Tuesday, November 5, 2024

Unethical corporate culture lead to the 2008 crisis: A study finds 1 in 5 CEOs are psychopaths

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The global financial crisis in 2008 has prompted researchers to study workplace traits that may have allowed a corporate culture in which unethical behaviour was able to flourish.

An Australian study has found that about one in five corporate executives are psychopaths – roughly the same rate as among prisoners.

The study of 261 senior professionals in the United States found that 21 per cent had clinically significant levels of psychopathic traits. The rate of psychopathy in the general population is about one in a hundred.

Nathan Brooks, a forensic psychologist who conducted the study, said the findings suggested that businesses should improve their recruitment screening.

He said recruiters tend to focus on skills rather than personality features and this has led to firms hiring “successful psychopaths” who may engage in unethical and illegal practices or have a toxic impact on colleagues.

‘Really it needs to be firstly about the candidate’s character and then, if they pass the character test, consider whether they have the right skills.’

‘Successful psychopaths’ are often insecure yet egocentric, and can be charming and superficial. Also, they often lack empathy or remorse, and may manipulate the people around them.Typically psychopaths create a lot of chaos and generally tend to play people off against each other, said Nathan Brooks.

 “For psychopaths, corporate success is a game and they don’t mind if they violate morals. It is about getting where they want in the company and having dominance over others.”

The researchers have been examining ways to help employers screen for potential psychopaths.


 

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