Mark Hurd, valued C.E.O. for bringing back Hewlett-Packard’s reputation, was investigated over his relationship with a female contractor hired by HP. He was accused of sexual harassment and was asked to resign from his position. This allegation against the C.E.O. of the organisation lead to serious questions about the ethics and values held by the organisation.
The harassment case came at a time when Mark Hurd was the “hero” for HP. During his time as CEO, Mark had established a stable business organisation that not only led to a good reputation for the organisation but also led to doubling share prices. In addition to this, Mark was also negotiating a three year plan for the organisation worth almost $100 million.
The allegations against the C.E.O. have had several implications for the organisation in general. Firstly, these charges create a very negative corporate image for the organisation. A negative corporate image can lead to several issues such as difficulty in hiring employees and selling of goods. Moreover, this allegation also led to decrease in share prices which upset shareholders immensely. Secondly, the organisation also faced questions on their ethical values. This can be very demotivating for the employees and can lead to lower levels of productivity.