When Leaders Fail To Lead

The recent buzz around a certain CEO and their HR counterpart at a Coldplay concert isn't just juicy gossip. It's a stark, uncomfortable mirror reflecting a deeper corporate truth. Forget the spectacle for a moment. This isn't just about two individuals' choices. It's about what happens when the very people meant to uphold an organization's values publicly shred them. What does it truly mean for an organization when its top brass – the guardians of culture and strategic direction – are entangled in a controversy as fundamental as an extramarital affair? Does the company’s moral compass simply vanish? Does it affect the bottom line, or just the headlines? And what about the people showing up to work every day, asking themselves if the values printed on the office walls are just expensive wallpaper?

Here’s the blunt truth: Leadership roles aren't mere titles on a business card. They are the living embodiment of a company's values, especially when the spotlight is on. When HR, the supposed gatekeeper of organizational integrity and culture, becomes part of the problem, the entire foundation crumbles. The Head of HR isn't just there to hire and fire; they're the second-in-command, after the founder, in safeguarding the ethical fabric of the workplace. They're meant to ensure that every individual joining the team not only fits the role but aligns with the culture. If HR is the "police of the organization" – a joke, yes, but with a stinging grain of truth – then what happens when the chief officer is caught breaking the very rules they enforce? Rebuilding credibility as a Human Resource Executive after such a scandal isn't just difficult; it's a testament to how far gone the organization's integrity has become.

The organization itself isn't immune. Beyond the immediate public scorn heaped upon the disgraced executives, the company's entire image is called into question. Suddenly, the public isn't just judging two people; they're judging the brand, its products, and even the people who work there. In the age of viral internet, this isn't merely bad PR; it's a fundamental crisis of trust that can leave indelible stains.

Internally, the ripples of such a controversy are devastating. Employees, especially those who were previously engaged, start questioning their purpose. Their "why" for showing up daily dissolves when the hypocrisy at the top becomes undeniable. Those already disengaged find their cynicism validated. "Aha," they think, "so this is what's wrong with the people in charge." The sense of association with the company becomes a burden, not a source of pride. For a time, some employees will actively shy away from being linked to the organization, unwilling to be mentioned in the same breath as their now infamous leaders. This isn't just about morale; it's about the erosion of loyalty, purpose, and ultimately, productivity. What are you doing wrong if your leadership's actions tell your employees that your values are just for show?

Is there a way out of this? Can anything still be done? When it comes to the marriages of the internet’s favorite couple, we can only speculate what will happen. However, here’s what we know the company can do to recover from the incident:

• Reaffirm Brand Values. It is important, now more than ever, for the organization to make it clear to the public and its employees that it stands firm by its values. Its actions must align with this message as well. An organization can’t say that they value integrity and just carry on. What initiatives will align with this message? How do you want your employees to observe the values that comprise your brand?

• Move From Reaction to Action. Engagement plans should be put in place to increase collaboration among employees. Start discussions around the values of the organization and gain insight as to how these are being followed. Allowing open discussions among employees will facilitate a two-way engagement, leading to the identification of gaps between how values are understood and how they are expected to be observed. 

• Focus on Forward-Looking Communication. It’s proper to acknowledge the incident and mitigate reputational risks. But moving on from the incident as quickly as possible is ideal. No company would want to be a meme forever. After acknowledging the incident and communicating actions taken to address the situation, communication should then focus on the company’s mission, vision, and impact. 

Lastly, in cases such as this, it is wise to consider an external partner who can help mitigate the risks brought about by similar incidents. When selecting an external partner, make sure that they have the competencies you need to draw and execute initiatives that will deliver results. Check for values alignment as well. During times of crisis, there’s nothing wrong with asking for a little help. After all, it’s a whole organization that we need to sustain – our employees depend on it. 

Want to learn more about how an external partner can help you? Feel free to contact us!