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Narcissism Project and Corporate Decay: The Case of General Motors

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  • Schwartz, Howard S.

Abstract

Organizational participants learn that “getting ahead” in organizational life comes from dramatizing a fantasy about the organization's perfection. The fantasy is the return to narcissism, in which the organization and its highest participants are seen as the center of a loving world. Since the return to narcissism is impossible, orienting the organization to the dramatization of this fantasy means that the organization loses touch with reality. The result is organizational decay—a condition of systemic ineffectiveness. Organizational decay is illustrated through the case of General Motors. Specific dimensions considered are: commitment to bad decisions; advancement of participants who detach themselves from reality and discouragement of reality-oriented participants who are committed to their work; creation of the organizational jungle; isolation of management; development of a hostile orientation to the environment; transposition of work and ritual; loss of creativity; dominance of the financial staff; development of cynicism or the loss of reality; and overcentralization. Organizational decay may be compared with the consequences of hubris.

Suggested Citation

  • Schwartz, Howard S., 1991. "Narcissism Project and Corporate Decay: The Case of General Motors," Business Ethics Quarterly, Cambridge University Press, vol. 1(3), pages 249-268, July.
    • Handle: RePEc:cup:buetqu:v:1:y:1991:i:03:p:249-268_00
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    Cited by:

    1. Vasant Raval, 2018. "A Disposition-Based Fraud Model: Theoretical Integration and Research Agenda," Journal of Business Ethics, Springer, vol. 150(3), pages 741-763, July.
    2. Nasrin Shahinpoor & Bernard Matt, 2007. "The Power of One: Dissent and Organizational Life," Journal of Business Ethics, Springer, vol. 74(1), pages 37-48, August.
    3. Antoinette Rijsenbilt & Harry Commandeur, 2013. "Narcissus Enters the Courtroom: CEO Narcissism and Fraud," Journal of Business Ethics, Springer, vol. 117(2), pages 413-429, October.
    4. García-Meca, Emma & Ramón-Llorens, Maria-Camino & Martínez-Ferrero, Jennifer, 2021. "Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees," Journal of Business Research, Elsevier, vol. 129(C), pages 223-235.
    5. Russell Craig & Joel Amernic, 2011. "Detecting Linguistic Traces of Destructive Narcissism At-a-Distance in a CEO’s Letter to Shareholders," Journal of Business Ethics, Springer, vol. 101(4), pages 563-575, July.
    6. Madeline Domino & Stephen Wingreen & James Blanton, 2015. "Social Cognitive Theory: The Antecedents and Effects of Ethical Climate Fit on Organizational Attitudes of Corporate Accounting Professionals—A Reflection of Client Narcissism and Fraud Attitude Risk," Journal of Business Ethics, Springer, vol. 131(2), pages 453-467, October.
    7. Stephen Chen, 2010. "The Role of Ethical Leadership Versus Institutional Constraints: A Simulation Study of Financial Misreporting by CEOs," Journal of Business Ethics, Springer, vol. 93(1), pages 33-52, June.
    8. Stelios Zyglidopoulos, 2021. "On Becoming and Being an Ethical Leader: A Platonic Interpretation," Journal of Business Ethics, Springer, vol. 173(1), pages 1-11, September.
    9. Joel Amernic & Russell Craig, 2010. "Accounting as a Facilitator of Extreme Narcissism," Journal of Business Ethics, Springer, vol. 96(1), pages 79-93, September.

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