Shrink Rap: Jiminy Cricket's Lost in a Thicket

At the end of a RealMoney.com column last week, Jim Cramer offered the following:

"I was struck by a reporter's statement about how nothing really has gotten better and that Wall Street is just going to get back to its old tricks as soon as it can. I don't agree with that. You know why? Because when you are pictured in the paper as a crook, it breaks your heart and your spirit, especially if you have kids. Most people pictured in The New York Times as someone who did something wrong feel totally and utterly vilified. And if they go to jail? For the most part, their lives are over. Things have changed because humiliation, despair, embarrassment and loss of work always are going to be powerful motivators to do the right thing."

I would argue that it depends on the character structure of the potential wrongdoer. I think we'd agree that once someone is portrayed as a criminal, he is less likely to repeat the behavior that has caused the humiliation. At least that's what we'd expect from those whose lives are so altered by the experience that they will do whatever is necessary to avoid having it happen again.

But for this kind of reaction to occur, an important psychological ingredient is required: a conscience. We can't simply assume that those who have already committed these kinds of acts are going to be deterred by the threat of shame and humiliation. After all, if they had a conscience, why wasn't it firing on all cylinders to keep them out of trouble to begin with?

Only those who have a fully developed conscience, who are capable of feeling guilt when they break the law or violate their own moral prohibitions, are less likely to repeat their behavior or engage in it to begin with. Without a conscience, the humiliation, despair and embarrassment simply won't be experienced.

The Anatomy of a Sociopath

Sociopaths are capable of performing all sorts of vile acts toward others without feeling the least bit of guilt over what they're doing. To be a sociopath, you need the inability to feel guilt. You also need impulsiveness and the failure to plan ahead as to the consequences of your actions. A few other hallmarks are deceitfulness (such as repeated lying), irresponsibility (the inability to honor your corporate financial obligations), reckless disregard for the safety of others (like your shareholders or employees) and a lack of remorse (being indifferent to those you've hurt or defrauded).

These criteria are actually part of what typify the "antisocial" personality, which is the kinder, gentler term for a sociopath. Don't let the term antisocial fool you. You can be charming and charismatic and still be a sociopath.