Ethics, leadership & the cost of misjudgement

In an era of instant scrutiny and digital amplification, the ethical tone set by leadership is more than a cultural aspiration, it’s a reputational imperative. The recent scandal involving former Astronomer CEO, Andy Byron, and HR Chief, Kristin Cabot, who became a viral sensations at a Coldplay concert last week is a textbook example of how personal poor judgement at the top spiralled into a reputation crisis, not because of the act alone, but because of how it was handled.  

The incident didn’t just damage Byron’s personal credibility, it triggered a reputational crisis for Astronomer, a company that has just raised $100 million in funding. The backlash was swift, fuelled by social media as Byron and Cabot’s knee-jerk reaction to being caught on Coldplay’s kiss cam in an intimate moment became an online phenomenon. Typically, if their immediate response hadn’t been so expressive, it wouldn’t have garnered the same level of attention, if any. Instead, the reaction becomes part of the problem, serving as a case study in the pitfalls of reactive crisis management in the digital age. 

A recent report by Russell Reynolds, The High Price of Bad CEO Behaviour, outlines seven forms of executive misconduct and how boards can proactively access a CEO’s propensity to fall prey to them. The report underscores that ethical leadership isn’t just about avoiding scandal, it’s about building resilience into the organisation’s culture and governance structures.  

As Naomi Kerbel, Director, Communications at SEC Newgate UK, notes: 

“As senior leaders, we set the tone, whether we intend to or not. The Coldplay/Astronomer situation is a clear example of how poor judgment at the top can cascade into reputational risk and public mistrust. Ethical leadership isn’t just about avoiding missteps. It’s about actively modelling the standards we expect across the organisation.” 

This sentiment is echoed in the Russell Reynolds report, which highlights the long-term damage that executive misconduct can inflict. The response often becomes more consequential than the original act. 

Naomi adds: 

“When leadership teams lack diversity, particularly gender diversity, we miss out on the challenge and perspective that help prevent these failures. It’s not enough to have good intentions. We need the right voices in the room to question decisions before they become headlines.” 

The first five minutes of a crisis can define the next five years of a brand’s reputation. Without diverse perspectives and level-headed counsel, that risk can see little mitigation. 

This pattern has emerged in several recent high-profile cases, ranging from scrutiny of Elon Musk’s leadership at Tesla/X (and his political roles), to questions around Donald Trump’s relationship with Jeffrey Epstein and his defamation lawsuit against Rupert Murdoch. These aren’t isolated incidents, they are part of a broader pattern where senior leaders, once seen as untouchable, are now held to account in real time. 

In the digital age, the gap between action and consequence has significantly narrowed. For example, Byron and Cabot’s response quickly gained widespread attention on social media, underscoring the importance of tempering reflexes. Often, it is the immediate, uncalculated response that escalates a situation into a full-blown crisis 

So how should companies respond better:  

1. Moderate the reaction: Resist the urge to react instinctively. While you need to act fast you also need to be sure of the facts and be sensitive to how different audiences will react, and you need to frame your response accordingly.
2. Diverse voices matter: Diversity in leadership isn’t just about representation, it’s about resilience. Different perspectives challenge groupthink, hold people to account and help spot reputational risks before they escalate.
3. Model from the top: Ethical leadership must be visible, vocal, and consistent. It’s not enough to have values on the wall, they must be lived in the boardroom. 

In an environment where every leader is one tweet away from a headline, the true test of leadership lies not only in ethical decision-making, but measured by the ability to respond with integrity, clarity, and foresight.