Someone just asked how to survive a toxic environment with a Supervisor that doesn't even play by the rules. She has one like minded employee on her team. I thought that I would share my answer here because unfortunately, this is a common issue. She's allowing her favorite employee to break a rule that she's condemning her boss and coworkers for.
You're in a toxic work environment. I have been in a similar situation before. Here is what I did:
1) Systematically replace the staff with like minded people as turnover occurs (you're doing that).
2) Enforce the rules equally because it's only fair; however, there's nothing from stopping you from REWARDING exceptional performance. Then, be consistent in enforcing them.
3) Explain to your boss that you're having difficulties enforcing policies that management doesn't adhere to, but don't point fingers. Be prepared to give her several specific examples. She will know who you're talking about.
4) Figure out WHY your employees are apathetic. Is it just the company culture? If so, why haven't the two of you been effected? Ask them about their performance and listen to what they say, but also what they don't say. Sometimes the things we don't say are just as significant - if not more.
5) Give clear, specific feedback to your employees weekly - if not daily. People often make the mistake of waiting until it's time for performance appraisals. If you do everything correctly, you shouldn't have much to say during an appraisal. It should simply be a formality.
6) Document everyone's behavior. I know it is time consuming, but you may need it later to prove your point or for legal reasons.
7) Make sure that they know their behaviors have negative consequences. For example, I would say something like, "I can't recommend you for the promotion you want if you continue to use your phone against company policy. It takes away from your work and is a distraction. As a Supervisor, you would be held to a higher standard because you'd need to set an example for your team. It's a safety issue as well."
8) Go through the chain of command. If you've spoken with your boss, I would approach HR next. If that doesn't work, I would go to your boss's boss. If your rally cries continue to fall upon deaf ears about how this is effecting performance and costing revenue, go higher. Don't make it personal or emotional.
9) As tempting as it may be, don't become friends with your "good" employee and confide in her. She doesn't need to know about your struggles and you don't want to make your issues hers.
10) If you can, terminate the poor performers and replace them with other like minded individuals. I created my own little utopian bubble in an extremely toxic workplace once.
11) Start looking for another job just in case because burnout is real and I don't want them to drain the life out of you.