SEXUAL HARASSMENT IN THE WORKPLACE: A RISK WITHOUT EQUAL

A REPORT FEATURING THE RESEARCH AND EXPERTISE OF

Erika H. James Lynn Wooten John H. Harland Dean Dean Goizueta Business School Charles H. Dyson School of Applied Economics and Management Emory University Cornell University TABLE of CONTENTS

INTRODUCTION...... 4

SEXUAL HARASSMENT IN 2006: A RISK WITHOUT EQUAL...... 7

Responses to Sexual Harassment Lawsuits...... 7 Attitudes Toward Sexual Harassment in the Early 2000s...... 11

SEXUAL HARASSMENT IN 2017: A TIPPING POINT...... 13

The Weinstein Case...... 13 PATTERN The Domino Effect...... 15 “Merchants of Shame”: The Industry Responds...... 16 No One Too Big to Topple...... 17 So Why Now?...... 20 The Hollywood Factor...... 21 The Power of Social Media...... 23 What’s Next?...... 23 In the Tech Industry...... 24 In Politics...... 24 In Gaming...... 25 An Emerging Path to Resolution?...... 26 An Endemic Problem...... 27

SHINING A LIGHT: RECOMMENDATIONS FOR BUSINESSES...... 29

Companies Taking a Stand Against Sexual Harassment...... 31 Fidelity Investments...... 31 United Airlines...... 31 IPG...... 31 INTRODUCTION

etween 2017 and 2018, sexual “We always say to people that we can’t change harassment became a defining issue what happened to them in the past, but we for society. need to be able to put what happened to On October 5, 2017, The New York them to some constructive purpose. Times published an investigation Brevealing sexual misconduct Sometimes it has felt as though we’re allegations against Hollywood mogul standing in a river of pain, and I don’t Harvey Weinstein dating back to the want to diminish that, but there have 1990s.1 Within months, the story ignited also been moments of recognition an industry-wide reckoning and a global and hope and connection. backlash fanned by mass and social media. The question now is whether or Following the allegations, Weinstein faces not private pain can be turned a slew of criminal investigations and into collective strength.” possible incarceration. He was fired by his company, Weinstein Co., and has become an industry untouchable. And he is not Jodi Kantor alone; 2017 has seen an unprecedented number of household names accused Investigative journalist at the New York Times who broke the of sexual harassment. Matt Lauer, Weinstein story. Charlie Rose, Roger Ailes, Bill O’Reilly and Kevin Spacey are just a few of the industry’s stellar players whose careers https://www.variety.com/2017/biz/features/ new-york-times-harvey-weinstein-report- have apparently been extinguished by megan-twohey-jodi-kantor-1202637948/ allegations of sexual misconduct. Meanwhile, the #MeToo social media movement had a galvanizing effect around the world. It was used in October 2017 on Twitter by actress Alyssa Milano, a Weinstein accuser, and went viral, reaching scores of countries and millions of users within days.2 Reaction from the industry was swift. Studios and TV networks were fast to

1 https://www.nytimes.com/2017/10/05/us/harvey-weinstein- harassment-allegations.html 2 https://edition.cnn.com/2017/10/30/health/metoo-legacy/index.html

4 INTRODUCTION SEXUAL HARASSMENT IN 2006: distance themselves from high-profile figures accused of sexual harassment. As a result, canceled films and TV series have left the industry with hefty bills. The A RISK WITHOUT EQUAL Spacey scandal alone is estimated to have cost Netflix $39 million.3 The scale and speed with which accusations and responses flooded the THIS WHITE PAPER iscrimination lawsuits rank among the commitment; and an increase in the likelihood leading crises faced by business leaders public consciousness with #MeToo points WILL LOOK AT of recurring claims of discrimination. to two things: The ingrained and intractable in the United States. Of these, sexual James and Wooten then analyzed data from 49 nature of the problem and the emergence harassment allegations pose the single • How sexual harassment allegations do companies – many of them Fortune 500 firms of a tipping point – a shift in culture and greatest threat to corporate reputation, greater damage to reputations and – that had been embroiled in discrimination attitudes that suggests this might be a according to “Diversity Crisis: How Firms take longer to resolve than any other lawsuits across a number of bases including pivotal moment in corporate history. DManage Discrimination Lawsuits.” This 2006 type of discrimination suit by drawing paper, published by James and Wooten, used race, age, gender, religion and disability and In 2017, the entertainment industry was on research first published in 2006 institutional theory to explore the role of compared them with the results of sexual a lightning rod for sexual harassment by experts in workplace diversity and effective leadership in resolving crises and misconduct lawsuits. scandals. As 2018 began, it reached the organizational learning Erika James, Dean the importance of organizational learning to The immediate findings were stunning. public arena – from politics to academia of Goizueta Business School at Emory prevent crises from recurring.4 5 to finance to Silicon Valley – and University, and Lynn Wooten, Dean of corporate America is now dealing with the Charles H. Dyson School of Applied As they researched, James and Wooten wanted RESPONSES TO SEXUAL the fallout from scores of allegations. Economics and Management at Cornell to test a hypothesis that firms responded University. differently based on the type of allegation. HARASSMENT LAWSUITS In this climate, leaders have an • How a failure to institute organizational unprecedented opportunity to intensify When a firm was accused directed not only against change has historically marked the focus on the problem and drive efforts ial of discrimination its initial the legal process, but often corporate response to sexual harassment nc Re to find systematic solutions that create a pu in t response was denial. against the plaintiffs. allegations. F a t meaningful change. i o This would, in time, yield n And more discoveries • How 2017 marked a tipping point in to some acceptance of followed. tolerance and response from industry, R COSTS responsibility and then e u media and society. c to settlement. r While sexual harassment re n e disputes were not the most • Why businesses and other industries c al James and Wooten e or frequent, they nonetheless must not wait to be called out and must M found that when firms took a disproportionately be proactive in the measures and policies were accused of sexual longer amount of time to they implement to mitigate risk. misconduct, it took them First, they established that the costs to much longer to accept settle than any other type The paper concludes by setting out a organizations for discrimination lawsuits fell responsibility. In fact, the of claim. number of strategic recommendations for into a number of categories: financial cost in companies in the study Race and gender-based business leaders and other decision-makers terms of settlements; threats to reputations; were actually more prone to allegations – the most who wish to lead this change. negative fallout for employee morale and move to a retaliatory stance

