HRs Authority to Address CEO Conduct: Legal and Ethical Considerations

Dear Friend,

I have one doubt. Please, clarify. Is the CEO also considered one of the employees in the organization? As an HR manager, can I take action against the CEO if he violates the HR policy?

Best Regards, Srinivasan

I think it would be necessary to weigh the gravity of the offense. First and foremost, you should know better about your company policies. If you have doubts, it should start with a conversation. Approach your boss and make your presence known.

A CEO is not only an employee but also the head of HR in the organization. How can an employee take action against the head of the company? An HR manager cannot take action against anyone who is above in rank with him. For example, if you are an HR manager, then you can take action against an employee of manager rank only and not above him, like AGM, GM, or Director. In any organization, whether it is government or private, a junior cannot take action against higher ranks.

A CEO is not only an employee but also the head of HR in the organization. How can an employee take action against the head of the company? An HR manager cannot take action against anyone who is above in rank with him. For example, if you are an HR manager, then you can take action against an employee of manager rank only and not above him like AGM, GM, or Director. In any organization, whether it is government or private, a junior cannot take action against higher ranks.

I do agree with Sam, but I think this issue has to accelerate to seniors (Managing Director) as action should be taken place for everybody in the organization.

I do agree with Amitlokande. If the CEO is an employee, in the capacity of an HR manager, you may highlight the issue to the top management (above the CEO) confidentially and let them decide. Nothing else you can do.

CEO is the topmost position in the company. They are the thinkers and policy makers. How can you blame any CEO while managing people, always his core competence.

As per me, you have to rethink. If you feel that you are right, then it is a must that you have a strong reason.

Dear All,

We cannot take any action against the CEO, but at the same time, HR can have a healthy argument with the CEO and clarify any violations in policy.

Rgds,
HR Con

"BOSS IS ALWAYS RIGHT. WHETHER HE IS WRONG OR RIGHT". A junior cannot take action against the CEO but may highlight the issue to the top management as mentioned by Mr. Prasad.

Hi,

Obviously taking action against the head of the company is not only difficult but also impossible because nobody is above the policy. In this case, you have to understand the company's structure. In most MNCs, there is a monitoring body that oversees operations in a particular country, and to whom the CEO reports (like HUL). If the company is under a group, there is one head overseeing the operations of the group companies (like Tata Group). Otherwise, you can bring the issue to the Board of Directors, depending on the magnitude of the misconduct. As a junior, you cannot take direct action against your most senior leader. Therefore, my suggestion to you is to gather enough proof and the support of your peers and seniors before taking any action.

As you are an HR Manager, you should know your KRAs and KPIs. Also, you should be familiar with company policies and hierarchy. Please jot down all these on paper and define your responsibilities. To whom do you report - the CEO or any other official?

As an HR Manager, you cannot take action on anyone as it is. Even if you want to take action on lower-grade employees, you should have a report, advice, or suggestion in writing from concerned line managers or supervisors. Based on this, you have to investigate and consult with your boss. In union-dominated companies, it is very difficult to take action on labor as well. It will affect productivity, and the HR manager may end up as the scapegoat.

Taking action on the CEO by an HR manager is not advisable. If the HR Manager possesses strong evidence of the CEO's activities, you can discuss this with the chief of the organization. If he insists, you can submit the evidence. However, it is a litmus test.

SMS-Dubai

Yes, I personally think that an HR manager cannot take any action against the CEO of the company.

Dear,

Please consider all options before taking any action against your CEO. Rules may vary between dealing with rabbits and dealing with lions. Many times, we take action against rabbits but not against lions. However, rules are rules. If the CEO is a paid employee, you can take action, but it's advisable to have another job option secured before proceeding. Rabbits typically do not retaliate, but lions often do.

Thank you.

Hi Shrini,

First of all, please have your next job offer ready before engaging in a healthy argument with the CEO.

