We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing (...) the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house. (shrink)

This longitudinal case study reports on a charity in the UK which gained a new CEO who was reported by two middle managers who worked in the charity, to embody all or most of the ten characteristics within a measure of corporate psychopathy. The leadership of this CEO with a high corporate psychopathy score was reported to be so poor that the organisation was described as being one without leadership and as a lost organisation with no direction. This paper outlines (...) the resultant characteristics of the ensuing aimlessness and lack of drive of the organisation involved. Comparisons are made to a previous CEO in the same organisation, who was reportedly an authentic, effective and transformational leader. Outcomes under the CEO with a high corporate psychopathy score were related to bullying, staff withdrawal and turnover as effective employees stayed away from and/or left the organisation. Outcomes also included a marked organisational decline in terms of revenue, employee commitment, creativity and organisational innovativeness. The paper makes a contribution to both leadership and to corporate psychopathy research as it appears to be the first reported study of a CEO with a high corporate psychopathy score. (shrink)

Primary psychopathy in leaders, also referred to as successful psychopathy or corporate psychopathy, has been put forward as a key determinant of corporate misconduct. In contrast to the general notion that primary psychopaths’ destructiveness cannot be controlled, we posit that psychopathic leaders’ display of self-serving and abusive behavior can be restrained by organizational contextual factors. Specifically, we hypothesize that the positive relationship between leader primary psychopathy on the one hand and self-serving behavior and abusive supervision on the other will be (...) weaker to the extent that the organizational context (clear rules and policies, sanctionability of misconduct, and transparency of behavior) is stronger. Three studies (one experiment, one survey of leader–subordinate dyads, and one survey of teams) showed that clear rules in particular weakened the positive association between leader primary psychopathic traits and their self-serving and abusive behavior. Explanations for why clear rules rein in primary psychopathic leaders’ destructive behavior more than sanctionability of misconduct and transparency of behavior will be discussed. (shrink)

Psychopathy is typically seen as a trait that is undesirable in any context, including the workplace. But several authors have suggested that people high in psychopathy might possess resources that preserve their ability to perform well in stressful contexts. We consider the possibility that primary psychopathy is adaptive—for the employee, if not for the organization—under conditions of abusive supervision. In particular, we draw from the multimotive model of interpersonal threat and the theory of purposeful work behavior to argue that high (...) primary psychopathy individuals possess characteristics that enable them to experience higher levels of well-being and lower levels of anger than their peers under abusive supervisors. Based on a scenario study and a time-lagged field study, we found support for a model in which abusive supervision moderates the relationships between primary psychopathy and positive work-related outcomes, such that these relationships are positive under conditions of abusive supervision and either diminished or negative under conditions of low abusive supervision. Abusive supervision also affected the relationship between primary psychopathy and anger in the field study such that high primary psychopathy individuals were less angry under more abusive supervisors. Thus, there appears to be some credence to the notion of a “psychopathic advantage” in that primary psychopaths do have access to greater psychological resources than their peers under abusive supervision. However, these findings also suggest that abusive supervisors may empower employees with characteristics that hold strong potential to damage the organization and its stakeholders. (shrink)

The academic literature on unethical leadership is witnessing an upward trend, perhaps given the magnitude of unethical conduct in organisations, which is manifested in increasing corporate fraud and scandals in the contemporary business landscape. Despite a recent increase, scholarly interest in this area has, by and large, remained scant due to the proliferation of concepts that are often and mistakenly considered interchangeable. Nevertheless, scholarly investigation in this field of inquiry has picked up the pace, which warrants a critical appraisal of (...) the extant research on unethical leadership. To this end, the current study systematically reviews the existing body of work on unethical leadership and offers a robust and multi-level understanding of the academic developments in this field. We organised the studies according to various themes focused on antecedents, outcomes and boundary conditions. In addition, we advance a multi-level conceptualisation of unethical leadership, which incorporates macro, meso and micro perspectives and, thus, provide a nuanced understanding of this phenomenon. The study also explicates critical knowledge gaps in the literature that could broaden the horizon of unethical leadership research. On the basis of these knowledge gaps, we develop potential research models that are well grounded in theory and capture the genesis of unethical leadership under our multi-level framework. Scholars and practitioners will find this study useful in understanding the occurrence, consequences and potential strategies to circumvent the negative effects of unethical leadership. (shrink)

Research has shown that individuals with high levels of psychopathic personality traits are likely to cause harm to others in the workplace. However, there is little academic literature on the potentially adaptive outcomes of corporate psychopathy, particularly because the “boldness” psychopathy domain has largely been under-acknowledged in this literature. This study aimed to elaborate on past findings by examining the associations between psychopathy, as operationalized using scales from the relatively new triarchic model of psychopathy, and both adaptive and maladaptive workplace (...) behaviors. Participants were 343 working community adults who completed a series of self-report questionnaires that measured psychopathy and various workplace behaviors, including counterproductive work behaviors, tactics of influence, unethical decision-making, leadership strategies, team play, and creativity. Structural equation modeling was used to estimate the associations between latent constructs of boldness, meanness, and disinhibition, and the eight different constructs related to workplace behaviors. It was found that boldness preferentially predicted the use of soft tactics of influence, adaptive leadership, and team play, and negatively predicted passive leadership. Meanness predicted unethical decision-making, poor team play, and hard tactics of influence. Disinhibition positively predicted CWB and passive leadership. Meanness also moderated the association between disinhibition and CWB, in that greater scores on both psychopathy domains indicated greater levels of CWB. These findings provide conceptual support for the triarchic model, including the “boldness” domain, which measures adaptive aspects of psychopathy in addition to maladaptive ones, as well as suggest that not all individuals high on psychopathy would be an overt menace to the workplace. The different psychopathy traits may also interact with each other to predict different types or levels of workplace behaviors. (shrink)