CEO misbehavior was a major cause for corporations apart from the chaos caused by a polarized political environment in 2025, says Paul Holmes, the founder of the influential PR industry publication Provoke.
Chief executives from companies like Nestlé to AIG have faced major challenges due to allegations of sexual misconduct, which have become part of the growing risks for businesses. In addition to such allegations, other CEOs have been targeted for a variety of issues, ranging from substance abuse to bizarre incidents like taking souvenirs from children at ball games.
The issue of executive behavior has emerged as one of the most destabilizing forces for companies, especially as the line between personal conduct and corporate reputation continues to blur. A crisis management expert pointed out that mistakes made by leaders, whether they are illegal, unethical, or simply poor decisions, now lead to quick scrutiny from both inside and outside the company.
This is driven by higher employee expectations, governance risks, and changing public views.
CEO Misconduct Cases in 2025
CEO misconduct as a trigger for crises hits home more than comfortably in Indonesia. Incidents involving naughty CEOs include:
- Garuda Indonesia’s president director Ari Askhara who was sacked amid allegations that Garuda stewardesses were forced to have sex with directors and high-level officials.
- The former president of the Prosperous Justice Party (PKS) was sentenced to 16 years in jail in a scandal involving clandestine hotel room sex, money laundering, and huge bribes to import beef.
- Jiwasraya’s former president director Hendrisman Rahim and two other executives were sentenced to life in prison for embezzling insurance premium revenue, resulting in Rp 16.8 trillion in state losses.
- The corruption at PT ASABRI involved its President Director (2009–2019) Major General Adam Achmat Damiri and the Director of Investment and Finance Hari Setianto, causing state losses of Rp 22.7 trillion.
The Impact of CEO Scandals on Corporate Reputation
As corporate scandals tied to CEO behavior continue to rise, they significantly affect a company’s reputation. Such misconduct can trigger negative media coverage, loss of consumer trust, and even legal consequences that harm a company’s bottom line.
Public perception becomes increasingly influenced by the behavior of executives, as consumers and employees alike expect a higher standard of leadership and ethics.
Crisis Management and CEO Accountability
What would you do if you are in charge of crisis management in your organization? What steps can you take to prevent your organization from being plunged into a crisis because of the naughtiness of the CEO, whose authority can’t usually be questioned?
Effective crisis management strategies should involve setting clear guidelines for executive behavior, ensuring regular audits and transparency, and providing channels for employees and the public to voice concerns.
The separation between a CEO’s personal life and professional conduct must be strictly monitored to prevent such scandals from escalating into corporate crises. Being proactive in managing the CEO’s public image can help mitigate risks and preserve the company’s reputation.
