XXXII. Narcissism in the Boardroom

The perpetrators of the recent spate of financial frauds in

the USA acted with callous disregard for both their

employees and shareholders - not to mention other

stakeholders. Psychologists have often remote-diagnosed

them as "malignant, pathological narcissists".

Narcissists are driven by the need to uphold and maintain

a false self - a concocted, grandiose, and demanding

psychological construct typical of the narcissistic

personality disorder. The false self is projected to the

world in order to garner "narcissistic supply" - adulation,

admiration, or even notoriety and infamy. Any kind of

attention is usually deemed by narcissists to be preferable

to obscurity.

The false self is suffused with fantasies of perfection,

grandeur, brilliance, infallibility, immunity, significance,

omnipotence, omnipresence, and omniscience. To be a

narcissist is to be convinced of a great, inevitable personal

destiny. The narcissist is preoccupied with ideal love, the

construction of brilliant, revolutionary scientific theories,

the composition or authoring or painting of the greatest

work of art, the founding of a new school of thought, the

attainment of fabulous wealth, the reshaping of a nation or

a conglomerate, and so on. The narcissist never sets

realistic goals to himself. He is forever preoccupied with

fantasies of uniqueness, record breaking, or breathtaking

achievements. His verbosity reflects this propensity.

Reality is, naturally, quite different and this gives rise to a

"grandiosity gap". The demands of the false self are never

satisfied by the narcissist's accomplishments, standing,

wealth, clout, sexual prowess, or knowledge. The

narcissist's grandiosity and sense of entitlement are

equally incommensurate with his achievements.

To bridge the grandiosity gap, the malignant

(pathological) narcissist resorts to shortcuts. These very

often lead to fraud.

The narcissist cares only about appearances. What matters

to him are the facade of wealth and its attendant social

status and narcissistic supply. Witness the travestied

extravagance of Tyco's Denis Kozlowski. Media attention

only exacerbates the narcissist's addiction and makes it

incumbent on him to go to ever-wilder extremes to secure

uninterrupted supply from this source.

The narcissist lacks empathy - the ability to put himself in

other people's shoes. He does not recognize boundaries -

personal, corporate, or legal. Everything and everyone are

to him mere instruments, extensions, objects

unconditionally and uncomplainingly available in his

pursuit of narcissistic gratification.

This makes the narcissist perniciously exploitative. He

uses, abuses, devalues, and discards even his nearest and

dearest in the most chilling manner. The narcissist is

utility- driven, obsessed with his overwhelming need to

reduce his anxiety and regulate his labile sense of self-

worth by securing a constant supply of his drug -

attention. American executives acted without

compunction when they raided their employees' pension

funds - as did Robert Maxwell a generation earlier in

Britain.

The narcissist is convinced of his superiority - cerebral or

physical. To his mind, he is a Gulliver hamstrung by a

horde of narrow-minded and envious Lilliputians. The

dotcom "new economy" was infested with "visionaries"

with a contemptuous attitude towards the mundane:

profits, business cycles, conservative economists, doubtful

journalists, and cautious analysts.

Yet, deep inside, the narcissist is painfully aware of his

addiction to others - their attention, admiration, applause,

and affirmation. He despises himself for being thus

dependent. He hates people the same way a drug addict

hates his pusher. He wishes to "put them in their place",

humiliate them, demonstrate to them how inadequate and

imperfect they are in comparison to his regal self and how

little he craves or needs them.

The narcissist regards himself as one would an expensive

present, a gift to his company, to his family, to his

neighbours, to his colleagues, to his country. This firm

conviction of his inflated importance makes him feel

entitled to special treatment, special favors, special

outcomes, concessions, subservience, immediate

gratification, obsequiousness, and lenience. It also makes

him feel immune to mortal laws and somehow divinely

protected and insulated from the inevitable consequences

of his deeds and misdeeds.