3 https://www.marketwatch.com/story/sexual-harassment-scandals-cost- 4 James & Wooten, Leading Under Pressure, Routledge, June 2011. netflix-39-million-2018-01-22 5 James & Wooten, “Diversity Crises: How Firms Manage Discrimination Lawsuits,” Academy of Management Journal, December 1, 2006.

6 7 SEXUAL HARASSMENT IN 2006: A RISK WITHOUT EQUAL

common discrimination only quantifiable in terms of REPUTATIONAL COSTS Denial Acceptance and settlement cases – were typically resolved financial consequences. They in 33 to 36 months. Sexual also translated into damage to OF DISCRIMINATION harassment suits, however, corporate reputations. “Corporate reputation has value took an average of 49 months and must be managed for it to – more than one year longer – The longer a discrimination create and contribute to a firm’s Race & gender to reach settlement.6 case took to resolve, the 33-36 longer it remained in the competitive advantage in the months In other words, companies public domain – exposed to marketplace. Because the public uses accused of sexual harassment scrutiny and negative publicity a firm’s reputation as a signal about were spending just over four from the press and other the firm’s activities, threats to its years, on average, to settle interested parties. reputation, or improper reputation with plaintiffs. That’s four management, can have strategic, years of denials, rebuttals, And this wasn’t all. Sexual harassment 49 marketing and human resource months trenchant negotiations – and, implications. More specifically, inevitably – spiraling costs to an organization’s reputation the firm. is threatened when corporate And these costs, argued wrongdoing generates national James and Wooten, weren’t media attention.”

AVERAGE LENGTH OF ial nc Re 6. James & Wooten, “Diversity Crises: How Firms Manage Discrimination Lawsuits,” Academy of a pu in t Management Journal, December 1, 2006. Anonymous CEO DISCRIMINATION CASES F a t i o James & Wooten “Diversity Crises: How Firms n Manage Discrimination Lawsuits,” Academy of Management Journal, December 1, 2006. R e 4 u c years r re THE DIFFERENT PATHS TO SETTLEMENT nc le e ra Mo

James and Wooten looked These external groups typically any other type of lawsuit to at the different stages of the organized demonstrations, galvanize third-party activism. lawsuit resolution process and boycotted goods and services And in the case of sexual something else caught their and proactively generated harassment, the groups were attention. negative publicity for the particularly vocal in their company. activities. In the U.S., the The presence of external National Organization for stakeholders played a key role As the research continued, it Women worked aggressively in how cases were brought became apparent that race- to publicize individual cases to resolution and impacted based and sexual harassment and engaged with the media to the time it took to happen. cases were more likely than

8 9 SEXUAL HARASSMENT IN 2006: A RISK WITHOUT EQUAL SEXUAL HARASSMENT IN 2006: A RISK WITHOUT EQUAL

call out the firms they dubbed information about the plaintiff’s ATTITUDES TOWARD “merchants of shame.”7 personal relationships, behavior and dress. SEXUAL HARASSMENT James and Wooten then found IN THE EARLY 2000s something interesting. In the James and Wooten paper, the authors cited an example It’s likely that corporate America While both race discrimination involving a senior executive who in 2006 was taking its cue from and sexual harassment attempted to influence how the U.S. law, which defined and treated allegations were equally likely to accusations against his company discrimination differently mobilize external activists, how would be perceived by the public than harassment. the firms responded to these by exhorting his employees to BACKLASH groups was radically different. counter-demonstrate. Harassment cases were harder to prove. The law placed a higher With racial discrimination Put simply, in 2006 companies burden of proof with the plaintiff in claims, stakeholder activism responded more aggressively to a sexual harassment case than any had a singular impact on the sexual harassment accusations other type of discriminatory lawsuit. resolution process. Once than any other form of sanctions were imposed – discrimination. This historically made it easier for boycotts, protests, engagement firms to view these types of lawsuits with the media and so on – These firms were likely to: as personality conflicts rather than companies tended to switch civil rights issues. from a rhetoric of denial to acceptance of liability. Apologies Companies typically responded to would be issued, settlements Trenchantly deny allegations of sexual misconduct reached and, importantly, senior the accusation with anger. They de-emphasized the leadership would publicly legal aspect of wrongdoing while commit to efforts to institute Take retaliatory simultaneously highlighting the measures against subjective nature of the case. Put simply, cultural change. All this equated the legal process to a swifter resolution. and the plaintiff it became he said, she said. And since the legal mechanisms were ambiguous, For firms accused of sexual Engage aggressively coercive pressure from plaintiffs harassment, a very different with third-party and stakeholder groups were less timeline and corporate stakeholder groups threatening to the companies accused. reaction played out. In fact, stakeholder activism seemed Take a year Under these circumstances to antagonize these companies longer to settle and unencumbered by formal and led to retaliatory actions than other types of constraints, firms were more likely and accusations that would, at discrimination lawsuits to adopt a combative stance toward times, become personal attacks accusers and their supporters. They Resist efforts to were less likely to hasten efforts to on individuals – including the institute cultural plaintiffs. It was not uncommon change as a result find resolution. And less likely to for firms to publicize derogatory of the lawsuit What was going on? implement meaningful or systemic

