Corporations and Psychopathology

Corporations and Psychopathology

Student’s Name

Professor’s Name

Course Title

Date

Introduction

Most individuals associate psychopaths with criminals, such as conmen, gang leaders, and serial killers. However, criminals are not the only psychopaths. Corporate managers and companies can portray psychopathic behaviors that are suited for the business world. These psychopaths usually avoid legal consequences for their actions thereby causing problems to the environment and society of operation. Deceitfulness and ultimate disregard for others in addition to failure to conform to social norms characterizes corporate psychopaths (Morgan, 2006). Additionally, these corporations are experts in skirting regulations by contracting consultants that assist them to pass inspections.

Psychopathology has an enormous impact a corporation’s social responsibility due to its self-serving nature. Corporate social responsibility is defined as a company’s ‘status and activities geared toward perceived societal as well as stakeholder obligations. Studies have indicated that corporate psychopaths have lower perceived levels of corporate social responsibility. The underlying idea is that it is impossible for most corporations to forgo profits to fulfill their social responsibility.

Most American corporation can be said to be psychopathological and exploitative, which means they have little regard for social responsibility. This nature of exploitation emanates from greed for supernormal profit. Employing psychopaths in a corporation also contributes to the psychopathological nature whereby managers disregard CSR and employee welfare, such as lack of interest in employee feeling, workplace bullying, and unfair treatment of others with the aim of maximizing profits (Boddy, Ladyshewsky & Galvin, 2010).

For instance, in 2001, the pharmaceutical corporation, GlaxoSmithKline fabricated data in clinical trials for an ineffective antidepressant drug that triggered suicidal thoughts in more than 200,000 children to whom it was prescribed. This act by GlaxoSmithKline shows the extent to which companies can go to overstate the benefits and understate the dangers of a product for financial gain at the detriment of the consumer.

Such an act amounts to corporate psychopathology and exploitation of the general public. Moreover, Nestlé’s bottled water business caused the same stir after buying pristine springs for a huge factory site, which in turn led to air pollution and wastage of water resources from the spring. Further, Nestle damaged watersheds in Mecosta County of Minnesota by excessive withdrawals and after realizing supernormal profits left the residents to deal with the consequences.

The problem may be resolved through transparency whereby corporations own to their actions and fire the psychopathic individuals in their organizations. The law should be applied stringently for those firms that engage in corporate psychopathology and exploitation of their CSR functions. For every violation a company commits, it should be subjected to legal penalties and damages to the affected communities. The government should also work to strengthen unions and oversight boards. These bodies would work to prevent companies from engaging in psychopathic behavior and thus entrench a culture of respecting others. Moreover, oversight boards would ensure that abuses, such as exposure to toxic substances and denial of overtime pay are mitigated in the corporate sector.

Upon realizing that a company is engaging in psychopathology and exploitation, the top management should replace the rogue executives and enforce communication within the organization to spearhead making of moral choices (Bolman & Deal, 2013). The directors must also acquaint themselves with psychopaths’ characteristics and traits, which would prevent the formation of psychopathic bonds. Such efforts would corroborate information and, as a result, ensure that the well-meaning directors take all observations seriously. Consequently, CSR within a corporation would only work if the public accepts the notion that corporations can make moral choices.

Conclusion

Studies have shown that with the lack of empathy and remorse as well as enhanced executive cognitive functioning, psychopathic corporates can hide easily within businesses. The root cause of the psychopathological problem is aggravated interested in power, money, personal success, and self-gratification. The corporate psychopath exhibits little care for the success of workmates in the company, the company itself, and stakeholders, which becomes toxic both to firms and the work environment. The problem is thus solved by good governance, better legislation and strengthened oversight bodies and worker unions. Additionally, vetting out corporate psychopaths during the hiring process or promotion would work to benefit businesses overall.

References

Boddy, C. R., Ladyshewsky, R. and Galvin, P. (2010). Leaders without Ethics in Global Business: Corporate Psychopaths. Journal of Public Affairs, 10(3), pp. 121-138. DOI:10.1002/pa.352 Clarke J. 2007. The Pocket Psycho. Random House: Australia, Sydney.

Bolman, L. G. and Deal, T. E. (2013). Reframing Organizations: Artistry, Choice, and Leadership. 5th Ed. San Francisco, CA: Jossey-Bass.

Morgan, G. (2006). Images of Organization. Thousand Oaks, CA: Sage.