| McDonald's is among the most admired companies in the world - currently #38 globally, according to Fortune. But according to shareholders, that wasn't the case under the culture created and permitted by its former CEO, Steve Easterbrook, and former Chief People Officer, David Fairhurst. According to a lawsuit that was recently given the green light to proceed by a Delaware court (the actual decision is here) Fairhurst both personally engaged in inappropriate conduct (including his recruiters hiring "young, pretty females" and Fairhurst "flirting" with colleagues at work events, such as having a female employee sit in his lap at an HR function) but also failed to provide oversight of others, including the CEO. This McCase will be battled out in the courts, but there are lessons for managers and employees alike.
Managers
No matter what your organization, as a manager, you generally have a duty to act when you learn of misconduct. Once you're aware of it, it's effectively the same as the CEO knowing. So what do you do?
- Know what the Handbook says: Are employees directed to come to you with discrimination/harassment concerns? General concerns?
- Know what to do: "Acting" on it often doesn't mean in a silo. You (and every manager) should know exactly what the process is to look into complaints. Often, HR is your best first stop - instead of telling your boss/colleagues and having information spread like wildfire (and bosses/colleagues, I know you're thinking "what?!" but your internal procedures may require managers to tell HR/Employee Relations for them to decide who else *needs* to know).
- Know why it matters: Put the law aside (but know it's important). Employees who experience inappropriate conduct, or hear it occur, can suffer lasting devastating impacts in and out of work.
Leaders at all levels should care about employees as human beings because it's right. But if that doesn't get your attention, it can impact your organization and you personally if you don't - financially and reputationally.
Employees
Employees often mistrust HR. While some may point to Toby on "The Office," others will point to stories just like this McDonald's one, or ones that employees and their loved ones know too well.
But when you experience, witness or hear of inappropriate conduct, there's a reason most organizations have policies requiring it to be reported. Yes, because it's the right thing to do and organizations should want to fix problems that they become aware of. But there are other reasons. Not timely reporting a concern internally can, depending on many factors, squash an employee's lawsuit if they decide to go to the EEOC or court before HR. But also, when inappropriate conduct occurs, it can have significant effects on individuals' mental health. Speaking up is not easy, but can often be far better than remaining silent. |
