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The study of corporate psychopaths has gone from something which some academic peers found somewhat incredible, and even laughable, in 2005, to an area where an increasing amount of research is taking place across many disciplines. The paradigmatic view in 2005 was that psychopaths were criminal and, therefore, to be found in prisons and not in ‘respectable’ corporations. That chapters like this on corporate psychopaths and destructive leadership are now invited in 2020 for inclusion in academic management books that illustrates how relatively quickly the idea that psychopaths are found in corporations has gained acceptance. Nonetheless, destructive, unethical and psychopathic leadership is, by and large, still unexpected in the workplace, and this magnifies its impact as employees struggle to know how to deal with it. Such destructive leadership is also jarring and quite often traumatic for the employees concerned as well as being damaging to the organisations involved. This chapter examines psychopathic leadership and outlines its importance. This subject has been covered before in books and other chapters which describe psychopaths as organisational destroyers and producers of a climate of fear. Therefore, an aim of this chapter is to present some of the most up-to-date findings on corporate psychopaths and how they influence their environment via abusive supervision involving discrimination, ridicule and lowered job satisfaction. Abusiveness and unfairness lead to employees experiencing workplace stress and reduced mental health. The implications of corporate psychopathy for corporate legal responsibility are only just being considered as lawyers, ethicists and philosophers engage with this difficult subject.

The purpose of this paper is to examine the relationship between psychopathy and its underlying traits and financial risk and time preferences.

The authors measure risk and time preferences using both the cumulative prospect theory and quasi-hyperbolic time discounting in a sample of business majors. The Psychopathic Personality Inventory – Revised test is then used to measure the global psychopathy and eight primary and two secondary traits of the sample of business majors. The measures of psychopathy are used as explanatory variables to model variation in subjects’ time and risk preferences.

The authors find that the overall score on the continuum of psychopathy is positively related to the linearity of the cumulative prospective utility function. A breakdown of psychopathy into its secondary and primary traits shows a more complex relation. For example, the secondary trait of self-centered impulsivity is statistically significant in models of financial risk preference determinants under the cumulative prospect theory. The authors find that the primary traits of self-centered impulsivity and stress immunity are related to a higher time preference discount rate under quasi-hyperbolic time preferences.

This paper adds to the literature on personality and financial decisions and highlights the importance of psychopathy in finance.

I investigate the efficacy of adopting two mental aptitudes in the financial industry: mindfulness and compassion.

A conceptual link is drawn between the powerful mental acuteness obtained from practicing Mindfulness (defined by Jon Kabat-Zinn) and Ruthless Compassion (defined by Chögyam Trungpa Rinpoché) and the pursuit of a noble purpose for finance, which is to channel resources into the most deserving social and/or economic activities that raise community and societal welfare.

These techniques allow decision-makers to reach new levels of awareness, giving them a competitive advantage for instance in terms of avoiding behavioral traps. Making money remains an important by-product of financial services, but not the overriding or sole criterion. An interview of Solomon Halpern, longstanding disciple of Chögyam Trungpa Rinpoché, expert in Buddhist meditation, and president of Highlander Wealth Services, illustrates how these mental tools are applied for running a small US equity fund.

The present study provides a starting point for further survey research on how these practices are becoming adopted in the industry.

This chapter is the first to analyze the impact of both ruthless compassion and mindfulness in the business of finance not only in terms of raised morality but also as an added tool to resolve informational asymetries proper to the finance business.

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”.

This is a review of the literature on workplace psychopaths since 2006.

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.

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.

The paper provides an extensive review of research into corporate psychopaths to date and highlights areas where further investigation would be potentially rewarding.

The purpose of this paper is to re-open a debate as to whether candidates for public leadership should be screened for psychopathy.

This is a conceptual paper which examines the diffuse literature concerning psychopaths in public leadership positions.

Psychopathy researchers have been divided as to whether psychopathic individuals should be screened out of leadership positions in public and corporate life. Recent evidence from bullying research and historical research into psychopaths in politics sheds new light on this issue.

There is increasing evidence that psychopaths are detrimental to the organisations they work for, to other employees, to the environment and to society. Screening for psychopathy should therefore be considered. This may help to prevent governments entering into illegal wars and committing crimes against humanity. Screening in the corporate sector may also help prevent the worst excesses of greed and fraud that were evident in collapses like Enron and the Mirror Group as well as in the events leading up to the global financial crisis of 2008.

The paper makes a contribution to the literature on public leadership by bringing together the diverse reports on the effects of psychopaths in public organisations like the National Health Service, publicly listed corporations, academia and politics. The paper uses historical and corporate examples to illustrate the initially favourable impression that psychopathic leaders can make but the ultimately disastrous outcomes they engender.

The purpose of this paper is to analyse auditors’ experience with corporate psychopaths in their client management.

