Many New Jersey businesspeople serve on boards and committees. Such activities help professionals network, identify new business opportunities and give back to causes they support. People who serve on boards and committees should remember, though, that they are legally required to adhere to certain minimum standards of conduct. If allegations against him are true, that is something a former board member for one of the country’s largest retirement systems apparently forgot.

After spending more than two decades as an investment officer and committee chairman for the California Public Employees’ Retirement System (CalPERS), the former board member was suspended last month. His temporary leave stems from accusations of sexual harassment levied against him and will last until March 1. The hostile work environment he supposedly helped to create was in conflict with the stance of the board in charge of CalPERS. If the conduct is he accused of did occur, it would also be against laws designed to ensure that all workers in the U.S. have a safe and healthy work environment.

The genesis for the sexual harassment complaint allegedly occurred sometime last year. The nature of the accusations against the man has not been disclosed in detail.

As the previous chairman of an investment policy committee and the vice chairman of a health benefits committee, the man was in a position of considerable power with the fund. He was even part of the board that voted to suspend him. This decision was upheld by the aforementioned judge and personnel board. Chairmanships the man held have been taken away and he will not be allowed to travel freely on CalPERS business. The man must also undergo sensitivity training.

According to the president of CalPERS, the overseeing board members do not support any form of sexual harassment. The president has also stated that the fund’s employees, as well as a suitable working environment, are of great importance to the board. The suspended man has been part of the board since December 2009. His suspension will end in March of next year. CalPERS controls $227 billion associated with the retirement funds of public employees of the state of California.

This man’s fate should remind people in New Jersey that unacceptable conduct can bring promising and illustrious careers to a grinding halt.

Source: Pensions and Investments, “CalPERS board member censured for harassment,” Timothy Inklebarger, Sept. 15, 2011