It is a self-correcting problem - only the time-to-correction variable is in question.
A company that burns itself hot with drugs will find mistakes creeping into its products, workers that burn out and crash in spectacular ways, or simply see a mass exodus from its ranks and a big, fat black-mark with recruiters. It also eventually destroys productivity.
I used to work for a company whose culture could best be described as a boiler-room. No drugs were involved, yet in the space of two years, one of the sysadmins had a literal heart attack, and the lead developer and network engineer both suffered strokes - the network guy recovered fairly quickly and quit, while the developer is still, even today, trying to re-learn that whole talking thing. One of the IT managers suffered so much stress, that he eventually wound up in prison for abusing one of his kids.
Again - no performance-enhancing drugs were involved. It took the global parent company (In Germany) to step in and fix the mess, because it was destroying the company financially (due to turnover, downtime due to sloppy work caused by over-committal, etc) It took the act of publicly firing the company's CEO, a few other board members and the IT Director, and basically hitting the big corporate culture reset button. I was long gone by then (as were many others), but many of my former colleagues who remained behind tell me that things improved vastly, and the company actually has improved by quite a bit since then.