As reported by The Wall Street Journal, CS Disco, a legal software company, is facing heightened scrutiny of its culture following the abrupt departure of CEO Kiwi Camara in September this year, amid accusations that he sexually assaulted an employee.
Current and former employees say that CS Disco has an unhealthy culture where leadership, including Camara, failed to acknowledge conduct complaints or to take adequate corrective measures. The concerns raised by employees extend to the firm's treatment of its clients, with claims that CS Disco did not consistently inform customers of billing problems or necessary software fixes.
CS Disco gave little explanation when its CEO resigned, and the board chair praised the departing CEO for his dedication in a news release at the time. Following this, over 150 employees penned a letter to the board describing the company's "toxic culture," expressing dissatisfaction with the handling of Camara's exit. "Rather than being open and transparent, the truth was hidden," the letter reads. "This raises concerns that other bad actors and enablers might escape accountability."
In response, the board promised to conduct an independent investigation, to hire a new law firm to conduct an internal inquiry, and to seek out a new CEO. "We are committed to working with you to return Disco to a place we can all be proud of," the board wrote in a letter signed by all the directors.
In recent years, many tech companies and service providers have faced the same cultural struggles, and the resultant loss of public trust, that have long plagued financial firms. If leaders of these organizations hope to prevent such scandals in the future, they must become more proactive in managing their culture and the behavior it impels.