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Doing business with a sociopath is bad business

You are here: Home / Media sociopaths / Doing business with a sociopath is bad business

February 25, 2013 //  by Donna Andersen//  37 Comments

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Here’s a scary fact about the prevalence of sociopaths, also called psychopaths: Dr. Robert Hare, the psychologist who developed the Psychopathy Checklist-Revised (PCL-R), says that approximately 1% of the general population meets his definition of a psychopath. But in a study of 200 high-potential executives, he found that 3.5% of them fit the profile of a psychopath. That means there are 3.5 times a many psychopaths in corporate offices as there are on the streets.

One of them, in my opinion, is Carl R. Greene, former executive director of the Philadelphia Housing Authority (PHA). I’ve posted several articles about him since he was fired from the agency that he ran for 12 years in August 2010.

Why was he fired? Well, there were the six sexual harassment complaints filed against him. Greene directed the agency’s lawyers and insurance company to settle three of them, for over $1 million, without informing the board of directors.

Then there was the hostile work environment Greene created. His rage was legendary. Anyone who stood up to him was fired, demoted, or relocated to some outpost in a crime-ridden neighborhood.

Then there was the “unapproved abandonment of his duties.” When the media reported that Greene’s luxury condominium was in foreclosure after he failed to pay the mortgage for five months, he stopped showing up for work. Greene disappeared for a week—no one knew where he was.

Looked the other way

The PHA board of directors apparently knew Greene was an abusive executive—after all, one employee, after being berated by him, went home and dropped dead. They may also have known about his inappropriate spending of agency funds, such as handing out $800 Tumi duffel bags to 20 staffers who attended an annual PHA conference. But they seemed to be willing to look the other way, because Greene got results.

Greene improved living conditions for thousands of Philadelphia residents. He demolished drug and crime infested high-rises and built low-rise housing that turned into stable neighborhoods. He rehabilitated many low-income homes owned by the agency. He created senior centers and job training programs.

As long as the job was being done, the board was not interested in “personnel matters.”

Lawsuit

When he was fired, Greene retaliated by hiring one of the toughest lawyers in Philadelphia to file a wrongful termination lawsuit. He originally demanded $4 million. The board of directors didn’t want to pay him anything.

The civil trial began at the end of January. It included acrimonious testimony from John Street, the former chairman of the PHA board and former Philadelphia mayor.

On Friday, February 23, the interim director of the PHA announced that a settlement had been reached. The agency would pay Carl Greene $625,000.

John Street did not support the settlement, saying it sent the “wrong message to every potential victim of sexual harassment as well as every potential perpetrator.”

So what happened? First, PHA had already spent $1 million defending itself from Greene’s lawsuit, and had exhausted the coverage provided by its insurer.

More importantly, the PHA board had itself given Carl Greene an iron-clad employment contract. According to the Philadelphia Inquirer, “It wasn’t enough for the agency to show that commissioners had reason to fire him. It had to also show that his behavior caused ‘demonstrable, material injury and damage to PHA.'” If the agency couldn’t prove the damage, it would have to pay the remaining years on the contract.

Read To ‘turn a page,’ PHA settled, on Philly.com.

Do not do business with a sociopath

Two years ago, I attended the Society for the Scientific Study of Psychopathy conference. Paul Babiak, a noted industrial and organizational psychology researcher, talked about explaining the PCL-R to corporate executives. One question they often asked, Babiak said, was at what score would employees be cutthroat competitors but not steal from the company?

The audience burst into laughter. People who know sociopaths know that they can never be trusted.

Just as they are in personal relationships, sociopaths in business are aggressive, hostile, manipulative, deceitful and ethically challenged. Their infatuation with risk could drive them to bet the company—and lose. This is what happened with Enron, Worldcom, HealthSouth. Or their seemingly sterling results can be completely fabricated, as in the case of Bernie Madoff.

Do not believe you can do business with a sociopath and come out on top. Do not believe that you can work for a sociopath and emerge unscathed. Even if there is no overt wrongdoing, you’ll likely suffer from unbelievable stress.

As in personal relationships, the only sane thing to do in a business relationship with a sociopath is get out of it.

Category: Media sociopaths, Workplace sociopaths

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Reader Interactions

Comments

  1. somebodysdream

    February 26, 2013 at 7:06 pm

    The military is a conglamorate of sociopaths. Everytime a scandal breaks it is quickly swept under the rug or minimized by explaining various perspectives and excuses. Image experts put a lid on gross violations of conduct because the more you talk about it, the more the public may ask about accountability. We don’t want the public opinion on how we manipulate funding for our agenda. We are so high and mighty and corrupt that we just bark orders, banging “the ring” without discussion.
    Reported rape is at 19%. Wrecked marriages and families because of adultery … probably double.

