The Orange Scandal: How Restructuring Policies Led to a Historic Trial for Incitement to Suicide

It is well-known that the success of any organization largely depends on the quality of the relationship between its management and employees. While some professionals may encounter departments that pressure employees to achieve desired results, this approach is generally considered flawed in management theory. However, the situation escalated significantly with a case involving Didier Lombard, the former CEO of the French telecommunications giant Orange. Lombard was convicted of moral harassment against his employees, which led to a series of suicides during the company’s restructuring phase in the late 2000s.

The case came to a head in 2019 when a French court rendered a groundbreaking judgment, drawing significant public attention. Didier Lombard, 77, was sentenced to one year in prison, with eight months suspended, and ordered to pay a fine of €15,000. He was found guilty of committing moral harassment that contributed to several suicides and suicide attempts among his staff. According to labor union records, there were at least 18 suicides and 13 attempts between April 2008 and June 2010, including an incident where an employee stabbed himself during a meeting and another where a woman jumped from a window.

Despite these severe outcomes, some critics argued that the sentences were too lenient and that Lombard deserved a harsher punishment. A lawyer specializing in employment crimes noted that the court’s decision reflected its view that Lombard did not pose a significant threat to society. Nevertheless, the noteworthy aspect of the ruling was that Orange was also found guilty. This marked the first time a French company faced criminal conviction for ethical harassment by its executives. This judgment represents a major reputational blow for Orange and sets a troubling precedent for other companies. It emphasizes corporate responsibility in cases of moral harassment and employee mistreatment, whereas traditionally, individual managers were held accountable without implicating the entire company.

In response to the ruling, Orange stated that it would not appeal the decision and expressed regret for the suffering experienced by the victims. The company acknowledged that there may have been administrative errors during the restructuring process but denied any systematic intention to harass employees. Orange also announced that it would provide compensation to the victims and the families of those who died, with the judge estimating the compensation at around €2 million.

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By Fact Nest Team

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