In my opinion, Chapter 12 is the most important chapter in the entire textbook. The chapter begins with a company called Theranos and the founder, Elizabeth Holmes. There are many videos on YouTube about Elizabeth Holmes and her company, Theranos. One of note is “Theranos, Elizabeth Holmes, and the Cult of Silicon Valley”. Another worth watching is a 60 Minutes report, “The Theranos Whistleblower”. ABC News has also completed a four part series called, “The Dropout” that you can find on YouTube or on the ABC site 20/20.
Elizabeth Holmes was convicted January 2022.Rothaermel states, “an important implication for the strategic leader is the recognition that effective corporate governance and solid business ethics are critical … governance and ethics are closely intertwined” (p. 451).
Given the Theranos case (this company is by far not the only one) what lessons can be learned? Obviously, not falsifying records is a good start but what else?
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