Maxfli,
That isn't the CRM way out that is passing the buck and not taking responsibility. Trying to talk privately with the person concerned IS the CRM way forward. We had a skipper in an outfit I used to work for who came to work smelling of booze. We told him to go home as we were not prepared to work with him in that state, he took the hint and got himself sorted.
Whoever uncovers the problem has a responsibility to themselves, their colleagues who will have to fly with the person concerned AND the individual themselves, after all they are a colleague too. Our industry has managed these sorts of issues for too long by hinting and tipping and passing the problem on to the next person in the line. If the person won't listen then escalate the action by involving training staff rather than management, we all know who the right people to go to are, try to do it with the person concerned as well. I hope this problem is sorted and the individuals concerned can find the win/win solution.