Dennis Hastert in the Private Sector

Let’s say Dennis Hastert is the CEO of a $1 billlion, publicly traded corporation. He is informed that one of his most visible executives is sending “inappropriate” emails to a teenage boy.

Hastert instructs one of his aides to tell the errant executive to stop sending the emails.

Unfortunately, the bad boy exec not only doesn’t stop, but ratchets up the sexual content of the emails. Eventually, some of his missives hit the press and scandal erupts.

Hastert's knowledge of the issue also is reported. The company’s share price tumbles, employee morale plummets, and customers wonder if they want to do business with a company so poorly managed.

Hastert is asked in for a chat with the board.

Chairman: What steps did you take after the admonishment?

Hastert: I assumed that he would obey my instructions.

Chairman: You didn’t speak to him directly, follow up in any way, instruct anyone else to follow up and report back or take any other steps to resolve or monitor this potentially explosive situation.

Hastert: Obviously I was wrong.

Chairman: Yes, Dennis, you were. Please excuse us now because we have a personnel matter to discuss. Keep yourself available.