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Case 8.1

In: Business and Management

Submitted By elton103
Words 428
Pages 2
Elton Johnson
Organizational Behavior

The (Mis) Behavior of Successful CEOs
Leads to Their Departures

1. The reaction of the Boeing’s board of directors against his “misbehavior” is a sign of a senior management that has no tolerance for any misstep especially on a period where the company is trying to regain its previously-tainted leadership (on account of another case of misbehavior). I believe that Stonecipher’s affair should not happen had he thought of his position as a position of pure trust and confidence. That affair was understandably an issue of poor judgment impairing his ability to lead Boeing back to industry leadership after recent company turmoil. The reaction of the board was correct.

Mark Hurd clearly violated policy when he misfiled his expense report. Although this situation may seem small and he intended to repay the expense, it shows his intention to mislead the company and what he is willing to do to cover up his mistakes. The reaction of the board was correct.

Fraternization in the workplace should not be tolerated, it gives the assumption and perception that the individual is or will be shown favoritism. I the case of Brain Dunn, although he gave gifts and it was not within the misuse of company funds, the CEO should be held to a higher standard and should hold himself to a higher standard which he did by resigning and showing that he understood what he did was wrong. The reaction of the board was correct.

2. To limit the type of behavior shown by the three CEO’s above, if I were on the board of directors I would stronger consider doing thorough background checks by private investigator similar to a secret or top secret security clearance. Implementing that they have a security clearance may also play a huge role as this will uncover things that may lead to a future history of misconduct.

3. I feel that the large

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