Originally posted June 16, 2017
The age of the internet has made it near impossible for companies to hide when someone in their organisation makes a major blunder, and the research indicates the world is now tougher on bosses who stuff up than ever before.
PriceWaterhouseCoopers partners Kristin Rivera and Per Ola-Karlsson suggest in Harvard Business Review this week that the numbers don’t lie: more chief executives are being fired for “ethical blunders” than ever before, with scrutiny from both customers and shareholders accelerating.
The pair examine the numbers from PwC’s most recent global chief executive success study, which suggests the number of company heads who were dismissed for ethical lapses increased from 3.9% in the four years preceding 2012 to 5.3% at the end of 2016.
“Firstly, the public has become more suspicious, more critical and less forgiving of corporate misbehaviour,” Rivera and Karlsson say.
“Second, governance and regulation in many countries has become both more proactive and more punitive.”
The article is here.