The former chief executive of the department store Clerys has agreed with Taoiseach Enda Kenny that the treatment of workers there was "grossly insensitive and appalling".
Speaking at a conference in Dublin today, PJ Timmins also questioned the morality of businesses separating assets and liabilities.
He said that while what happened at Clerys may have been legally acceptable, it was morally and ethically wrong.
However Mr Timmins also questioned what it would mean for creditors if extra protections were given to employees in similar circumstances in the future and whether struggling businesses would be in a position to consult with them.
"Trade is built on trust and you cannot legislate for reputation," Mr Timmins, now Managing Director of The Alternative Board, said.
He made his comments at today's annual conference in Dublin of ICSA.
Highlighting the importance of good corporate governance to Irish business in general, Mr Timmins also said that performance management and culture management require a closer look if corporate governance is to flourish.