Hi,

As far as the CEO is in the employee position as an HR Manager, you can take the issue up to the Chairman or MD, but the ultimate action should be taken by the Chairman or MD. Even though the CEO is the head in making strategic HR decisions, the issue can be escalated to the Chairman provided that it strongly opposes HR policy. It's better to have an offer in hand before proceeding further, as you have not clearly mentioned the authority level after the CEO.

Regards,
Suman

Hi,

Please let me know the size of your organization and the reporting person. Also, mention the hierarchy within your organization. If the gravity of the CEO's actions is absurd or a major concern, escalate the issue to the top authority, such as the Board of Directors. I would advise bringing up the issue to the CEO's wife or parents if it is intolerable or a matter of life and death.

Remember, every action has an equal and opposite reaction, as per Newton's law. The consequences could be significant, perhaps even greater than that. Think of the impact from Pearl Harbor to Hiroshima and Nagasaki (Atom Bombs).

Dear,

You might not be grasping the viewpoint of the CEO. Check your knowledge. In the hierarchy, authority runs from top to bottom, which means the policies and procedures of the organization are formulated by the top management. Therefore, middle-level management should understand the concept of the policies and the objectives of the company. As a middle manager, you need to adapt according to the directives from the top level. If this is not the case, it indicates that you are going against the stream. Work with responsibility within the defined boundaries. If the CEO makes a mistake, it reflects on you and all of his subordinates. Update your knowledge with the CEO's thoughts. Best wishes.

Regards,
Sanjay Kanagala
RIMS-MBA, Kakinada.

Hi Srinivasan,

It is of utmost importance to be positive as an HR professional, and taking action alone cannot solve the problems. It sounds very autocratic. I am sorry; I don't mean to be harsh, but I see a lot of people doing this. It's not that you are an HR Manager and you can take action against anyone, but I would suggest you work around the problem and turn it into an opportunity. If you can convince your CEO to fall in line, it would set a great example for others.

In any case, you have not mentioned the offense committed by your CEO. Only based on understanding the offense he has committed, someone can suggest a solution. Nevertheless, I would say that taking action against the CEO is absurd, and he is immune to your actions.

Regards, Muthukumar K

The Board of Directors and Legal Managers do have the right to raise the level of charges. An executive level can't directly or indirectly charge the CEO. The level of charges procedures needs to be executed based on the level of seniority.

Hi,

The CEO is the pivot of an organization, and it is the HR department that needs to set the direction on what the organization represents (its people) and benchmark best practices with the market to ensure a motivated and energized team.

HR has the authority to share its thoughts in cases where the CEO violates policies, and higher forums within the organization should be made aware of these situations.

Regards,
Sudha

I too agree with Sam that one has no authority to take action against superiors. If any violations occur, highlight and notify the top management. Let them decide on the disciplinary actions. Please don't be so aggressive, especially with superiors, as you might be in deep trouble.

Thanks

Approach any member from the board of directors, but before this, make sure that the 'individual' is known to you directly or indirectly. The only reason you can take up a case is when something drastic is being done by the CEO against the organization, which can ultimately harm the business interest or the good name of the organization. You must have 100% proof as this is your 'bulletproof jacket'. If you fail to inform the 'incident' to the board, then you and other senior management may face action for concealing the facts and will be considered a party to the subject 'adventure'.

Waqar

CEOs are indispensable to an organization than you. It is up to the Chairman or MD to decide, and no performing CEO will be relieved for any frivolous issues. The same issues may be serious for employees at a lower level. So, you can bring it to the notice of higher-ups and leave it to them rather than worry about this.

Definitely, if all the employees support you, you can, but it will be at risk from your side if you do it alone. You should have a valid reason.

Hi,

Before you take action against him, you may lose your job. Try to explain the policy to him so that other employees will follow the policies, taking him as a lead. You can speak to the other directors regarding him as if you are seeking advice from them.

Hi,

If the CEO has violated any policies of the company, you can inform the Senior Manager about the issue. However, if there is no course of action that can be taken, you cannot take direct action against the CEO as they are the head of the company and responsible for setting policies.

Thank you.

