Background:
Brian Dunn resigned from his position as CEO of Best Buy in April 2012 following the launch of an investigation into his personal conduct by the company’s audit committee. The resignation was mutually agreed upon by Dunn and the board, after the board had announced “certain issues were brought to the board’s attention regarding Mr. Dunn’s personal conduct.” Later, Dunn was found to have violated company policy by having an inappropriate relationship with a female employee. There was also speculation concerning related violations of Best Buy’s financial policies, but nothing was ever proven.

Ethical Analysis:
Best Buy’s board likely sought to preserve the company’s reputation by coming to an agreement with Dunn regarding his resignation. In recent years, more and more of a company’s reputation is becoming tied to the personal reuptations of its leadership. Personal behaviour for CEOs is thus becoming an increasingly relevant area of business ethics.
Leaders need to set an example for the employees of their company, and their boards need to be able to trust their judgement. In the case of Brian Dunn, his questionable relationship with the female employee was a breach of this trust.

http://online.wsj.com/article/SB10001424052702303815404577335551794808074.html
http://www.theverge.com/2012/4/10/2938311/best-buy-ceo-brian-dunn-resigns
http://minnesota.publicradio.org/display/web/2012/04/11/best-buy-dunn-investigation