Understanding Employee Dishonesty and Its Relationship to Value Hierarchies
When it comes to the most severe workplace problems, employee dishonesty is among the most prominent and consequential. It is often addressed primarily through a consequentialist moral framework; however, this approach is frequently insufficient. Greater emphasis must be placed on understanding the underlying psychological mechanisms that drive dishonest behavior.
We have outlined a four-stage DGM (“Dorian Gray Model”) of repression pathology — a framework that describes the progressive deterioration of the psyche through maladaptive repression mechanisms. This article focuses specifically on the third stage, characterized by what we define as Anti-Aletheia: the active concealment of truth through the accumulation of compensatory and defensive psychological layers.
At this juncture, repression pathology escalates into a self-perpetuating system of avoidance and falsification. Rather than confronting the original source of repression (e.g., unresolved trauma or existential threat), the individual begins to construct meta-layers of psychological defenses. These layers do not merely bury the initial repression deeper but generate pseudo-truths—narratives and behaviors that shield the core wound from conscious awareness. In Heideggerian terms, this can be seen as the radical opposite of Aletheia (unconcealment), hence Anti-Aletheia: a systematic obfuscation of Being’s authentic engagement with itself.
Mechanistically, this third stage is directly correlated with an observable increase in neuroticism, particularly across both volatility (affective lability, irritability) and withdrawal (avoidance, self-isolation) dimensions, as recognized in the Big Five model (DeYoung et al., 2010). The energy required to sustain layered repression leads to affective dysregulation, while chronic avoidance of core conflicts results in an internal collapse of motivational salience. Psychodynamically, this stage may align with Freud’s concept of secondary repression, though it is framed here within a developmental and existential perspective.
We posit that Structured Internal Value Hierarchies (SIVHs) serve as a critical reconstruction tool in this pathology. The deliberate re-creation of a singular, transcendent value system facilitates the re-anchoring of the fragmented psyche. By imposing a "monotheistic" ordering principle on the individual's internal architecture, SIVHs restore the capacity for delayed gratification, meaning-making, and long-term orientation — thus acting as a corrective to both the impulsive volatility and the paralyzing withdrawal seen at this stage.
In the subsequent sections, we will analyze the neurobiological correlates of Anti-Aletheia (e.g., amygdala-hyperactivity, prefrontal-amygdala disconnectivity) and the role of SIVHs in rebalancing limbic-prefrontal regulation, followed by practical implications for psychotherapeutic and organizational settings.
The Context – The Third Stage of Four-Stage Repression Pathology (DGM Framework)
The four-stage model of repression pathology describes the progressive deterioration that occurs when a deliberate, self-aware falsehood is introduced into the psyche and subsequently repressed. This model, often referred to as the Dorian Gray Model (DGM) due to its allegorical similarities to Oscar Wilde’s narrative, captures the escalation from an initial conscious distortion of reality to deeper layers of repression and eventual psychological breakdown.
At its core, DGM outlines how an initial violation of one's highest conceptualization of truth acts as a catalyst for the repression cascade.
First Stage: Conscious Desire to Distort Reality
The process begins with a consciously acknowledged transgression — a deliberate choice to act against one’s internalized moral framework or perception of truth. At this stage, the individual is still fully aware of the dissonance between their intent and their value structure. This is marked by cognitive dissonance and an initial breach of internal orderliness, as the psyche actively suppresses its intrinsic moral or ethical resistance to the act.
Using Wilde’s Dorian Gray as a metaphorical template, the first stage is exemplified when Dorian consciously wishes to externalize and displace the natural consequences of his actions onto the portrait:
“If it were I who was to be always young, and the picture that was to grow old! For that, I would give everything!”
In modern psychological or ethical contexts, this could be likened to a spouse making the conscious decision to violate relational norms:
“I am going to cheat on my spouse.”
The individual at this point actively initiates a rift between the self and its alignment with reality, opting to pursue short-term desire or ego-syntonic gratification at the expense of long-term coherence. However, the full repression mechanism has not yet been set in motion. The moral tension is present, the awareness of incongruence is intact, and internal regulatory structures (e.g., conscientiousness, self-regulation) must be temporarily overridden to manifest the distortion as action.
In subsequent stages, as we will explore, the psyche moves from conflict to defensive restructuring (second stage), layered concealment (third stage or Anti-Aletheia), and finally to systemic collapse or fragmentation (fourth stage).
Second Stage: Minimization, Rationalization, and Externalization of Responsibility
Following the initial act of deliberate reality distortion in Stage One, the individual enters the second phase of repression pathology, where the psyche mobilizes defensive cognitive mechanisms to reduce the moral and psychological burden of the transgression. This stage is defined by a triad: minimization, rationalization, and externalization of responsibility.
