Board Members + Investors.Maintaining a workplace environment free of discrimination, sexual harassment and other misconduct is critical to both the short-term productivity and long-term health of a business. Reports of sexual harassment can have material negative effects on an organization's ability to create an impact - not to mention its valuation.
The primary obligation to manage these risks on a day-to-day basis falls to executive leadership. But investors and board members as their fiduciaries play a major role when it comes to setting the tone. |
Tools for Board Members + Funders
To achieve this kind of transparency and accountability we must consider our role in shaping and auditing:
While individual perpetrators of sexual and gender-based violence (SGBV) are unarguably guilty of crimes, we believe companies that enable such behavior either unwittingly or through negligence are also culpable for its persistence. Therefore we believe it is incumbent upon investors to...hold companies accountable for, demand greater transparency on, and incentivize companies to minimize SGBV." The Law
Sexual harassment is a violation of state and federal law and includes unwanted sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature which threatens job security, working conditions, or advancement opportunities. Sexual harassment is gender-neutral and orientation-neutral. It can be perpetrated by any gender against any gender.
The two major categories of sexual harassment addressed within federal and state law include quid pro quo harassment and harassment which creates a “hostile work environment.” It is important to know that for employers to be held liable, they must be notified of the harassment, or be deemed that they should have been aware of it.
Some Examples: Examples of sexual harassment include:
factors that contribute to harassment
Research indicates there are a range of factors which can significantly increase the likelihood of sexual harassment in the workplace. Some are common and/or inevitable features in the start-up (and/or small business) environment:
[i] Feldblum & Lipnic. (2016). U.S. Equal Employment Opportunity Commission Select Task Force on the Study of Harassment in the Workplace Report. Retrieved from: https://www.eeoc.gov/eeoc/task_force/harassment/upload/report.pdf [ii] Ibid [iii] Ibid [iv] https://www.theatlantic.com/business/archive/2014/12/statistically-speaking-what-does-the-average-startup-look-like/384019 [v] http://fortune.com/2018/01/31/female-founders-venture-capital-2017/ [vi] Samuel B. Bacharach et al., Harassing Under the Influence: The Prevalence of Male Heavy Drinking, the Embeddedness of Permissive Workplace Drinking Norms, and the Gender Harassment of Female Coworkers, 12 J. Occup. Health Psychol. 232 (2007). TRAINING & AWARENESS
Maine law requires sexual harassment training for employers with fifteen or more employees as well as additional training for supervisors. However, all organizations, regardless of size, should follow best practice (and risk reduction) and provide in-person, anti-sexual harassment training for all members of the board, management and staff, during employee on-boarding and on a yearly basis. Organizations should also consider including employees of contractors or vendors who are regularly on-site, or alternatively should request that such training be provided by the third-party entity. Effective training should not be simply focused on avoiding legal liability, but must also create a culture of respect that starts at the top.
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Conduct a Basic Audit
Policies establish trust and provide clear actions to keep an organization's culture healthy and productive. As a board member or investor, you can do a basic audit of your organization's anti-harassment policies by asking the questions below.
To the extent you are uncomfortable with any of the answers, it is time to evaluate the organization's approach to prevent, detect and respond to sexual harassment.
- Does it have a clear and simple explanation of prohibited conduct, with examples ?
- Is there a clearly described process that provides multiple accessible avenues for making complaints?
- Is there assurance that the employer will protect the confidentiality of harassment complaints to the extent possible?
- Does it outline a process for prompt, thorough, and impartial investigations of complaints?
- Is there a strong assurance that employees who submit complaints or provide information related to them (witnesses and others who take part in an investigation), will be protected against any retaliation?
- Is there assurance that the employer will take immediate and proportionate corrective action when it determines that harassment has occurred?
- Does it outline how the employer will respond to behavior that may not be legally actionable harassment but that may lead to it if left unchecked?
- What process should be followed if senior management, a board member or investor is the source of the problem?
- How is sexual harassment training approached? When was the last time each level of the organization (from the line through the board) has received training? How are you monitoring the effectiveness of the training?
To the extent you are uncomfortable with any of the answers, it is time to evaluate the organization's approach to prevent, detect and respond to sexual harassment.
Other Resources
More on the importance of good governance and management with regard to sexual harassment from some of the leading investors and researchers in the world.