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Corporate Psychopathy: Entering the Paradox and Emerging Unscathed

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Psychopathy, the dark triad and related personality disorders may have negative consequences within organisations, individuals and society. There may, however, be positive benefits in terms of creativity and reaction to stressful circumstances and extreme environments. The developing body of research is beginning to address some elements of the paradoxes related to psychopathy. In this chapter, the focus is on both concluding the key themes emerging in the field and moreover, providing guidance for addressing and minimising the exposure to organisational, societal and individual threats that can easily become toxic to those caught in the psychopathic “tangled web”.

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... These subclinical psychopaths are referred to by a variety of terms. Besides the simple term as a "Factor 1 psychopath," they are also referred to as "organizational psychopath" (e.g., Boddy, 2006), "executive psychopath" (e.g., Morse, 2004), "corporate psychopath" (Babiak & Hare, 2019;Boddy, 2005;Brooks et al., 2020;Lingnau et al., 2017), or "successful psychopath" (e.g., Benning et al., 2018;Board & Fritzon, 2005;Hare & Neumann, 2008;Hervé, 2007;Weber et al., 2008). In the following, we will refer to these individuals primarily as "corporate psychopaths." ...
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The notion that individuals with psychopathic personality characteristics exist in the corporate world is both a logical extension of the estimated community prevalence rates of the disorder, as well as a scientific hypothesis based on the observation that a number of the characteristics of the disorder 9.1 Introduction 139 9.2 Aim 143 9.3 Method 143 9.3.1 Participants 143 9.4 Measures 144 9.4.1 Participant Demographics 144 9.4.2 Paulhus Deception Scales: Balanced Inventory of Desirable Responding 144 9.4.3 Psychopathy Personality Inventory-Revised 145 9.4.4 Corporate Personality Inventory 145 9.5 Results 146 9.5.1 Descriptive Statistics 146 9.5.2 Factor Structure of the Corporate Personality Inventory 147 9.5.3 Discriminant and Concurrent Validity 152 9.5.4 Criterion Validity 152 9.6 Discussion 154 9.7 Limitations and Future Directions 156 References 159 Appendix: Corporate Psychopathy Inventory Items 161 could convey an advantage within this context (Crant & Bateman, 2000; Kets de Vries & Miller, 1985). However, very little literature has actually tested the validity of the hypothesis, despite the proliferation of the idea in media portrayals and semi-academic publications (Babiak & Hare, 2006; Boddy, 2011b; Dutton, 2012). Given that psychopathy in its criminal manifestation has been shown to predict aggression and violent behaviour, the assumption has been that in a business setting those individuals with the disorder will be responsible for fraud (Blickle, Schlegel, Fassbender, & Klein, 2006), workplace bullying (Caponecchia, Sun, & Wyatt, 2012) and poor management (Babiak, Neumann, & Hare, 2010). Smith and Lilienfeld (2013) have, though, recently posited a ‘double-edged sword’ hypothesis, citing examples from studies that have shown positive characteristics including being a strategic thinker, being creative or innovative and successful leadership (Babiak et al., 2010; Lilienfeld, Waldman, Landfield, Watts, Rubenzer, & Faschingbauer, 2012). The present study seeks to further clarify the distinction between positive and negative manifestations of psychopathic personality characteristics in a corporate sample. The aims of the study include the development of an assessment tool to measure psychopathic personality traits in a business setting, as well as the elucidation of how these characteristics correlate with other validated measures relevant to psychopathy assessment.
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The current study sought to examine the association between the Dark Tetrad traits and accuracy in assessing a target's vulnerability using nonverbal gait cues. In a sample of 126 undergraduates, accuracy was positively associated with psychopathy, Machiavellianism, and everyday sadism, while narcissism was unrelated to accuracy. A hierarchical linear regression analysis also suggested that there is considerable overlap between these constructs, as Machiavellianism and everyday sadism did not add incrementally to the prediction of accuracy over and above psychopathy. Overall, this study provides support for previous research associating psychopathy with accuracy in perceiving other's vulnerability based on gait cues and raises questions about the construct validity of the Dark Tetrad. While the fault of victimization lies solely on the perpetrator, it is important to explore whether vulnerability cues can be modified to reduce predatory behavior.
