Hewlett Packard saw their stock prices drop ten percent after sexual harassment claims against the company’s CEO, Mark Hurd caused the sudden resignation of the widely-respected CEO this past Friday. In addition to building the company’s software and corporate services division, the Silicon Valley-based HP stock soared 135% during the five years that the married Hurd served as CEO.
Hurd released a statement regarding his departure: “It would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time. I want to stress that this in no way reflects on the operating performance or financial integrity of HP,” reports Business Week. The sexual harassment claims against Hurd were determined to not be in violation of HP’s sexual harassment policy, but the board’s investigation revealed that Hurd did violate established standards of business conduct. Whether the stock drop will be a temporary response to the resignation or a more permanent concern over new HP leadership is still yet to be determined.
The consequences of sexual harassment reach beyond an individual public resignation, and can also serve to negatively affect the reputation of a company as a whole. Whether the complaint comes from the bottom or the top of the workplace hierarchy, one thing is for sure– a sexual harassment claim should be taken seriously and the company’s response should be swift. In the case of Mark Hurd, it was less than a week between the board’s investigation into the sexual harassment claim and his resignation.
Related Resources:
- HP CEO resigns after sex harassment investigation (Reuters)
- Preventing Sexual Harassment in the Workplace (FindLaw)
- Guidelines for Handling Discrimination and Harassment Complaints (FindLaw)
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Civil Rights
Block on Trump’s Asylum Ban Upheld by Supreme Court
Criminal
Judges Can Release Secret Grand Jury Records
Politicians Can’t Block Voters on Facebook, Court Rules
