Some senior managers at the Co-op have complained of a “toxic culture” at executive level, the BBC reports.
The 180-year-old member-owned food and services group, which has a reputation for upholding ethical values, is facing allegations that it created “fear and alienation” among several senior staff.
Amid declining performance, a letter to Co-op board members – seen by the BBC – also said they were scared to raise concerns about the direction of the business, which is led by chief executive Shirine Khoury-Haq (pictured).
Lawyers for the Co-op told the BBC they did not recognise these claims and “do not believe that they represent the views of our broader leadership and colleagues”.
A senior manager told the BBC: “You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked.”
The board was also criticised for decisions relating to last year’s cyber-attack, which cost it £206 million in lost sales. They said the Co-op responded to reports of empty shelves by filling them with any product available – such as parsnips in the steak aisle – which led to “rocketing food waste”.
The main criticism, according to the BBC, was a major restructure which merged its retail, wholesale and third-party buying functions into a single unit called Group Commercial and Logistics (GCL).
Experienced staff are said to have warned that this would create confusion with suppliers, but were ignored.
Jayne Allport, national officer for Usdaw, the shop workers’ union, said its reps working in stores, logistics and funeralcare “continue to raise concerns from union members with senior management to seek solutions”.
A spokesman for the Co-op told the BBC: “Our culture, as a co-operative, ensured decision-making throughout has listened to views from leaders and colleagues across our food and wider business, whilst simultaneously acknowledging when a wide range of views are expressed, not everybody will always agree with the final decisions and actions taken.”
Responding to the reports, Thomas Beale, partner and head of workplace bullying and harassment at law firm Bolt Burdon Kemp, said he has “seen firsthand how toxic workplace cultures can lead to horrific and sustained bullying, harassment and abuse, which causes long-term psychological injuries”.
He continued: “Sustained is a key word here – toxic cultures are usually unrelenting, and the behaviours are deeply ingrained, often accepted as the ‘norm’.
“Regrettably, the inappropriate normalisation of bad behaviour in the workplace often leads to its dismissal as mere ‘banter’, significantly minimising its severity.
“The short- and long-term psychological consequences for victims are frequently overlooked or trivialised, resulting in individuals feeling unable to come forward for fear of invalidation.”
He advised employers to combat the risk of a toxic culture by ensuring their anti-bullying strategies promote respectful environments where both victims and bystanders feel empowered to challenge incidents of bullying.
“This is a challenging task that requires a clear and consistent approach to reporting, investigating, and addressing incidents of bullying,” he explained.
“While legal reforms have necessitated significant changes to organisations’ anti-harassment policies, facilitating a more standardised approach to safeguarding employees against such behaviour, the current legal framework surrounding generalised workplace bullying fails to hold employers accountable in a manner that drives meaningful organisational cultural change.
“This can also make it difficult for lawyers to bring claims for bullying and harassment on behalf of their clients.”