Accounting software firm Xero has apologised for the way it handled a 2017 whistleblower complaint against its founder and former chief executive Rod Drury.
The complaint alleged sexual misconduct on Drury's part against former Xero staffer Ally Naylor while she was a junior Xero employee.
Previously, Drury denied any allegation of wrongdoing and said his relationship with Naylor was "limited" and "consensual".
Since Naylor went public with the allegations earlier this year, Xero engaged Maria Dew KC to review the company's handling of the 2017 whistleblower complaint.
The review had now been completed, and Xero board chairperson David Thodey and chief executive Sukhinder Singh Cassidy apologised on behalf of Xero to Naylor and other former employees.
"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. Xero regrets any historical actions taken, or not taken, that fell short of the expectations and standards we now hold ourselves to."
The pair went on to outline actions Xero had taken since 2018 which included changes to its code of conduct and people practices, including introducing clear politices on workplace relationships.
"Xero's policies and practices have continued to evolve and now include the global implementation of Australia's Positive Duty laws focused on the prevention of sexual harassment and sex-based discrimination in the workplace.
"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 board would take further action on its whistleblower process, they said, by letting whistleblowers report concerns to a third-party organisation and appointing independent investigators for serious complaints about senior executives or directors.
It would also contribute to independent legal advice costs for employees who raised sexual harassment complaints involving senior executives or directors, they said.
"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."
