Home Employment LawEmployers facing bad news want invisibility cloaks – but judges don’t believe in magic

Employers facing bad news want invisibility cloaks – but judges don’t believe in magic

by Todd Humber
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The headline that appeared in the CBC last spring was the kind that makes corporate executives and PR professionals reach for antacids: “Woman sues Yukon mining contractor after alleged sexual assault.”

For Sodexo Canada, the hospitality giant named in the story, the public attention was unwelcome but not unexpected. The sexual assault allegations against employees at a remote Yukon mine site were always going to draw media scrutiny.

What happened next reveals something telling about how companies respond when crisis hits. Rather than face the music publicly, Sodexo tried to disappear entirely, asking a Yukon court to anonymize its corporate name in the sexual assault lawsuit filed by a former employee.

The court said no.

While the individual defendants — the alleged perpetrator and supervisors who allegedly failed to act — had their names protected, Sodexo’s bid for corporate anonymity was rejected outright.

“While publicly traded corporations have reputations and privacy interests, they do not have personal lives or dignity,” wrote Justice Wenckebach, drawing a clear line between protecting people and protecting profits.

Sodexo’s arguments were predictable. Bad publicity would hurt business. Clients might flee. Female employees might feel unsafe. The company’s 6,000 Canadian workers could suffer if contracts were lost.

All true, perhaps. All irrelevant, certainly.

Yes, workplace safety concerns represent an important public interest, but Sodexo failed to prove serious risk. Female employees wouldn’t automatically assume every workplace was unsafe based on allegations from one closed mine site. They’d “measure the allegations against her own experience in the workplace,” the court noted.

More damning was the judge’s observation that employers have tools to address safety concerns without hiding behind legal anonymity. Companies can (and should) explain their harassment training, outline reporting procedures, and demonstrate their commitment to safe workplaces.

“A corporation should work internally to address potential employees’ concerns before asking a judge to limit court openness,” the ruling stated.

In other words: Do your job first, then complain about the consequences.

This judicial scolding is an appropriate response to the all-too-common corporate reflex. When organizations face public scrutiny over workplace failures, the first instinct is often damage control rather than damage repair. Spin over substance. Opacity over accountability.

And, it’s worth noting, that an anonymization gambit comes with additional risk: Sometimes the cover-up attempt becomes the bigger story than the original allegations. We wouldn’t be writing this additional coverage if they didn’t ask a court to hide them.

The case itself involves serious claims. The plaintiff alleges she was sexually assaulted by a coworker at a Yukon mine site in 2021, then faced additional harassment after complaining to supervisors who allegedly did nothing. She eventually quit her job.

These are the kinds of allegations that demand corporate soul-searching, not corporate hide-and-seek.

Consider the alternative approach Sodexo might have taken. Instead of trying to erase its name from public records, what if the company had used the spotlight to demonstrate its commitment to change? What if it had publicly outlined the steps taken since 2021 to strengthen its workplace safety protocols, improve supervisor training, and support employees who report harassment?

The company operates in industries — hospitality, food service, facilities management — where trust matters enormously. Clients want to know their service providers maintain safe, respectful workplaces. Trying to hide from allegations doesn’t build that trust; transparent accountability does.

In these books, reputational damage from being named in a lawsuit pales beside the reputational damage from being seen as a company that tries to escape accountability.

The lesson here is simple for employers: You can’t anonymize your way out of workplace culture problems. Public companies that benefit from public trust must accept public scrutiny when that trust is questioned.

This doesn’t mean every allegation should be treated as fact, or that companies should abandon legitimate legal defenses. But it does mean that transparency, not opacity, is the path to rebuilding damaged reputations.

For HR professionals watching this case, there are some solid takeaways. When workplace failures make headlines, the instinct to circle the wagons is understandable but counterproductive. The real work begins after the lawyers finish arguing — in examining systems, training managers, supporting employees, and rebuilding culture from the ground up.

And then talk about what you did, what you improved, and show your teams, your customers, and potential employees how serious you are about being a top employer with a strong culture.

The question isn’t whether this case will hurt Sodexo’s reputation. It has, and it will. The question is whether the company will use this moment to build something better — or simply wait for the next crisis call to come.

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