toxicity is caused, in very large part, by personalities who are sociopath, borderline, or narcissistic.

Sociopaths and borderlines, unless well controlled, are not generally employed.

Narcissists, however, have goals, often charisma, drive, social skills. They are leaders. Every company has leaders or they fail.
Hierarchies must have leaders. Narcissists climb the corporate ladder, the pyramid, the management track very well. But they are running your life as an employee.

Surprised the SG would make such a comment. It was very revealing.