Read The Times Australia

Daily Bulletin

Bullies, thieves and chiefs: the hidden cost of psychopaths at work

  • Written by: Benedict Sheehy, Associate professor, University of Canberra

From psychological thrillers to true crime stories, people who depart from social norms can be deeply fascinating. Psychopaths most of all.

Working with or for a psychopath, however, is less fun.

The research generally agrees about 1% of the population is psychopathic. This means they fail to develop the normal range of emotions, lack empathy for others and are more disposed to antisocial and uninhibited behaviour.

Among prisoners, the percentage with psychopathic traits has been estimated at 15% to 20%. But psychopaths are also disproportionately represented in corporate culture. Among the higher echelons of large organisations, the psychopathy rate is an estimated 3.5%. Some estimates for chief executives go way higher.

Only in recent decades has the research on psychopathy started reflecting the enormity of the social and economic cost of non-criminal corporate psychopaths. My research (with Clive Boddy and Brendon Murphy) suggests corporate psychopaths cost the economy billions of dollars not only through fraud and other crimes but through the personal and organisational damage they leave behind as they climb the corporate ladder.

Read more: What is a psychopath?

Worming their way in

Psychopaths typically lack empathy and remorse. They are self-centred, manipulative, unemotional, deceitful, insincere and self-aggrandising.

But they are also fearless and confident, which helps them present as potentially resourceful employees and gain employment.

Read more: Pathological power: the danger of governments led by narcissists and psychopaths

Bullies, thieves and chiefs: the hidden cost of psychopaths at work Al Dunlap in March 1998, when chairman and chief executive of Sunbeam Corp. He was fired in June that year when it emerged he had fraudulently made the appliance maker look more profitable. Adam Nadel/AP

A classic example is “Chainsaw Al” Dunlap, who in the early 1990s was celebrated as a hard-nosed but effective corporate “streamliner”, turning around company fortunes by retrenching staff. Dunlap has been identified as holding strong psychopathic traits. It turned out, though, that his success had more to do with his willingness to commit fraud than his lack of compassion.

In reality, it’s hard to conceive of any situation where an organisation would benefit from recruiting someone with psychopathic tendencies. Once in position, their combination of traits will often lead them to engage in unethical and exploitative behaviour, disregarding the norms that allow people to work together harmoniously.

In his 2017 book A Climate of Fear: Stone Cold Psychopaths at Work, Clive Boddy describes how corporate psychopaths:

  • use organisational restructures to weaken potential threats
  • bully colleagues into obedience
  • spread rumours to undermine competitors
  • deploy “upward impression management techniques” to project competence
  • justify poor behaviour as “hard decisions that had to be made”.
text The corporate psychopath damages the organisation through actions designed to promote their own psychological needs. Andrii Yalanskyi/Shutterstock

Read more: The preferred jobs of serial killers and psychopaths

What the law says

Being a psychopath isn’t illegal. The only area where the law intervenes on the basis of a psychological diagnosis is when mental illness is seen to endanger the safety of the subject or others. Psychopathy is a personality disorder, not a mental illness. There’s no legal remedy for psychopathic behaviours that don’t rise to the level of a firing offence – such as fraud, theft or sexual harassment.

In some cases, it may be possible to minimise the damage a psychopath can do through taking a harder line on behavioural standards. Bullying and harassment are overt warning signs of other behaviour toxic to the work culture. A record of such behaviour should be a strike against having power over other employees.

Truth is the best defence

The first and main line of defence against corporate psychopaths has to be prevention.

There’s no surefire way to avoid recruiting a psychopath but key to reducing the risk is “sceptical due diligence” – checking the claims a job applicant makes.

Psychopaths have a natural advantage in any superficial recruitment process due their lower inhibition against claiming qualifications, experience and competencies they don’t have, and for taking credit for work they didn’t do.

It therefore pays to verify a candidate’s claimed qualifications, to scrutinise all their verbal and written claims, and test them on their honesty, truthfulness and capacity to give credit where it is due. They might have a glowing reference from a past manager, but what about other colleagues? Someone in a junior role to the recruit under consideration is more likely than a past manager to have seen the person’s true character.

Asking the hard questions prior to hiring arguably becomes more important the more senior the role. In a range of contexts we are increasingly recognising the consequences of failing to take complaints seriously. Smoke doesn’t necessarily mean fire, but when an individual is found responsible for one fire, it is likely they have started others.

Read more: Narcissists and psychopaths: how some societies ensure these dangerous people never wield power

The corporate psychopath is a fascinating but dangerous character. As we come to appreciate how much damage they can do, it’s not a character you should want to study close up.

Authors: Benedict Sheehy, Associate professor, University of Canberra

Read more https://theconversation.com/bullies-thieves-and-chiefs-the-hidden-cost-of-psychopaths-at-work-149152

Business News

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand mana...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...