Best Buy chairman and founder Richard Schulze has stepped down from the company following reports alleging that former CEO Brian Dunn is guilty of misconduct.
An independent investigation has revealed that former CEO Brian Dunn engaged in an inappropriate relationship with another female employee while working for the company. Dunn began Best Buy as a store salesman and worked his way up the ladder without ever attending a university. He became CEO of the company in June of 2009, but resigned abruptly last month, after charges of misconduct had been placed.
"Certain issues were brought to the board's attention regarding Mr. Dunn's personal conduct, unrelated to the company's operations or financial controls, and an audit committee investigation was initiated. Prior to the completion of the investigation, Mr. Dunn chose to resign," Best Buy spokeswoman Claire Koeneman told Business Journal.
Now Richard Schulze, the company's founder, who was voted one of the richest people in America by Forbes magazine, has stepped away from the company following charges that he did not report Dunn's misconduct.
The investigation resolved that Dunn was guilty of "engaging in an extremely close personal relationship with a female employee that negatively impacte,d the work environment." It also found Schulze guilty for failing to tell the board's audit committee about the allegations, according to Bloomberg.
Despite the scandal however, the company denied any corruption in regards to the company's resources and suggested that Schulze had only acted "inappropriately" by not coming forward with information regarding Dunn.
"The CEO's relationship with the female employee demonstrated extremely poor judgment and a lack of professionalism, but the inquiry revealed no misuse of Company resources," Best Buy said in a statement.
The news could impact the company's stocks according to Bloomberg, which revealed that shares were down 18 percent from this time last year.