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Corporate narcissism is a corporate culture that exhibits excessive pride and self-obsession that results in destructive behaviors and strategies. Pride and comradeship are widely considered positive elements of a corporate culture. Corporate narcissism occurs when pride becomes hubris resulting in widespread neglect of risk, arrogance towards customers and ignorance of industry trends driven by corporate self-obsession. Corporate narcissism is most common amongst large firms, particularly those with a high market share or monopoly position. It is also common in firms with a prestigious public image and government organizations that lack oversight. The following are hypothetical examples of corporate narcissism.
CustomersA consulting company employees a consultant who has received unusually poor reviews from the last five customers she has faced. She starts a new project, only to be dismissed within a week resulting in the loss of a major contract. Upon returning to her manager, she is congratulated for doing a good job in dealing with a difficult and backwards customer.RiskAn investment fund is run by aggressive traders who are rock stars within the firm. They find themselves in a position in which the fund has both performed badly and has a current position that is stacked with risk. Failure is not an option at this firm so the traders are allowed to pile on more risk in an attempt to recover losses before the next report to investors.
Industry TrendsA large firm sees industry trends towards sustainability and corporate social responsibility as nonsense. Their executive team have a overly confident old-school mindset that soon sees them in conflict with investors, communities, customers and regulators.
Organizational Culture
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