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  2. anam cara

    February 27, 2013 at 6:15 pm

    The more survivors feel able to speak out, the more these scum will be exposed. Slowly……..slowly society will begin to recognise and question their toxic behaviour.
    I will not be silent anymore. Not bitter, just wiser, thanks to LF.
    In the last 3 years, I have re-lived my whole life (57 years) or as someone once said “overhauled my entire existence” I am still processing events and experiencing those emotions again but with a better understanding than before.
    I do get lonely but have healthy boundaries now.
    I sense an internal shift and I’m okay most of the time.
    ((Hugs)) to me. :- )

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  3. strongawoman

    February 27, 2013 at 6:27 pm

    ((anam cara))

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  4. Redwald

    February 28, 2013 at 2:05 am

    Speaking of sleazy, corrupt and exploitative politicians, check out this article! A whole CATALOG of British politicians’ misdeeds stretching back into the nineteenth century, with several “household names” among them:

    Does “Liberal” DNA Breed Sex Scandals?

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  5. skylar

    February 28, 2013 at 2:24 am

    Redwald, there is no such thing as Liberal DNA.
    Why would you even post such a thing?
    My exspath pretended to be a liberal hippie dude when he was playing in rock bands, but as he moved his con into the helicopter business, he started quoting Rush Windbag (but not around his liberal friends).

    He has a millionaire “friend” who acts liberal, S. S’s gf is a jewish doctor. They both seem liberal. Spath would talk to them and act liberal around them. But to me, he would tell me that S was moving his money out of the country to protect against the recession. He also told me that S and his gf could be easily coerced into adopting “conservative” ideals if he framed it just right. He got a kick out of making them think that he was liberal and then making them doubt their own liberal views.

    Spaths don’t believe in ANYTHING. They aren’t liberal, or conservative, they’re just spaths and will flip on a dime to create chaos and animosity.

    Neither conservatives or liberals are bad. Only spaths are bad and they would like us to keep their game going by picking sides. It’s all too obvious, once you’ve known a spath.

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  6. Redwald

    February 28, 2013 at 3:01 am

    Skylar, that’s not my headline, it’s the Daily Mail’s. They happened to focus this article on the history of the British “Liberal” Party, that’s all. There’s no cause to take the headline too seriously; the article is still a good sidelight on the misdeeds of politicians in office.

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  7. skylar

    February 28, 2013 at 3:33 am

    I see, Redwald.
    try doing a google search on conservative psychopaths, you’ll find article after article on it.

    My point is that every thing we say or do, influences others. So be careful. When you create animosity, you are doing the psychopaths work for them.

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  8. Tea Light

    February 28, 2013 at 5:48 am

    Redwald I don’t know if you are British or U.K. based but personally I am glad that Clegg and the Liberal hierarchy are under scrutiny for allegations of systematic failure to respond adequately to the sexual harassment allegations against Lord Rennard. (Though I can’t stomach the Daily Wail myself!).The British context of the story needs to be understood for the headline to be understood. The words liberal and conservative do not have the same cultural and political denotations and conotations as in North America. The British Liberal Party and Conservative parties are in coalition government here and are ideologically similar in many respects. The headline is in no way offensive in its British context.

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  9. Redwald

    February 28, 2013 at 7:33 am

    Tea Light, thanks for making that clearer to everyone. I’m in the U.S., but I read the online Daily Mail pretty often (among other news sources). I believe Oxy does too.

    I have to admit, the Mail can be a depressing read. I know we’ve got our problems here in the U.S. (Doesn’t everyone?) but Britain seems to have so many more, problems of every kind—starting perhaps with the petty tyrannical bureaucrats who seem to have taken the country over and are squeezing the life out of it. My impression is that Britain has turned into a place that the British of half a century ago, say, would never have recognized. At any rate, there seems a vast gulf between the spirit of today and the spirit that won World War II. I think the British people need far more control over their government and over their politicians. And yes, the Rennard affair certainly deserves scrutiny—but up until now, as a sex scandal it seems to be dwarfed by the whole ugly mess of the Jimmy Savile conspiracy.

    Speaking of political parties with names that confuse people, you may be aware that Canada has a party called the “Progressive Conservatives.” Some people find that funny; oxymoronic anyway. I don’t. I think it makes perfect sense! But that’s just my opinion… 🙂

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  10. fixerupper

    February 28, 2013 at 7:48 am

    You thought pedophiles in the Catholic church was a big story?

    How about sociopaths in government?

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