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The guy in the OP values his company over all other personal relationships it seems.

If he's willing to sleep with the damn owners wife, what else is he willing to do? Cheat? Steal? At best he's a poison to the culture.

Why would a romantic affair have any correlation to stealing?

If you are willing to have an affair with someone else's spouse, especially when that person has been a mentor and championed you by promoting you, you're probably pretty devoid of any loyalty or moral fiber. And then to refuse to leave? Yeah, you can assume that person is completely untrustworthy in any regard.

Note, I'm not referring to a single mistake in a moment of weakness but an ongoing affair.

I get the tautology that if you can't be trusted then you can't be trusted, but I still don't see any reason to believe this would extend to something like theft.

If you read it you'd know his wife left him. After that, what relationships do you have left?

There is the relationship between the owner and the employee. From the question it sounds like the owner doesn't want to dissolve this relationship (at least in part) due to the negative impact on his company.

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