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The ethical dilemma of merging the roles of CEO and chairman of the board

Sebastian A. Sora (Sebastian Sora is Associate Professor at Adelphi University, Garden City, NY. Tel: 516‐877‐4659, Fax: 516‐877‐4607, E‐mail: sora@adelphi.edu)
Samuel M. Natale (Samuel Natale is Professor at Adelphi University, Garden City, NY. Tel: 516‐877‐4622, Fax: 516‐877‐4607.)

Corporate Governance

ISSN: 1472-0701

Article publication date: 1 June 2004

Abstract

The intent of this article is to explore the resultant conundrum that arises when the role of the chief executive officer (CEO) and the role of the chairman of the corporate board are merged into one person. There is a resultant loss in checks and balances and this can result in a decrease in vigilance in the operation of the corporation. Given this loss of vigilance power begins to center in one leader, the CEO/chairman, that can be used for personal gain at the expense of the other stakeholders of the corporation. This creates an environment of greed and corruption that eventually creates mistrust in the viability of the stock of the corporation as well as loss of personnel that can right the course. The article raises the concern and sees an answer for such issues in government regulation as it relates to the corporate structure.

Keywords

Citation

Sora, S.A. and Natale, S.M. (2004), "The ethical dilemma of merging the roles of CEO and chairman of the board", Corporate Governance, Vol. 4 No. 2, pp. 64-68. https://doi.org/10.1108/14720700410534985

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited