Article

The Dark Side Of Leader Behavior: Putting the Corporate Psychopaths Theory Under Scrutiny

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  • Vienna University of Economics and Business (WU Vienna)
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... The term "dark side" first used by Ferber (1971) on managerial decision making, has garnered "increasing fascination over the past 25 years" among scholars as a specific subject of inquiry (Thoroughgood, Sawyer, Padilla, & Lunsford, 2018). For example, prior research has identified and explored aspects of the "dark side" of corporate governance (Goranova, Priem, Ndofor, & Trahms, 2017), innovation (Crane, LeBaron, Phung, Behbahani, & Allain, 2018;Noordhoff, Kyriakopoulos, Moorman, Pauwels, & Dellaert, 2011), small business development (Amankwah, Antwi, & Zhang, 2018), software development (Bjørn, Søderberg, & Krishna, 2019), teamwork (Carbonell & Rodríguez Escudero, 2019;Stein & Pinto, 2011), leadership (Clifton, 2019;Conger, 1990;Stahl & Zilinskaite, 2017;Thoroughgood et al., 2018), social networking (Polites, Serrano, Thatcher, & Matthews, 2018), management development (Kamoche, 2000), organizational politics and behavior (Chamorro-Premuzic, 2017;Kulik, 2005;Olafsen, Niemiec, Halvari, Deci, & Williams, 2017;Race, 2018;Stein, 2011;Williams & Dutton, 2000;Yang, Sliter, Cheung, Sinclair, & Mohr, 2018), positive organizational scholarship (Fineman, 2006), employability (Forrier, De Cuyper, & Akkermans, 2018), intrafirm competition (Kulik, O'Fallon, & Salimath, 2008), capital markets (Clark & Newell, 2013), sustainability (Longo, Shankar, & Nuttall, 2019), workplace spirituality (Lips-Wiersema, Lund Dean & Formaciari, 2009), and industrial organization (Pattnaik, Lu, & Gaur, 2018). ...
Article
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We extend the theory of secular business cults (SBCs) to manipulative businesses (MBs), which we define as a financially‐successful type of reformed SBC, and explain their influence on industry, government, and social environments. Prior work on irresponsible, illegally‐behaving, and anti‐social SBCs suggests that they arise when antisocial business leaders are left unconstrained. This article examines the other side of this argument: What emerges from the 'toxic triangle' when such leaders are constrained by legal limits? We posit that pressure from lawsuits leads to the metamorphosis of an SBC into an MB that retains the intent and "formula of success" of the SBC. In both business types (SBCs and MBs), the underlying process involves the unethical manipulation of the employee's commitment, and the buyer's interest, through established policies and business models for higher profits. We further explain how the profit‐seeking anti‐social business leaders who find success in the toxic triangle lead to the emergence of manipulative policies and practices in businesses, legal systems, and industries (the “iron triangle”), and eventually influences general societal norms.
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