“I Was Meaning to Tell You About That”…
Kohl’s sacks new CEO in less than 100 days for business ethics violations.
Image: Shutterstock
Our last posts on business ethics were well-received, so let’s delve into yet another news story, which, unfortunately, remain plentiful.
In early May 2025, Kohl’s made headlines when they abruptly fired Ashley Buchanan just four months into his new CEO role. The reason? An internal investigation found that he had pushed for the company to work with a vendor connected to someone he had a personal relationship with, namely, Chandra Holt, founder of the vendor. The problem wasn’t just the relationship itself, but the fact that Buchanan didn’t tell the company about it. And worse, the deal came with favorable terms that raised eyebrows.
This kind of thing is a big no-no when it comes to corporate ethics. Most companies, including Kohl’s, have clear policies that require executives to disclose potential conflicts of interest. By hiding the relationship, Buchanan violated those rules and put the company at legal risk, inflicting damage to a brand preoccupied with sorting out its growth strategy [1].
Kohl’s didn’t just quietly let Buchanan go. They made a strong statement by firing him “for cause,” which means he doesn’t get to walk away with a golden parachute. In fact, he’ll have to give back part of his $2.5 million signing bonus and lose a bunch of stock awards. The company named Michael Bender, previously Board Chair, as interim CEO. Bender is an executive leadership veteran tasked with swiftly righting the ship and restoring confidence while a permanent replacement is found [2].
This scandal shows how important ethical leadership really is. Even the appearance of favoritism or conflict of interest can damage a company’s credibility. Investors start to worry, employees feel uncertain, and the public starts asking tough questions.
More and more, companies are taking business ethics seriously, and not just as a legal requirement. It’s about trust. Customers want to support brands that do the right thing, and employees want to work for leaders they respect. When a CEO breaks the rules, it sends the wrong message from the top down.
The Kohl’s situation is a good reminder that being in a position of power means being held to a higher standard. Whether you’re a CEO or a junior employee, ethics matter. Transparency, honesty, and accountability aren’t just buzzwords; rather, they’re how businesses build long-term success. Koh’s rapid response to address the problem shows they’re serious about doing business the right way.
Want to learn more about the role ethics plays in your business decisions? Reach out for an initial consultation today.