Board members at Sara Lee are hoping the explanations of CEO C. Steven McMillan aren't half-baked. McMillan and the $20 billion packaged-goods company this summer were slapped
with a sexual-discrimination suit by Brenda Jarvis, who alleges that McMillan offered her a $140,000 job but rescinded the offer after she declined to continue to have a sexual
relationship with him.
But, rather than settle out of court - as companies normally do when facing charges of sex discrimination -- Sara Lee has decided to defend McMillan and fight the charges.
The relationship with Ms. Jarvis was "purely social," said Julie Ketay, a Sara Lee spokesperson, adding that the case is now in the Discovery phase. PRN asked Gene Grabowski, VP
of Levick Strategic Communications, who once served as VP of Communications/Marketing for The Grocery Manufacturers of America, for his take on the case.
"It's a good idea. The fact that the board is standing by McMillan indicates they have a good case. But in terms of PR, the company is in a delicate position because the
accuser has the advantage of showing her entire hand right away, whereas Sara Lee - which as a major corporation is held to a higher standard of responsibility - feels constrained
to hold back with any negative details it may have about the accuser," he said. "The bigger the company and the bigger the brand at risk, the more pressure there is to play by the
rules. At the same time - and this goes to the bigger picture - the company cannot risk being seen as a pushover because that can lead to other accusations. By the same token, the
company cannot risk being perceived as a bully." Contact: [email protected]