Last week, Astronomer’s CEO and Chief People Officer were spotted embracing on a “kiss cam” at a Coldplay concert in Boston. Due to their reaction, Chris Martin (Lead Singer of Coldplay) made a quip: “either they’re having an affair or very shy”, causing images and videos of the incident to go viral.
It later transpired that both parties were married to other people, which of course caused controversy and significant public damage to Astronomer’s reputation, given the seniority of those involved.
There was an attempt to get a handle on the situation, with both Astronomer and the CEO making public statements. Both individuals were placed on leave, however, ultimately, the CEO has tendered his resignation and left his position at Astronomer.
Legal considerations for reputational damage
This situation raises questions around professional conduct, breach of company values and what a company can do if there is damage to a company’s reputation due to actions of an employee.
In this type of situation, it is possible to dismiss due to reputational damage to the company. Often, this is categorised as “bringing the company into disrepute” under disciplinary rules, or the dismissal might be for “some other substantial reason”. This all depends on the circumstances and whether disciplinary policies are comprehensive enough to cover this type of scenario.
Best practice for employers
Where a company is coming under intense scrutiny as in the Astronomer example, it is easy for employers to adopt a knee-jerk reaction. However, it is important that any attempts to deal with these types of issues are measured and proportionate. When considering what action to take, employers should be mindful of the following:
- Understanding the situation fully – considering seniority, context and whether what has happened has damaged public trust in the company
- Respond proportionately – there may be less drastic options than dismissal such as demotion or written warnings
- Follow a fair procedure – it is important that even in a situation where there is intense public scrutiny and a need to act quickly, a full and thorough procedure is carried out before a decision to dismiss is made
Prevention and policy considerations
In addition to the above, this situation serves as a reminder that companies need to have robust policies which set out expectations of their employees, in particular where their conduct could have significant consequences on the company’s reputation.
Employees need an awareness that their behaviour, even if it is outside of the “traditional” workplace, still needs to live up to the expectations and values of the company. Employers may also want to consider including a “relationships at work” policy in their handbook.
It is unlikely that many employers will deal with a scandal on the scale of what happened at Astronomer. However, there are many other situations where a company’s reputation could be brought into disrepute or where reputational damage has been caused to the business.
If you have any queries regarding the above or want to ensure your policies are up to date and adequate to cover this type of situation, please do not hesitate to contact a member of the Employment team at Glaisyers ETL.
