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Top companies face legal action over sexual harassment

Sarah Gordon 04.12.2017
FTSE 100 companies have been warned that Britain’s national equality commission will sue them if they fail to prevent or deal with sexual harassment. The Equality and Human Rights Commission, an independent public body, has written to the chairs of all FTSE 100 companies to promise legal action over systemic failings and to ask them for evidence of the safeguards they have in place to prevent sexual harassment. 
“Sexual harassment is rife across all of our industries,” said Rebecca Hilsenrath, chief executive of EHRC. “We accept it far too easily, in terms of the culture we live in. Accountability lies with leadership.”

The EHRC also wrote to leading retailers such as Asda and the Coop, leading universities, police forces, media companies with a high number of interns and companies which rely upon agency staff, such as hotels. Employers have been set a deadline of January 19 to respond to the letter. The EHRC said that, since the recent reporting of high profile cases in Hollywood and Westminster, and in the wake of the #metoo campaign, urging women to report their experiences, it had received inquiries from organisations seeking to understand their obligations under the law. It has also produced guidance for employers on addressing the issue. The letter reminds employers of their legal responsibility for the “safety and dignity” of their employees and asks them to supply evidence of what safeguards they have in place to prevent sexual harassment; what steps they have taken to ensure that all employees were able to report instances of harassment without fear of retribution; and how they planned to prevent harassment in the future. Have you experienced sexual misconduct in the workplace? TELL US ABOUT IT. You can reach us securely using this form or emailing sarah.gordon@ft.com. The most secure way to contact us is via post or SecureDrop. Where the EHRC discovered evidence of systemic failings, it said it would consider “exercising its enforcement powers”, which could include undertaking investigations into organisations which it suspected might be failing to take reasonable steps to protect employees. “We need to take responsibility to ensure that no woman will ever be intimidated from reporting, be challenged by the difficulty of doing so or frightened of the implications for her career,” said Ms Hilsenrath. “Everyone is entitled to a workplace that is free from harassment and discrimination, and until we achieve that goal, we will see inequality in pay and opportunity.” Stephen Martin, director-general of the Institute of Directors in London, said boards should take the issue of sexual harassment “extremely seriously”. “Not only because it’s their responsibility to make sure that the company is run for the benefit of its employees as well as its shareholders, but also because there are significant legal risks if they do not, as shown by the EHRC’s threat,” he said. “Combined with the major reputational risk that comes from allowing a culture in which harassment is tolerated, directors really have no excuse to bury their heads in the sand.” The CBI said good business practice that has been proven to be effective against sexual harassment included ensuring there were clear processes for employees to report concerns in confidence; developing codes of conduct about what was and was not acceptable; and increasing the diversity and inclusiveness of their workforces at all levels, including at the most senior. Just over a quarter of FTSE 100 board directors are women, double the percentage in 2011, although there are only six female chairs and six female chief executives of FTSE 100 companies.