Toxic managers is just a politically correct term for corporate psychopaths, really dangerous predators of corporate jungles in general and IT jungles in particular. Psychopaths cannot be understood in terms of antisocial rearing or development. They are the "monsters" of the corporate world not that different from ordinary criminals or, to be more precise, are "criminals without crime". Psychopath is first of all the failure to recognize, much less to empathize with, the personal human dignity and rights of others. In a deep sense of this word they can be considered insane.
"Sanity" does not mean perfection; it merely means sufficient engagement with the real world and society to allow us to survive both day-by-day and in the long term – thus “sane” individuals usually tend to obey traffic laws, learn from their mistakes and practical experience and, in the case of moral sanity, they recognize in others their worth and their capacity for joy and suffering. Furthermore, sanity implies an ability of introspection: capacity to critically evaluate one’s experience, to distinguish fact from fiction, and to tune behavior, to adapt to the real world. Insanity, by implication, suggests a significant level of detachment from reality. For example, a psychopath can not recognize the human worth and the capacity for pleasure and pain in others. In this sense he/she is living in an "unreal" world. It can also be combined with other psychological disorders like paranoia.