Functional Psychopathy in Morally Relevant Business Decisions

Literature addressing organizational ethical behavior has focused intensely on cognitive moral development, and more recently the automatic and natural moral inclinations (i.e., moral intuitions). Research addressing the incapacity for moral reasoning, such as psychopathy, is rarely addressed in organizational behavior (Smith & Lilienfeld, 2013; Stevens, Deuling, & Armenakis, 2011). Our first aim is to develop a construct definition for functional psychopathy that is appropriate for organizational science and theoretically consistent with the extensive previous clinical and criminal research in this field. Second, we apply two versions of a scale not previously used in business research relative to moral judgments. This scale is a self-reported measure of functional psychopathy and is useful for its relationships with ethically relevant business decisions. Further, we examine which factors emerge as having the highest relationship with ethical decision making. Third, we seek to advance the usefulness of this construct by more precisely placing psychopathy within its nomological network. With these goals in mind, a combined sample of business school seniors (N = 418) participated in three studies. Findings indicate a significant influence of psychopathy over a range of ethically relevant business decisions, as well as negative correlations with factors of the Moral Approbation (Ryan & Riordan, 2000) and the Moral Awareness (Reynolds, 2006a) scales. We conclude with directions for future research and considerations for practice.