Psychopathy and Corporate Crime: A Preliminary Examination, Part 1

Pardue, Angela; Robinson, Matthew; Arrigo, Bruce A.

doi:10.1080/15228932.2013.765745

Cited by 6 publications

(4 citation statements)

References 25 publications

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“…7 The most recent academic theory, which has been picked up and broadcast enthusiastically by the popular press, contends that wayward corporate executives are psychopaths. 8 Finally and most importantly, the dominant view of organizational wrongdoing for the most part assumes the causes of wrongdoing are a narrow range of flawed or distorted organizational structures, sometimes characterized as "bad barrels." Some explanations focus on misaligned organizational incentive systems that motivate people to pursue illicit objectives or that contain weak monitoring and punishment regimes that fail to control illicit behavior.…”

Section: Wrongdoing As An Abnormal Phenomenonmentioning

confidence: 99%

The New Perspective on Organizational Wrongdoing

Palmer¹

2013

California Management Review

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Wrongdoing in and by organizations offends public sensibilities, is costly to organizations, and is injurious to the individuals who perpetrate it and are victimized by it. The dominant perspective on organizational wrongdoing considers it to be an abnormal phenomenon; behavior that is rare, clearly aberrant, perpetrated by people who are abhorrent (who possess outsized preference structures or perverse values), and produced by a narrow range of out of whack organizational arrangements (most frequently, misaligned incentives or perverse cultures). However, new emerging theory and research on organizational wrongdoing present a fundamentally different perspective. It views wrongdoing as a normal phenomenon; behavior that is prevalent, not much different than rightdoing, perpetrated by people who are for the most part upstanding (otherwise ethical, socially responsible, and law abiding), and is a function of a plethora of structures, processes, and mechanisms that are integral to the efficient and effective functioning of organizations. This new way of approaching wrongdoing has important implications for managers.

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Section: Wrongdoing As An Abnormal Phenomenonmentioning

confidence: 99%

The New Perspective on Organizational Wrongdoing

Palmer¹

2013

California Management Review

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“…A number of financial statement fraud cases in recent decades have directly or indirectly been ascribed to the work of corporate psychopaths (Boddy, 2011a; Boddy et al , 2010; Pardue et al , 2013a, 2013b; Zona et al , 2013). The lack of guilt is conspicuous in some of these cases.…”

Section: Introductionmentioning

confidence: 99%

“…In the WorldCom case, Bernie Ebbers was considered a “risk-seeking, free-spending, over-zealous, deal maker” who created an autocratic corporate culture in which leaders and managers were not to be questioned (Zekany et al , 2004, p. 102). In the case of Enron, Sims and Brinkmann (2003), McLean and Elkind (2004), Benston (2006), Pardue et al (2013a) argue how the example set by top management, in particular CEO Jeff Skilling, deliberately encouraged a culture characterized by individualism, aggressiveness, greed, ruthlessness, a will to win at all costs, excessive risk-taking, a short time horizon and an appreciation for circumventing the rules. A culture such as this certainly benefits those with psychopathic traits.…”

Section: Introductionmentioning

confidence: 99%

Auditors’ experience with corporate psychopaths

Jeppesen

Leder

2016

JFC

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Design/methodology-The research was conducted as a survey among Danish state-authorized auditors, to which 179 auditors responded, representing 9% of the total population. Findings-Of the participating auditors, 69% had experienced corporate psychopaths in their client management and 70% of these had experienced more than one case. In addition, 43% of the auditors who had experienced psychopathic managers reported that they had committed fraud. The vast majority of cases were detected in the execution and completion phases of the audit and resulted in increased professional scepticism, the use of more experienced auditors and the requirement for more and better audit evidence. Research implications-The findings confirm that corporate psychopaths actually exist and are a phenomenon worthy of research attention in areas such as accounting, auditing, internal control, fraud investigation, performance management and human resource management. Practical implications-As auditors are likely to come across corporate psychopaths from time to time in their careers, awareness of this type of risk needs to be increased and better integrated into the risk assessment in audit planning. Auditing standards relating to fraud also need to be updated according to the latest developments in fraud theory.

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“…In the US, the damage from white collar crime was estimated to be 200-600 billion USD as compared to 3-4 billion USD for street crime during the 1990s (Schnatterly, 2003). The current cost of white collar crime in the US is 404 billion USD compared to 20 billion USD caused by street crime (Pardue, et al, 2013a; see also Coleman, 1998). In other words, the economic losses are between 17 and 32 to 1 for white-collar crime as compared to street crime (Ivancevich, et al, 2003;see also Trahan, et al, 2005).…”

Section: Introductionmentioning

confidence: 99%

White Collar Criminals: The State of Knowledge

Alalehto¹

2015

TOCRIJ

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White collar crime is the least studied and the least understood crime type in comparison to traditional crime types. This review highlights the recent developments in the state of knowledge over the white collar criminals. The review concerns the topics of demography, motivation for offending and career criminality among white collar criminals. It compiles the international results (mainly West-European) so far in the three topics. The review ends with a request on further research that needs to be done in four aspects: what is the main demographic difference between white collar offenders and confirmative non-offenders? How can we explain the difference in the age-crime relationship between street criminals and white collar criminals? Why do we still have the gender divergences by white collar criminals, despite the fact that women increase their participation into the labor market? And why do we know so little about the criminal motivation among white collar criminals?

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Psychopathy and Corporate Crime: A Preliminary Examination, Part 1

Cited by 6 publications

References 25 publications

The New Perspective on Organizational Wrongdoing

The New Perspective on Organizational Wrongdoing

Auditors’ experience with corporate psychopaths

White Collar Criminals: The State of Knowledge

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