Software firm unveils whistleblowing reforms following review of 2017 complaint
Xero has "unreservedly" apologised to former employee Ally Naylor and other past staff following an independent review of how the accounting software company handled a 2017 whistleblower complaint.
The review, conducted by Maria Dew KC, has now been completed, according to a joint statement from Xero board chair David Thodey and chief executive Sukhinder Singh Cassidy.
"On behalf of Xero and its current Board, we unreservedly apologise to Ms Naylor and any former employee whose experience at that time did not reflect the standards we expect at Xero today," the statement read.
"Xero regrets any historical actions taken, or not taken, that fell short of the expectations and standards we now hold ourselves to."
Alongside the review, Xero said it had engaged directly with former employees, including Naylor.
Allegations against founder
The apology follows an investigation by Stuff into allegations of unwanted sexual contact against Xero founder Rod Drury.
In April, Stuff reported that Naylor, a former IT project coordinator at Xero, alleged multiple instances of unwanted sexual contact by Drury at his apartment while he was the company's chief executive nearly a decade ago.
According to Stuff, Naylor went public with her claims after learning in March that Drury had been named New Zealander of the Year. She also lodged a complaint with police.
Drury told Stuff that his relationship with Naylor was "consensual and mutual," a claim she rejects.
In May, Drury's former private chef, Megan Ruddle, also alleged incidents of unwanted sexual contact, telling Stuff that Drury had kissed her on the lips. Drury dismissed her allegations as "unfounded" and part of a "sustained media campaign," Stuff reported.
Drury returned his New Zealander of the Year award in May, saying he "completely rejects the recent allegations about me." Police are still investigating the complaints, according to Stuff.
New commitments from Xero
In its statement, Xero said it has made "a range of changes to our Code of Conduct and people practices, introduced clear policies on workplace relationships and strengthened our governance and reporting" since the 2017 complaint.
The company has also implemented Australia's Positive Duty laws, which focus on preventing sexual harassment and sex-based discrimination in the workplace, across its global operations.
"These policies and practices reflect Xero's recognition of its responsibility to provide a safe and respectful workplace, and of the lasting impact on individuals if these standards are not upheld," the statement read.
Thodey and Singh Cassidy also outlined further actions approved by the board.
Xero will allow whistleblowers to report concerns to a third-party organisation and will appoint independent investigators for serious complaints involving senior executives or directors.
The company will also provide clearer guidance on its whistleblowing and serious complaint-handling process, offer additional wellbeing support to all whistleblowers, and communicate outcomes more clearly. It will also contribute to the cost of independent legal advice for employees who raise sexual harassment complaints involving senior executives or directors.
On risk management, Xero will refresh its integrated Positive Duty response plan and risk framework, develop more integrated monitoring and reporting of incidents, and conduct more targeted employee surveys and exit interviews.
The board will also receive expanded specialist training on sexual harassment risks, complainant disclosure, and trauma-informed approaches.
According to the statement, the actions build on changes made over the past eight years and are "intended to ensure that our approach continues to reflect leading practice."
"We remain focused on ensuring Xero's workplace now, and in the future, continues to be a safe, inclusive and respectful environment for every Xero," the statement said.
