The life of a CEO is indeed one worthy of emulation. High salaries, perks and an elevated social status have ensured that all aspire to be one someday. Yet, in a PwC report titled CEO Success Study, some alarming revelations emerge. It seems that the number of CEOs being sacked for fraud or mismanagement has risen significantly. Examples include bribery, environmental disasters, sexual indiscretions, inflated resumes and insider trading. Between 2007 and 2011, the percentage of CEOs sacked for such offences was a mere 4.6% of the total. This rose to 7.8% post that. This 36% rise may not be attributed to lowered ethical standards of the CEOs alone, but to other factors as well. Public opinion has almost irrevocably turned negative post the financial crises of 2008. MNCs have been exposed to greater risk in developing markets.  Increased digital communication has meant that the public now has 24/7 access to information. This vast data warehousing provides ample evidence to nail down someone, while also providing a platform to check on accountability. The normalization of fraud has occurred due to the presence of three elements oft cited- pressure, opportunity and rationalization. More of such dismissals have taken place in the biggest of companies in the developed markets of North America and Western Europe. To prevent such ethical lapses, companies need establish a culture of integrity. The metrics chosen to weigh employees must not induce them to commit such unethical practices. The right financial controls and business processes need to be in place to keep a check.

Source:https://www.strategy-business.com/feature/Are-CEOs-Less-Ethical-Than-in-the-Past?gko=50774&sf194593152=1

Uploaded Date:10 August 2018