-but also inflicts significant harm on these stakeholders.

Power, when wielded without restraint, can distort an individual’s sense of self and reality. Those who become power drunk often view their role not as a responsibility but as an entitlement. Several psychological factors contribute to this behaviour. First, many of these individuals harbour insecurities that they mask with dominance. Power becomes a tool to assert control and fend off perceived threats. Second, continuous success or unchecked authority can foster overconfidence and hubris. They start to believe they are untouchable, dismissing feedback and seeing themselves as the sole source of truth. Lastly, leaders feel encouraged to act without restraint when they are not held accountable. This is where you, as a leader, can make a difference.By ensuring accountability and checks and balances,you can prevent abuses of power and the negativeeffects of power intoxication on stakeholders.

The consequences of power drunkenness on stakeholders can be devastating. Trust, the bedrock of any relationship, erodes when leaders act out of arrogance. Stakeholders—whether they are employees, customers, or business partners—begin to lose confidence when decisions seem self-serving rather than in the collective interest. The environment becomes toxic, and employees feel unheard or undervalued, which results in low morale, disengagement from the organisation’s mission, and high turnover. Additionally, power-drunk leaders damage the organisation’s reputation among external stakeholders, such as investors or the public, who recognise this behaviour and begin to doubt the company’s long-term viability. This underlines the urgent need to address power intoxication and its effects on stakeholders.

It’s a paradox of power intoxication that while individuals may initially feel invincible, the long-term consequences often catch up with them. Leaders who abuse power tend to alienate those around them, resulting in isolation. Over time, advisors and supporters either leave or stop offering honest feedback, leaving the leader surrounded by silence. In many cases, this isolation leads to a downfall, as the collapse of stakeholder relationships forces the leader out of their position. The consequences do not end there; the personal reputations of these individuals suffer long after their departure, making it difficult for them to regain leadership roles or the trust of others.

History is full of leaders whose power intoxication led to their undoing. A well-known example is Travis Kalanick, the former CEO of Uber. His aggressive leadership style and relentless pursuit of dominance in the ride-sharing industry fostered a toxic work culture that eventually backfired. Allegations of harassment, regulatory violations, and a growing list of scandals destroyed stakeholders’ confidence in his leadership, and he was forced to step down in 2017—Kalanick’s arrogance and inability to check his power damaged Uber’s reputation and career.

Another striking example is Adam Neumann, the co-founder and former CEO of WeWork. Neumann wielded enormous control over the company while pursuing his vision, often ignoring the concerns of key stakeholders. His erratic decisions, lavish spending, and disregard for investor warnings culminated in a disastrous attempt to take WeWork public. The result was a catastrophic fall in the company’s value, forcing Neumann out of his position and leaving WeWork to repair its damaged relationships with stakeholders.

Power intoxication is a dangerous phenomenon that affects both stakeholders and the perpetrators of such behaviour. Leaders who fail to recognise the limits of their authority or abuse it for personal gain erode trust,damage morale, and jeopardise their positions. The real-life examples of leaders like Travis Kalanick and Adam Neumann remind us that power drunkenness may lead to rapid ascents, but it almost always results in equally dramatic downfalls. Authentic leadership lies in balancing power with responsibility and respecting the stakeholders contributing to an organisation’s success.

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Thabang Chiloane is the Chairperson of the Institute of Stakeholder Relations (ISR) Institute of Stakeholder Relations (stakeholderinstitute.org). He writes in his personal capacity.