Tesco chair John Allan is resigning from his role as chair of the board in the wake of recent “inappropriate behaviour” allegations as they risk becoming a “distraction” to the business.
One of the most high-profile business leaders in the UK, Allan will be stepping down from his role at Tesco’s AGM on 16 June 2023, following claims of inappropriate and unprofessional behaviour from four separate women.
The allegations made in the media relate to Allan’s personal conduct, when he was said to have made inappropriate remarks to a number of women in professional situations. He has “vigorously designed” three of the allegations and “unreservedly apologised” for the fourth.
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Non-executive director Byron Grote said that, while the board has “received no complaints about John’s conduct and made no findings of wrongdoing, these allegations risk becoming a distraction to Tesco”.
In terms of crisis management, it is crucial that brands take – and are publicly seen to take – allegations of sexual harassment seriously, sending a clear message that this type of behaviour is unacceptable and will not be tolerated.
Keeping Allan on board would have continued to be a distraction for Tesco, which will be hoping that any negative publicity will be outweighed by its decisive action to immediately instigate an extensive review of the allegations.
Delaying action can lead to further damage to the company’s reputation and brand, while the swift move also demonstrates a clear commitment to creating a safe and inclusive workplace culture.
Allan – who has been chair of Tesco since 2015 – was expected to be leaving later this year as his tenure came to an end. A succession planning process had already been initiated and is expected to conclude in the near future.
Grote will be acting as interim chair pending the appointment of a permanent replacement.
