Dear Saumeow,
While writing a post on public forum, one needs to give complete details of the case. You need to confirm us who is insulting whom? Was it one-off case or incident of insults repeated? If repeated, then what is the frequency? Are the insults heaped in private or in front of others as well?
What is the cause of insults? Is there mismatch in the personality? The person who insults, does he/she have any closeness with the top management?
Each and every employee must be treated with dignity. There cannot be any let up. Not just employees but even visitors or casual workers also need to be treated with dignity. If someone is violating this basic law of nature, then that person needs to be counselled and if he/she remains incorrigible, then disciplinary action needs to be initiated against him/her.
While it is important for the recipient of the affront to come up and make a formal complaint, however, if the incident has happened in front of others then others may also make a formal complaint. On the strength of the complaint, matter may be investigated. Occasionally the recipient of the insults may be meek but just because of his/her meekness, such abnormal behaviour cannot be allowed to continue.
Insults or rude behaviour of the senior employees, vitiates the organisation's culture. The person who gets abused or insulted, don't expect him/her to stay motivated. While physically they may be present, mentally they get put off. Therefore, it is high time someone from your company steps in. It will be in the interest of the organisation.
Thanks,
Dinesh Divekar