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Is there a Herman Cain in Your Workplace?

Every month or so, there seems to be a new story of some high profile politician and some version of a sex scandal.  It should come as no surprise that there is likely a sexual harassment scandal of the likes of Herman Cain in your company.  Whether the allegations against Herman Cain are substantiated or not, is not the purpose of this article. I take no position on Mr. Cain’s alleged dalliances or his political affiliation. However, one thing cannot be denied – the damage to his reputation and brand. In fact, today, he announced he was “reassessing” his campaign following claims he had a 13-year extramarital affair with a single mother from Georgia.

Much like a personal brand of a politician, similar scandals and accusations against employees and corporate officers can damage your company’s brand.

Employers should beware and be prepared for the influx of negative publicity – particularly in a time of social media when stories break every second.

It isn’t just the allegations, but the response that can cause increased negative perception among the public (i.e. your company’s consumers).  For instance, Herman Cain’s response to the multiple allegations may not have been ideal. He strongly denied the charges, but also lashed out at, blaming the victims and claiming he was a victim of smear campaign orchestrated by unnamed people in the “Democrat machine,” and the almighty “press”.  But, it didn’t stop there – his attorney also ominously warning other women who may have been victims to “think carefully” before they came forward.

Tips for Employers:

1.   Think of Others. For an executive and an employer, when dealing with personal workplace sexual harassment allegations, keep the perceptions and interests of employees, colleagues, customers or clients and other stakeholders in mind before publicly responding to the situation.

2.   Consult with Counsel and/or Corporate PR Rep. Employers should promptly provide competent legal assistance to an executive in this position includes understanding how a response will be perceived in the court of public opinion. This is essential not only to the executive’s reputation, but to the executive’s and the employer’s legal defense.

3.   Respectful Denial. A firm denial and condemnation of inappropriate behavior is a reasonable response; however, a corporate executive involved in allegations of sexual harassment, should communicate respect for the process, even if he or she strongly denies the accusations. Reactive, angry denials and threats of retaliation can be disastrous – not only for the executive, but, for the employer.

Kara Mignanelli
Ms. Mignanelli serves as Senior Vice President of People and General Counsel. In her role, Ms. Mignanelli oversees numerous aspects of the business, including, but not limited to, HR compliance and keeping a pulse on the most current regulations and compliance requirements affecting corporations as well as working to ensure quality and professionalism in all aspects of the business. Ms. Mignanelli has cross-functional experience in multiple areas including litigation, compliance, social media, privacy, employment law, intellectual property, estate planning, corporate formation, and risk management. She is responsible for all aspects of the company's legal needs and all HR. Ms. Mignanelli also created the Governance, Risk Management and Compliance summit in 2009 and more recently the HR Compliance and Social Recruiting Strategies Conferences. Prior to joining GSMI, Ms. Mignanelli was the managing associate at Boyd Contreras LLP. Her practice focused primarily on civil litigation involving business disputes. Ms. Mignanelli's litigation experience includes business litigation, partnership and contract disputes, personal injury, labor and employment law, trade secrets misappropriation, and legal malpractice. She also maintains a solo practice offering transactional legal services including estate planning, probate, family law and corporate formation. Before practicing law, Ms. Mignanelli was Director of the Social Policy Center at the Performance Institute where she managed conference production staff and successfully executed over 30 conference and training events, accounting for the largest profit generating center of the company.

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