7 https://now.org/resource/wal-mart-merchant-of-shame/

10 11 SEXUAL HARASSMENT IN 2006: A RISK WITHOUT EQUAL SEXUAL HARASSMENT IN 2017: measures to address, pre- more time, attention and empt or mitigate the risks of resources would be diverted sexual harassment within their from running the business and organizations.8 achieving business continuity. A TIPPING POINT In a sense, it created a perfect The law may not have changed THE WEINSTEIN CASE storm. On the one hand, substantively since 2006, companies felt the law was on but attitudes have. This is Undoubtedly the most A week later, on October 11, n 2006, James and Wooten their side; sexual harassment bad news for firms that have significant of the sexual the British Academy of Film warned of the risks sexual was something to deny and to failed to prioritize and address harassment cases is the scandal and Television Arts announced harassment claims posed. refute. They felt empowered harassment in the workplace. that has engulfed Weinstein. The it had suspended Weinstein’s They said sexual harassment to respond aggressively, to And worse news for those that New York Times published an membership. Three days later, allegations mobilize stronger retaliate against accusers and have failed to learn from exposé October 5, 2017 alleging the organization behind the feelings, create more to sweep allegations under their mistakes. Weinstein had reached at least Oscars voted to expel him. the rug without addressing Iantagonistic engagement with eight legal settlements for sexual activist groups and plaintiffs internal culture. On the other “Because of the harassment allegations dating As the allegations continued and play out longer in the hand, sexual harassment back over three decades. The to stack up against the mogul, potentially severe public arena. Combined, these played out more than 30 case rocked Hollywood, not key figures and politicians were consequences that elements spark increased percent longer in the public least because of the scale of the quick to sever their ties – among lawsuits can produce, public interest and drive greater domain, mobilized aggressive accusations against the producer these, a number of senior we argue that they sensationalism of the cases. activist groups and incurred and the celebrity profile of those members of the Democratic greater costs over time. should be a central focus 9 Party to whom Weinstein had They warned business making the allegations. of business leaders, crisis been a noted campaign donor. leaders about the costs – to In 2006, James and Wooten managers, diversity Within days of the report going their organization, to their shed light on this and issued practitioners and to print, Weinstein, whose On October 30, the Producers reputation, to morale and to a highly prescient warning to credits included a slew of Oscar- Guild of America banned scholars.” continuity. corporate America. winning movies, was fired by the Weinstein for life. In just 25 days, the downfall of one of In 2018, James and Wooten’s board of his company, Weinstein They cautioned that the Hollywood’s most powerful findings coalesced into a Co., as it emerged that his denials, antagonistic men was complete. engagement with plaintiffs global phenomenon; a sea allegedly inappropriate conduct and activists and resolution change in attitudes is driving with women was an “open James & Wooten 10 exclusively by settlement an unprecedented reckoning secret” in the industry. “Diversity Crises: How Firms without efforts to institute Manage Discrimination for the worlds of business, organizational change, could Lawsuits,” Academy of education, politics and media. Management Journal, 25 Days and would open the door to December 1, 2006. And it has happened very fast. controversy and diminished control over public perception. Nowhere is this more apparent than in the media and Oct 5, 2017 Days later Oct 11 Oct 14 Allies begin to Oct 30 The longer the process entertainment industry where NYT Fired by board BAFTA Expelled sever ties Banned for life by continued in the public publishes of Weinstein suspends by Oscars Producers Guild key events of recent memory domain, they warned, the exposé Co. membership company of America commanded global attention.

8 James & Wooten, “Diversity Crises: How Firms Manage 9 Jhttps://www.nytimes.com/2017/10/05/us/harvey-weinstein-harassment-allegations.html Discrimination Lawsuits,” Academy of Management 10 http://www.bbc.com/news/video_and_audio/headlines/41588203/harvey-weinstein-s-behaviour-was-open-secret Journal, December 1, 2006.

