Tesco Plc is standing by its Chairman John Allan after he was accused of inappropriate behavior by four women.
Britain’s biggest supermarket said it hasn’t received any complaints or concerns about Allan after claims reported in the Guardian newspaper allege that the 74-year-old touched the bottom of a senior member of Tesco staff in June at the company’s annual general meeting.
The report also said Allan did the same to a member of staff at the Confederation of British Industry business group in 2019. Allan denies those allegations but doesn’t deny making a comment about a CBI colleague’s appearance, also in 2019, in which he was reported to have said a dress suited her figure.
The latest claims come in the wake of a sexual misconduct scandal at Britain’s CBI involving a legal investigation and multiple companies seeking to distance themselves from the organization. Its boss Tony Danker was dismissed following claims of inappropriate behavior unrelated to the main misconduct allegations.
Allan was “mortified” after making the comment in 2019 and he immediately apologized, his spokesperson said. The other claims are “simply untrue.” Allan requested that Tesco and the law firm Fox Williams investigate the allegations. Fox Williams decided not to and Tesco has never received any complaints, according to the spokesperson.
Shares of Tesco were little changed in London.
Allan has been chairman of Tesco since 2015 and he’s nearing the end of the maximum term whereby he can be considered independent. Tesco began sounding out candidates to replace him in March, Sky News reported at the time.
Allan was president of the CBI from 2018 to 2020 and his remark about a colleague’s dress was discussed with then-director-general of the CBI, Carolyn Fairbairn.
Fairbairn is due to join Tesco’s board as a non-executive director in September.
Tesco said the company is committed to ensuring all colleagues are respected and feel safe at work, according to an e-mailed statement.
(Updates with statement from Allan’s spokesperson in fifth paragraph.)