The CEO of aerospace giant Boeing Co. was recently forced to resign after an investigation found he had engaged in what the company considered an improper relationship with a female employee.

“In this environment, office romances have serious legal complications today that they didn’t have 20 years ago,” according to a prestigious university expert on corporate governance who was quoted in news reports on the executive’s ouster.

Fox News talk host Bill O’Reilly reportedly paid millions of dollars to bring a speedy end to a lawsuit alleging he sexually harassed an employee. The allegations seriously threatened O’Reilly’s lucrative television career, and he realized that whatever the cost of ending the scandal, it was worth it. He was lucky to be able to bring the matter to a close so quickly before it did irreparable damage and cost him far more than whatever settlement he paid.

Sexual harassment allegations or charges of discrimination on the basis of such things as age, sex or physical handicaps can be extremely costly and even catastrophic, not only for celebrities like a bigtime CEO and a television news commentator, but also for average-sized companies and their executives.

Charges that companies or executives fostered environments where sexual harassment or discriminatory hiring, firing or promotion policies were allowed can result in huge financial judgments against a company and ruin successful business careers.

Every business should have written policies on sexual harassment and on discrimination as the first line of defense against possible lawsuits. These policies should be written or reviewed by either an attorney or a human resources executive who is experienced in those matters.

Business leaders should also evaluate their companies’ e-mail policies to ensure they forbid sexual harassment and discriminatory communication. One of the reasons the Boeing CEO was forced out was the discovery of sexually graphic e-mail.

Twenty percent of companies in a recent survey revealed they had received subpoenas for e-mail and/or instant messages stored in company computers; 13 percent said they have faced e-mail-related lawsuits. As all business leaders should know by now, even deleted e-mails can be retrieved by computer experts long after
they were thought to have been erased.

The best e-mail policy is that if you do not want it to be read by the general public, don’t write it or send it, and all employees should know their e-mails and instant messages are discoverable in a court of law.

If a business is faced with a discrimination or sexual harassment lawsuit, official filing with a government agency or an
internal allegation by an employee, there are steps that owners or management should immediately take to protect themselves or, at the very least, minimize potential damages.

First, take action immediately and initiate a full investigation. Many such claims require prior notice to an employer, and liability can be avoided or limited by taking quick remedial action. On the other hand, failure to take action can increase liability.

Make certain to accurately document the facts. Your investigation will become evidence in any subsequent lawsuit, if one cannot be avoided. Your investigation will be reviewed by the court, and accuracy and truthfulness are essential. Inconsistencies or false information will open the door to increased liability.

Save the conclusions for professionals. Have your investigation reviewed by an attorney or human-resources professional qualified to make judgments and advise you on what to do. Relying on an inexperienced person to interpret the legal ramifications of your investigation could result in dramatically increased liability down the road.

An employee does not have to be correct in his or her allegations to be protected from retaliation as long as the allegations were not made in “bad faith,” which is extremely hard to prove.

Discrimination and harassment charges against a company or its executives are extremely serious matters. Even if you think they are totally false or frivolous, do not take them lightly. Consult a professional immediately and take the actions necessary to protect your company from the potentially disastrous consequences of inaction.

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