The influence of psychopathic traits on the acceptance of white-collar crime: do corporate psychopaths cook the books and misuse the news?

Abstract

Due to several empirical shortcomings in the research of personality characteristics in ethical decision making, we address in this paper the concept of corporate psychopathy in the organizational context. Corporate psychopaths are individuals successfully working in organizations, but are selfish, manipulative, and exhibit a lack of empathy, remorse, and conscience; therefore, they may be viewed as risk factors for organizations. While there is abundant literature on the connection between clinical psychopathy and criminal behavior, such research is scarce in the business context where successful psychopaths operate. Thus, we examine if the malevolent traits of corporate psychopaths predict the acceptance of different forms of white-collar crime. In doing so, we conduct two survey studies in which we first measure participants’ psychopathic tendencies and then assess their acceptance of either an accounting fraud or an insider-trading situation. Consistent with our hypotheses and across both studies, we find a highly significant relationship between personality traits that are associated with corporate psychopathy and the acceptance of white-collar crime. This paper discusses the implications of these findings and identifies some potentially useful approaches for excluding corporate psychopaths from organizations.