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Article Title: Opinion | Of hubristic leaders and obedient company boards


Article Summary

The article at issue ponders the reason for shock-exits from success of big-brand corporate CEOs, the reasons behind this, and what measures can be taken to counter the phenomenon. In the wake of failures of several CEOs like Naresh Goyal, research finds a host of neurological complications that excessive power brings, which lead to the demise of CEO efficiency. The chief among these is a reduction in empathy, making the CEO blind to the wills and faiths of others, resulting in her failed governance of them. The others are aggressive optimism, a distrust in teamwork, and a love of the spotlight. The same traits that led to the rise of the CEO from a commoner, pointed optimism and workaholism even when others quit, morphs into unrealistic hopes and a dismissal of teamwork after the rise to power, making a CEO an ineffective leader. One way to curb this alarming trend, writes Jayakumar, is to teach empathy and emotional intelligence at the practical level in course of business education. The other way is to teach dissent. Research has proved loyalty is innate and hyperactive in humans – making board members often side with errant CEOs. If business students are taught to stand their ground in the face of wrong, it can go a long way towards fulfilling corporate responsibility to parties less powerful than the CEO.


Article Link: Click here to read the full article


Words to learn from this Article:

Ignominious: disrespectful.

Ramifications: complications as effect of something.

Mitigating: alleviating, reducing the severity of something painful.

Metamorphoses: transforms into (something else).

Detrimental: very harmful.

Ostensibly: too evidently, as if to show off that something is the case.

Fiduciary: related to trust.

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