The research was conducted as a survey among Danish state-authorized auditors, to which 179 auditors responded, representing 9 per cent of the total population.

Of the participating auditors, 69 per cent had experienced corporate psychopaths in their client management and 70 per cent of these had experienced more than one case. In addition, 43 per cent of the auditors who had experienced psychopathic managers reported that they had committed fraud. The vast majority of cases were detected in the execution and completion phases of the audit and resulted in increased professional scepticism, the use of more experienced auditors and the requirement for more and better audit evidence.

The findings confirm that corporate psychopaths actually exist and are a phenomenon worthy of research attention in areas such as accounting, auditing, internal control, fraud investigation, performance management and human resource management.

As auditors are likely to come across corporate psychopaths from time to time in their careers, awareness of this type of risk needs to be increased and better integrated into the risk assessment in audit planning. Auditing standards relating to fraud also need to be updated according to the latest developments in fraud theory.

This is the first research to address auditors’ experience with corporate psychopaths. It adds value by confirming the relevance of the topic for practice and research.

The purpose of this paper is to present evidence to examine the possible psychopathy of Robert Maxwell, a notorious figure in UK business history.

This paper presents research which retrospectively applied a tool to measure whether leading figures in twentieth century business history could be classified as being corporate psychopaths. As background to this idea, psychopaths and corporate psychopaths are defined. A measure of corporate psychopathy is explored as an aid to identifying corporate psychopaths in business history. This measure is then used in relation to senior corporate executives who have been nominated as potential corporate psychopaths and to Robert Maxwell in particular.

The paper concludes that at least some ethical scandals and failures such as those at The Daily Mirror have been characterized by the presence of CEOs who scored highly on a measure of corporate psychopathy. Maxwell’s fraudulent raiding of corporate pension funds crossed ethical and legal borders. Furthermore, Maxwell’s fraudulent looting of those pension funds crossed generational boundaries; stealing from older people’s pension funds and thereby leaving younger people/investors with less to inherit. Maxwell also had an international business empire and so his fraud had effects which crossed geographic borders. The paper concludes that using an historical approach to the study of potential corporate psychopaths illuminates what types of organizational outcomes corporate psychopaths may eventuate.

The paper is the first to use an historical approach to the study of potential corporate psychopaths.

Influential research has posited that empirical investigation provides no evidence for the existence of white-collar/successful psychopaths. The purpose of this current paper is to review evidence for their existence and report on new, primary research that examines ethical outcomes associated with their presence.

Leading psychopathy researchers called for research using samples of white-collar workers to explore workplace psychopathy. Therefore, the authors undertook a two-stage research process to examine this. Firstly, a structured literature review sought evidence for “corporate psychopaths”, “white-collar psychopaths” and “successful psychopaths” in existing literature. Secondly, original research was undertaken among 261 Australian workers to examine this further.

Findings indicate that white-collar psychopaths exist. Where they have been found not to exist, investigation reveals that the samples used were inadequate for the purpose of attempting to find them.

Although there is an inconsistent nomenclature, white-collar, industrial, successful, organisational, workplace or corporate psychopaths do exist and are found in white-collar workplaces.

Their existence is important because findings indicate that they have a significant, ethically malign and long-lasting impact on employee well-being and organisational ethical outcomes.

To the best of the authors’ knowledge, this is perhaps the first paper to specifically examine the literature for evidence of whether white-collar psychopaths exist. To the best of the authors’ knowledge, this is also the first paper to determine that corporate psychopaths are linked with aggressive humour, gender discrimination, fake corporate social responsibility and reduced communications integration.

The purpose of this paper is to construct a profile of a financial criminal, with special emphasis on their psychological attributes. The objective is to determine if such a profile can provide a valuable tool for detecting perpetrators of financial crime and for implementing risk-reduction strategies.

The approach involved a review of various personality disorders and other mental health issues, as well as an analysis of a number of cases involving serious financial crime, to ascertain whether the behaviour of the perpetrators was consistent with certain psychological challenges. In addition, the study examined various motivators for the commission of the financial crime.

The research revealed some key commonalities among the perpetrators of financial crime and that their behaviour was often consistent with that of a person afflicted with a personality or other psychological disorder.

The study provides a comprehensive analysis of various personality and other psychological challenges afflicting a number of offenders involved in financial crime. It also provides some critical findings that could be valuable for those charged with establishing measures to prevent and detect financial crime.

This paper aims to review the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

If one thing has grown since the advent of the Global Financial Crisis (GFC), it has been the market for analysis into explaining what exactly went wrong. While this kind of analysis was notable by its absence prior to 2007, since then every economist, management theorist and business journalist have had their say on what triggered the crisis, why it has lingered and what could happen in the future.

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.