The Narcissist - The Good, The Bad, And The Ugly

Narcissism is a personality trait characterized by excessive self-love, an inflated sense of importance, and a lack of empathy for others. While narcissism can be detrimental in many situations, it can also have some positive effects in the corporate space.

One positive aspect of narcissism is that it can drive individuals to set ambitious goals and work tirelessly to achieve them. A narcissistic person may have a strong desire to be recognized and admired, which can motivate them to excel in their work and strive for success.

Additionally, individuals with narcissistic tendencies may have an innate ability to inspire and lead others. They may be skilled at persuading and motivating their colleagues to work towards a common goal. Their confidence and charisma can help them gain the trust and loyalty of their team, which can ultimately lead to increased productivity and success.

Narcissistic individuals may also be more willing to take risks and make bold decisions in the corporate world. They may be less afraid of failure and more willing to experiment with new ideas and approaches. This can lead to innovation and growth within a company.

However, it's important to note that while these traits can be beneficial in some situations, they can also be harmful if taken to an extreme. Narcissistic individuals may be more prone to unethical behavior, manipulation, and aggression toward others. It's important for companies to be aware of these risks and take steps to mitigate them, such as providing training and support for leaders with narcissistic tendencies.

One study published in the Journal of Personality and Social Psychology found that individuals with high levels of narcissism were more likely to emerge as leaders in groups and were perceived as more competent by their peers. However, the study also found that these individuals were less effective at maintaining positive relationships with their colleagues and were more likely to engage in unethical behavior.

Similarly, a study published in the Journal of Business Ethics found that narcissistic CEOs were more likely to engage in unethical behavior and were more likely to be involved in corporate fraud. The study also found that these CEOs tended to have a negative impact on their employees and were less likely to build positive relationships with stakeholders.

Real-life examples of narcissistic behavior in the corporate world abound. For instance, former Uber CEO Travis Kalanick was widely known for his aggressive and combative leadership style, which eventually led to his resignation in 2017. Kalanick was accused of fostering a toxic workplace culture and engaging in unethical practices, such as using software to evade regulators and spying on competitors.

Similarly, Elizabeth Holmes*, the founder and former CEO of Theranos, has been widely criticized for her grandiose claims about the company's technology and her aggressive behavior towards employees who questioned her methods. Holmes is currently facing criminal charges of fraud and conspiracy.

On the other hand, there are examples of successful and effective leaders who exhibit narcissistic traits without succumbing to the negative aspects of this personality trait. For example, Steve Jobs, the co-founder of Apple, was known for his intense drive and charisma. Still, he was also a highly effective leader who built a culture of innovation and creativity within his company.

Ultimately, the impact of narcissism in the corporate space depends on a variety of factors, including the individual's level of narcissism, their leadership style, and the company culture. While narcissism can provide some benefits in terms of motivation and leadership ability, it also carries significant risks and can lead to negative outcomes if left unchecked. Companies should be aware of these risks and take steps to ensure that their leaders are exhibiting positive, ethical behavior.

* The Spectacular Corporate Fraud Perpetrated By Elizabeth Holmes

Elizabeth Holmes is a former CEO and founder of the healthcare technology company, Theranos. She gained notoriety for her claims that Theranos had developed a revolutionary blood-testing technology that could perform a wide range of tests using just a few drops of blood. Holmes and her company attracted significant investment and media attention, but it was later revealed that the technology was a fraud, and the company had engaged in unethical and illegal practices.

Holmes was born in Washington D.C. in 1984 and raised in Houston, Texas. She attended Stanford University and dropped out in 2003 to start Theranos, which she believed would revolutionize the healthcare industry. The company promised to make blood testing cheaper, faster, and more accessible by using a small amount of blood collected through a finger-stick rather than the traditional method of drawing vials of blood from veins.

Holmes was able to attract high-profile investors, including media mogul Rupert Murdoch and former Secretary of State Henry Kissinger, and secured partnerships with Walgreens and Safeway to offer Theranos blood testing services in their stores. The company was valued at $9 billion at its peak and Holmes was touted as a Silicon Valley visionary.

However, in 2015, investigative reporter John Carreyrou published a series of articles in the Wall Street Journal exposing serious flaws in Theranos technology and questioning the company's claims. Carreyrou's reporting revealed that the Theranos machines were unreliable, produced inaccurate results, and were not able to perform most of the tests the company claimed they could.

As the scandal unfolded, it was revealed that Holmes and other executives had engaged in a range of unethical and illegal practices to cover up the problems with the technology. They had used commercial blood-testing machines to perform tests instead of their own devices, faked demonstrations of the technology, and misled investors and regulators about the company's capabilities.

In 2018, the Securities and Exchange Commission (SEC) charged Holmes and Theranos' former president and COO, Sunny Balwani, with fraud. The SEC alleged that Holmes and Balwani had made false and misleading statements about the company's technology and financial performance, and had raised more than $700 million from investors through fraudulent means.

Holmes settled with the SEC, agreeing to pay a $500,000 fine, return 18.9 million shares of Theranos stock, and relinquish her position as CEO and director of the company. She also agreed to be barred from serving as a director or officer of a public company for 10 years. Balwani is currently facing criminal charges for fraud and conspiracy related to his role at Theranos.

The Theranos scandal has been widely cited as an example of the dangers of overhyping technology and the need for greater regulation of the healthcare industry. It has also raised questions about the culture of Silicon Valley and the tendency to idolize charismatic founders and overlook red flags.