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Current Events with Leadership Challenges - Essay Example

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Leaders must embrace ethics so as not only to inspire followership among staff teams but also for organisational image externally. Hewlett Packard under the leadership of…
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Current Events with Leadership Challenges
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Running Head: Current Events with Leadership Challenges: Hewlett Packard. Department Ethical conduct is very important in the corporate world especially the top organisational leaderships. Leaders must embrace ethics so as not only to inspire followership among staff teams but also for organisational image externally. Hewlett Packard under the leadership of Mark Hurd suffered ethical dilemmas that saw his eventual exit. Prior to this Patricia Dunn also stepped down in response to the scandal involving the company’s spying scandal. Such ethical leadership challenges could negatively impact on the organisation’s corporate image.
Following an investigation that found Co CEO Mark Hurd culpable for having a relationship with the company’s contractor who was paid irregularly he had to resign. The investigations also revealed misuse of company resources totalling $ 20,000 as well as violating company policies. However, instead of firing him, the company still allowed him to resign and take home over &35 million despite having presented inaccurate expense reports concealing his actions. Considering that investigation had found the CEO to have mismanaged the company the company further made an ethical mistake by allowing him to resign (Gregory, 2010).
Hurd should have been fired, made to account for his unethical behaviour, pay the company money he misappropriated and prosecuted. This was not the case; instead he was paid handsomely on his resignation. Such a message being sent to employees and the general public could further work to the detriment of the company. The public could form a negative opinion of the company and this would have substantial business implications. As a giant in the computers sector, the company has since lost significant market share to other firms such as Lenovo. This underscores the need for ethical leadership in today’s business environment.
1. Gregory. (2010). Corporate Scandals: Why HP had to Oust Mark Hurd. Time. Available at:,8599,2009617,00.html Read More
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