12 13 “Allegations about other prominent men in the media acting similarly began to proliferate SEXUAL HARASSMENT IN 2017: A TIPPING POINT with a speed and frequency that the media dubbed “the Weinstein Effect.” THE DOMINO EFFECT

As Hollywood reeled in wanted to bring the issue into the days following The New the open. What James and York Time’s publication of Wooten identified in their the Weinstein accusations, 2006 research was playing out something else happened. in headlines, on the internet, on television screens and on Allegations about other magazine covers across the prominent men in the media world: Sexual harassment acting similarly began to had an unparalleled power to proliferate with a speed and mobilize public interest. To frequency that the media coin an old expression, sex dubbed “the Weinstein sells. And the world, it seemed, 11 Effect.” was ready to buy. From the head of Amazon Third, there was real anger. The Studios to Oscar-winning deeply held sense of grievance actors to primetime presenters, and injustice on the part of the avalanche of accusations the victims was now fully ripe suggested three things. for expression. And no one, First, the viral nature of however powerful or mighty, the accusations – the sheer was above this reckoning. number of voices and the The industry, taking its cue speed with which they were from all of this, was swift proliferating – pointed to to respond. the endemic nature of the issue. Sexual harassment, this In the weeks following October said, had always been there, 5, some of the biggest careers playing out just beneath the in film and television toppled radar; predatory behavior that like dominoes. had gone unchallenged at an enormous scale for many decades across this industry. Second, the issue shifted from being “open secrets” to public conversations. Survivors

11 http://money.cnn.com/2017/10/20/media/weinstein-effect-harvey-weinstein/index.html

15 SEXUAL HARASSMENT IN 2017: A TIPPING POINT SEXUAL HARASSMENT IN 2017: A TIPPING POINT

“MERCHANTS OF SHAME:” THE INDUSTRY RESPONDS NO ONE TOO BIG TO TOPPLE

In 2017 a new paradigm emerged: biggest players saw their earning slur of sexual harassment has the No career was too big to topple. capacity flat-line as films, series capacity to damage reputations Household names saw have seen decisive action by and projects were shelved, one unlike any other. their careers unravel with networks and organizations Matt Lauer, Charlie Rose, Louis C.K., after another. exponential speed as to suspend the employment Kevin Spacey, Bill O’Reilly. momentum began to reach of the men on the basis of Lauer, Rose, O’Reilly and Spacy went critical mass in 2017. accusations alone. This could The scandals engulfing these from media darlings to industry Between October 1, 2017, and be the beginning of a shift away figures had an immediate and pariahs. Employers were fast to fire, December 31, 2017, The New York From Bill Cosby in 2014, a case from litigation and toward devastating impact on their replace and sever ties with them. Times reported that no fewer than that pre-dates the Weinstein unchallenged acceptance. careers and incurred inestimable 71 men with an estimated net Effect, to Charlie Rose in costs to the studios and networks In its haste to manage the worth of as much as $1 billion saw November 2017, the fall from This, in turn, might point to associated with them. Within days contagion, Hollywood seemed their careers flat-line.12 power of those accused of an acceptance of the scale and of the sexual harassment scandals to finally grasp what James and sexual predation has been gravity of the problem within breaking, many of the industry’s Wooten warned of in 2006: The happening with increasing corporate America that lines up speed and decisiveness. with shifting public attitudes.13 2017 Interestingly, in these key Jan F M A M J J A S O N D examples, only the case of Bill Cosby has so far been tried in a court of law. The other cases

New York Times The New York Times Oct 5: NYT publishes Nov 2: Netflix Dec 13: Morgan 71 men publishes story on Bill investigates Matt Weinstein accusations terminates contract Spurlock resigns O’Reilly Lauer with Kevin Spacey from his production Oct 8: Weinstein company O’Reilly and Fox News fired from board of Nov 9: Louis C.K. agree to terminate his Weinstein Company sees ties cut by FX $1 billion contract and other media Oct 12: Roy Price companies; film net worth resigns as head of canceled Amazon Studios following accusations Nov 11: Mark Schwan fired from “The Oct 26: Mark Halperin THE NEW ENTERTAINMENT UNTOUCHABLES: Royals” fired by MSNBC and A FEW OF THE MAJOR LEAGUE PLAYERS NBC News Nov 20: Washington WHO TOPPLED IN 2017 Post publishes Charlie Oct 30: Accusations Rose accusations: appear against Kevin Rose fired by CBS Spacey Nov 27: Matt Lauer fired by NBC

Nov 30: Israel Horovitz fired by Gloucester Stage Theater

12 https://www.nytimes.com/interactive/2017/11/10/us/men-accused-sexual-misconduct-weinstein.html 13 http://www.telegraph.co.uk/news/2017/06/17/bill-cosby-case-ends-mistrial-jury-fail-agree-verdict-sexual/

16 17 Sexual harassment claims moved SEXUAL HARASSMENT IN 2017: A TIPPING POINT slowly prior Kevin Spacey to 2017

