You can't operate a company by fear, because the way to eliminate fear is to avoid criticism. And the way to avoid criticism is to do nothing.

Steve Ross, the former CEO of Warner Communications, made this statement to highlight the dangers of leading a company through fear. By saying, “You can't operate a company by fear, because the way to eliminate fear is to avoid criticism. And the way to avoid criticism is to do nothing,” Ross underscores that fear-based leadership discourages action and innovation. Employees who are afraid of being criticized will often play it safe, avoiding risks that could actually benefit the company.

The quote reflects Ross’s understanding that a culture of fear leads to stagnation. When employees are overly concerned about criticism, they focus on protecting themselves rather than taking initiative. This defensive mindset stifles creativity, problem-solving, and progress, which are all essential for a company’s growth.

The origin of this statement ties to Ross’s experience in the competitive media industry, where taking bold decisions was necessary for success. As a leader, he recognized that fostering an environment of trust and open communication was far more effective than using fear as a motivator. Encouraging employees to take calculated risks and embrace new ideas ultimately leads to stronger performance.

Ultimately, Ross’s message is that successful leadership requires creating a supportive culture. Fear may achieve short-term compliance, but it prevents the very kind of action and innovation companies need to thrive. Leaders must instead focus on empowering people to act without the constant worry of being criticized for mistakes.