Chair issues

Chairman's corner: A major indiscretion

Governance | 22 Apr 2010

Mr Leaks asks The Chairman whether the trustee board should sack a chief executive who has compromised the confidentiality of their charity's service-users.

Dear Chairman,

I am the chairman of a charity which runs a retreat for people suffering from alcoholism.

During a bout of recent press publicity concerning the alleged alcohol-related problems suffered by several players of one of this country’s leading football clubs, the chief executive (CE) of our charity revealed to a journalist that a number of players from that club had spent time at our retreat.

The newspaper published the story naming our charity and the club, and quoting the CE although it did not identify any individual players by name.

Confidentiality and respect for an individual’s privacy are at the core of our organisation. The CE realises his mistake and regrets that he spoke to the press at all. However, some of our trustees feel that it was such a fundamental error of judgement by our senior executive and one that has the potential to cause material damage to the charity’s reputation, that he should be dismissed.

What do you advise?

Yours sincerely,
E. Leaks

Dear Mr Leaks

I think your fellow trustees’ assessment of the situation is right. It was a fundamental error of judgement by the CE and, clearly, he now recognises that fact himself. Subject to a consideration of process and legal requirements, the charity could probably justify terminating the CE’s employment on the facts.

If his contract, or the charity’s disciplinary policy, specifies grounds for summary dismissal (eg examples of acts or omissions that amount to gross misconduct) and they include such things as ‘actions that bring the charity into disrepute’ or ‘breach of confidentiality’, then there may be justification for instant dismissal, (following a proper investigation and a meeting/hearing at which the CE has the opportunity to respond to the allegations of misconduct).

However, even if the termination of his contract can be justified, the charity’s board of trustees does not have to dismiss. It must exercise its judgement and, as always, act in the best interests of the charity. If the damage to the charity’s reputation is such that it can only be recovered if the CE is removed, then that may be the only option. If, on the other hand, apart from this incident, the CE’s standing, reputation and contribution is such that it would be a major blow for the charity to lose him; and any damage to reputation can be repaired with him still at the helm, beginning with the issue by him of a recognition of his error and an apology, then perhaps a lesser sanction such as a final warning may suffice.

Either way the charity has a difficult few months ahead of it and you and the trustees will be called upon to keep a firm hand on the tiller and a firm grip on your chosen course.

Yours etc,
The Chairman

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