Homework help > Explain the worth of the CEO to the corporation. W... > Published by: CPA Guru 4 years ago
By: CPA Guru
Subject: Business
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Explain the worth of the CEO to the corporation. What could happen under the direction of a poor unethical CEO? ...[Show More]

4 years ago


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Importance of the CEO to the Corporation The Chief Executive Officer (CEO) is the highest ranked employee in most organizations. The qualification for this position entails a level of education, some specified work experience, and lastly personal traits. The CEO because of their position and duties are accorded security, a gift for the road, corporate aircraft, cars, and drivers. However, the treatment of CEO varies from one organization to the other. The CEO is an important employee to an organization because of various reasons. First, the CEO creates, communicate, and implement the organization mission and vision. The CEOs are the topmost employees in an organization. Typically, they offer the overall direction of the business by relying on the company’s vision and mission. These workers ensure that all junior workers adhere to the firm’s vision and mission to ensure they attain the ultimate goal, which is a success. Moreover, the CEO is an important staff in an organization since they are the ones who monitor executive leaders of the organization. One of the executive leaders of a business includes directors. In some businesses, executive leaders include Presidents and Vice presidents. CEOs usually make certain directions, which the executive leaders in an organization must follow. In the process, the CEO creates the code of conduct that is applicable to all workers who are top in the hierarchy and the subordinates. The CEO is also an important staff in the organization because they deal with the high-level strategy for the business. One of the high-level strategies they deal with is the competitive strategy. The top-most worker maintains the awareness of external competitive strategy that affects the organization. Moreover, their strategy includes tapping the opportunities for expansion available in the market. CEOs also formulate strategies that will ensure organizations increase and maintain their loyal customers. Lastly, CEOs always look for ways of maximizing shareholders’ return. They achieve these heights by looking for potential acquisitions, engaging in mergers, or selling part of the firm. Impact of unethical CEO to the organization The CEO is the most significant employee, all workers look up to for leadership in an organization. Deontological Ethics demand that an individual should always do what is right because it is right. On the other hand, the deontological ethics demand that an individual should not do any wrong because it is wrong. Typically, having unethical CEO in an organization is likely to result in a trickle-down effect. One of the effects of having unethical CEO in any organization is poor employees’ performances and attitudes. Unethical CEO will have a direct impact on their junior workers. For example, if junior employees were practicing ethical behavior, any unethical conduct of the CEO will have a negative impact on their overall actions. Junior staff will lose motivation and consequently, their performances are likely to drop. The general effect is poor performances by the organization. Moreover, unethical CEO will result in the bad quality of employee relations. Workers will start to avoid CEOs whose behaviors are unethical. In most instances, employees must work together as a team. Avoiding each other because of the action of one staff is likely to have devastating effects on the general firm’s performances. Additionally, unethical behavior by the CEO creates an unfavorable perception of the company. The industry and public rate the organization by looking at the actions of a CEO. Unethical actions of the CEO will affect the company in regards to customers’ base and inter-company relations in the industry. Lastly, the CEO unethical behavior might lead to legal issues and problems. This fact is possible because unethical CEO might ignore the firm and federal laws regarding employment in the process forcing employees to file suits against the business.

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