Firm starts ‘new chapter’ after harassment fiasco
It was a slow and quiet afternoon in July when the #MeToo movement suddenly hit this Redwood City startup.
Some employees at BetterWorks remember exactly where they were — at their desks, or out for a walk — when they read the first articles about a lawsuit filed by a former colleague against then-CEO Kris Duggan, accusing him of sexual harassment and physical assault. That moment would then set off a blur of media attention, questions from customers and goodbyes to colleagues who left the venture-backed company in the wake of the scandal.
Like many companies who have faced sexual harassment lawsuits over the past year, BetterWorks, which makes human resources software, kept a low profile as it dealt with the rapid fallout. But now, several months later, the company is ready to talk about its experience.
“I think of today as a new chapter,” Doug Dennerline, the company’s executive chairman, who was appointed CEO after Duggan stepped down, said at an all-hands meeting Wednesday, which was the first time he
addressed the company as CEO. “And I hope it is a new chapter and a new day for you, too.”
While company morale and the bottom line have both suffered because of the lawsuit, Dennerline said he is ready to help his employees move past the scandal. In an interview after his speech, he spoke about initiatives BetterWorks has taken to move forward: an alcohol policy to limit drinks at company events and antidiscrimination training.
Over the next few weeks, as the company looks to replace the employees it has lost over the past year, diversity will be top of mind, he said.
As more women are empowered to speak out on sexual harassment — in a movement dubbed #MeToo — BetterWorks is one of many Silicon Valley companies that have seen sexual harassment lawsuits against male executives. While crisis communication expert David Landis applauded the company for being transparent about how it is moving on, he was unimpressed with the company’s hiring of a white man to take the helm.
“There are probably a thousand women who are qualified for that job,” Landis said. “Why wouldn’t you demonstrate that you are going to make a sea change?”
Dennerline is the outgoing CEO of Alfresco Inc. and has a long resume that also includes stints at companies like Cisco and Salesforce. In a press release, John Doerr, chairman of Kleiner Perkins and board member of BetterWorks, said Dennerline checked “every one of our boxes” when they were looking for a new CEO.
But even under new
“I think of today as a new chapter. I hope it is a new chapter and a new day for you, too.”
Doug Dennerline, Better Works’ new CEO speaking to employees
leadership, according to Bloomberg, this company may have trouble moving on: After the first lawsuit (which has since been settled), a second exemployee filed a claim with the state of California alleging sexual harassment. Duggan and a company lawyer told Bloomberg the lawsuit was without merit and financially motivated.
BetterWorks communications director Sarah Hilmer said being open about their experience is the best way for them to move on as a company.
“It’s part of our culture now,” she said.