Facing increased pressure from consumers, employees and regulators, corporate boards did something remarkable this past year: They dismissed more CEOs for ethical lapses than for financial performance or conflicts with directors.
This change, which occurred along with the rise of the “Me Too” movement, was detailed in the latest PwC CEO Success study. The findings show that boards are moving more aggressively to address unethical behavior; recent scandals make it clear that ethical lapses can lead to a nasty combination of internal cultural damage along with increased regulatory scrutiny and reputational and financial harm—especially if the behavior is ignored.