It's a good question. In a democratic country, nobody is above the law. Please tell me about your organizational structure. If your CEO reports to the Board of Directors, then the competent authority is the Board, specifically the Chairman or Managing Director, who can take action against your CEO. The HR Head must provide a specific complaint against the CEO and convince the Board of Directors. If serious lapses are found, the Board may decide to take action. The HR role is to provide the correct position to the Director.

I salute your bold decision to take action against the CEO.

Himanshu

Points to be pondered before any action is initiated:

Understand the gravity of the issue.

Collect the data and facts pertaining to the problem.

Also, analyze the root cause if need be.

If it is a violation of integrity, proven red-handed such as "sexual harassment," "thefts," "misappropriation," "falsification of documents," "causing damage to the business," etc., we need to highlight it to the board of directors, including the CEO.

Remember, most organizations have come out with the open-door policy, and there are no hard or fast rules to exit.

Put your views in an affirmative way and get things going.

Irrespective of the levels, designations, etc., violation of integrity is perceived as an uncivilized act, and I don't think people will vouch for it.

Dear,

As is very well said, the CEO is the head of the organization and above all, in charge of human resources as well. Before you proceed, you should ensure:

1. The facts and figures on the basis of which you are challenging the situation.
2. That the individuals senior to him in the organization will be fair in handling the situation, as you should not end up being made a scapegoat.
3. Consider how the CEO may react. This could lead to a difficult situation for you to work with him afterward, potentially making your life miserable.

If you are certain about these facts and figures, then go ahead and take the next step. Just a thought in the Indian scenario - an unimaginable situation, though.

Wishing you all the very best.

Cordially,
preet

Hi Srinivasan,

I am not sure of your thoughts behind originating this topic; however, it seems you are lacking a few fundamentals in official hierarchical levels. Understand that CEO stands for Chief Executive Officer, the highest position in any organization reporting to the board of directors. As someone above rightly pointed out, he/she is the one who sets the mission and vision of the company to prosper.

I think more inputs from you will help me to give more suggestions. But it looks like you have a difference of opinion with your boss or ego clashes - whatever it may be, it's better to discuss and resolve than thinking of taking actions for which you are not hierarchically authorized.

Respect senior officers of the company, as their intentions will always be for the best interest of the company and its team members. Remember, if team members contribute, the company grows. No CEOs want the company to fail and thus ill-treat their own employees.

So support your boss and bring a professional work culture to your organization. Also, look around other departments, as there might be many iterations required to bring effective processes, resource maintenance, and attitude. Why don't you focus and input your efforts on those key areas?

I hope these inputs might give you some tips on the approach moving ahead.

Thanks,
Mahesh

Sam Dsouza's statement is exactly correct. We can't have the authority or empower to initiate disciplinary action against the CEO. We can only put the issue in front of the MD and discuss it with our seniors, letting them take action. As a manager, our responsibility is to take note of mistakes with proof. These proofs may help the MD and our seniors to judge the issue. Please, someone, correct me if I'm wrong.

Regards,
Lingaraju.N

If your CEO is a core committee member in HR, you should seek appropriate approval from him in writing and regularize the process.

H R

Is a number one diplomatic person in the org, it all depends how do you handle

In your case you can indirectly threaten your ceo and force him to be inside the Hr police

Don’t forget before being a
CEO he is a human,

And to tackle the human you have to be perfect H R
Regards
Madhusudan c

It is a thought-provoking topic, since I believe no one has thought or done this before. We all are giving our suggestions based on our experiences and assumptions.

On moral and ethical grounds, yes, HR should tackle the issue. How is a question.

Let's take this as a situation for a case study. We have to look at this from two aspects:
One; the role of HR as defined in the company policies, structure, and authority.
Two; what do the country laws state.

There are clauses where such positions are given immunity; there are also provisions in companies which state management has sole discretion to interpret, change the policy.

Remember, HR is also not above the law and policies, so please go through the facts and make a decision.

Hi Mr! Are you just hypothetical? The Board or employing authority can only take action. You may send the complaint data. However, if I wish, this is a hypothetical question. Decide if you want to continue working in your current company.

