The corporate psychopaths theory of the global financial crisis. (2011)

“psychopaths in corporations … had a major part in causing the crisis. Their rise has been facilitated by changes in the way people are employed, particularly in the last third of the twentieth century.”

Clive R. Boddy, Professor of Leadership and Organisation Behaviour, Middlesex University
Journal of Business Ethics, 102(2), 255-259

The Global Financial Crisis raised many questions about who was responsible. Once-great companies have been brought down by the misdeeds of a few of their leaders. Commentators are asking how these resourceful and historic organizations ended up with impostors as leaders in the first place.

Boddy argues that “psychopaths working in corporations and in financial corporations… had a major part in causing the crisis.” He further argues that changes in the way people are employed, particularly in the last third of the twentieth century, have facilitated the rise of corporate psychopaths.

“…once corporate takeovers and mergers started to become commonplace and the resultant corporate changes started to accelerate… corporate stability began to disintegrate. Jobs for life disappeared and not surprisingly employees’ commitment to their employers also lessened accordingly.

“…the whole corporate and employment environment changed from one that would hold the corporate psychopath in check to one where they could flourish and advance relatively unopposed.”

Access the full paper here: The corporate psychopaths theory of the global financial crisis.