NCJ Number
70389
Date Published
1980
Length
9 pages
Annotation
Pairs of polar personality types are described, the likelihood of each type committing management fraud is conjectured, and suggestions are offered for fraud deterrence and investigation.
Abstract
Although no research has seriously confronted the psychological issues raised by management fraud behavior, principally because of the difficulty of obtaining a representative sample of subjects, some extrapolation from business personality studies can be helpful in a discussion of personality types likely to commit or not commit fraud. One pair of polar personality types consists of the 'super-competitor' and the 'super-physician.' The 'super-competitor' must win points in the business game (the goal being to make as much profit as possible), and is likely always to play on the edge of the rules, while sometimes unintentionally or intentionally going beyond the rules. The 'super-physician' enjoys diagnosing and healing business problems in a secluded atmosphere. While the 'physician' may be tempted to solve business problems by fraudulent means, this type generally prefers to use his or her skills to solve problems by creatively using the rules of the game rather than breaking them. Another polar pair is the 'idealist' and the 'cynic.' 'Idealists' are sensitive persons who aim at critiquing reality and reforming it by defined standards with a generally optimistic outlook. The 'cynic' views the world as essentially evil and unworthy of ethical treatment, such that efforts to beat the world at its own game are likely to be accepted (fraud). 'Idealists' are less likely than 'cynics' to violate normative ethical standards. 'Generalists' and 'specialists' constitute the final polar pair. Both function according to roles that are taught, with the generalist being versatile and the specialist performing well in only a single role. Neither type is likely to commit fraud unless it is part of the role as defined by role-creating authorities. Fraud may be deterred by developing a structure of business operations that tend to check the behavioral extremes of fraud-prone types and by selecting personnel for responsible decisions on the basis of psychological testing. Auditors should also be selected on the basis of identified skills in detecting fraud. Footnotes are provided.