PRINCIPLES
Commitment to Leading Practices
Corporations must ensure a work environment free of sexual harassment and violence. Boards must support the right of employees, both individually and collectively, to safely bring forward claims of sexual harassment and violence. Company directors should publicly share due diligence processes used to respond to sexual harassment and violence complaints filed by all employees, including contingent, temporary, and subcontracted workers.
Transparent and Thorough Reporting
Companies must prioritize diversity at all levels, including the board of directors and C-suite, to take advantage of the opportunities diversity affords and to be more attuned to the risks associated with harassment, misconduct, and discrimination. Diverse boards which reflect the racial and gender composition of a company’s workforce can help to create organizational cultures that prevent sexual harassment and related risks from materializing.
Dedication to Diversity
Policies and agreements, such as collective bargaining agreements and responsible contractor policies, that protect workers’ rights provide mechanisms for risk mitigation by addressing power imbalances that often facilitate abuse, harassment, and discrimination and by providing clear mechanisms for redress when incidents occur.
Clear Processes for Accountability
The use of non-disclosure agreements and forced arbitration policies reinforce the silence that perpetuates harassment. Transparency in reporting sexual harassment and misconduct settlement costs to investors can help change corporate culture and limit the potential for significant exposure to financial and reputational risk.