It’s never too late to do the right thing!

Last week, Nestlé demonstrated how quickly corporate credibility can crumble when personal conduct meets professional responsibilities.

The Swiss food giant abruptly dismissed CEO Laurent Freixe after just one year in the role, following an investigation that confirmed an undisclosed romantic relationship with a direct subordinate that breached the company's code of conduct. When leaders breach trust, swift action beats prolonged denial every time. Freixe's mistake wasn't having feelings - it was lying about them to the people responsible for governance. 

The real scandal? It took two investigations to get to the truth.

Freixe initially denied the relationship to the board when concerns first emerged through an internal hotline in spring. Only after persistent concerns triggered a second probe - this time with external oversight - did the full picture emerge. The board's response was swift: immediate dismissal with no exit package.

Our advice to Nestlé? You did the right thing, eventually.

The company correctly prioritised governance over short-term disruption  even though losing a second CEO in consecutive years raises uncomfortable questions about leadership stability. The bottom line is that when CEOs forget that transparency isn't optional, boards must remind them that trust, once broken, is nearly impossible to rebuild.

The path to organisational repair

As consumer goods companies are already facing unprecedented pressures  from inflation to supply chain disruptions to changing consumer behaviours, it’s essential that sector leaders commit to basic governance standards. Nestlé's situation demonstrates why governance failures require addressing root causes, not just managing headlines. The restoration they need requires rebuilding trust through transparent communication about what went wrong, implementing robust disclosure policies that apply equally to all executives, creating independent oversight mechanisms that can't be circumvented, and demonstrating that company values aren't negotiable regardless of performance levels.

When your greatest business risk turns out to be your CEO's inability to have difficult conversations, it's fair to assume they may be hiding something else.

Dear Leah,

I’m Chief Risk Officer, and I’m sitting on information that could destroy our company. Three months ago, a senior manager came to me with evidence that our largest division has been systematically overstating revenue figures to meet targets. The amounts aren’t huge individually, but over 18 months it’s added up to £8 million of misreported income. The division head - who reports directly to our CEO - claims it’s “timing differences” and “complex accounting,” but the documentation suggests deliberate manipulation. I’ve raised concerns with our CEO twice, but he’s been defensive, saying I’m “overthinking it” and that the auditors haven’t flagged anything. The problem is, our CEO and this division head have been friends for 15 years, and this division’s “performance” has been central to our recent funding round. The manager who brought me the information is now getting frozen out and has hinted about going to regulators. I’m meant to be protecting the company from risk, but addressing this feels like the biggest risk of all.

Do I push harder internally? Do I go to the Board? Do I contact our auditors directly?

— Dabbling in Risky Business

Hi there ‘Dabbling in Risky Business’!
You're not dabbling in risky business, you're staring down the barrel of potential corporate catastrophe whilst your CEO embodies an ostrich. This isn't going away, and every day you delay makes the eventual reckoning worse.

Find clarity fast - Our same-day diagnostic gives you immediate understanding of what's broken and a clear roadmap to fix it. Perfect when you need urgent direction before making critical decisions.

Fix conflicts properly - Through board mediation, team mediation, and conflict resolution training, we facilitate genuine resolution that strengthens relationships rather than just managing disputes.

Email [email protected] 

About The WayFinders Group

You know those moments when board conflicts spiral out of control, your leadership team can't function, or you're dealing with the aftermath of an organisational crisis? That's exactly when you need The WayFinders Group.

Founded by lawyer and accredited mediator Leah Brown FRSA, we help leaders improve the bottom line by resolving conflict and restoring workplaces from chaos to clarity. We're the multi-disciplinary team you call when traditional HR solutions aren't enough and you need systematic transformation, not just damage control. Our proven approach works because we don't just address symptoms - we tackle root causes delivering reductions in workplace conflicts and helping organisations avoid costly tribunals whilst rebuilding stakeholder trust. Our track record includes transforming private companies, NHS trusts, police forces, sports teams, and educational institutions, plus handling the kind of boardroom breakdowns and CEO crises that end careers if mismanaged. We ensure sustainable transformation rather than quick fixes.

Future-proof after crisis - Our post-crisis restoration programme systematically repairs organisational culture over 90 days, ensuring lasting transformation rather than temporary fixes.

Find your way forward - Whether a merger gone wrong, a scandal brewing, or simply the sense that your organisation has lost its way - we help leaders chart a course to calmer waters.

Email [email protected]