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Doing business with a sociopath is bad business

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.



37 Comments on "Doing business with a sociopath is bad business"

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  1. Louise says:

    Tea Light:

    Apparently that is what he was doing…horrible is right. What an awful person. It’s getting closer and closer to being just a memory and life lesson…yay for me. x

    You are so witty…you come up with the best stuff…where does it come from?? 🙂 x



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  2. Tea Light says:

    Lou you are so nice. Most British people like to try and find the humour in things I think. Laughter is a tonic and it’s still free! x



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  3. Louise says:

    Tea Light:

    Awww, your post made me think of something…I think Scousepath takes the trying to find humor in things too far…he thinks everything is funny…all just a game…life is just fun and games…rarely serious about anything. But you are healthy about it…you sound like such a great person…I wish much happiness to you. x



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  4. Tea Light says:

    I’m an ordinary person with a psycho ex and years of therapy ahead of me Lou! But you are very kind to give me that shot of lovely much needed and appreciated support, thank you love x



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  5. true2me says:

    I am just days of discovering that I dodged the biggest bullet in the world and almost married a sociopath( 3 weeks before the wedding). I had indirectly known him through work for over 25 years. He was harming, diligent, and very professional. Over a year ago, he became the GM of one of my largest suppliers. I started dating him 6 months ago. All of a sudden my pricing dramatically improved. He announced to all our customers, vendors and my competitors that he was marrying me which in retrospect was to my detriment (with my other suppliers-competitors to him)but I was so “happy” I overlooked the potential damage to me and benefit to him. We planned strategies together as to making both our sales and profits increase. We shared list of targeted clients, products, and services with plans to mutually achieve better profits and sales.
    I am very goal oriented and hardworking. He seemed to be the same AND claimed to be “just like me”
    All of a sudden, (IN ONE DAY) he went from “loving me more than life itself and wanting to spend the rest of his life with me” to ” I want nothing with you” and treating me like a total stranger. (to make the story short)
    We agreed that the break up would not affect our “working relationship”. I was in total shock and disbelief and could not grasp what had happened until I read the information on this site (recommended to me by a friend)
    I had seen him be vindictive with certain clients, but assumed that “they did something” to merit it.
    I tried to play “nice” even after he tore me into a million pieces because I feared my business could suffer from his wrath if I upset him. Within the last week, I have had three price increases, and he has approached two of the intended targets we had agreed to contact together ( he went to “our” scheduled meetings endorsing one of my competitors). I am trying to open up other avenues because I know that that is only the beginning of his attack as unwarranted as it may be!!!!!
    He hides behind the “always jovial” “always laughing” “nice guy”.
    I spoke to one of his employees who has been a mutual friend for years to let her know about the breakup and said to me: “you have no idea what you saved yourself from”. In fact, unbeknownst to me, a lot of his workers fear him. In fact, he has several lawsuits from previous employees active in court right now.
    He has not announced that the wedding is off. When I call the receptionist still says “your wife is on the phone”. I have not said anything to any of his employees because I am afraid he will retaliate. Going above his head will only piss him off so for now it is not a choice I can consider.
    Needles to say I am trying to keep things in working order, but it does not look promising. And it is very difficult to heal emotionally when I have to deal (text,email,talk) with him sometimes several times a day and pretend to be the stranger he teats me like!!!!!!!!!!!!!!



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    • Stargazer says:

      Dear true, Wow, so sorry you have this double whammy of the sociopath being in your personal and work life. Is there any way you can quit and work somewhere else? Either way, you will need some support to get through the pain of being discarded so coldly. It’s not like a normal break-up. If you choose to stay in your current work environment, you cannot show any emotion around him. But you will need nerves of steel to stay there. There are many good reasons not do date where you work, and this is one of the most devastating ones.

      BTW, I love your Freudian slip in the third sentence, when you said he was “harming”. I think you meant to say “charming”.



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  6. true2me says:

    Dear Star,
    Unfortunately, it is my own business. I cannot leave. It was always my motto not to poop where I ate. And as much as I hesitated, I gave in. I can only say that I thought he was my counterpart. ( knew him and were friends forever) I believed all his promises (work and personal). This all happened less than two weeks ago. I have been devastated but I have my game face on at work!!!! I have avoided “talking” to him. Today, I had no choice. I talked to him happy and perky and he seemed to be slightly confused by my demeanor. But it took its toll on me!!

    LOL….I had not caught that!!!!



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    • Stargazer says:

      True, I totally understand the seductive powers of a sociopath. They are SO harming (I mean charming LOL) that you find yourself breaking your own rules to date them. (Voice of experience here). If it is your business, why must you keep him on board?

      And you know, never underestimate your own power in reinventing yourself and your life if you have to. Working with a sociopath every day, and especially one with whom you have been romantically involved, has got to be off the stress charts.



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  7. true2me says:

    Unfortunately, He is the regional manager for my biggest vendor (his power trip).
    But regardless, sociopath or not I believe in Karma. He has harmed a lot of people and its only a matter of time before it catches up to him!!!!!



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    • Stargazer says:

      Ugh. Regional manager, huh?

      You are absolutely right. If you give a sociopath enough rope, he (or she) will hang him/herself. This happened with the one I dated. It actually required very little effort on my part for him to bring himself down.



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