Dubious corporate tactics that were once considered arcane business shenanigans are now consumed and broadcast on social networks as widely as the latest celebrity scandal.
The public’s sudden interest in corporate mischief is driven by a confluence of emergent populism, growing mistrust of institutions and the bully pulpit of social media messaging. People who were indifferent or oblivious in the past now take notice.
Behaviors that smack of irresponsibility or hubris—like the unimaginably rich CEO of a ride-sharing company who recently belittled an employee in a video that went viral—can have immediate and far-reaching negative consequences.
“Business news is no longer just business news,” says Edgar Baum, CEO of the brand measurement firm Strata Insights. “If CEOs are perceived as doing something fishy, the public knows about it immediately, even if the underlying business details are beyond comprehension. The problem is one of hyperbole, sensationalism and speed.”
“If CEOs are perceived as doing something fishy, the public knows about it immediately, even if the underlying business details are beyond comprehension. The problem is one of hyperbole, sensationalism and speed.”
“Fishy” is not necessarily illegal. Much of the public has raised the bar when it comes to the standards to which they expect both CEOs and the companies they lead to adhere. Small wonder at a time when a whopping 63% of the population does not trust CEOs, according to Edelman’s 2017 “Trust Barometer” survey. Do something with a whiff of impropriety, and people become hashtag activists, instantly expressing their protests or echoing others’ complaints across large swaths of the global population. This information then finds its way into apps like DoneGood, aVOID, Glia and BuyPartisan, which were created to steer
consumers away from “objectionable” companies.
How bad is it for companies portrayed as sinners? “The forest of rhetoric is so thick right now that corporate actions that are not illegal, but appear to be deceptive or unfair, can ignite a brushfire that’s not easy to put out,” says Hampton Bridwell, CEO and managing partner at brand and marketing consultancy Tenet Partners.
In addition to personal and corporate risk, bad behavior is undoubtedly tarnishing the overall reputation of capitalism: a 2016 Harvard survey showed that 51% of millennials do not support capitalism, while just 42% said they support it.
We’ve compiled five corporate “sins” that CEOs should do their best to avoid committing—not because they’re illicit per se, but because the short-term gain may not be worth the long-term pain.
Dual-class shares are a great way for a visionary founder of a company with voting rights to guide its long-term strategy, without the quarterly short-termism views that more ordinary shareholders might exact. But the structure, which on average calls for giving 10 votes to insiders versus one vote to public shareholders, has its share of detractors.
“Some CEOs think they know better than anyone else what is best for the business, but this is a very shortsighted view,” says Thomas Quinlan, chairman and CEO of LSC Communications, a global provider of digital and traditional print-related services and office products. “A poorly performing CEO should not be immune
to disciplinary actions that may even include the person’s ouster.”
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
