Final answer:
True, the chief executive is typically held responsible for the effects of strategic decisions. They play a pivotal role in setting strategic direction and are thus accountable to the board of directors and shareholders for the outcomes of those decisions.
Step-by-step explanation:
The statement that the chief executive is held responsible for the effects of strategic decisions is true. In any organizational structure, the chief executive officer (CEO) or equivalent role is typically accountable for the overall strategic direction and decision-making within a company.
As such, they are often the focal point of accountability for both the success and repercussions of strategic choices. The board of directors plays a significant role in corporate governance by ensuring that the firm operates in the best interests of its shareholders.
Yet, the chief executives have considerable influence over who sits on this board, which can further consolidate their accountability for the firm's strategic outcomes.
During times of crisis or when swift action is required, the value of the chief executive's decision-making and leadership becomes even more pronounced, with the public and stakeholders often looking to them for solutions and holding them responsible for the outcomes.