When an employee accuses an executive of sexual misconduct the reputation of a company is put in jeopardy. Legal and corporate governance experts say that companies should look into all allegations thoroughly and set up a special committee of outside directors to investigate the charges. Most recently Sara Lee Corp is facing an accusation of sexual misconduct on the part of its Chairman and Chief Executive Steven McMillan.
See "Accusations of wrongdoing put reputations on the line", Ameet Sachdev and Susan Chandler, Chicago Tribune, August 5, 2004