I think people CAN change, and drastically, usually if something really good or bad happens. However, I also think there's still a little part of you that stays the same; for example, if a shoplifter saw one of their friends get caught, recieve a fine, and get 72 hours of community service, they might swear off shoplifting ever again. At the same time, every time they go in a convinience store, gas station, grocery store, (anything) they will have that small urge to take the easy way out and slip a few things in their pockets to have for free.
So I guess I think they can change some things and not change others. It just depends on how much you fight back that selfish, greedy, annoying other self that is constantly at the edge of your personality.