How Can We Safeguard Our Start-up's Culture from Unethical Relationships?

We are a start-up based in Karnataka, India with fewer than 20 employees. One of our founding partners has been involved in an extramarital relationship with an employee who is just a 22-year-old woman. Even after repeated attempts to communicate the unethical behavior, we have been ignored, and things have only gotten worse. They go out for post-lunch walks where people have seen them being romantic with each other. Pick-up and drop-off favors have been noticed by almost every employee in the office. Additionally, they have been spending time outside of working hours. The wife did reach out, sensing things were different with him lately. However, he convinced her that they are just good friends. They have become the talk of the town.

We are a small organization, and this situation is sending a very wrong message to the entire company. We are unable to pursue legal action since POSH can't be implemented here. We did have verbal communication with both parties, and they have been denying any relationship. Now, this Director has a history of pursuing females, trying to message them late at night with the intention of starting a romantic relationship. However, no one is willing to come forward with this information.

What measures can we take to protect our work culture?

Are there any laws designed to address such circumstances? Please advise.

Dear member, though you have raised your post, you have not mentioned your designation. This is important because if one of the founding partners is involved in amorous activities, what are the expectations for other employees?

If two employees develop a romantic relationship, it is their personal affair. What do other employees have to do with it? The couple are educated adults; let them exercise their discretion. Other employees should refrain from gossiping about their relationship or acting as moral police. As long as the couple does not let their romance affect the workplace, everything should be fine.

Having said that, I would also suggest considering the formulation of a policy on workplace romance. Today's romantic relationships could potentially lead to sexual harassment issues in the future. Therefore, both parties should be informed about the pros and cons of such relationships. They need to understand that their focus should be on satisfying customers. Their flirtation could cause distraction, leading to workplace errors. Additionally, if the female employee is receiving special treatment, it goes against the principles of equality.

However, who should provide this guidance or feedback? Ordinary employees may not be in a position to address this issue. The only viable option is feedback from the other founding partners. In that case, why is the other founding partner remaining silent? They should be more concerned than regular employees.

Thanks,

Dinesh Divekar

Thank you for your feedback, Dinesh. Being one of the founding partners, we have tried all means to communicate effectively. However, there has been no change in their behavior, and it's only turning messy.

Educated Adults and Workplace Behavior

Now, when you say they are educated adults, does that mean anything should be acceptable? He isn't an employee, and the relationship is not between two employees here. It's between a founding partner who's 44 and a female who's just 23 at the start of her career. This guy has been behaving tremendously rude towards almost all employees and the other directors since the day we communicated this message to him. It has resulted in employees being scared to interact with him and the other female around the workplace.

Maintaining a Professional Environment

Functioning effectively in an environment where such things mushroom is not the message that we want to give out to our employees or our clients. As a responsible individual, we think one should have control over their senses and not misuse their power to influence newcomers and be wrongfully involved with them.

Seeking Legal and HR Solutions

My question is if we have any laws in place to act on it. Terminating an employee is the quick and easy way out; however, if you read my previous post, it says he has been trying to do this before with other female employees as well. We are just in a tight spot where we know things but are unable to act or discipline him. Are there any ways that HR can discipline him?

Dear member,

Addressing the Founding Partner Issue

The root cause is the founding partner. Why not remove him? Will it be possible for you to return his investment?

Workplace Romance and Conduct

As far as workplace romance is concerned, no law prevents the development of a romantic relationship. However, you can establish a code of conduct for workplace behavior. Given his position as a founding partner, there is a high likelihood that he could violate it.

Handling Sexual Harassment Allegations

Lastly, if the founding partner is making sexual advances towards other women employees, then the aggrieved women need to gather the courage to file a formal complaint. However, the women employees must also provide substantial evidence. Based on the evidence, you can conduct an inquiry under the provisions of the Prevention of Sexual Harassment Act, 2013. If the accused is found guilty, his services can be terminated. Nevertheless, dealing with the founding partner presents a challenge in keeping him away from the office.

Investor's Role and Proactive Steps

If you are an investor, you can threaten to withdraw your investment from the company. In any case, the inappropriate behavior of the founding partner could jeopardize the company's future. Why not take proactive steps and move out?

Thanks,

Dinesh Divekar

Hi, here are some general suggestions:

Document the Behavior:
Keep detailed records of specific incidents, dates, and any evidence you might have. This can include witness statements, photos, or any other relevant information. This documentation may be useful if legal action becomes necessary.

Implement a Clear Policy:
If you don't already have one, consider implementing a clear workplace policy that addresses relationships between employees, especially those involving a power imbalance, such as a supervisor and a subordinate. This can help set expectations and boundaries.

Speak to the Involved Parties Again:
Have a follow-up meeting with the individuals involved, reiterating the impact their behavior is having on the workplace and expressing the need for it to stop. Document this conversation and make it clear that their actions are affecting the company's culture.

Seek Professional Advice:
Consult with an HR professional or a legal expert well-versed in labor laws who can provide guidance on the specific employment laws in your region. They may be able to suggest appropriate steps or interventions.

Employee Assistance Program (EAP):
Consider offering an Employee Assistance Program that provides counseling and support services for employees dealing with personal issues. This can create a resource for individuals involved in inappropriate relationships and can be offered more broadly to all employees.

Education and Training:
Conduct training sessions on workplace conduct, ethics, and the impact of personal relationships on the workplace. This can help raise awareness and prevent similar situations in the future.

