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.
Article navigation
1 June 2004
Research Article|
June 01 2004
The ethical dilemma of merging the roles of CEO and chairman of the board Available to Purchase
Sebastian A. Sora;
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
Search for other works by this author on:
Samuel M. Natale
Samuel M. Natale
Samuel Natale is Professor at Adelphi University, Garden City, NY. Tel: 516‐877‐4622, Fax: 516‐877‐4607.
Search for other works by this author on:
Publisher: Emerald Publishing
Online ISSN: 1758-6054
Print ISSN: 1472-0701
© Emerald Group Publishing Limited
2004
Corporate Governance (2004) 4 (2): 64–68.
Citation
Sora SA, Natale SM (2004), "The ethical dilemma of merging the roles of CEO and chairman of the board". Corporate Governance, Vol. 4 No. 2 pp. 64–68, doi: https://doi.org/10.1108/14720700410534985
Download citation file:
Suggested Reading
CEO pay as a reflection of power or performance: an empirical test for The Netherlands, 2002‐2006
Journal of Strategy and Management (May,2010)
CEO social capital and contingency pay: a test of two perspectives
Corporate Governance (August,2015)
Corporate governance and firm value as determinants of CEO compensation in Taiwan: 2SLS for panel data model
Management Research Review (March,2011)
Board composition, CEO duality and performance among Malaysian listed companies
Corporate Governance (December,2004)
Owners’ preferences for CEOs characteristics: did the world change after the global financial crisis?
Corporate Governance (February,2016)
Related Chapters
Designing Corporate Governance to Enhance Respect for UN Global Compact Principles
The UN Global Compact: Fair Competition and Environmental and Labour Justice in International Markets
Revisiting the Fundamentals of Shari’ah Governance Framework for Islamic Financial Institutions (IFIs)
Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice
Stakeholder Theory and Stakeholder Salience: The Role of a Hierarchical Rights Structure in Company Law
The Corporation, Corporate Governance and the Sustainable Transition
Recommended for you
These recommendations are informed by your reading behaviors and indicated interests.