The self-destructive narcissist plays the role of the "bad

guy" (or "bad girl"). But even this is within the traditional

social roles cartoonishly exaggerated by the narcissist to

attract attention. Men are likely to emphasise intellect,

power, aggression, money, or social status. Narcissistic

women are likely to emphasise body, looks, charm,

sexuality, feminine "traits", homemaking, children and

childrearing.

Punishing the wayward narcissist is a veritable catch-22.

A jail term is useless as a deterrent if it only serves to

focus attention on the narcissist. Being infamous is second

best to being famous - and far preferable to being ignored.

The only way to effectively punish a narcissist is to

withhold narcissistic supply from him and thus to prevent

him from becoming a notorious celebrity.

Given a sufficient amount of media exposure, book

contracts, talk shows, lectures, and public attention - the

narcissist may even consider the whole grisly affair to be

emotionally rewarding. To the narcissist, freedom, wealth,

social status, family, vocation - are all means to an end.

And the end is attention. If he can secure attention by

being the big bad wolf - the narcissist unhesitatingly

transforms himself into one. Lord Archer, for instance,

seems to be positively basking in the media circus

provoked by his prison diaries.

The narcissist does not victimise, plunder, terrorise and

abuse others in a cold, calculating manner. He does so

offhandedly, as a manifestation of his genuine character.

To be truly "guilty" one needs to intend, to deliberate, to

contemplate one's choices and then to choose one's acts.

The narcissist does none of these.

Thus, punishment breeds in him surprise, hurt and

seething anger. The narcissist is stunned by society's

insistence that he should be held accountable for his deeds

and penalized accordingly. He feels wronged, baffled,

injured, the victim of bias, discrimination and injustice.

He rebels and rages.

Depending upon the pervasiveness of his magical

thinking, the narcissist may feel besieged by

overwhelming powers, forces cosmic and intrinsically

ominous. He may develop compulsive rites to fend off

this "bad", unwarranted, persecutory influences.

The narcissist, very much the infantile outcome of stunted

personal development, engages in magical thinking. He

feels omnipotent, that there is nothing he couldn't do or

achieve if only he sets his mind to it. He feels omniscient -

he rarely admits to ignorance and regards his intuitions

and intellect as founts of objective data.

Thus, narcissists are haughtily convinced that

introspection is a more important and more efficient (not

to mention easier to accomplish) method of obtaining

knowledge than the systematic study of outside sources of

information in accordance with strict and tedious

curricula. Narcissists are "inspired" and they despise

hamstrung technocrats.

To some extent, they feel omnipresent because they are

either famous or about to become famous or because their

product is selling or is being manufactured globally.

Deeply immersed in their delusions of grandeur, they

firmly believe that their acts have - or will have - a great

influence not only on their firm, but on their country, or

even on Mankind. Having mastered the manipulation of

their human environment - they are convinced that they

will always "get away with it". They develop hubris and a

false sense of immunity.

Narcissistic immunity is the (erroneous) feeling,

harboured by the narcissist, that he is impervious to the

consequences of his actions, that he will never be effected

by the results of his own decisions, opinions, beliefs,

deeds and misdeeds, acts, inaction, or membership of

certain groups, that he is above reproach and punishment,

that, magically, he is protected and will miraculously be

saved at the last moment. Hence the audacity, simplicity,

and transparency of some of the fraud and corporate

looting in the 1990's. Narcissists rarely bother to cover

their traces, so great is their disdain and conviction that

they are above mortal laws and wherewithal.

What are the sources of this unrealistic appraisal of

situations and events?

The false self is a childish response to abuse and trauma.

Abuse is not limited to sexual molestation or beatings.

Smothering, doting, pampering, over-indulgence, treating

the child as an extension of the parent, not respecting the

child's boundaries, and burdening the child with excessive

expectations are also forms of abuse.

The child reacts by constructing false self that is

possessed of everything it needs in order to prevail:

unlimited and instantaneously available Harry Potter-like

powers and wisdom. The false self, this Superman, is

indifferent to abuse and punishment. This way, the child's

true self is shielded from the toddler's harsh reality.

