Beware new legal risk for HR: Breach-of-fiduciary-duty suits.
In 2018, McDonald's board of directors learned the CEO had engaged in workplace sexual harassment. The board made him promise to stop. Less than a year later, the CEO was fired for having a sexual relationship with a subordinate. Meanwhile, allegations surfaced of widespread harassment at McDonald's restaurants nationwide, which HR allegedly ignored.
Then a group of McDonald's shareholders sued, claiming corporate officers--including the head of HR--breached their fiduciary duty by ignoring numerous sexual harassment complaints and not pushing for the CEO's ouster following harassment...
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