
"Good morning. It's great to be back after a short break. Catching up, I've been struck by the number of CEOs facing public scrutiny-and sometimes a public ouster-for their behavior beyond the job. In the past week alone, we've seen Suntory Holdings CEO Takeshi Niinami ousted for allegedly buying illegal supplements, Nestlé CEO Laurent Freixe was fired for failing to disclose an affair with a direct subordinate, and Piotr Szczerek of Poland's Drogbruk vilified for snatching a hat from a boy at the U.S. Open."
"CEOs have long been held accountable for their behavior through ethics clauses and board oversight. It's not always easy to gauge how these standards may change. Enforcement of the Foreign Corrupt Practices Act, for example, was put on pause earlier this year and recalibrated, suggesting a more relaxed shift toward the practice of bribing foreign officials. Kroger CEO Rodney McMullen resigned earlier this year because of " certain personal conduct" that was not disclosed."
A recent wave of CEO departures and reputational incidents underscores growing accountability for personal conduct. Examples include an ouster over allegedly buying illegal supplements, a firing for an undisclosed affair with a subordinate, and public vilification after inappropriate behavior at a sporting event. Enforcement of the Foreign Corrupt Practices Act was paused and recalibrated earlier this year, signaling potential shifts in bribery enforcement. Other exits cited undisclosed personal conduct or unusual vendor relationships. Practical lessons for leaders include avoiding workplace romances, maintaining professional public behavior, and taking internal reporting and favoritism complaints seriously. Separately, a major cybersecurity incident named "Salt Typhoon" may have exposed data on nearly every American.
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