This artificial, maladaptive separation between a

vulnerable (but not punishable) true self and a punishable

(but invulnerable) false self is an effective mechanism. It

isolates the child from the unjust, capricious, emotionally

dangerous world that he occupies. But, at the same time, it

fosters in him a false sense of "nothing can happen to me,

because I am not here, I am not available to be punished,

hence I am immune to punishment".

The comfort of false immunity is also yielded by the

narcissist's sense of entitlement. In his grandiose

delusions, the narcissist is sui generis, a gift to humanity,

a precious, fragile, object. Moreover, the narcissist is

convinced both that this uniqueness is immediately

discernible - and that it gives him special rights. The

narcissist feels that he is protected by some cosmological

law pertaining to "endangered species".

He is convinced that his future contribution to others - his

firm, his country, humanity - should and does exempt him

from the mundane: daily chores, boring jobs, recurrent

tasks, personal exertion, orderly investment of resources

and efforts, laws and regulations, social conventions, and

so on.

The narcissist is entitled to a "special treatment": high

living standards, constant and immediate catering to his

needs, the eradication of any friction with the humdrum

and the routine, an all-engulfing absolution of his sins,

fast track privileges (to higher education, or in his

encounters with bureaucracies, for instance). Punishment,

trusts the narcissist, is for ordinary people, where no great

loss to humanity is involved.

Narcissists are possessed of inordinate abilities to charm,

to convince, to seduce, and to persuade. Many of them are

gifted orators and intellectually endowed. Many of them

work in in politics, the media, fashion, show business, the

arts, medicine, or business, and serve as religious leaders.

By virtue of their standing in the community, their

charisma, or their ability to find the willing scapegoats,

they do get exempted many times. Having recurrently

"got away with it" - they develop a theory of personal

immunity, founded upon some kind of societal and even

cosmic "order" in which certain people are above

punishment.

But there is a fourth, simpler, explanation. The narcissist

lacks self-awareness. Divorced from his true self, unable

to empathise (to understand what it is like to be someone

else), unwilling to constrain his actions to cater to the

feelings and needs of others - the narcissist is in a constant

dreamlike state.

To the narcissist, his life is unreal, like watching an

autonomously unfolding movie. The narcissist is a mere

spectator, mildly interested, greatly entertained at times.

He does not "own" his actions. He, therefore, cannot

understand why he should be punished and when he is, he

feels grossly wronged.

So convinced is the narcissist that he is destined to great

things - that he refuses to accept setbacks, failures and

punishments. He regards them as temporary, as the

outcomes of someone else's errors, as part of the future

mythology of his rise to power/brilliance/wealth/ideal

love, etc. Being punished is a diversion of his precious

energy and resources from the all-important task of

fulfilling his mission in life.

The narcissist is pathologically envious of people and

believes that they are equally envious of him. He is

paranoid, on guard, ready to fend off an imminent attack.

A punishment to the narcissist is a major surprise and a

nuisance but it also validates his suspicion that he is being

persecuted. It proves to him that strong forces are arrayed

against him.

He tells himself that people, envious of his achievements

and humiliated by them, are out to get him. He constitutes

a threat to the accepted order. When required to pay for

his misdeeds, the narcissist is always disdainful and bitter

and feels misunderstood by his inferiors.

Cooked books, corporate fraud, bending the (GAAP or

other) rules, sweeping problems under the carpet, over-

promising, making grandiose claims (the "vision thing") -

are hallmarks of a narcissist in action. When social cues

and norms encourage such behaviour rather than inhibit it

- in other words, when such behaviour elicits abundant

narcissistic supply - the pattern is reinforced and become

entrenched and rigid. Even when circumstances change,

the narcissist finds it difficult to adapt, shed his routines,

and replace them with new ones. He is trapped in his past

success. He becomes a swindler.

But pathological narcissism is not an isolated

phenomenon. It is embedded in our contemporary culture.

The West's is a narcissistic civilization. It upholds

narcissistic values and penalizes alternative value-

systems. From an early age, children are taught to avoid

self-criticism, to deceive themselves regarding their

capacities and attainments, to feel entitled, and to exploit

others.