BNJ

Hi, only can the appointing authority take against the CEO. You may send the complaint data to the appointing authority. If they decide not to act or find the data insufficient to proceed with an inquiry/action, you had it. Many times, the CEO has extraordinary overriding powers against any HR policy. So, watch out, else you may be relieved of your duties sooner rather than the CEO. However, I guess this is a hypothetical case.

BNJ

Hi,

As I mentioned in my last post about this problem, as an HR Manager cannot take action against the CEO so we can at most escalate this issue to the Board of Directors. Yes, there is a risk of losing a job, but if we look at the other side, if this issue is not escalated to the Board of Directors and if it is a serious issue, then at the end of the day, management will blame the HR manager only for hiding the CEO's mistake. So, I think it's better to inform seniors about the CEO's issue.

Thanks & Regards,
Amit L

If Policy is finalized by CEO / MD than you can notice the violation, directly don’t take any action other wise you may come in to problem.:-P

Dear All,

When a company formulates its Memorandum of Association (MOA), all power is vested in the Directors. If the management (Board of Directors) decides to delegate authority to someone, they may pass a resolution in this regard and provide a copy to the concerned person. Otherwise, you cannot take action, even if there is a clause in the appointment letter (doesn't matter). :-P :-P :-P

Dear All,

When a company is formed, the Memorandum of Association (MOA) vests all power in the Directors. If the Board of Directors (BOD) wishes to delegate authority to someone, they can do so by passing a resolution and providing a copy to the concerned person. Otherwise, you cannot take action, even if the clause is mentioned in the appointment letter (doesn't matter).

:-P:-P:-P

Hi,

Being an employee of the company and as per company law, anyone who violates the act is wrong, and action needs to be taken against him or her. But before proceeding, we need to really think about whether the required action taken will be helpful, or else you will be in jeopardy. The complaint should be filed in such a way that your name is not reflected. If it is reflected, you should have solid/valid proof to prove it. Remember, he is the CEO of the company.

I keep seeing a lot of posts on HR as the authority to take action or HR as the authority to recruit people and the authority to promote people. This post on taking action on the CEO is also one such post where the HR Manager believes that they are the ultimate authority in an organization. Please remember that HR professionals in an organization are facilitators for other executives to manage HR processes. Their role is to advise rather than decide. Yes, there will be certain decisions they need to make if the process defines so. I read a post where the member has rightly described this attitude as autocratic.

What is the policy the CEO has deviated from? Can that be briefed here for a fruitful discussion? Based on the same, members can express views on what the HR Manager needs to do. Many people believe that the policies we know are applicable to CEOs as well. Based on this misunderstanding, we judge people assuming that we are the saviors of HR policy in the company.

Please introspect your role... Do I decide? Do I advise? as an HR Manager in the company.

What should I do more to facilitate HR processes in the company?

Thanks,

Sivasankaran

NB

Again, this post is two years old and I do not know how relevant it is to reply to a post of this nature.

Dear Srinivasan,

Even the Head of HR will report to the CEO. The CEO is the primary figure in any organization. Just think, if someone who reports to you were to take action against you, what could they actually do? Could they suspend you or terminate you? In reality, they can do nothing. Only you can suggest or advise if the CEO violates any rules. That's it.

I appreciate your perspective on pointing out the role of a CEO, but please take care. All the best.

Regards,

The CEO must be a member of the Board of Directors, and his appointment letter is issued by the Directors. The CEO can ask for any explanation from the HR manager in relation to the company's work, whereas the HR manager has no such authority. In the company hierarchy, he is much below the CEO. How can the HR manager dream of taking action against the CEO? This is a utopian thought.

Hi HR,

If there are any issues with the CEO's performance, he must submit his report to the Managing Director. If the Managing Director is satisfied with the submitted report, it can be discussed in the board of directors' meeting, and appropriate action can be taken against the CEO.

HR does not have the authority to take action against the CEO under any circumstances. When we are dedicated to our jobs, we should be confident in our findings and not be afraid of anyone.

Regards,
Mohan Rao
Manager HR