In businesses with high staff turnover and relatively superficial assessments of personality traits when appointing employees to various positions, unscrupulous and deceitful corporate psychopaths often find opportunities to promote themselves. Such characteristics as ultra-rationality and a lack of emotional distress and empathy for other employees may even initially seem useful in activities aimed at generating profit. However, in the long run, the actions of corporate psychopaths can lead to catastrophic consequences.
To begin with, many employees cannot psychologically endure being their subordinates. Under psychopathic managers, staff turnover increases significantly. Additionally, they cause a decrease in the level of cooperation between different departments within the company. For example, psychopathic managers may order employees not to interact with other departments in any way except through their mediation. This is done to hide the fraudulent schemes they are implementing. Another management trait of corporate psychopaths is the bullying and intimidation of subordinates to draw them into their schemes, as well as the forced dismissal of anyone who refuses to obey them unconditionally.
At the same time, as counterintuitive as it may sound, psychopathic managers appear to be excellent employees to senior management, as they are proficient at reducing the company’s monetary expenses. Of course, in reality, this is not their own achievement; they appropriate it from other managers whom they have forced to participate in their schemes. They are adept at deceiving senior management and concealing the bullying they inflict on their subordinates.
Of course, in the long run, such manipulations and the creation of unbearable working conditions only cause harm. It is believed that corporate psychopaths are often the cause of company bankruptcies. Talented and skilled good people resign under their leadership, the company’s ethical reputation plummets, and product quality declines, leading to the loss of customers. Furthermore, through deception and manipulation, corporate psychopaths obtain positions for which they are unfit, while “silencing” truly experienced employees for the sake of their own personal interests.
Research often cites the example of American turnaround manager Albert Dunlop, who specialized in “saving” companies, which consisted of bringing them into a saleable condition while completely ignoring their future. Many researchers believe he was a psychopath. On Wall Street, he was known for his ruthless and intimidating approach to cost-cutting and heartless indifference toward firing employees. After becoming the CEO of Scott Paper, he disposed of assets worth about 2 billion dollars, fired a third of the workforce, and successfully sold the company to a competitor a year later. However, the company proved to be non-viable, and its headquarters were closed. In the end, about 11,000 people lost their jobs. Dunlop, meanwhile, walked away with a 100 million dollar severance package. Dunlop acted similarly with the company Sunbeam. After a year of his management, the company reported a huge increase in sales, and its shares rose by 50%. However, it was later revealed that this was a deception. At the very beginning, Dunlop created the impression that the company was incurring huge losses so that it would later seem that its situation had sharply improved. In the end, he faced trial for fraud, and the company went bankrupt.
Executives who exhibit psychopathic traits, such as ruthlessness and heartlessness, create unbearable working conditions and, in pursuit of purely personal gain, may even destroy a company. Such individuals should be feared; they should never be given leadership positions, at least until they undergo therapy to correct the dysfunction of the violence inhibition mechanism, which is why they are ruthless psychopaths.
