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

Author

Listed:
  • Volker Lingnau

    (Technical University of Kaiserslautern)

  • Florian Fuchs

    (Technical University of Kaiserslautern)

  • Till E. Dehne-Niemann

    (Technical University of Kaiserslautern)

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.

Suggested Citation

  • Volker Lingnau & Florian Fuchs & Till E. Dehne-Niemann, 2017. "The influence of psychopathic traits on the acceptance of white-collar crime: do corporate psychopaths cook the books and misuse the news?," Journal of Business Economics, Springer, vol. 87(9), pages 1193-1227, December.
    • Handle: RePEc:spr:jbecon:v:87:y:2017:i:9:d:10.1007_s11573-017-0864-6
    DOI: 10.1007/s11573-017-0864-6
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    More about this item

    Keywords

    Corporate psychopathy; Successful psychopaths; White-collar crime; Accounting fraud; Insider trading; Ethical decision making; Ethical climate;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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