Resolve this problem: USING TWO EXTERNAL SOURCES
The newly hired CEO of a small, nonprofit organization was appalled by the behavior of the organization’s CFO toward the female staff. He believed the manner in which the CFO related to these women was disrespectful and bordered on abusive. Some of these women were offended by the CFO’s attitude, while others chalked it up to his abrupt, abrasive personality and simply ignored it.
The CEO met with the CFO and made it clear that his behavior was unacceptable and would have to change. The two did not meet subsequently. The CEO was heard to say to others in the organization that the CFO “had to go.”
Three months later, at a monthly meeting of the board of directors, the CEO added an item to the agenda that substantially modified and reduced the CFO’s job responsibilities and authority. The CFO usually attended the board meetings but had notified the CEO and the board two weeks earlier that he would not be able to attend this particular meeting. The rationale that the CEO presented was framed as strengthening the integrity of financial reporting in the organization. This explanation appeared to be reasonable, and the board approved the proposal.
At 11:30 p.m. in the evening following the meeting, the CEO e-mailed the CFO, notifying him of the board’s action modifying his position.
Use this as a guideline:
a. What are the ethics issues in this case?
b. What management mistakes were made in this case?
c. Who are the key stakeholders in this case?
d. What steps can be taken within this organization to remedy these mistakes?