How flattery triggers resentment and damages CEOs

When managers buy favour with their CEOs through flattery, it may be dangerous for both the CEOs and their company.

The story of Albert Dunlap, who in 2001 was sued by the Securities and Exchange Commission in the USA for accounting fraud, suggests that flattery may be really bad for your career.

As a CEO of Sunbeam Corp, Dunlap intimidated his managers, who gradually discovered that the safest way to get along with him was via flattery. During the subsequent investigations, these managers were ready to help and cooperate with the authorities.

Such behaviour is quite different from other companies, in which managers do all they can do to obstruct and complicate investigations. So what in fact happened?

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Why flattery is bad

Flattery triggers social undermining. And if CEOs do have some real weaknesses, this undermining can swiftly end their career, according to a warning from the INSEAD business school.

Managers who flatter their superiors begin quite quickly to resent them. This is because the acceptance of flattery goes against the ideals of authenticity, autonomy and meritocracy.

Furthermore, people who buy favour in such a way damage their own self-image. In other words, their own behaviour will make them feel bad. They will then associate their sense of guilt with the recipient of the flattery and basically blame the CEO or some other superior for that guilt.

When the CEO’s reputation is at stake

Managers who witness others' flattery will also grow resentful of the CEO, particularly if such flattery is rewarded in various ways, such as personal protection or special favours. These resentful managers may then want to damage the social capital of the CEO.

They will make uncomplimentary remarks about the CEO, sometimes perhaps only indirectly but the general tenor will still be negative. This can only damage the CEO's reputation.

There are some factors that can mitigate the adverse effects, such as if:

  • the company is successful
  • the manager and the CEO are friends or have something in common (demographically)
  • the manager him-/herself is also receiving flattery from subordinates

-jk-

Article source INSEAD Knowledge - INSEAD Business School knowledge portal
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