He Exposed Himself To Me!

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A couple weeks ago where I work, a co-worker of mine said that another co-worker exposed himself to her at work. No one seen it happen so it was just a "He said, She said" situation. My employer did investigate the claim by the woman but did nothing to the man as of yet. I really don't think they have grounds to fire him because they have no proof that he did actually do it, but if he did then I can see how it would make this lady uncomfortable having to work with this man every day. How do you think my employer should have handled this situation? Should they have taken action against this man for something that they really didn't have any proof of?