What are the costs of sexual harassment?
Companies have long known that sexual harassment can lead to costly lawsuits. But since the explosion of #MeToo and the fall of Harvey Weinstein, the costs of misconduct have grown. Today, harassment is no longer just a cultural or legal issue, but a financial and brand issue that reaches every corner of the company. That means that no matter how good your training and reporting may be, they’re no longer enough.
Story after story has shown that when a brand loses authenticity over sexual harassment, they also risk losing their hard-won earnings. Uber has lost nearly 15% of its market share over the two years of its harassment scandals. After it was announced that Steve Wynn had received multiple allegations of sexual harassment, Wynn Resorts lost $3.5B in company value.
Your company should be armed and prepared to deal with toxic behavior as well as the brand damage that results when people hear about it. Companies are owning up to faults and taking action faster than ever when CEOs misuse their power. If you turn a blind eye to identifying and preventing toxic behavior, you’re risking more than legal fees and turnover—you risk irreparable damage to your market share, merger outcomes, and your name…