Here, the mind seeks to dilute the perceived severity of the act by shrinking the contextual frame (minimization), constructing post-hoc justifications (rationalization), and displacing accountability onto external agents or circumstances (externalization). This constellation of defenses allows the individual to distance themselves emotionally and cognitively from the dissonance generated in Stage One.
In Dorian Gray, Wilde vividly illustrates this stage through Dorian's reaction to the tragic suicide of Sybil Vane:
“It seems to me to be simply like a wonderful ending to a wonderful play. It has all the terrible beauty of a Greek tragedy, a tragedy in which I took a great part, but by which I have not been wounded.” (Chapter 8)
Dorian reframes the suicide not as a consequence of his betrayal but as an aesthetic, almost theatrical occurrence. His minimization is clear — he abstracts a human tragedy into a narrative device, while rationalizing that he is merely a participant, not morally compromised. The externalization emerges as he subtly shifts causal weight to the "tragedy" itself or Sybil's own actions, removing personal responsibility.
In modern settings, this pattern is evident in everyday scenarios such as infidelity. A spouse might minimize the act (“It’s just an affair, not the end of the world”), rationalize it (“I needed it to survive emotionally”), and externalize blame (“My spouse’s neglect forced my hand”).
This phase is marked by what psychologists often refer to as motivated reasoning and self-serving biases (Miller & Ross, 1975). The individual constructs cognitive frameworks that, while internally soothing, further fracture the alignment between self-concept and reality, setting the stage for deeper repression in the third phase.
At this stage, neuroticism may remain stable or increase subtly as tension between the unresolved cognitive dissonance and the defense mechanisms begins to surface in intermittent anxiety or guilt (Baumeister et al., 1998). However, the full affective destabilization associated with higher neuroticism traits, such as volatility and withdrawal, becomes pronounced in Stage Three, where layers of concealment proliferate.
Third Stage: Automated Lying and Dealing with Psychological Distress
In the third stage, repression consolidates into a semi-automated process, moving much of the psychic conflict out of conscious awareness. The original act — the initial violation of truth — has now been subsumed into subconscious mechanisms, shielding the individual from the emotional discomfort once triggered by the dissonance.
The individual’s cognitive and emotional architecture undergoes a shift: deception becomes normalized. Rationalizations solidified in Stage Two are no longer effortful or morally labored; they are now automatic, with diminished or entirely absent psychological distress.
In Wilde’s Dorian Gray, this transformation is symbolized by Dorian’s literal and figurative concealment of the painting—the portrait as the suppressed artifact of truth. Dorian no longer struggles with guilt; instead, his moral insensitivity escalates, culminating in the remorseless murder of Basil Hallward, his former friend and the artist of the hidden portrait. The critical mechanism here is avoidance of the symbolic representation of truth, as Dorian refuses to confront the portrait and what it reveals about himself.
In contemporary, everyday terms, the unfaithful spouse exhibits a similar trajectory. The original betrayal has now been fully integrated into a restructured, falsified narrative, enabling deception to continue without triggering the emotional or ethical alarms that were present in Stage One. Internally, the individual may develop habitual self-justifications such as:
“It’s not really cheating if we aren’t married,”
or
“It’s just a harmless white lie.”
This facilitates frequent, casual deception — for example, claiming to be at the gym or beauty salon when secretly meeting a lover — without activating feelings of guilt or anxiety.
Here we also encounter the onset of Anti-Aletheia: the psyche’s active refusal to “uncover” or “unconceal” the repressed act. The portrait, in metaphorical terms, becomes "too hard to look at." The core wound and its subsequent rationalizations are buried under multiple defense layers (e.g., denial, dissociation, splitting), forming a self-sealing loop.
At this stage, deception not only loses its moral gravity but begins to generate a compounding effect — making each subsequent violation (lies, betrayals, even harmful acts) easier to commit. The internalized lie has now evolved into an automated pattern. This can be mapped onto the concept of moral disengagement (Bandura, 1999), where cognitive restructuring leads to a disconnection between behavior and moral self-regulation.
The psychological distress from earlier stages has been dissociated, contributing to what may outwardly resemble psychopathic tendencies — coldness, lack of remorse, and effortless deception — even in individuals who may not be clinically psychopathic but who exhibit similar mechanisms through this repression trajectory.
