Pizza restaurant chain Papa John’s has hired mega law firm Akin Gump to conduct an independent audit of the company’s programs for diversity and inclusion, as well as the company’s culture. The move comes after the company’s chairman and founder, John Schnatter, resigned earlier this month over allegations that he used a racial slur during a May conference call.
An article last week in Forbes referred to what it called a “toxic culture” at Papa John’s that Schnatter enabled. “Schnatter’s alleged behavior ranges from spying on his workers to sexually inappropriate conduct, which has resulted in at least two confidential settlements,” wrote author Noah Kirsch in the article.
Last week, the company announced that a special committee consisting of all independent directors of the board has appointed the international law firm of Akin Gump Strauss Hauer & Feld LLP to oversee an audit and investigation of the company. “The audit and investigation will examine all of the existing processes, policies, and systems related to diversity and inclusion, supplier and vendor engagement and Papa John’s culture,” the firm announced in a press release.
“We’re focused on creating the right future for Papa John’s,” Olivia Kirtley, lead independent director of the board, said in the release. “The special committee of the board is committed to this thorough audit and investigation and to taking deliberate actions to rebuild trust at Papa John’s and to ensure that this company is driven by the values of diversity, equity, inclusion and respect.”
In a note to Papa John’s employees and franchisees, current Papa John’s CEO Steve Ritchie said that the company would take steps to address its culture problems. “To be clear, I do not permit, condone or tolerate any form of harassment or sexism in the workplace or at work-related functions. When issues have come to our attention, we have engaged and empowered our staff to complete a full investigation, so that action could be taken,” Ritchie wrote in the letter.
For his part, Schnatter doesn’t seem to want to go quietly. He has stated that it was a mistake for him to resign as chairman and has retained representation to handle the issue. He and his lawyer sent letters to the board earlier this month suggesting that he was pressured to resign without any investigation into the circumstances, which he said included an extortion attempt. Relinquishing the position, he wrote, “was a mistake.” Stay tuned. 