Encourage Reporting:
Establish a confidential reporting mechanism, so employees feel comfortable reporting inappropriate behavior without fear of retaliation. Make sure employees are aware of this option.

Legal Consultation:
While you've mentioned that POSH may not apply directly, consult with a legal professional to explore other legal options that may be available to address such workplace issues.

Thanks

Thank you, Dinesh! We are trying to figure out ways to see if things can be improved. We all are emotionally invested and have a history of being colleagues/friends for a very long time. Also, we were not aware of his behavior until now that things have been brought to light by a few ex-employees that left the company solely because of him. Of course, they didn't mention it during their exit interview.

At this juncture where we are growing as a company, we don't want to entertain such unethical practices. Given that he is a leader, he should be the role model and guide to the team. Instead, it's the other way around! This individual is very sharp in dealing with such situations primarily because he has, in the past, been doing such things. Therefore, we are unable to confront him or provide him with any warning.

It's very unfortunate that our laws have nothing to help us with such complex situations, especially when such things are only increasing with time in every organization.

Thank you once again!

Hi Dr. Raghunath, Thank you for your valuable feedback! You clearly shed light on the matter at hand. We have been trying to document everything as that's the only resort we have at the moment. We did bring in policies and communicated the message clearly to the employees; however, these individuals are not very bothered by it. Let's see if things change for the better in the near future by implementing these tips and tricks. Thank you once again!

Hi, dealing with a situation where a leader's behavior is negatively impacting the work environment can be challenging, but it's important to address such issues for the well-being of the team and the company's growth. Here are some steps you can consider:

Gather Evidence:
Collect concrete evidence of the leader's unethical behavior. This could include witness statements, documentation, and specific examples of incidents. Having a well-documented case will strengthen your position when addressing the issue.

Anonymously Collect Feedback:
Encourage team members to share their experiences anonymously. This can help you gather more insights into the extent of the problem and the impact on the team. It's essential to create a safe space for employees to voice their concerns without fear of retaliation.

Conduct a Thorough Investigation:
Before taking any action, conduct a fair and impartial investigation into the allegations. This may involve speaking with current and former employees, reviewing relevant documentation, and considering any patterns of behavior.

Consult HR Professionals:
Seek guidance from HR professionals or legal experts who can provide insights into the best course of action based on your company's policies and applicable laws. They may also help you navigate potential legal implications.

Establish a Clear Code of Conduct:
Ensure your company has a well-defined code of conduct that outlines expectations for all employees, including leaders. This document can serve as a reference point when addressing inappropriate behavior.

Create Open Communication Channels:
Foster an environment where employees feel comfortable reporting unethical behavior without fear of reprisal. This can be achieved through anonymous reporting systems or designated personnel who handle such issues confidentially.

Leadership Development and Training:
Provide leadership training to enhance the skills and ethical awareness of all leaders in your organization. This can help prevent similar issues in the future and promote a positive work culture.

Performance Reviews and Feedback:
Integrate evaluations of leadership behavior into performance reviews. Constructive feedback and clear expectations can guide leaders toward more ethical practices.

Decision-Making Committee:
Establish a decision-making committee involving HR, legal, and senior leadership to collectively decide on the appropriate course of action. This ensures that decisions are well-informed and fair.

Consider Legal Advice:
If the situation escalates and legal implications become a concern, consider seeking advice from legal professionals who specialize in labor law and understand that addressing such issues requires a careful and thorough approach. It's essential to prioritize the well-being of the team and maintain a commitment to ethical practices within the organization.

Thanks

Counseling Young Employees

Another approach could be for HR to counsel the young employees involved. She should be informed about his past records and encouraged to speak with one or two former employees who have left due to his flirtatious behavior. Hopefully, this will lead to a realization that the relationship is not serious.

POSH Implementation and Legal Implications

First, POSH does apply and needs to be implemented in your organization. Your failure to do so opens you up to criminal and civil liabilities. Recently, the Chennai High Court issued a penalty of 1.5 crores against one company for this failure on a complaint by an employee. In your case, any of the ex-employees could file a complaint.

Addressing Issues with Co-founders

Your ability to take action under POSH against a co-founder is a problem, but if you don't, the matter can go to the Regional Committee and even become a criminal offense, which is a cognizable offense. You need to explain to him that while his relationship with one girl is a private matter, for the rest of the people he is harassing, he can go to jail. Furthermore, you as a co-founder can also go to jail for failing to protect the female employees.

Potential Solutions

One easy but bad way out is to inform the wife and pass on all the evidence as well as complaints of other employees on the matter. He will have to stop or may even have to leave the company soon after that.

Colleagues, all said and done, one thing is engaging my attention. There is the element of personal preference and stance on the whole issue of the female colleague as well. It is said she denied any 'affair' between them. Also, going out together is not an offense nowadays. What will her resolve or posture be when the matter becomes public? If the discussion leads to censuring the partner, what will that mean for the girl? She may be innocent and possibly a victim of threats by the partner. However, when things progress towards eliminating or censuring him, the damage will likely affect the girl as well. How can we safeguard her against his defense that may tag her and brand it as a consensual affair between them (leaving aside his family's interests)?

How behavior outside the workplace boundaries can impact the 'code of conduct' in the office

The Prevention of Sexual Harassment (POSH) can be applied if and when the victim steps forward to lodge a complaint. How should we address this issue? How can the 'poster' influence the remedy, if placed in such a capacity?