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The term dark triad refers to the constellation of narcissism, Machiavellianism, and psychopathy. Over the past few years, the concept has gained momentum, with many researchers assuming that the dark triad is a prominent antecedent of transgressive and norm-violating behavior. Our purpose in this meta-analytic review was to evaluate (a) interrelations among narcissism, Machiavellianism, and psychopathy; (b) gender differences in these traits; (c) how these traits are linked to normal personality factors; and (d) the psychosocial correlates of the dark triad. Our findings show that dark triad traits are substantially intercorrelated, somewhat more prevalent among men than women, predominantly related to the Big Five personality factor of agreeableness and the HEXACO factor of honesty-humility, and generally associated with various types of negative psychosocial outcomes. We question whether dark triad traits are sufficiently distinct and argue that the way they are currently measured is too simple to capture the malevolent sides of personality. Because most research in this domain is cross-sectional and based on self-reports, we recommend using a cross-informant approach and prospective, longitudinal research designs for studying the predictive value of dark triad features.
Article
This article explores general principles of state whistleblower laws and alerts nurses to considerations when deciding whether to report an employer violation. Reporting an employer violation can be difficult for any employee but especially for nurses because nurses are torn between their desire and duty to advocate for clients' safety and their desire to maintain employment. The author suggests questions to consider when deciding to “blow the whistle” and alerts nurses to statutes of limitations that may affect when nurses must report violations. The article also illuminates policy and procedural issues for various states that affect how and to whom nurses report violations to protect themselves under whistleblower protection laws. Finally, this article explores personal and professional consequences that nurses should consider before reporting violations.
Article
Few studies have examined the manner in which individuals view, interact with, and manipulate others, or their ability to identify and respond to others’ emotional cues. More specifically, no research has examined the capacity of individuals high in psychopathic traits to perceive and recognize extremely fleeting emotional expressions (i.e. micro-expressions) that could allow them to infer emotional vulnerability in others. The current study examined whether psychopathic traits [measured via the Self-Report Psychopathy Scale-4 (SRP-4); Paulhus, D. L., Neumann, C. S., & Hare, R. D. (2016). Manual for the Self-Report Psychopathy Scale (4th ed.). Toronto: Multi-Health Systems] were associated with the ability to identify micro-expressions in others. Participants (N = 132) viewed videos of 1/25th second micro-expressions and attempted to identify the displayed emotion. The results indicated that SRP scores were positively associated with a heightened ability to identify sadness micro-expressions, particularly among observers who were women. Additionally, various SRP subscales were related to emotion selection tendencies and accuracy rates, which also differed between the sexes.
Book
In a difficult economic climate it is more important than ever to manage bad behaviour in the workplace and minimize the damage negative and destructive employees can have on an organization. This book looks at the problems companies can face but also shows how to resolve these issues and work towards a positive outcome.
Article
When it comes to person perception, does one “judge a book by its cover?” Perceivers made judgments of liking, and of personality, based on a photograph of an unknown other, and at least 1 month later, made judgments following a face-to-face interaction with the same person. Photograph-based liking judgments predicted interaction-based liking judgments, and, to a lesser extent, photograph-based personality judgments predicted interaction-based personality judgments (except for extraversion). Consistency in liking judgments (1) partly reflected behavioral confirmation (i.e., perceivers with favorable photograph-based judgments behaved more warmly toward the target during the live interaction, which elicited greater target warmth); (2) explained, at least in part, consistency in personality judgments (reflecting a halo effect); and (3) remained robust even after controlling for perceiver effects, target effects, and perceived attractiveness. These findings support the view that even after having “read a book,” one still, to some extent, judges it by its “cover.”