October 30 Actor Anthony Rapp tells Buzzfeed News Spacey sexually assaulted him in 1986 – when Rapp was aged 14. October 30 Spacey issues a statement via Twitter saying he does not remember the incident but offers an apology to Rapp nonetheless. Bill Crosby October 31 Further allegations surface. October 31 Netflix suspends sixth series of 2000 Charlie Rose “House of Cards”. Lachele Covington files a police October 31 report saying she was inappropriately Matt Lauer The Old Vic commences touched by Cosby. investigations into allegations. 2005 November 2 Andrea Constand sues Cosby for November 20 Spacey is dropped by Creative sexual assault. The case is settled out The Washington Post runs an September – November 2017 Artists Agency and Polaris PR. of court in 2006. The New York Times conducts an exposé about allegations made November 3 2014 investigation into alleged sexual against the journalist and TV host. Netflix terminates Spacey’s Over the year, dozens of women misconduct by the NBC anchor. November 20 contract for “House of Cards” and publicly accuse Cosby of sexually CBS issues a statement confirming November 27 the film project Gore is shelved. assaulting them. His live shows are Female employee files sexual Rose’s contract has been terminated. canceled across the country amid November 9 assault complaint against Lauer November 20 protests. Spacey is dropped from Ridley with NBC. PBS severs ties with Rose and Scott film, “All the Money in the Nov 2014 cancels distribution of his programs. November 29 World”, NBC scraps plans for a new show with NBC announces Lauer’s November 24 a Hollywood “first.” the comedian following allegations by employment has been terminated. Walter Cronkite School of TV presenter Janice Dickinson that he December 4 Journalism and Mass Communication assaulted her in 1982. Repeats of the November 30 Netflix confirms “House of Cards” rescinds Rose’s Walter Cronkite “Cosby Show” are also pulled from air. Lauer issues a statement will resume without Spacey. apologizing for his actions Award for Excellence in Journalism. are also pulled from air.

“I ask myself would it have played out the same Career longevity: 1980 - 2017 Career longevity: 1972 - 2017 Career longevity: 1986 - 2017 Career longevity: 1963 - 2014 way if the really famous women had not come forward? I’m not sure it would have.” Net worth: $60m Net worth: $23m Net worth: $100m Net worth: $400m

Timeline to termination: 3 days Timeline to termination: 24 hours Timeline to termination: 4 days Timeline to termination: 11 months

https://www.vanityfair.com/hollywood/2017/11/ https://www.usatoday.com/story/life/tv/2017/11/21/ http://www.bbc.com/news/entertainment- https://www.reuters.com/article/us-people-cosby- matt-lauer-sexual-misconduct-allegations cbs-morning-addresses-charlie-rose-scandal- arts-41884878 career-timeline/timeline-bill-cosbys-career-and- http://time.com/money/5041018/matt-lauer-net- charlie-does-not-get-pass-here/884102001/ accusations-against-him-idUSKBN0UD1UF20151230 worth/ http://www.bbc.com/news/entertainment- arts-33673593

18 SEXUAL HARASSMENT IN 2017: A TIPPING POINT SEXUAL HARASSMENT IN 2017: A TIPPING POINT

SO WHY NOW? THE HOLLYWOOD FACTOR

In 2018 there is a sense the public Back in 1991, U.S. attorney Anita Court, where he continues to serve, It is perhaps unsurprising that the The Hollywood element lifted “I have to concede might have arrived at a breaking Hill became a national figure when and Hill’s concerns were mostly tinder was lit by events within the the issue out of the partisanship that the impact of point in terms of tolerance for she accused then-U.S. Supreme sidelined. Until now. entertainment industry in 2017. context, which had dogged it when sexual abuse and harassment. Court nominee, Clarence Thomas, Hill had made her allegations big stars like Ashley of sexually harassing her. The case Nearly 30 years later, Hill has been This, in part, is because of the in 1991. Judd, Angelina Jolie To understand why this happened, ignited a nationwide debate about appointed to lead the charge for the nature of the industry itself. and Gwyneth Paltrow it is first important to understand what constituted sexual misconduct Sexual Harassment and Advancing And then, of course, there was going on the record the scale and the endemic nature Equality in the Workplace Some commentators pointed power in numbers. in the workplace and what laws and to the structural framework of was enormous, in part of the problem itself. And this is policies of protection needed to be Commission, backed by Lucasfilm, 15 film and TV industries and said Fox News anchor, Gretchen because they were becoming increasingly clear as put in place.14 the Nike Foundation and others. the volume of people speaking up it made them “perfect breeding Carlson, whose accusations led to saying it’s not shameful continues to grow. At the time, very little changed in And this is just the beginning; grounds” for sexual abuse to occur. the sacking of Fox News CEO Roger to tell your story. I ask terms of public attitude after the 2018’s shift in attitude is driven by a It embraces the notion that any Ailes, spoke of a “key dynamic.” myself would it have Public awareness of the issue is, of number of interesting determinants. behavior is acceptable in pursuit Women gave each other courage, initial reactions died down. Thomas played out the same course, nothing new. was confirmed to the Supreme of art; creates an environment that she said, by speaking out despite the fosters intimacy and makes it easier risk of retaliation. way if the really famous for lines to be crossed; and the star women had not come “equity” of certain individuals – Courage, Carlson said, can be forward? I’m not sure it “contagious.” It could not only around whom entire productions would have.” are often based – makes them less spread from person to person but 18 dispensable to studios ignite a global movement. 16 and networks. And where multiple voices were But the entertainment industry simultaneously being raised, is also unique in its appeal to another dynamic came into play public curiosity. – one foreseen by the research of James and Wooten. Star power is a major determinant here. And that was the dynamic of public activism. Fanned, now, by the power People are interested in the private of social media. lives of the famous. This is evident in the abundance of newspaper, television and online content Jodi Kantor about famous actors and directors Investigative journalist at The churned out daily across the globe. New York Times who broke the Weinstein story. The people who made accusations against powerful Hollywood figures

in 2017 were often powerful and variety.com/2017/biz/features/new-york- 17 famous as well. And this created a times-harvey-weinstein-report-megan- media hurricane. twohey-jodi-kantor-1202637948/

