McDonald’s is investigating its HR department and possible cover-up of employee misconduct by former CEO
New York (CNN Business)McDonald’s investigation into the behavior of its former CEO includes whether he covered up the improprieties of other employees, a company spokesperson said Wednesday.
The company is also investigating allegations of possible misconduct within its human resources department, the spokesperson said. The Wall Street Journal first reported the news on Tuesday.
When McDonald’s cut ties with then-CEO Steve Easterbrook last year, it said he had “demonstrated poor judgment involving a recent consensual relationship with an employee,” and fired him without cause. But in July, according to the company, it received an anonymous tip alleging that Easterbrook had engaged in other relationships. That prompted the new investigation.
McDonald’s is continuing to investigate its former CEO Steve Easterbrook. “The Board will follow the facts wherever they may lead,” the company said in a statement emailed to CNN Business on Wednesday. “We will continue to make changes, where necessary, to support all parts of our organization.” Read MoreEasterbrook’s lawyer did not immediately respond to a request for comment. The recent investigation into Easterbrook has prompted the company to sue him for the value of his severance package. Easterbrook’s lawyers have filed a motion to dismiss the suit, arguing that McDonald’s first investigation would have uncovered all information relevant to the terms of his exit packet.Around the same time that Easterbrook was fired, McDonald’s (MCD) Chief People Officer David Fairhurst departed the company. A company spokesperson said Wednesday that Fairhurst was fired because his conduct was inconsistent with the company’s policies and values. The terminations were unrelated, according to the company. Under Easterbrook and Fairhurst, a party culture flourished, according to a report from the Wall Street Journal. Fairhurst did not immediately respond to requests for comment. This spring, McDonald’s hired Heidi Capozzi as its global chief people officer.
When she started in April, she initiated a review of the human resources department, according to the company spokesperson. The review includes examining how people are hired and evaluated, how employee concerns are investigated, and collecting feedback from employees about the company’s blind spots.CEO Chris Kempczinski, who replaced Easterbrook, “installed a new Chief People Officer, announced refreshed values with input from employees around the world, and has committed to making these values part of everything we do,” the company said.
Source: edition.cnn.com
