Long Read  

Greed, power, shame: the psychology of criminal managers

These revelations are extremely compelling and reveal an unforgettable picture of human fallibility in the realm of big business and the dangers it poses for society and the unsuspecting victims.   

The first myth is that criminal managers are immoral. It is so easy to pigeonhole them simply as bad (to the bone). 

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However, much depends on what we and they consider as morally reprehensible, and is thus to some extent a matter of perspective. 

Schorn points to different ways one may perceive a friend who evades taxes, as opposed to reading about some top manager whom one has never met, but is reported in the media as having done the same thing on a grand scale.

And then there is the uncanny ability of some people to simply switch off their capacity for morality, through focusing entirely on the “exciting stress” of “doing a breakthrough” in which “everyone was ecstatic”, as stated by Andrew Fastow of Enron notoriety.

The intoxicatingly hectic drive to “find solutions” resulted in decisions that were devoid of any moral component

Myth number two is that criminal managers rationally weigh up the costs and benefits.

It is tempting to think of top managers as astute and rational – strategic thinkers who meticulously balance the potential gains, losses and risks and whose criminal tendencies, as well, are subject to all manner of high-level skills. The reality, however, is often very different.

Those who are blinded by greed, ambition or corporate pressure, are also blind to a host of other factors that lead them into downright foolish and doomed activities.

The next myth is that criminal managers do not care about their victims.  In fact they may well do so, but rationalise it away: out of sight is out of mind.

Other curious processes run wild in criminal minds, such that they frequently think that on balance, they were really 'trying to help people', and are themselves victims of adverse circumstances.  

Self-delusion and self-deception play a fundamental role in the process, and temporarily shut out the real causes of the disaster and the fate of those on the receiving end.

Conclusions and implications 

If potential managerial criminals are to become more identifiable in advance, and their acts thus preventable, the above issues and many more need to be understood better by other managers, auditors, the media and directly relevant parties.

A case-by-case, investigative approach is needed, together with monitoring and early-warning systems that are sufficiently sensitive to this bigger and highly differentiated picture. 

It is clearly not enough to rely on conspicuous character traits and profiles, rationality, integrity, or on the threat even of severe sanctions.

Brian Bloch is a freelance journalist based in Germany

Reference: “Gier, Macht, Scham? Krimineller Manager Psychologisch Erklärt", Benjamin Schorn, Frankfurter Allgemeiner Buch, December 2022.  (Greed, Power, Shame? Explaining the Psychology of Criminal Managers)