Tuesday, November 29, 2011

Weeding out corporate psychopaths

Given the state of the global economy, it might not surprise you to learn that psychopaths may be controlling the world. Not violent criminals, but corporate psychopaths who nonetheless have a genetically inherited biochemical condition that prevents them from feeling normal human empathy.

Scientific research is revealing that 21st century financial institutions with a high rate of turnover and expanding global power have become highly attractive to psychopathic individuals to enrich themselves at the expense of others, and the companies they work for.

A peer-reviewed theoretical paper titled “The Corporate Psychopaths Theory of the Global Financial Crisis” details how highly placed psychopaths in the banking sector may have nearly brought down the world economy through their own inherent inability to care about the consequences of their actions.

If true, this also means the astronomically expensive public bailouts will not solve the problem since many of the morally impaired individuals who caused this mess likely remain in positions of power. Worse, they may be the same people advising governments on how to resolve this crisis.

Perhaps investors at major financial institutions should require that senior level managers submit to established tests to ensure they are not psychopathic. This is not an issue of civil liberties since the precedent has already been well established regarding drug impairment in the workplace. Likewise, it is not a regulatory issue since private shareholders have every right to demand that executives demonstrate they are not biochemically impaired and therefore unable to carry out their fiduciary duties on behalf of investors. If corporate boards are hiring psychopaths as executive management, they are not carrying out their due diligence and could be held legally liable for their oversight.