Neglecting workplace sexual harassment and business costs

Introduction

Neglecting workplace sexual harassment is a serious problem. It can have a profound impact on the victims, including physical and emotional harm, loss of job opportunities, and increased stress and anxiety. It can also create a hostile and toxic work environment that can impact the morale, productivity, and retention of all employees.

Unfortunately, many organizations neglect workplace sexual harassment and fail to provide a safe and supportive work environment for all employees. This can be due to a lack of awareness, knowledge, or commitment to preventing and addressing sexual harassment. It can also be due to a culture that tolerates or condones sexual harassment, or a fear of reprisal or backlash against the victims.

Also read: What are the duties of employer under PoSH Act?

Consequences of neglecting workplace sexual harassment

Effect on business

Neglecting workplace sexual harassment can have serious consequences for businesses. It can lead to legal consequences, such as fines, settlements, and lawsuits, which can be costly and damaging to the organization’s reputation and value 

For example, the ride-hailing company Uber was sued for tolerating a culture of sexual harassment and discrimination, and it agreed to pay a $4.4 million settlement.

Effect on individuals

Neglecting workplace sexual harassment can also lead to a loss of talent and productivity. Diverse employees, especially women and other marginalized groups, are more likely to experience sexual harassment and discrimination, and they are less likely to be promoted and more likely to leave their companies compared to their white and male counterparts. This can result in a lack of diversity and inclusion in the workforce, which can impact innovation, collaboration, and growth.

Brand reputation

Additionally, neglecting workplace sexual harassment can harm the organization’s reputation and public image. In today’s interconnected and digital world, news of sexual harassment and discrimination can quickly spread and damage the company’s brand and trust. This can lead to boycotts, protests, and negative media coverage that can be extremely damaging to the current as well as the future image of an organization. 

Also read: How Retaliation affects reporting Sexual Harassment at Workplace?

Instances of neglecting workplace sexual harassment in start-ups

The issue of neglecting workplace sexual harassment is not a nuisance for large companies alone. Take some examples of startups that went through the same:

WeWork was embroiled in a sexual harassment scandal in 2019, when former employees accused the co-founder, Adam Neumann, of engaging in inappropriate behavior and creating a toxic work environment. The allegations led to an internal investigation and a shakeup of the leadership, and the company faced severe financial and reputation damage that impacted its IPO and valuation.

The startup Binary Capital was sued by former employees who accused the co-founder, Justin Caldbeck, of sexual harassment and assault. The allegations sparked a broader conversation about sexual harassment in the tech industry and led to the downfall of Binary Capital, which had to shut down and sell its portfolio companies.

Also read: PoSH Act: Nearing a Decade but missing the Mark?

Instances of neglecting workplace sexual harassment in Indian start-ups

Similarly, here are some examples of startups in India that have faced consequences for neglecting workplace sexual harassment:

A former employee accused Zomato and the CEO, Deepinder Goyal, of sexual harassment and retaliation. The employee claimed that Goyal had made inappropriate comments and advances and that the company had ignored her complaints and fired her. 

In 2018, the startup Quikr was accused by a former employee who also accused the CEO, Pranay Chulet, of sexual harassment and discrimination. The employee claimed that Chulet had made unwanted advances and that the company had failed to address her complaints and provide a safe and supportive work environment.

Faasos’ CEO, Jaydeep Barman, was also accused of inappropriate comments and advances that the company had ignored.

Conclusion

In conclusion, investing in preventive measures for workplace sexual harassment is crucial for leaders. Neglecting workplace sexual harassment can have serious consequences for businesses, such as legal and financial penalties, loss of talent and productivity, and damage to reputation and public image. 

Addressing sexual harassment requires a commitment to diversity, equity, and inclusion, and the creation of a safe and supportive work environment for all employees. It also requires training, policies, and procedures that prevent and address sexual harassment and support and resources for those who have experienced it. Investing in preventive measures for sexual harassment can benefit businesses by fostering innovation, collaboration, and growth, and by protecting the rights and well-being of all employees.

Schedule a call with our in-house experts to guide you and put preventive measures in place for ensuring a sexual harassment-free workplace environment for all your employees.