Square Inc.
November 23, 2013
To:
Cc:
From:
Re: Ethical implications of the recent resignation of Chief Operating
Officer Keith Rabois
Brief description
Keith
Rabois who was the company Chief Operating Officer until late January had to
tender his resignation which the company accepted(Savitz,2013). Mr. Rabois had
taken the decision following a threat of a suit from a lawyer acting for one of
the company employees. The unnamed employee claims that he was sexually
harassed by Mr. Rabois. The company is also accused of failing to take
appropriate action. When the matter came out in the media, then company
spokesperson revealed that internal investigations had yet to unearth any
evidence supporting the claims. On his part, Mr. Rabois denied any wrongdoing
and even accused the employee at issue of trying to blackmail him. Nevertheless,
he did admit that he had been physically involved with the employee but added
that whatever they had between them was consensual. As it stands, Square inc.,
will be paying the legal fees for its former executive.
The overall Ethical Issue
What
comes out from the description above raises the issue as to whether Square
inc., had put appropriate measures in place to prevent sexual harassment at its
workplace. One of the key allegations of the concerned employee was that the
company had failed to act appropriately (Savitz, 2013). An issue also arises as
whether Square inc. should pay the legal fees for defending one of its
executives who has been accused of sexual harassment. This may make it appear
as if the company has already taken a position denying the possibility of the
claims turning out to be true.
Analysis
Though
it could turn out that there was no inappropriate action on the part of the
company, this does not absolve it from some ethical breaches. For one, the
company had totally failed to put a system that would deal with potential
ethical dilemmas when they arise. It would not be easy to tell whether Mr.
Rabois played a part in helping the employee get a job at Square in exchange
for a sexual relationship (Savitz, 2013). This would have been possible if the
company had a mechanism of establishing the existence of relationships between
it senior executives like Rabois and potential or existing employees. That the
company only came to learn of the relationship through the threat of a legal
suit is a clear demonstration of this failure.
Furthermore,
the company has taken the position of footing the legal fees for Rabois. This
would not always raise issue in normal circumstances as companies often do reimburse
their employees for legal costs incurred. The difference from the present case
is that Square has already acknowledged an exercise of wrong judgment on the
part of Rabois for his failure to disclose the nature of his relationship with
a company employee well in advance (Savitz, 2013). Proceeding on a course that
seems to suggest that senior executives like COO’s are always right in disputes
with other lower level employees may create a culture where such employees fear
reporting sexual harassment by their seniors.
Recommendation
In view
of the foregoing, the company should focus on eliminating the culture that may
have led to the issue to arise in the first place rather than a singular focus
on the case. This is not to suggest that the company ignore the case. The first
step towards creating an organizational culture that discourages sexual
harassment is to come up with a code of conduct. This code should an input of
all stakeholders as its success depends on a sense of ownership from all
concerned. In addition, all company employees and senior executives must be
sensitized on the need to eliminate sexual harassment at work.
Reference
Savitz,E.(2013,January
25). Square COO Resigns Amid Sexual Harassment Charge. Forbes Online Version.
Retrieved May 18, 2013, from http://www.forbes.com/sites/ericsavitz/2013/01/25/square-coo-rabois-resigns-amid- sexual-harassment-charge/
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