The Silent Erosion of Accountability: Why Leaders Now Operate Beyond Criticism
75% of US employees believe extramarital affairs among executives are commonplace. This isn’t a story about morality; it’s a symptom of a far more dangerous trend: the increasing isolation of leadership and the resulting impunity that allows questionable behavior to flourish unchecked. The recent dismissal of Nestlé’s Laurent Freixe, triggered by an undisclosed relationship with a subordinate, isn’t an isolated incident, but a stark illustration of a systemic problem that threatens organizational health and long-term success.
The Disconnect at the Top: A Modern Ivory Tower
Personnel management advisor Matthias Mölleney, drawing on his experience at Swissair and Lufthansa, argues the core issue isn’t the misconduct itself, but the “disconnect” between management and reality. He recounts a telling image: executives at Nestlé accessing their offices via a private elevator, effectively shielded from everyday employee interaction. This physical separation mirrors a growing emotional and informational distance, creating an environment where critical feedback simply doesn’t reach those in power.
Mölleney’s own experiment – deliberately adopting a negative demeanor for three days – revealed a shocking truth: no one challenged him. Employees discussed their concerns amongst themselves, but fear of reprisal prevented anyone from directly intervening. This highlights the critical role of psychological safety, a concept championed by Harvard professor Amy Edmondson, which defines the ability to speak up without fear of negative consequences. Without it, silence becomes the default, and problematic behavior is normalized.
The Cost of Silence: From Extramarital Affairs to Corporate Misconduct
The consequences of this silence extend far beyond personal indiscretions. As Mölleney points out, unchecked power breeds a culture of entitlement. This manifests in subtle, yet damaging ways: lavish business trips, personal expenses charged to the company, and boards of directors engaging in questionable gift exchanges. The higher one climbs, the more daring the behavior becomes, fueled by the implicit validation of unchallenged authority.
The case of Andy Byron, the Astronomer CEO photographed with his mistress at a Coldplay concert, underscores this point. The incident sparked a national conversation, revealing a widespread perception that such behavior is rampant in corporate America. This isn’t simply a matter of public image; it’s a reflection of a deeper ethical decay fostered by a lack of accountability.
Why Are People Afraid to Speak Up?
The fear of career repercussions and lost bonuses is a powerful deterrent. In owner-led companies, a direct line of accountability exists, making it easier to address misconduct. However, in large, anonymously managed corporations, this corrective mechanism often fails. The perceived lack of consequences emboldens leaders and perpetuates a cycle of silence.
Building Psychological Safety: A Leadership Imperative
So, how can organizations break this cycle? Mölleney emphasizes the importance of genuine interest in employees as individuals. It’s not about affection, but about understanding what truly motivates them. Without this personal connection, fostering psychological safety is impossible.
Leaders must actively solicit feedback, asking direct questions like, “What am I missing?” and “What’s another perspective?” Crucially, they must also demonstrate a willingness to learn from mistakes. A manager who openly acknowledges their own errors creates a climate of trust and encourages others to do the same. Tools like Amy Edmondson’s psychological safety assessment can provide valuable insights, but only if the results are met with genuine commitment to change.
The Danger of Empty Promises
Mölleney cautions against performative allyship. Declarations of commitment to diversity and open communication ring hollow when they aren’t backed by concrete action. Employees quickly recognize insincerity, further eroding trust and reinforcing the culture of silence.
Looking Ahead: The Rise of Accountability – Or Continued Impunity?
The Laurent Freixe affair isn’t a moral failing; it’s a systemic dysfunction. As long as performance remains strong, shareholders often turn a blind eye to questionable behavior. However, this tolerance is unsustainable. Increasing scrutiny from regulators, investors, and the public is forcing organizations to prioritize ethical conduct and accountability. The future will likely see a greater emphasis on transparent leadership, robust internal controls, and a genuine commitment to fostering psychological safety. Companies that fail to adapt risk not only reputational damage but also long-term financial instability. The question isn’t whether accountability will return, but how quickly and effectively organizations will embrace it.
What steps is your organization taking to foster a culture of open communication and accountability? Share your experiences in the comments below!
