"I think as a woman, as women always do, I took the bulk of the abuse. People would say things like I was a 'gold-digger' or I 'slept my way to the top', which just couldn't be further from reality," she said.
I'm normally very willing to agree with this sentiment, but I think she's deliberately under thinking this. Yeah, he also did the bad thing. She was the HR director, though. There really isn't anything more hypocritical that you can do as the head of HR, and I think that's a big part of why people aren't letting her off the hook.
If I got caught going to random sites and downloading viruses while storing all of my passwords in plaintext, that would be a pretty major offence for an IT guy, but not as much for a quality control director. This isn't really any different.
Is it problematic that the CEO was involved? Absolutely. Should he have known better? Of course. Is one of his main duties to discourage other people from this exact behavior? No.