Nestlé CEO fired over office romance: Why companies crack down on love at work

Less than a year into the job, Nestlé CEO Laurent Freixe was fired for a romance with a subordinate—violating the company’s strict code of conduct.

Transcript

00:00An undisclosed office romance just got the CEO of the world's biggest food company fired,

00:04straight up sacked.

00:05Have office romances become almost illegal now?

00:08Let me explain.

00:09The man was in a romantic relationship with a direct subordinate from his team, a violation

00:17of the company's strict code of conduct apparently.

00:19Office romance is not new in the corporate world of course, but for the world's largest

00:23food giant to axe its CEO so swiftly suggests the board feared reputational damage spiralling

00:28out of control.

00:29Office romances are not inherently illegal, but when power imbalances come into play,

00:34companies generally exercise zero tolerance.

00:36Surveys from the US show that while romances haven't become more common, policies have

00:40tightened.

00:41Now 99% of firms here restrict relationships between managers and the subordinates.

00:46That jump from just 80% in 2005 reflects a post-MeToo insistence on transparency and fairness.

00:52Research shows that romances between executives and subordinates can damage reputations, spark

00:57perceptions of favouritism and even expose the company to legal risks or internal conflict.

01:02Moreover, when a boss or senior executive dates a subordinate, people inside and outside

01:06the company often see it as a bad decision and unprofessional behaviour, even if the relationship

01:11is consensual.

01:13This is not the first time the corporate world has been rocked by scandal.

01:16Just months ago, the internet was buzzing over the Astronomer Coldplay Concert fiasco.

01:20Another high-profile case of office romance gone wrong, where the CEO is seen getting cosy

01:24with the company HR.

01:25Of course, in this case, the CEO had a wife back home too.

01:28Office romance harmless or high risk?

01:30I want to hear your verdict and for more no-fluff experience like this, please follow our channel

01:34and share this video with friends and family.

01:36I'm Manish Adhikari, thank you for watching, first things fast.