We study the relationship between risk managers’ dark triad personality traits (Machiavellianism, narcissism, and psychopathy) and their selective hedging activities. Using a primary survey of 412 professional risk managers, we find that managers with dark personality traits are more likely to engage in selective hedging than those without. This effect is particularly pronounced for older, male, and less experienced risk managers. The effect is also stronger in smaller firms, less centralized risk management departments, and family-owned firms.

This study assesses the relationships among unethical corporate values, bullying experiences, psychopathy, and selling professionals’ ethical evaluations of bullying. Information was collected from national/regional samples of selling professionals. Results indicated that unethical values, bullying, and psychopathy were positively interrelated. Psychopathy and unethical values were negatively associated with moral intensity, while moral intensity was positively related to ethical issue importance. Psychopathy and unethical values were negatively related to issue importance, and issue importance and moral intensity were positively related to ethical judgment. (...) Finally, ethical judgment and moral intensity were positively linked to ethical intention; psychopathy was negatively associated with ethical intention. (shrink)

Corruption is a word used loosely to describe many kinds of action that people find distasteful. We prefer to reserve it for the intentional misuse of the good offices of an established social entity for private benefit, posing as fair trading. The currency of corruption is not always material or financial. Moral corruption is all too familiar within churches and other ostensibly beneficent institutions, and it happens within medicine and the pharmaceutical industries. Corrupt behavior reduces trust, costs money, causes injustice, (...) and arouses anger. Yet it persists, despite all efforts since the beginnings of societies. People who act corruptly may lack conscience and empathy in the same way as those with some personality disorders. Finding ways to prevent corruption from contaminating beneficent organizations is therefore likely to be frustratingly difficult. Transparency and accountability may go some way, but the determined corruptor is unlikely to feel constrained by moral and reporting requirements of this kind. Punishment and redress are complicated issues, unlikely to satisfy victims and society at large. Both perhaps should deal in the same currency—material or social—in which the corrupt dealing took place. (shrink)

Many destructive business leaders drive their companies into bankruptcy and dissolution, never to be heard from again in the business press. However, it is useful to study these organizations to prevent the same, or similar destructive business from taking on, and destroying, additional businesses. In this article, we describe one type of organization that follows the model of religious cults, which we call secular business cults. Building on Padilla et al., we describe an SBC toxic triangle of (1) Padilla et (...) al.'s societal factors, (2) additional business factors, and (3) antisocial actors that set the stage for the SBC's emergence. We then describe the characteristics of the SBC's operations, such as an ultrastrong culture, formalized manipulation, manipulative hierarchical relationships, competition, and operations efficiency tools, and the frequent overcommunication of deceptive messages. It is our hope that this unique perspective on organizations will inspire research into an overlooked area of unethical behavior in businesses today. In our Part II paper on the topic, we intend to extend the idea of SBCs to manipulative businesses, which are essentially reorganized, well‐established and legally‐complying revisions of SBCs, and then to manipulative industries and societies. (shrink)