Allegations included one from a former HR manager who claimed that she was told to not employ anyone who was black, as the “customers wouldn’t like it”.
Other former employees alleged that staff members were given a five-minute warning when Al Fayed would visit the department store, and that black staff members would leave the building through an underground tunnel that took them to an office across the road.
One employee described the culture as one of “paranoia, fear and bullying”. We asked commentators how HR can deal with a racist culture at their organisation.
“Addressing racism in an organisation's culture starts with clear accountability and a zero-tolerance approach,” Toby Mildon, founder of diversity, equity and inclusion consultancy Mildon, told HR magazine.
HR leaders must ensure that employees are aware of how to recognise and report racist behaviour, Mildon added.
He continued: “HR must lead by setting robust policies, ensuring that all employees are aware of unacceptable behaviours and the consequences of breaching standards.
“To enable employees to speak up, HR should implement confidential reporting channels, such as anonymous whistleblowing tools like InChorus.
“They must also foster trust by acting swiftly on complaints, protecting whistleblowers from retaliation, and demonstrating visible consequences for racism.”
Additionally, training could encourage employees to report racism, suggested Charlotte Taylor, diversity and inclusion specialist at workplace misconduct reporting platform Culture Shift.
Read more: Harrods allegations: How should HR hold power to account?
Speaking to HR magazine, she said: “HR should recognise the power imbalance between employees and senior leaders, and actively counter this to remove a barrier to people reporting racist incidents.
“Bystander training for all employees can be a useful way to foster a shared sense of responsibility to report racist incidents. This shifts the burden from those experiencing racism and encourages witnesses to also report it.”
Harrods employees successfully sued the department store for racial discrimination during Al Fayed's leadership, BBC News reported, and Vanity Fair published accusations of Al Fayed being racist in 1995 (he “vehemently denied” this.)
In late 2024, more than 400 victims or witnesses made sexual misconduct allegations against Al Fayed.
Read more: HR must support black and minority staff to report racism
“The old command and control style modelled at Harrods that drove racism can’t be ignored,” Nairy McMahon, founder and CEO of culture consultancy Radial Change, told HR magazine.
“Leaders need to model behaviours that are reflective of the organisation's values as the foundation of an organisation's culture.”
Senior leaders should also be trained on how to model anti-racist behaviour, Mildon stressed.
He advised: “Training on respect, inclusion and anti-racism is essential, starting with senior leaders who set the tone from the top of an organisation.
“Directly challenging senior leaders who enable racism requires board-level intervention. HR should escalate concerns, engage external investigators if needed, and hold leaders accountable through disciplinary action.”