As Lilian Katz observed in her important paper,

"Distinctions between Self-Esteem and Narcissism:

Implications for Practice", published by the Educational

Resources Information Center, the line between enhancing

self-esteem and fostering narcissism is often blurred by

educators and parents.

Both Christopher Lasch in "The Culture of Narcissism"

and Theodore Millon in his books about personality

disorders, singled out American society as narcissistic.

Litigiousness may be the flip side of an inane sense of

entitlement. Consumerism is built on this common and

communal lie of "I can do anything I want and possess

everything I desire if I only apply myself to it" and on the

pathological envy it fosters.

Not surprisingly, narcissistic disorders are more common

among men than among women. This may be because

narcissism conforms to masculine social mores and to the

prevailing ethos of capitalism. Ambition, achievements,

hierarchy, ruthlessness, drive - are both social values and

narcissistic male traits. Social thinkers like the

aforementioned Lasch speculated that modern American

culture - a self-centred one - increases the rate of

incidence of the narcissistic personality disorder.

Otto Kernberg, a notable scholar of personality disorders,

confirmed Lasch's intuition: "Society can make serious

psychological abnormalities, which already exist in some

percentage of the population, seem to be at least

superficially appropriate".

In their book "Personality Disorders in Modern Life",

Theodore Millon and Roger Davis state, as a matter of

fact, that pathological narcissism was once the preserve of

"the royal and the wealthy" and that it "seems to have

gained prominence only in the late twentieth century".

Narcissism, according to them, may be associated with

"higher levels of Maslow's hierarchy of needs ...

Individuals in less advantaged nations .. are too busy

trying (to survive) ... to be arrogant and grandiose".

They - like Lasch before them - attribute pathological

narcissism to "a society that stresses individualism and

self-gratification at the expense of community, namely the

United States." They assert that the disorder is more

prevalent among certain professions with "star power" or

respect. "In an individualistic culture, the narcissist is

'God's gift to the world'. In a collectivist society, the

narcissist is 'God's gift to the collective".

Millon quotes Warren and Caponi's "The Role of Culture

in the Development of Narcissistic Personality Disorders

in America, Japan and Denmark":

"Individualistic narcissistic structures of self-regard (in

individualistic societies) ... are rather self-contained and

independent ... (In collectivist cultures) narcissistic

configurations of the we-self ... denote self-esteem

derived from strong identification with the reputation and

honor of the family, groups, and others in hierarchical

relationships".

Still, there are malignant narcissists among subsistence

farmers in Africa, nomads in the Sinai desert, day laborers

in east Europe, and intellectuals and socialites in

Manhattan. Malignant narcissism is all-pervasive and

independent of culture and society. It is true, though, that

the way pathological narcissism manifests and is

experienced is dependent on the particulars of societies

and cultures.

In some cultures, it is encouraged, in others suppressed. In

some societies it is channeled against minorities - in

others it is tainted with paranoia. In collectivist societies,

it may be projected onto the collective, in individualistic

societies, it is an individual's trait.

Yet, can families, organizations, ethnic groups, churches,

and even whole nations be safely described as

"narcissistic" or "pathologically self-absorbed"? Can we

talk about a "corporate culture of narcissism"?

Human collectives - states, firms, households, institutions,

political parties, cliques, bands - acquire a life and a

character all their own. The longer the association or

affiliation of the members, the more cohesive and

conformist the inner dynamics of the group, the more

persecutory or numerous its enemies, competitors, or

adversaries, the more intensive the physical and emotional

experiences of the individuals it is comprised of, the

stronger the bonds of locale, language, and history - the

more rigorous might an assertion of a common pathology

be.

Such an all-pervasive and extensive pathology manifests

itself in the behavior of each and every member. It is a

defining - though often implicit or underlying - mental

structure. It has explanatory and predictive powers. It is

recurrent and invariable - a pattern of conduct melding

distorted cognition and stunted emotions. And it is often

vehemently denied.

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