14 https://www.theatlantic.com/politics/archive/2017/12/ 15. https://www.vox.com/culture/2017/11/17/16651316/hollywood-harassment-why clarence-thomas-anita-hill-me-too/548624/ 17. https://www.theguardian.com/film/2017/oct/11/the-allegations-against-harvey-weinstein-what-we-know-so-far 15 http://variety.com/2017/film/news/anita-hill-sexual- 18. http://www.chicagotribune.com/news/nationworld/ct-harvey-weinstein-sexual-harassment-20171007-story.html harassment-commission-1202643105/

20 21 SEXUAL HARASSMENT IN 2017: A TIPPING POINT

THE POWER OF SOCIAL MEDIA

James and Wooten’s research meanwhile, confirmed to CBS had already established that News that in the 24 hours sexual misconduct cases had following Milano’s tweet, the enormous potential to mobilize hashtag had appeared in a wide-spread stakeholder stunning 17 million posts activism in support of victims, and comments.21 and that these groups were prepared to engage aggressively In December 2017, Time with organizations. Magazine named the #MeToo social media movement as the What that research could not most influential “person” of have anticipated was that the year.22 in 2018, social media would skyrocket this kind of activity By the end of 2017, #MeToo into a global phenomenon. and its translations had been used in 85 countries around the The #MeToo hashtag was world.23 created by women’s rights activist, Tarana Burke.19 She coined the term in the early 2000’s while working with sexual violence survivors. The slogan entered the spotlight in October 2017 thanks to actress Alyssa Milano, a Weinstein accuser. WHAT NEXT? She used the hashtag on Twitter to encourage others to share their experiences of The allegations against Harvey sexual violence. Within 24 Weinstein unleashed an hours, the hashtag had reached outpouring on social media in 500,000 people.20 2017 and were met with echoing volleys of accusations about many By November, Twitter other prominent figures – not confirmed 1.7 million tweets only in media and entertainment, were created worldwide but also in government, tech, “The slogan was brought back into the spotlight in October 2017 using the hashtag. Facebook, finance and beyond. by actress Alyssa Milano, a Weinstein accuser... Within 24 hours,

19 https://www.theguardian.com/world/2018/jan/15/me-too-founder-tarana-burke-women-sexual-assault?CMP=share_btn_link 20 https://www.hollywoodreporter.com/news/metoo-sexual-assault-movement-reaches-500000-tweets-1049235 21 https://www.cbsnews.com/news/metoo-more-than-12-million-facebook-posts-comments-reactions-24-hours/ 22 https://www.reuters.com/article/us-time-person/time-magazine-names-metoo-silence-breakers-as-person-of-the-year-idUSKBN1E01O7 23 https://www.bustle.com/p/this-is-how-many-people-have-posted-me-too-since-october-according-to-new-data-6753697

23 SEXUAL HARASSMENT IN 2017: A TIPPING POINT SEXUAL HARASSMENT IN 2017: A TIPPING POINT

In the tech industry In Politics

The two major political parties in molested them in their teens – he engaged in an unprecedented the U.S. have also been rocked by one accuser said he assaulted social media exchange with one sexual harassment scandals as the her when she was only 14. of his accusers, Rachel Crooks.31 It has long been understood #MeToo movement continues. Sexual harassment and assault that the tech industry suffers Press and media pundits were allegations continue to trouble a power imbalance linked Democratic Senator Al Franken quick to attribute Moore’s defeat the Trump presidency. It appears to gender inequity. Major- announced his resignation to the “polarizing effect” of the likely he will face at least one of league players like Google from Congress in December accusations. Many commentators his accusers in court.32 and Facebook have publicly 2017 after accusations against pointed to fault lines the scandal acknowledged how few him surfaced. Franken saw exposed within the Republican women occupy their ranks, his political aspirations felled party. The Guardian described especially in the higher after Leeann Tweeden, a radio the concession of a Republican echelons of management.24 news anchor from California, stronghold to a Democrat as In Gaming Recently, female engineers accused him of inappropriate a “red-line” for the Trump and women in tech have sexual contact.29 His fate was administration that could play a begun to voice their sealed when the Democratic key role in redrawing the political concerns.25 26 Party sought to distance itself map of the country.30 from him – nearly unanimously Ride-hailing behemoth, Uber, calling for his resignation on The slur of sexual predation was called out for sexual December 6. Once tipped has also reached the highest The latest powerful career harassment in 2017 by former as a contender for the U.S. echelons of political power in to fall in the wake of sexual engineer Susan Fowler. Her presidency, Franken was the the United States. misconduct allegations is that of allegations about entrenched Steve Wynn who resigned from third member of Congress to The final days of Trump’s sexual misconduct set off a his company, Wynn Resorts, in leave under a cloud of alleged presidential candidacy were chain of internal investigations February 2018. sexual impropriety over a three- dogged by more than a dozen that culminated in the sacking day period in December 2017. accusations of sexual assault and The severance deal served on of 20 senior executives and they haven’t disappeared since Wynn is particularly noteworthy the resignation of CEO Travis In his resignation speech, Franken he was elected. In a significant in terms of its stringency. Kalanick.27 Uber’s fate has took parting shots at President precursor to the outpouring The casino mogul was remained uncertain since Donald Trump and Roy. S Moore, of accusations over Weinstein effectively forced out without Kalanick’s departure. The a Republican candidate for the and the #MeToo movement, severance or compensation enfant terrible of digital Senate at the time. Both Trump hundreds of thousands of and is prohibited from working disruption had become and Moore have also been women joined a Women’s in competitive gambling until synonymous with what the accused of sexual misconduct. March in Washington and other 2020. Additionally, Wynn has FastCompany and others Moore’s bid for an Alabama cities the day after Trump’s been compelled to cooperate have dubbed “workplace Senate seat surfaced a slew inauguration in January 2017. with investigations and lawsuits toxicity.”28 of accusations from women In February 2018, the President covering his time at the helm saying he had sexually increased public outrage after of the company, which may continue to mount.33

