An ethical dilemma for the new CEO of Cheryl Tobin Essay

An ethical dilemma for the new CEO of Cheryl Tobin - Essay Example The CEO should lead this team that would be handpicked by her in order to ensure that the internal employees cannot hamper the investigations. This is because it should be remembered that the CEO has no concrete evidence of a fraud in the company and the basis of the CEO’s thoughts are largely based on reports reported from external sources that can be largely dubbed as rumors. Acting on rumors and engaging an external agency would not only harm the company’s reputation but would also take the CEO on a collision course with the other senior management members. Only if the initial inquiry reflects frauds, then an external agency can be hired so as to ensure minimal damage to the reputation of the organization. It would also ensure that the employees and the senior management would not vary of the fact that the CEO who has been hired from an external organization is not hell-bent on finding flaws and imposing her individual style of working in the organization. Moreover, the findings of the internal audit committee can be very well concealed within the organization so that remedial measures can be initiated and that there is no harm in the reputation of the organization. A hasty decision of conducting an external inquiry can only aggravate matters and can have disastrous implication on the business prospects of the organization. It would also reflect an autocratic leadership style of the CEO that would eventually not help in improving the situation and would make matters worse in the long run.... Since all the financial documents are to be signed by the directors any frauds reported within the company makes them personally liable to criminal prosecution (Ashcroft & Ashcroft, p.412). Moreover, with the CEO being appointed by the board of directors makes the CEO answerable to them. It also questions the ethical dimensions of the CEO as it is the duty of the same to report matters to the board. The powers vested to the CEO are largely for the purpose of acting on the behalf of the board and to make the CEO answerable for the day to day affairs of the organization. Hence the CEO was very correct in initiating a probe into the matter. Examples from real life also suggest unfair and corrupt practices should not be encouraged in any organization. These malpractices may give short term gains but it is clear from the history of companies like Enron that unethical practice if not checked can lead to a complete downfall of the organization (BBC News, â€Å"Enron Scandal at a Glanceâ₠¬ ). Issues like negative sentiments coming in the wake of an enquiry into the scandals should not pose as a hindrance or an obstacle to the enquiry process as it ignorance in the long term can have very serious implications. This can also be inferred from the manner in which Boeing had to pay huge amounts as a fine towards fraudulent transactions and activities of the company. However rather than suddenly taking a decision to hire an external agency for the investigation, first the CEO can carry out an internal monitoring and supervision of the books of accounts of the company. The CEO should lead this team that would be handpicked by her in order to ensure that the