13 May 2026: They are not the villains of film or television. They are often polished, persuasive and, at first glance, highly capable. Yet according to new research from the University of Canberra, some of the most damaging figures in modern workplaces can be hiding in plain sight.
In the Research Handbook on Corporate Psychopaths, UC Law School Professor Benedict Sheehy and Associate Professor Bruce Baer Arnold examine how so-called “corporate psychopaths” operate – and why organisations often fail to recognise them until harm has already been done.
“By definition corporate psychopaths are not the criminal psychopaths of Hollywood fame,” Professor Sheehy said. “They are successful precisely because they are able to use their psychopathic insights to charm, manipulate and exploit peopleto achieve their personal goals.”
The warning signs hiding in plain sight
While these individuals may present as confident leaders, Professor Sheehy’s research identifies several early indicators that employees and organisations can watch for.
Common warning signs include behaviour that is disruptive to established routines and relationships, the creation of in-groups and out-groups, and a consistent disregard for rules, policies and procedures. They may also be disrespectful towards colleagues and unreliable in fulfilling commitments.
Over time, these behaviours can erode workplace culture.
Dissension among staff, the rise of toxic culture, the loss of collegiality, and routine self-censorship to avoid repercussions as opposed to avoiding offence out of courtesy or respect, are among the early signals employees may notice, Professor Sheehy said.
Why harmful leaders still get promoted
One of the most confronting findings is that these individuals often rise quickly through organisations.
“Corporate psychopaths are marked by extraordinary people and strategic skills,” Professor Sheehy said. “The distinguishing feature is that they use these skills not to advance organisational goals, which is the expectation of those who promote them, but for their own personal goals.”
This ability to impress decision-makers – while quietly undermining colleagues – can allow them to thrive, particularly in environments with low accountability or strong incentives for individual gain.
Rather than being solely an issue of individual behaviour, the research highlights how workplace systems can unintentionally support these dynamics.
“Their ability to thrive depends on a coterie of others who are deceived, coerced or opportunistically collaborating with them,” Professor Sheehy said. “To the extent that systems are designed to empower individuals with lower levels of accountability, or provide incentives for disregarding others, they enable corporate psychopaths.”
Industries with high levels of power concentrated in individuals, such as finance or extractive sectors, may be particularly vulnerable.
Long-term cost to organisations
While corporate psychopaths may deliver short-term results, the long-term impact is often damaging.
“Failure to either avoid recruiting and hiring in the first place, or if hired, failure to deal directly and promptly with corporate psychopaths leads to underperformance in the long term,” Professor Sheehy said.
Organisations caught in cycles of internal conflict or leadership self-promotion, he notes, are rarely able to reach their full potential.
Distinguishing between healthy ambition and harmful behaviour is not always straightforward. However, Professor Sheehy argues the difference ultimately lies in how goals are pursued.
“The bright line not to be crossed is not in the range of confidence or ambition. Rather, it is in the means chosen, accepted or tolerated in achieving those ambitions,” he said.
“Corporate psychopaths ultimately have no friends – they have transactional relationships, kept as long as they are strategically useful.”
Despite the prevalence of these behaviours across industries, Professor Sheehy was struck by how little awareness exists.
“The clear cluster of traits and the wide spectrum of industries and organisations in which they operate on the one hand, as well as the lack of awareness and preparedness among those organisations despite the ample evidence of harm and failure they inflict on the other,” he said.
The aim of the book is to change that.
“The basic goal of this book is awareness: without awareness there can be no prevention or reform.”
