Companies should be asking executives to disclose current and past workplace relationships, experts say. Photo / 123RF
Companies should be asking executives to disclose current and past workplace relationships, experts say. Photo / 123RF
“Why do you want the job? Where do you see yourself in five years’ time? Who have you had workplace relationships with?”
Bosses can ruin their careers when asked the last question. And trouble BP’s chief executive Bernard Looney is embroiled in has highlighted talk about which relationships should bedisclosed, and when.
Looney stepped down on Tuesday amid reports he did not adequately disclose details of his past relationships with colleagues to the BP board.
In New Zealand, private investigators and employment law experts often handle problems involving workplace romantic entanglements.
“It’s a very, very common problem, and it’s usually kept [away from] the eyes of anybody,” employment advocate Max Whitehead said.
Bernard Looney's tenure as BP chief executive officer spectacularly imploded. Photo / Getty Images
The Whitehead Group managing director said sometimes this was part of a “no surprises” policy aimed at ensuring companies weren’t brought into disrepute.
Some Kiwi public sector agencies had those policies to reduce the risk of nasty surprises with regard to officials making the news and embarrassing the employer.
BP said Looney resigned after he admitted he did not provide details of all relationships and was obligated to make more complete disclosure.
Whitehead said on the basis of what was known about the BP case, Looney reached a position where potential dismissal was warranted.
“It would be justifiable dismissal as far as I’m concerned.
“There’s a lot of trust required in his role - trust and confidence.”
A better approach was to be transparent with the board, even if a past workplace relationship might have ended badly, or been very brief.
“Businesses can get through things. And sometimes they will penalise the execs.”
But if it was a manageable situation, and people were honest, then systems could be installed to mitigate any risks, Whitehead said.
Employment law specialist Jennifer Mills said many New Zealand companies had policies requiring a workplace relationship to be disclosed, especially if one of the people reported to the other.
In other words, if a manager had a relationship with a subordinate, that often had to be disclosed.
“Usually the more senior of the two individuals is more culpable, knowing they hold a high-trust position,” said Mills, director of Jennifer Mills & Associates.
The reason for disclosure was largely to ensure favouritism was avoided, and real or potential conflicts of interest managed.
Employment law specialist Jennifer Mills.
A refusal to disclose, failure to disclose, or dishonest response were all likely to have serious consequences.
“On the spectrum, you’ve got prevarication right through to a dishonesty offence,” Mills said.
Prevarication can relate to acting with unfaithfulness or “playing fast and loose with the truth”, according to the Merriam-Webster Dictionary.
Mills said the BP story could suggest the board lost trust and confidence in the CEO on the basis he prevaricated.
“He would have been far better off to have fully disclosed them.”
Private investigator Julia Hartley Moore said she’d been asked to do work for companies when concerns about an executive’s past or relationships emerged.
Generally speaking, a few rogue executives were habitually dishonest and got away with bad behaviour because companies were apathetic, Hartley Moore said.
She said workplace attitudes had not actually changed much over decades, and too much bad behaviour from executives was still indulged.
“It’s totally relaxed. I’ve been in this industry for nearly 30 years and it has not changed.”
She said executives and managers could do themselves a favour if asked about past relationships at work.
Even if a secret uncovered was not scandalous, failure to disclose the existence of said secrets could lead to the breakdown of trust.
“People have been transparent. It’s absolutely the best way to go.”
John Weekes is online business editor. He has covered courts, politics, crime and consumer affairs. He rejoined the Herald in 2020, previously working at Stuff and News Corp Australia.