Article
Purpose – This current paper reviews the theoretical speculations concerning psychopaths in the workplace that were originally presented in a paper published in this journal in 2006. The 2006 paper was called: “The Dark Side of Management Decisions: Organisational Psychopaths”. Design/methodology/approach – This is a review of the literature on workplace psychopaths since 2006. Findings – This current paper determines that while many of these prior speculations about workplace psychopaths have since been supported by evidence, several others remain unexplored. This finding suggests that several important avenues for further research remain in this important area. In particular, links between corporate psychopaths, bullying and lowered corporate social responsibility have been established. On the other hand, links between corporate psychopaths, career advancement, fraud, and corporate failure as exemplified in the 2007 global financial crisis, have been under-explored. Social implications – Corporate psychopaths are worthy of further research because of their impact on society, for example on corporate social responsibility and their willingness to dump toxic waste material illegally. Originality/value – The paper provides an extensive review of research into corporate psychopaths to date and highlights areas where further investigation would be potentially rewarding.
Article
Long the stuff of clinical lore, successful psychopathy has recently become the focus of research. Although numerous authors have conjectured that psychopathic traits are sometimes associated with occupational or interpersonal success, rigorous evidence for this assertion has thus far been minimal. We provide a status report on successful-psychopathy research, address controversies surrounding successful psychopathy, examine evidence for competing models of this construct, and offer desiderata for future research.
Book
Foreword by Tim Judge. Preface. Individual Differences at Work. Methods to Assess Work Behaviour and Potential. Personality Testing in the Work Place. Types and Temperaments at Work. Personality Disorders at Work. Cognitive Ability at Work. Social and Emotional Intelligences at Work. Creativity at Work. Attitudes, Beliefs, Styles and Values at Work. Integrity and Honesty at Work. Competency at Work. Conclusion.
Article
Psychopathy is related to parasitic behavior that is both antisocial and high-risk. Such individuals are unlikely to consider consequences when engaging in selfish financial behavior, even in the face of punishment and financial loss. After completing Dark Triad measures (psychopathy, Machiavellianism, and narcissism), participants were told that everyone could gamble (in a clearly biased game) with the next person's bonus. Participants were then randomly assigned to think their bonus was still intact or nearly depleted. Participants were then given the option to punish the previous participant. Finally, participants were given the option to gamble with the next participant's bonus. Wins benefited current participants, and losses hurt the next participant. Participants were reminded that they could be punished by the next participant and lose everything. Results indicated that all three Dark Triad traits correlated with attempting one round of gambling. However, only individuals high in psychopathy persisted in gambling, leading to greater financial loss of the next participant. These findings highlight the importance of screening for malevolent traits in the financial world, particularly psychopathy.
Article
There are many instances in which individuals can become locked into a costly course of action. Because it is often possible for persons who have suffered a setback to recoup their losses through an even greater commitment of resources to the same course of action, a cycle of escalating commitment can be produced. In this paper, I review recent research on the escalation of commitment and try to integrate its complex and often conflicting determinants.
Book
This chapter looks at employees as a key resource in an organisation and explains how the productivity of this human resource can be helped or hindered by organisational rules and procedures, supervisors, managers and other constraints. It defines organisational constraints and then outlines why Corporate Psychopaths can affect them. The chapter discusses the findings from an empirical investigation into whether the presence of Corporate Psychopaths in an organisation influences the level of organisational constraints within it. It concludes that Corporate Psychopaths do influence the level of organisational constraints, by a large factor. As corporate psychopathy increases within an organisation, so does the level of organisational constraints. The implications for human resource selection and management policies are discussed in terms of the potential for screening employees for psychopathy.
