It has been reported that the chief executive officer of Priceline Group, Darren Huston has been terminated from his position after it was discovered that he had a personal relationship with an employee. The boards choice reflects consistency in ethics.
As reported by Mike Snider for USA TODAY (April 28, 2016):
“The Priceline Group CEO Darren Huston resigned from the company Thursday after an in-house investigation into a relationship he had with a fellow employee. Huston’s departure is effective immediately, the company said, and former CEO and current Chairman Jeffery Boyd will serve as Interim CEO and President of The Priceline Group while the board looks for a successor.”
While it has been reported that the employee did not directly report to the CEO, he was in violation of the company’s code of conduct. Consistency in ethics requires that the culture creates the systems that is followed. Here the culture and the actions were in conflict.
In a statement issued by the company, Mr. Huston “had engaged in activities inconsistent with the Board’s expectations for executive conduct, which Mr. Huston acknowledged and for which he expressed regret.”
The company has made it clear that the improper relationship did nothing to affect the financial condition or the operations of the company. The relationship violated the code the company has in place for their executives and they imposed those expectations on the person who should have been the gatekeeper.
Not a Soap Opera
It is a rather easy, and dare I say, simplistic argument to view cases such as these as being reflective of an antiquated system of ethics and traditions. After all, we might conclude, these are different times and with different ways of conducting business. That is just the point.
In example after example, we have witnessed what happens when two different sets of laws are created for executives and for everyone else. Despite “different times,” the unequal application of ethical standards invariably affects any organization, from employee morale and retention, to much more serious problems. Consistency in ethics is critical if you want to have a foundation for ethical success.
Improper relationships are much more than “soap opera material.” Workplace relationships may occasionally work, but in my experience in consulting on numerous ethical issues, workplace relationships generally encompass sexual harassment, favoritism, improper sharing of information, and the circumvention of the management reporting structure and even opens the doorway for corporate espionage.
The issue is not the juicy inappropriateness and prurience of such relationships, it is mocking the very code of conduct that has been created to protect the company and its employees.
For example, I know nothing of the “relationship,” but suppose the employee were in an area of the company such as investor relations (with broad exposure to Wall Street), and secrets as to the financial conditions were conveyed by the CEO as to the firm’s financial condition. Suppose the CEO of an organization uses his or her power to unfairly promote an unqualified or under-qualified employee to a position of authority, and the employee causes tremendous damage to the company’s operations? The list goes on and on, but the point to be made is that (especially) when a publicly-traded company is involved, improper relationships can ultimately affect thousands of shareholders.
We Have Rules – Or We Don’t
The codes of conduct for any organization must be equitably and ethically applied, or frankly they are worthless. It is extremely unethical to allow a high-level executive to engage in a relationship and thereby flaunt policy. I commend Priceline for addressing the problem – and acting upon it.
The incident is not without its positive aspects. Clearly, the termination illustrates to every employee that the company is clear in its intention and is serious about the enforcement of policy.
Beyond that, we have a prime example of choices and consequences. The CEO undoubtedly thought the relationship could be kept a secret or that he was above the code. While we don’t know how the relationship was discovered, we can surmise the CEO was well aware he was violating policy.
He made his choice and he deserved his consequences. Priceline – it’s consistency in ethics in action.
Hi Mr. Gallagher,
My son Ben has been a great worker for ~20 years in the mines and was convicted of a felony. He served one year, got out and worked a year in the coal mines as a boss making over 100K. Due to the EPA requirements, the mine and many many others have closed. The unemployment (WV) sent him to CDL truck driving school where he excelled and obtained a Class ‘A’ CDL (commercial drivers license). He immediately had 18 job offers that were immediately resented after the FELONY was found. His unemployment just ran out! The mines are shut down or shutting down! The trucking companies say 5 – 10 years depending on the company.
My son served his time and finished his parole and is unemployed with apparently NO ROAD TO SELF SUPPORT. Why should I at 68 years old and his children have to suffer for something that has been paid and paid and paid for?
Thanks,
Tom
Sorry for you and your son’s plight. However, you write as if there is only one choice (driving). Today I interviewed three former convicted felons. One for armed robbery, one for sex offenses, and one convicted of murder. All are out and all have jobs and contribute to society. So the question I’d pose is what is you son willing to do that others don’t want to do? That’s where he’ll find opportunity. Sounds like he’s intelligent…so don’t fall into the trap of believing that your history creates your destiny. The choices you make today create you destiny…and he has the opportunity to seek out and make different choices that can find him new employment.