Fourth Stage: The Collapse and the Failure of Self-Deception
In the final stage of the repression pathology, the accumulated psychic tension and structural inconsistencies within the self become unsustainable. The weight of the repressed truth exceeds the defensive capacity of the individual, resulting in a psychological collapse or existential crisis. The carefully constructed layers of minimization, rationalization, and avoidance from prior stages are overwhelmed by the emergence of unbearable cognitive and emotional dissonance.
This moment is powerfully illustrated in Wilde’s The Picture of Dorian Gray, where Dorian reaches a psychological breaking point:
“Yet it was his duty to confess, to suffer punishment, to expiate. He was determined to do it. He would tell everything. He would finish the portrait.” (Chapter 20)
This “Raskolnikov moment” (referencing Dostoevsky’s Crime and Punishment) encapsulates the psychic inevitability of collapse under the accumulated mass of deception and repressed guilt. The internalized dissonance resurfaces, and the psyche can no longer maintain the illusion that it is unscathed. Affective pain, shame, and anxiety break through dissociative defenses.
At this point, two outcomes are possible:
Confession and reintegration – where the individual confronts the repressed truth, fully accepts responsibility, and rebuilds their internal architecture around this acknowledgment.
Destructive implosion – where the psychic system collapses into pathology (e.g., depressive breakdown, dissociation, self-sabotage) without resolution.
In the context of Dorian Gray, this stage is depicted as the symbolic internalization of the shame and guilt that was externalized or displaced in Stage Two. The moment Dorian turns on the portrait with the intention of destroying it, he is in fact confronting the embodiment of his repressed self. The portrait functions as the carrier of all moral and emotional debris accumulated across the repression cycle.
In modern psychological terms, this is akin to what psychodynamic theorists describe as a breakdown of the defense system, forcing the ego to reintegrate previously dissociated material (Kernberg, 1984). The full return of repressed content leads to the acute resurfacing of guilt, shame, and regret, offering the possibility for moral repair and the restoration of an integrated Structured Internal Value Hierarchy (SIVH) — but only if absolute ownership of one’s actions and sincere remorse are achieved.
The collapse phase can thus act as a turning point for genuine reconstruction and healing, or alternatively, mark the onset of pathological consequences if full integration and acceptance are resisted.
The Tragic Undercurrents of the Third Stage
At first glance, and even for some practitioners of the SIVH (Structured Internal Value Hierarchy) framework, the third stage of the DGM model might appear deceptively “stable” or even “comfortable.” The apparent automation of deception, coupled with the diminished psychological distress, could be mistakenly perceived as a resolved or functional state. However, this interpretation is both superficial and dangerously narrow.
Beneath this deceptive sense of equilibrium, the third stage carries with it an inexorable tragic dynamic—one that guarantees a trajectory toward collapse. The compound psychic weight of repression, rationalization, and dissociation does not dissipate; rather, it accumulates as unresolved psychological debt.
This accumulation ensures that, without conscious intervention, the system will ultimately advance toward Stage Four, the collapse phase. In this sense, the third stage is not an endpoint but a pressure cooker—an unsustainable configuration wherein the psyche teeters on the edge of breakdown.
In the following sections, we will unpack the mechanics underlying this tragic inevitability, detailing how the compounding weight of concealed truth steadily undermines the individual’s internal coherence and propels them toward eventual destabilization.
Heidegger and Aletheia: Unconcealment in the Context of Repression
In his exploration of truth, Martin Heidegger makes a critical distinction between propositional truth—that is, truth understood as factual correctness or correspondence — and aletheia, which he defines as unconcealment (Entbergung). Aletheia refers to the process through which Being discloses itself within a sufficiently open field, free from obstructive layers of projection or distortion.
From a psychological perspective, Heidegger’s notion of aletheia can be interpreted as the suspension of habitual, often pathological, projections, allowing reality to reveal itself as it is, rather than as it is distorted by personal bias or defensive mechanisms. Heidegger illustrates this by explaining how external factors, such as clothing, demeanor, or social roles, predetermine our focus, generating preconceived perceptions that obscure the deeper nature of a person or object. This habitual "concealing overlay" makes it difficult to encounter the other in their authentic Being.
Anti-Aletheia as Stage Three of Repression Pathology
While Heidegger’s framework is seldom applied directly in psychotherapeutic contexts, we argue that the third stage of the DGM (Dorian Gray Model) of repression pathology can be accurately described as Anti-Aletheia. In this phase, the psyche actively constructs and maintains layers of distortion to avoid confronting its own repressed truths. Rather than allowing Being to disclose itself, the individual imposes defensive structures — self-deceptions, rationalizations, and automated falsehoods — that prevent the continuous, painful process of unconcealment.
Truth as an Ongoing Process of Unconcealment
Heidegger’s later work, particularly during his conceptual “turn” (Kehre), asserts that the essence of truth is always the truth of essence. That is, every act of uncovering (aletheia) is simultaneously an encounter with another level of concealment, awaiting further disclosure. Being itself is a process of perpetual return to truth—an ongoing dialectic between concealment and unconcealment.
In therapeutic terms, this means that healing and psychological integration are not singular, revelatory moments but instead cyclical processes of uncovering increasingly deeper layers of self and reality. Each layer of repression that is dismantled reveals further concealed elements beneath, mirroring Heidegger's notion that Being is an ever-continuing interplay between presence and hiddenness.
In contrast, the third stage of repression pathology represents the psyche’s refusal to participate in this dynamic. It constructs a closed system of concealment — a refusal to "let Being be" — which blocks the essential movement of returning to truth. This is why the third stage, though it may seem "comfortable" from the surface, inevitably destabilizes the individual as it violates the ontological structure of openness and disclosure that Heidegger associates with authentic existence.
The Third Phase of Repression Pathology as Anti-Aletheia (Concealment)
In the third phase of repression pathology, the individual has fully repressed the original act of deception. What began as a consciously constructed distortion in earlier stages has now evolved into a semi-automated, habitual repression mechanism. Within a Heideggerian framework, this process represents a clear manifestation of Anti-Aletheia — the negation of unconcealment.
Whereas aletheia describes the cyclical revealing of truth, where each layer of reality is progressively unconcealed and brought into openness, the third phase of repression embodies its direct opposite: a perpetual concealment of truth. Rather than a return to Being and authenticity, this stage is marked by the psyche’s continual return to deception in varied and often increasingly complex forms.
In this mode, the individual not only represses a specific act or event but actively obstructs the existential process of self-disclosure, as described by Heidegger’s later formulation:
“The essence of truth is the truth of essence.”
Here, the repression no longer pertains solely to facts or events but extends to the person’s relation to Being itself. The individual suffers not merely from hidden content but from a distortion of their own ontological foundation. By refusing to engage in the movement of unconcealment, the person effectively conceals the very “truth of Being”—failing to return to their own existential grounding.
Thus, the third phase, when viewed through this philosophical lens, is Anti-Aletheia par excellence: the systematic concealment of reality and the active severance from the openness that constitutes authentic existence.
The Mechanics of Anti-Aletheia – The Lost Highway Effect
When examined from a psychological standpoint, the mechanics of Anti-Aletheia expose the inherent danger of automated repression. Once initiated, this process fosters a progressively self-reinforcing feedback loop, wherein the individual's constructed reality demands the continuous application of concealment to maintain internal equilibrium.
In this model, the person constructs an experiential world increasingly divorced from the essence of Being — as Heidegger would define it. The further one drifts from aletheia (unconcealment), the more fragmented and inauthentic the relationship with self and reality becomes. We identify this dynamic as the Lost Highway Effect, drawing on David Lynch’s eponymous psychological thriller, which masterfully visualizes the existential underpinnings of repression and Anti-Aletheia.
In Lynch’s narrative, the protagonist appears trapped within an ever-shifting reality — one that presents itself as superficially stable and harmonious but is in fact riddled with emerging fractures. Similarly, in the third stage of repression pathology, the individual constructs a "beautiful new reality" — a facade of normality, emotional balance, and surface-level well-being. However, the repressed content inevitably resurfaces, manifesting as leaks through the cracks of this fabricated world: slips, intrusive thoughts, maladaptive behaviors, or somatic symptoms.
Critically, the psyche’s short-term response to these intrusions is not reintegration but further concealment. The individual reacts by expanding the repression system — layering additional distortions onto reality in order to preserve the comfort of the illusion. Thus, the process enters an escalating cycle of concealment and disintegration.
Over time, this Lost Highway Effect results in a hyper-fragmented self, where competing realities (the “fabricated normal” vs. the “buried truth”) generate mounting internal tension, propelling the system inevitably toward collapse in Stage Four. The individual becomes alienated from Being itself, inhabiting an ontological limbo sustained by Anti-Aletheia.
The Intolerable Compound Weight of Concealment
What ultimately precipitates the transition into Stage Four — the collapse — is the inevitable breakdown under the intolerable compound weight of repression. Psychologically, this collapse is structurally embedded within the very mechanics of Anti-Aletheia. As additional layers of concealment are added, the system itself becomes inherently unstable.
