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Sounds like they are flagging her mostly for getting discounts on her clothes for the gala despite taking efforts to do it the right way. Those discounts though went through her staff who she relied on to correctly handle the expenses. So her crime was trusting her staff to relay the costs and make sure that they were fair market price. At the very least, without further evidence that there was intentional or knowing favor taken specifically by her, that is not a violation of ethics on her part. Maybe her staffer was negligent in determining fair price, or maybe they knowingly accepted or solicited discounts for their boss, but that isn't AOC's fault even if that is the case. Sounds like maybe they also got her partner in for free, but given how dubious the other concern is, I want to hear more about how that happened. Either way, this is as minor of a concern for me as it comes.
I think the AOC complaint was overall ridiculous, but this particular excuse shouldn't fly. She ought to be responsible for properly training , instructing, and managing her staff.
So does this apply to CEOs?
My former CEO got fired after being chewed out by Congress for exactly this, so apparently, yes.
No, if her staff took it upon themselves to do something unethical without her knowledge or consent, that does not reflect negatively on her. Particularly as she was demonstrating good ethical behavior by paying for things others were allowed to borrow, trying to pay market price, etc. If she became aware of that sort of behavior and THEN did nothing to correct this, then THAT would reflect poorly on her.
No one is responsible for the unintended, unauthorized and unethical behavior others take upon themselves to do without that person's knowledge. And the entire point of having the staff is to be able to rely upon them to do things for you which requires an amount of trust. Because if you're directly involved with, and/or reviewing and confirming that everything they do is exactly right, you may as well be doing it yourself.
My wife's family owns a fireworks store. We do not specifically train people not to steal, not to hit customers, not to sell drugs in the store, etc. We are not standing over the shoulders of every employee validate their every action nor viewing the cameras every minute of every day to verify they did everything right. That doesn't mean we are responsible for their actions if they do those sorts of things without our intention, consent or knowledge. If we find out about any of those things, that person is dealt with appropriately. Failing to hold them accountable would be to implicitly permit it, which would make you negligent and indirectly responsible. But only once you know about it and fail to correct it is that the case.