September 2025: Lessons from Nestle and Busting Mediation Myths

How One Anonymous Tip Sparked a CEO’s Downfall And Why It Matters to Your Workplace

What happened at Nestlé

Nestlé recently dismissed its CEO, Laurent Freixe, after receiving an anonymous tip from its “Speak Up” hotline tip alleging Freixe was in a secret, romantic relationship with a subordinate, violating the Company’s Code of Business Conduct.  After an initial internal investigation, Nestlé’s Board retained a third party to conduct a deeper investigation, confirming the allegations and sealing Freixe’s fate. The CEO’s employment termination was immediate and without severance.

Why this matters beyond headlines

This isn’t just a corporate scandal – it is a reminder of the serious human, legal, and reputational risks when workplace issues aren’t addressed quickly and transparently.

And the Nestlé case isn’t an outlier.  According to the EEOC, while retaliation still tops the list among charge types, harassment claims, especially sexual harassment, are among the most frequently filed allegations. In FY 2024, harassment accounted for 40.4% of charges, underscoring how often these issues arise and why strong, independent investigations are essential.

Key Takeaways for Employers & Investigators

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Investigations must be impartial regardless of rank. Whether it’s a frontline manager or the CEO, accountability has to be consistent to preserve trust and integrity. Nestlé’s Board-led approach highlights that principle.

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Anonymous and informal reports matter – take them seriously. The Speak Up tip didn’t carry the weight of a formal HR complaint, but it was enough to trigger an investigation that revealed serious misconduct.

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Harassment isn’t always about overt actions, but it is still harassment. Romantic relationships with reporting lines can create perceptions of favoritism, coercion or exploitation.  This kind of conduct underscores why harassment and power dynamics often overlap.

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A timely, credible investigation can prevent bigger fallout. Acting early – before rumors solidify, trust erodes, or stories go public – can preserve credibility and protect the workplace culture.

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EEOC trends remind us: harassment & retaliation are not rare.  Whether filed internally or externally, these claims are consistently among the highest in volume. Organizations need systems to address harassment claims effectively, not just to protect employees, but also to mitigate legal and reputational risk.

5 Myths About Mediation in Workplace Disputes

I’ve worked as a lawyer both at a firm and in-house, so I get why some folks are skeptical about mediation. But a lot of those worries? Not true.

Here are five myths I still hear (and some I once bought into) and why they just don’t hold up.

1. “Mediation is just giving an employee, with a baseless case, money.”

Nope. With employment mediations, the magic isn’t only in dollars; it's in details. One case comes to mind: the employee didn’t care about money so much as having her title restored before resigning. That non-monetary term unlocked the deal.

2. “The mediator pushes us into a deal.”

Absolutely not. A skilled mediator is a guide, not a gatekeeper. I’ve had sessions where the only tangible outcome was clarity and a few days later, the parties were in the right mental state to reach agreement on their own.

3. “Apologies don’t belong in employment disputes.”

They absolutely can. I once saw everything shift when an employer simply said, “We regret how this made you feel, and we’ll do better.” That beat hours of number-swapping.

4. “If no one moves early, the day’s a wash.”

Patience can pay off. I’ve seen the first few hours wasted in frustration, but give people time to vent and be heard, and mid-afternoon breakthroughs often follow. Don't threaten to leave early.

5. “We can't settle. The Plaintiff's monetary demand is excessive.”

Never forget: non-monetary outcomes can be just as powerful. I once helped an employee accept a lower payout in exchange for a neutral reference and a joint statement to staff. That preserved reputation and dignity meant much more than a few extra dollars would have.