In 2010, an important affair happened in HP’s company. Mark Hurd the CEO of that same company was accused of sexual harassment on one of their employee. What interest me a lot are the consequences of such an act on a giant such as HP company. Mark Hurd was a CEO who generates money as no CEO did in HP since a long time; respected by his employees his affair was kind of a choc. How can an employee can keep continue doing a great job when he realizes that his CEO has behaved as bad as Mark Hurd did.
Business ethics is what causes the obligation for HP to separate them from Mark Hurd. HP had to choose another CEO after him, they chose Leo Apothker who made the company lost in inly eleven months 30 billions of dollars. That loss generates so many pay cuts and layoffs, which obviously created a non-trustful relationship between HP’s manager and workers.
We don’t realize how ethics is important but if he former CEO Mark Hurd didn’t behave well, the company would not have fallen as much as it did. Business ethics is a key to a stable company because business ethics will generate the trust of the employees which is the most important relationship you need in a company.