24 https://www.nytimes.com/2018/03/09/technology/google-diversity-lawsuits.html 31 https://www.theguardian.com/us-news/2018/feb/21/trump-twitter-spat-woman-accused-sexual-harassment 25 https://www.nytimes.com/2017/06/30/technology/women-entrepreneurs-speak-out-sexual-harassment.html 32 https://www.nytimes.com/2018/03/20/nyregion/trump-defamation-lawsuit-new-york-summer-zervos.html 26 http://www.businessinsider.com/sexual-harassment-scandals-tech-industry-2017-7 33 https://www.cnbc.com/2018/02/16/the-associated-press-wynn-gets-no-money-in-termination-deal-with-casino-company.html 27 https://www.nytimes.com/2017/06/21/technology/uber-ceo-travis-kalanick.html 28 https://www.fastcompany.com/3068475/this-is-what-caused-ubers-broken-company-culture 29 https://www.nytimes.com/2017/12/07/us/politics/al-franken-senate-sexual-harassment.html 30 https://www.theguardian.com/us-news/2017/dec/12/roy-moore-defeat-trump-future-republican-party-trumpism 25 SEXUAL HARASSMENT IN 2017: A TIPPING POINT

AN EMERGING PATH TO RESOLUTION?

The James and Wooten research By aggregating the examples cited have responded to accusations of found in 2006 that where there was in this white paper, it is interesting sexual predation in a manner that an accusation of sexual predation, to model what appears to be a new contrasts sharply with the behavior firms would typically follow a or emerging path for firms and modeled by firms in James and particular trajectory to resolution. organizations in 2018. Wooten’s 2006 sample. While many It usually involved protracted of these cases are ongoing, we can denial of wrong-doing; stakeholder The Weinstein Company (Harvey nonetheless draft a preliminary mobilization; retaliatory measures Weinstein), Netflix (Kevin Spacey), model contrasting the response of from the organization directed NBC News (Matt Lauer), Fox News firms now compared to a decade ago. at the process, stakeholders and (Roger Ailes), CBS (Charlie Rose) plaintiffs; and eventually settlement. and Wynn Resorts (Steve Wynn)

AN ENDEMIC PROBLEM

For all the signs that attitudes issue. It is entrenched across much by 2017 and the beginning of 2018 toward sexual harassment may of corporate America, and the costs must surely compel business be shifting, the problem itself is to businesses can be substantial. leaders, managers and practitioners unlikely to go away soon. to ensure the issue of sexual The Equal Employment harassment is front of mind today. The Washington Post and ABC News Opportunity Commission reported polled more than 1,000 women in a total of $46.3 million was paid the U.S. in 2017 about the issue. out to employees in 2017 for “The costs associated with The findings were published in sexual harassment complaints – discrimination are real, February 2018 and are nothing an increase of 13.8 percent and there are a number of short of stunning. from 2016.36 reasons why organizational The poll established 54 percent of But the costs go beyond financial. leaders should be American women have experienced concerned, not only about “unwanted and inappropriate sexual The damage to employee morale is discrimination lawsuits advances” in their lives.34 And in enormous. The damage to corporate but also about developing the workplace, just under a third reputation is massive. And the damage appropriate strategies for of all women endured that type of to future employee recruitment is, managing these crises.” behavior from male colleagues. A quite simply, incalculable. full quarter of these women said If the wakeup call issued by that harassment came from men James and Wooten did not reach James & Wooten who held sway over their careers.35 decision-makers in 2006, the shift “Diversity Crises: How Firms Manage in attitudes and awareness signaled Discrimination Lawsuits,” Academy of Sexual harassment is an intractable Management Journal, December 1, 2006.

