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Abstract
CEOs who take the reins of leadership at companies rocked by scandal face an uphill battle on a variety of fronts. To restore a tarnished reputation, they need to regain the confidence of multiple groups, each with their own concerns. The process begins by questioning what it is about the corporate culture that allowed a single bad apple or a small group of people not only to thrive but also to rise to a level where they could damage the company's reputation. Dov Seidman, CEO of LRN, a consultancy specializing in legal compliance and ethics management, outlines a four-step approach for instilling a code of conduct and preventing what he calls "informed acquiescence." The four steps include: 1. Communicate individual responsibility. 2. Educate employees on how to navigate the gray areas. 3. Align rewards and punishment with ethical standards. 4. Integrate ethics into every decision.