This past week, multiple headlines revealed that major organizations are actively investigating the inappropriate behavior and relationships of their top executives and leaders. There are several lessons we can take away from these stories, which demonstrate why corporations and industries must change how they do business to create safer and more respectful workplaces.
Employees learn organizational culture and company tolerance for inappropriate behavior by how reports, investigations, and implications are handled.
McDonald’s fired its CEO, Steve Easterbrook, due to a relationship with an employee. Many news outlets reported that the relationship was consensual, but it’s important to note that while an inappropriate relationship may not be necessarily abusive, it can still be an abuse of power. As the National Sexual Violence Resource Center notes in their Sexual Assault Awareness Month Resources, power exists in formal and informal ways, especially in workplaces, making consent more nuanced.
Easterbrook admits he violated company policy on personal conduct, but McDonald’s is holding Easterbrook accountable with a $42 million exit package – a golden parachute tantamount to a slap on the wrist.
Boards of Directors and companies can hold top executives who violate policy accountable in many important ways.
For instance, Alphabet’s Board announced this week they were investigating how Google executives handled misconduct and inappropriate relationship claims. They formed an independent subcommittee and hired a law firm as an added layer of transparency and accountability.
Further, in September 2018, after twelve individuals came forward about misconduct against CBS executive Les Moonves, the organization and Moonves agreed to donate his $20 million severance agreement to organizations supporting the MeToo Movement.
In our April 2018 Open Letter to CEOs and Board of Directors, RALIANCE and partners provided best practices and organizational survey questions designed to consider ways to foster a harassment-free workplace and to guard a company’s reputation from becoming the next headline. Read the whole Medium series for insights at all levels of an organization – from frontline staff, to HR, and beyond.