Milwaukee Company Under Fire After CEO Involved in Multiple Ethics Violations

Alex Molinaroli, the Milwaukee, Wisconsin based CEO of Johnson Controls, Inc. has come under fire for multiple transgressions in the past year. In late 2014 Molinaroli was first scrutinized for violating the company’s ethics policy when he engaged in a relationship with a consultant for the company. Johnson Controls financially disciplined Molinaroli at that time.

Molinaroli is again under ethical scrutiny for his involvement with a man convicted of 15 counts of mail fraud in a $50 million Ponzi scheme. Molinaroli allegedly loaned millions of dollars to the head of the scheme and allowed him to live in a Michigan mansion he owned. Johnson Controls is standing by Molinaroli, insisting that his transgressions had nothing to do with the company, instead characterizing Molinaroli’s problems as an “unfortunate personal matter.”

Incidents Highlight the Need for Ethical Training in the Workplace

The situation discussed above is just another example of a high-ranking corporate executive becoming embroiled in a public scandal. When these sorts of issues arise it places the company name in the news in a negative light, which is never good for public relations. Additionally, when a corporate executive faces significant personal problems it reflects poorly on the public’s perception of the company’s business dealings (for better or worse).

While it is impossible to control the behavior of your executives, managers or employees, online corporate ethics training is a cost effective and time-sensitive means of teaching your leadership the importance of maintaining the utmost ethical standards in and out of the workplace. Although Johnson Controls maintains that Molinaroli’s conduct above was a pure personal matter with no bearing on the company, unfortunately the public will not necessarily perceive it that way. Were there better educational foundation in place it is utterly possible that these incidents could have been prevented. At a minimum, conducting excellent ethics training affords the option to disassociate this kind of behavior altogether.

Syntrio is committed to helping employers avoid ethical blunders that are associated with managing companies of all sizes. We are also able to custom-tailor our courses to fit the needs of your business. Contact for more information about our online ethics and code of conduct training courses and remember to follow us on TwitterGoogle Plus and LinkedIn for daily updates on employment law and compliance issues that may impact your company!


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