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Ceo Should Be Fired Or Not?

Decent Essays
CEO should be fired or not?

Recent years, there is an increasing rate on sexual scandals of Chief Executive Officers from business and political area. As a result, these CEOs not only lost their jobs because of bad influence from sexual harassment, but experience a higher chance of ruining company’s reputation and firm future performance. Under this circumstance, an increasing number of companies decide to add code of moral into the area of corporate governance and declare that CEOs should resigned or be fired when they related to some scandals. However, other corporations choose to not fire the CEO and at the meantime to help them hide this news from the media and the public.

From one point, a CEO is just like a leader of a company, so some people believe that they should not be fired because firing a leader will destroy the corporates’ core structure. For example, HP’s CEO Mark Hurd gave outsiders confidence with a clear signal of no-nonsense business style. During his five years working period, HP’s stock price has double increased, while the whole US share market has gone sideways. At that point, he was charged by sexual harassment. Mr. Hurd “demonstrated a profound lack of judgment that seriously undermined his credibility and damaged his effectiveness in leading HP,” General Counsel Michael Holston said (Connie, 2010). Then he resigned and left the company. After that, HP consecutive hired another two CEOs to run the business. But it is not working, HP still
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