Article
Purpose ‐ The purpose of this study was to examine the usefulness of pre-employment integrity testing in culturally distinct samples. Design/methodology/approach ‐ Integrity test scores from a total of 1,632 job applicants from three large banking corporations in Colombia, Israel, and Ukraine were studied and matched against a standard criterion of self-reported counterproductive work behaviors. Findings ‐ Mean test scores differed significantly across the countries, as hypothesized, while no evidence of adverse impact was found for age or gender in any of the samples. In addition, consistently significant validities were maintained in each country, resulting in the potential utility for mitigating counterproductive work behaviors among employees. Research limitations/implications ‐ The results of this study are believed to make theoretical and practical contributions to our current understanding of integrity testing in personnel selection in cross-cultural settings. As such, the findings may be of particular importance to the numerous organizations and practitioners around the world administering integrity tests today. These results notwithstanding, future cross-cultural studies of this kind should include external performance measures in order to investigate possible method biases related to the use of self-reported criteria. Originality/value ‐ Despite extensive research on integrity testing in recent decades, this is one of the few studies to look at cross-cultural integrity testing, and one of the first to examine integrity testing in the specific countries studied here.
Article
Although it is recognized that “dark personalities” engage in a high level of interpersonal manipulation and exploitation, little is known about whether or how they assess a target’s potential vulnerability prior to such behavior. This study examined the relation between the Dark Triad (psychopathy, Machiavellianism, and narcissism) and strategies used in the assessment of personality and emotional states related to vulnerability in others. Participants (N = 101) were asked to form impressions of stranger “targets” (with either high or low known vulnerability features) describing themselves across thin slice video, audio, or transcript modalities. Results indicated that dark personalities engaged in a relatively superficial interpersonal analysis and exhibited a “negative other” heuristic by which they generally perceived all targets as being weak and vulnerable to victimization. This negative other heuristic led to impairments in their ability to accurately assess certain features of others. We propose that instead of being keen “readers” of others, dark personalities may rely on their own personality and physical features (e.g., charm, good looks) to draw in vulnerable victims or adopt a “quantity over quality” strategy to find victims and then use active manipulation tactics to exploit them.
Article
Psychopathy represents a unique set of personality traits including deceitfulness, lack of empathy and guilt, impulsiveness, and antisocial behavior. Most often in the literature, psychopathy is described as pathology — a disorder that has been linked to a variety of biological deficits and environmental risk factors. However, from an evolutionary perspective, psychopathy, while it could be a disorder, has been construed in the context of an adaptive strategy. In this article we will examine the strengths and weaknesses of two models suggesting that psychopathy is an adaptive strategy, and one model suggesting that it is a form of pathology resulting from accumulated mutations. Overall, we do not find that there is strong enough evidence to draw firm conclusions about one theory over another, but we highlight some areas where future research may be able to shed light on the issue.
Article
The literature on narcissism in organizational contexts is reviewed. We begin by describing the context of narcissism and several relevant theoretical approaches to understanding it. We next describe research on narcissism in a range of organizational topics, from leadership to meta-organizational issues. We conclude by highlighting several reoccurring themes involving the role of narcissism in organizational contexts, with an emphasis on articulating directions for future research.
Article
Dark side traits have been associated as much with success as failure in specific occupations. This study examines the possibility that some “dark side” traits may be advantageous in particular occupations by focusing on the relationship of eleven dark side traits with six, self-report, validated measures of occupation behaviour and potential. Nearly 5000 British adults completed the Hogan Development Survey (HDS), and the Hogan Personality Inventory (HPI) which has six criterion-based measures of occupational scales. Whilst some disorders (i.e. Excitable, Sceptical) seemed consistently associated with low work outcome and potential ratings, others seemed either neutral or positively associated (Bold, Diligent). Some dark side traits were highly variable being positively associated with some occupational scales, but not others (Mischievous, Colourful). The total ‘potential’ index of three potential measures showed most positive correlations with dark-side traits. The present results suggest that the manifestation of specific dark side traits may not always lead to work problems.
Article
This paper examines the psychopathology of the white-collar criminal acting as a corporate leader. It looks at the impact of a leader's behaviour on other employees and the organisational culture developed during his or her reign. We propose a 12-step process to explain how an organisation can move from a legally operating organisation to one in which unethical behaviour is ignored and wrong doing promoted. Events from Enron, Barings Bank, WorldCom and other corporations provide examples of this process.