34 http://www.langerresearch.com/wp-content/uploads/1192a1SexualHarassment.pdf 35 http://abcnews.go.com/Politics/unwanted-sexual-advances-hollywood-weinstein-story-poll/story?id=50521721 36 http://www.latimes.com/business/la-fi-sexual-harassment-training-20180220-story.htm

27 MODEL OF FIRMS’ HANDLING OF SEXUAL HARASSMENT ALLEGATIONS / LAWSUITS IN % 2006 & 2017 100 WOMEN’S PERSONAL EXPERIENCES OF UNWANTED SEXUAL ADVANCES 2006 2017 90 80

70 Accusation Accustion 60

50

40

30 Denial rhetoric Stakeholder mobilization 20 Has happened 10 Has not 0 Overall At work From someone who Firm retaliation against had influence over Investigation process and plaintiff their work situation %

100 EMOTIONAL TOLL 90

80 Stakeholder mobilization Disclipinary measures filed 70

60

50 Settlement 40 legal/stakeholder based Accused fired/resigns

30 49 months week1 20 Yes 10 No No change Change 0 efforts efforts Angry Intimidated Humiliated Ashamed

ABC News / Washington Post polls SHINING A LIGHT: RECOMMENDATIONS FOR BUSINESSES SHINING A LIGHT: ORGANIZATIONAL POLICY AND MEASURES CAN INCLUDE: RECOMMENDATIONS FOR BUSINESSES • Devise, articulate and enact clear and comprehensive anti-harassment policies. • Ensure harassment policies are communicated and accessible to all employees. wo thousand and seventeen a choice. They can wait to • Clearly define what harassment means. will go down as a landmark be called out and suffer the • Do research and learn from the experiences of other businesses year in the fight against consequences or be proactive • Clearly define the complaint process and include avenues, platforms and points of contact. sexual discrimination in tackling sexual misconduct • Clearly define the investigation procedures that defend the rights of the accuser and the accused. and harassment in within their organizations. • Clearly define anti-bias measures. the workplace. • Articulate and enforce measures to ensure the well-being of complainants – consider workplace safety It is the view of this paper that T measures such as schedules, work spaces, escorts, etc. It ushered in a new era of today’s decision-makers need • Share a statement underscoring zero tolerance in cases of retaliation against accusers. awareness and activism that to have the policies, strategies • Commit to investigating all complaints fairly and transparently. represents a pivotal moment. and tools in place to tackle • When claims are made: Business leaders have an sexual harassment in a systemic o Be sure to follow appropriate internal procedures for examining claims and identifying potential bias. opportunity to be part of this and pan-organizational manner. o Inform all employees or parties of their rights and detail steps to be taken. change and intensify focus on Leaders need to ensure they o Enforce an atmosphere of trust and transparency where an individual’s voice can be heard and recognized. the issue instead of turning are doing what it takes to a blind eye. To lead toward prevent harassment from taking solutions instead of scrambling place and creating a culture For business leaders and decision-makers there is a clear to perform damage control. where harassment cannot imperative to take the lead in combatting and preventing thrive and resolving issues sexual harassment. It is incumbent on these leaders to set the The entertainment sector effectively if they occur. tone. They must model transparency, integrity and commit to was ground zero for sexual abide by policies and strategies they implement. harassment in 2017, but all sectors are vulnerable to this issue in today’s global economy where diversity is a key business asset. The prescient work of James and Wooten highlighted the risks faced by firms that fail to adopt measures aimed at driving organizational change and pre- empting the risks associated with sexual harassment and discrimination accusations. Armed with these insights, business leaders can make

30 31 COMPANIES TAKING A STAND AGAINST SEXUAL HARASSMENT

In 2017 Fidelity Investments hit the headlines after • In November, Johnson moved her office at the company’s two of its most prominent fund managers were fired headquarters from the executive suite to the 11th floor, following allegations of sexual harassment. CEO Abigail bringing her into close daily proximity with key fund Johnson took a number of actions that underscored a managers, analysts and traders. shift to zero tolerance – a move that saw her (literally) • Johnson formed a committee to capture harassment take prevention measures to the next level. concerns made up of representatives from legal, human resources, the business department and an external lawyer. https://www.ft.com/content/03aa6570-b82b-11e7-9bfb-4a9c83ffa852 • The company conducted a wide-scale internal culture survey. https://www.bostonglobe.com/business/2017/11/16/with-mix-symbolism-and- action-fidelity-ceo-gets-tough-harassment/W3PM7DJxVkRHoWm1RNbEDN/story. • Sexual harassment training is now mandatory. html

In December 2017, United Airlines CEO, Oscar Munoz, • Sending a letter to all employees that said, “There is no place chose to respond to allegations of sexual harassment for sexual harassment at United.” made by flight attendants by changing the company’s • Confirming a commitment to “listening” to employee issues policies concerning harassment. As senior executive, • Putting out a call to action for employees which said, “This is Munoz articulated a “zero tolerance” approach by: an issue that affects all of us.” • Vowing to ensure all employees felt empowered to report issues

CEO Michael Roth issued a memo to more than 50,000 • Defined harassment employees in October 2017 that: • Underscored zero tolerance for “all forms of sexual harassment” http://www.adweek.com/agencies/ipg-ceo-issues-memo- • Drew attention to the company’s code of conduct promising-zero-tolerance-for-sexual-harassment/ • Highlighted an anonymous tip line for employees and guaranteed zero reprisals for “whistleblowers” • Created mandatory online anti-harassment training for U.S. staff

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