When we read the new OBM case application in chapter 5 we understood many new things about company ethics and responsibility. In this case we were introduced in a true story of RadioShack Corporate Company. The story is about company’s CEO David Edmondson and his fall as a chairman of it. He lied about his educational background that helped him to take the CEO-seat from Len Roberts. One of the first signs was marked from the newspaper “The Fort Worth Star Telegram” who reported a huge article for him. After his hiring as a new CEO the company lost its positions and the result was that share price dropped to a 3 year low level. Mr. David Edmondson neglects the Company ethics and than he was fired. The strange part of the story was that he received a huge worth for his job. After his management The RadioShack Code of Ethics was changed. The date was 21.02.2006 immediately after his leaving. This wind of change in company’s policy was a big step to turn back their customers.
Question 1: Evaluate this situation from the viewpoint of David Edmondson’s ethical leadership. What could RadioShack have done differently?
Answer 1: According to D. Edmondson the only thing that he has done wrong is that he lied about his educational background and also says that this is the only thing that he did not followed from the ethnical leadership. After the truth was revealed he did not try to hide or to deny it, and that issue can be consider as ethical behavior. Also he made an apology to the investors about the bad performance of the company and did not cover up his fault.
However, Radio Shack could have done better and could have avoided this shameful situation. First, they have to investigate all their employees before hiring them in the company. Thus they would have understood that Edmondson did not have his two degrees and all of his educational background is just a scenario. Also they could have prevented themselves from losing more