Car dealer Andrew Simms, who has 400 staff, was also worried about the impact of Dunedin City Council chief executive Sandy Graham’s inflammatory language within the workplace.
"Referring to the mayor and councillors as f...tards from such a senior position would diminish the trust and confidence that the community has in its elected council," he said.
"That this was reportedly done by the most senior bureaucrat employed by the city, speaking about the very people who appoint her, is beyond belief and the damage is far-reaching."
The Otago Daily Times reported yesterday a source said Ms Graham would label parts of her organisation as "f...... useless" or "f...... idiots".
Mr Simms said it would be unacceptable for the chief executive to refer to her staff or departments in such derogatory terms.
"All effectiveness is lost in a workplace, organisation or sports team when this kind of culture exists and is tolerated," he said.
Mr Simms was puzzled by the attitude of Dunedin Mayor Jules Radich, who was insulted by Ms Graham but expressed confidence in her.
Dunedin needed to have sound relationships between the elected council, the chief executive and council staff, Mr Simms said.
"It is impossible to see how this can now exist against the background that has been reported.
"That the mayor accepts being labelled in this manner and then offers ‘full confidence in the CEO’ represents a disservice to the community."
Mr Simms said the community needed high-calibre people to put themselves forward for public service.
"Councillors being called names by social media trolls could be anticipated, but I don’t think many would expect to be called the same names by the CEO," he said.
Another business source said the council needed to focus on economic performance, instead of sideshows involving the chief executive.
The business community was increasingly concerned about dysfunction at the city council, the source said.
Ms Graham has apologised for her comments.