Each defensive layer — rationalization, minimization, denial, dissociation — requires an increasing expenditure of cognitive and emotional resources to maintain the "virtual reality" that now diverges significantly from the essence of Being. The individual’s psychic energy becomes progressively absorbed by the effort to sustain the illusion, leaving fewer resources available for spontaneous or authentic engagement with reality.
In practical terms, this results in a sharp rise in psychological volatility. The greater the complexity and number of defensive layers, the more brittle and reactive the system becomes. What appears externally as composure or emotional detachment is, in fact, the calm before rupture — a fragile state marked by internal strain and diminished capacity to process external stimuli.
As this burden accumulates, individuals often exhibit a pattern of withdrawal and emotional distancing, characteristic of those in the late third stage of repression pathology. Their behavior becomes marked by increased passivity, social detachment, and a declining ability to attend to the external world. Cognitive bandwidth is so over-allocated to maintaining the repressive structure that perceptual acuity and responsiveness diminish.
This “compound weight” dynamic mirrors well-established principles in cognitive psychology, such as ego depletion theory (Baumeister et al., 1998), where sustained mental effort in one domain (here, repression) reduces self-regulatory capacity elsewhere, making the system prone to emotional lability or collapse.
Ultimately, the psychic structure reaches a tipping point, where the accumulated layers implode, and the core lie — long buried beneath Anti-Aletheia — erupts into consciousness, forcing confrontation with the repressed reality. This is the catalyst for Stage Four, where confession, breakdown, or radical reorganization of the self becomes unavoidable.
A Real-Life Example: The Anti-Aletheia Cascade in Action
To illustrate the mechanics of Anti-Aletheia in real-world terms, consider the case of a spouse who has committed an act of infidelity but subsequently represses the betrayal rather than confronting its psychological and relational consequences.
In this scenario, the individual enters a process of layered concealment, progressively insulating themselves from the original act through the construction of increasingly elaborate narratives. Common defensive statements — often delivered with heightened conviction—serve as markers of these concealment layers. Examples might include:
“Honesty is my core value.”
“I am a fundamentally good person!”
“My spouse has become abusive; he’s a toxic narcissist.”
These assertions function as protective shields, allowing the person to project a reality that both contradicts the repressed truth and provides immediate psychological relief. Each declarative statement becomes part of the fabricated moral architecture designed to stabilize the psyche against dissonance.
However, the heavier the compound weight of concealment becomes, the more pronounced and absolutist these statements tend to be. The individual compensates for the widening gap between their lived reality and the authentic essence of Being (as Heidegger might frame it) by doubling down on these cognitive constructs.
This intensification is symptomatic of the system's increasing instability. As the individual's self-concept moves further from alignment with truth, their language and internal justifications become more rigid and exaggerated, reflecting the mounting psychic effort required to sustain the "new balance."
The example demonstrates how Anti-Aletheia, once fully activated, compels individuals to inflate the surrogate identity they present to themselves and others — thereby escalating the eventual tension that will propel them toward collapse.
SIVHs as a Remedy for Anti-Aletheia
In the third phase of repression pathology, intervention becomes exceptionally challenging. The self-sustaining dynamics of Anti-Aletheia—the automated and layered concealment of truth — renders the individual resistant to corrective action. In this phase, the person operates within a closed system of distortion, where repressed material is so deeply embedded that even external insights or therapeutic interventions are often filtered through existing layers of self-deception.
From an applied perspective, we have observed that successful SIVH-based interventions at this stage are contingent on catalyzing a premature transition into the fourth phase — the collapse — thereby limiting the further accrual of psychic suffering. The therapeutic objective is not merely to integrate new values but to dismantle the anti-aletheic structurethat sustains the pathological system. Without a direct confrontation and full acknowledgment of the original deception, any attempt to impose a Structured Internal Value Hierarchy will likely be co-opted by existing defense mechanisms, merely adding another compensatory layer to the repressive system.
For a genuine transformation to occur, the individual must undergo a process akin to moral and existential rupture:
Confrontation with the core lie and its repercussions.
Absolute acceptance of personal responsibility without externalization or minimization.
A decisive move toward repentance — not as mere regret but as a restructuring of the entire internal system.
The successful (re)construction of an SIVH in this context demands the establishment of a monotheistic hierarchy, where a singular, transcendent value assumes the top position. Whether this value is articulated in moral, spiritual, or existential terms (e.g., service to others, pursuit of truth, devotion to a cause), it must serve as an organizing principle that reorients the psyche toward aletheia — the dynamic process of unconcealment and alignment with Being.
Only through this restructuring can the individual move beyond the fragmented architecture of Anti-Aletheia and restore a state of psychological coherence and sustainable agency.
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