Best Buy CEO Chairman Relationship Research Paper

Best Buy CEO Chairman Relationship - Research Paper Example 17). As expounded, the reported improper relationship, despite the allegations being denied by both Dunn and the employee, has caused a damaged morale within the organization, supposed distractions, and speculations on the true nature of the relationship. Issues Being Addressed The issues being addressed in this case are violations of transparency, violations of conformity to ethical and moral standards, and failures to disclose critical information to the Board of Directors, which could assist in addressing the issues in a more professional manner consistent with the standards posed under corporate social responsibility. The World Business Council for Sustainable Development (WBCSD) has defined corporate social responsibility (CSR) as â€Å"the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large" (WBCSD par. 4). Obviously, the violations and i ssues noted from the case at Best Buys undermined ‘improving the quality of life of the workforce’ due to causing apparent distractions and speculations. Likewise, the improper relationship of Dunn, a married man, with a 29-year old employee caused conflicts in the marital relationship with Dunn’s spouse and the relationship with his children. The relationship is deemed as violating the standards of ethics and moral codes. The situation was exacerbated by Schulze’s failure to disclose the investigations made by him to the Board based on previous reports, which was an apparent violation of the rules of transparency and the rules on partnering to stop misconduct (Best Buy, n.d.). Rules According to the report written by Clifford (2012) and published in The New York Times, the rules and company policies on adherence to ethical and moral codes of conduct have apparently been applied to all employees except the CEO. As cited, â€Å"the C.E.O.’s relation ship with this employee led some employees to question senior management’s commitment to company policy and the ethical principles the company champions† (Clifford par. 17). Best Buy has a Code of Business Ethics that explicitly states rules on responsibility to each other, responsibility to shareholders, and responsibility to the company’s business associates – the areas where some violations have been noted. Analysis Upon closer examination of Best Buy Code of Business Ethics, the violations noted were on the rules pertaining to the following: (1) responsibility to each other, particularly honoring our differences; (2) responsibility to our business associates, particularly conflict of interest; (3) gift giving; (4) partnering to stop conduct. The Code of Business Ethics stipulated that â€Å"one of our values is to show respect, humility and integrity. Creating a positive work environment supports this value† (Best Buy 14). The actions of Dunn an d the female employee have been reported to cause conflicts in the work environment that apparently led to low morale. Likewise, the inability of Schulze to disclose the information immediately was a weakness on his character, pursuant