The Background Introduction
Helter Skelter, Inc. founded in the late 1960’s is a large public company producing the component parts that are integral for high performing automobiles. It also opened the market in Asia to provide component parts for emerging auto manufacturers in the past ten years. The company is highly successful and has a track record of long stretches of reporting consecutive profit growth.
Dagwood Blemish is the founded-CEO of Helter Skelter, Inc. Blemish has been the single leader of Helter skelter, Inc. for the last 15 years and his proclaimed leadership style is to serve as the inspirer for good ideas and to facilitate technological advancement. By Blemish’s lead, ...view middle of the document...
as the top leadership of the organization, Blemish still made his own comments to indicate having a black female and a Chinese female in the receptionist position is improper. The two receptionists are found to be “less than ideal” to Blemish. However, the CIO of Helter skelter, Inc. Potter asked Blemish what the definition and standard of an ideal receptionist is and without getting any response Potter didn’t fire the two receptionists who actually performed to reasonable standard.
There are some complains in the company that some people were browsing inappropriate sites during lunch break so Potter was required to implement the network monitoring and controls. But this action got serious rejection from Blemish who insist that that Porn sites have made superior use of e-commerce and pioneered video exchange, and since the business is moving to heavy imaging in the medical field there was much to learn from them. Potter argued by Porn sites were immoral and there was no place for accessing them in a legitimate business.
The issues in this case is as a CIO of the company Potter has very good business moral standard and he wants to use his control power to manage the company and make sure the company’s information technology assets will help the company gain better revenue in future. Potter also wants to apply the corporate governance to help the company running more effectively. However the CEO’s leadership style is to keep the company highly decentralized and flat while he was practicing poor ethical behavior. Blemish cares about the revenue more than anything even ignore the immoral behavior and poor manner will impact the company’s management and reputation. So the CIO need to tolerate the top-down destructive leadership behavior. And this situation actually bothered the Potter a lot since he is not sure what he should do in in the organization.
Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed. Shailer, Greg. An Introduction to Corporate Governance in Australia, Pearson Education Australia, Sydney, 2004. Every organization need to have a clear and fair standard rule to control and manage the participants’ behavior that’s why corporate governance is very necessary in the business management.
Governance mechanisms include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. Corporate governance practices are affected by attempts to align the interests of stakeholders. Therefore if the senior level manager doesn’t obey the governance mechanism it will be very hard to apply the policy.
In the case, all senior managers at Helter Skelter, Inc. were required to take diversity training as part of a legal settlement. The diversity training is a governance mechanism which should be followed in the management team. However, as the top manager of the company, the...