Hurt of Harassment
When workplace harassment goes overlooked, victims and organizations suffer the consequences.
By CLARE FITZGERALD | Spring 2018
Sexual harassment cases in the entertainment, media, and
political spheres have dominated headlines recently, but workplace
harassment has long been pervasive across industries, especially in
traditionally male-dominated fields. And accounting and finance
hasn’t been an exception.
As the #MeToo and Time’s Up movements bring renewed attention
to sexual harassment and gender inequality, organizations across
America are working to root out the attitudes and mentalities that
drive hostile and inappropriate behavior. But they’ll need to do
more than update anti-harassment policies to do that. Creating safe
environments for employees also requires understanding the
psychology of harassers, addressing power disparities that
commonly drive workplace harassment, and fostering cultures of
trust and respect.
INTIMIDATION GAME
The U.S. Equal Employment Opportunity Commission defines
sexual harassment as unwelcome sexual advances, requests for
sexual favors, and other verbal or physical conduct of a sexual
nature that explicitly or implicitly affects an individual's
employment, unreasonably interferes with an individual's work
performance, or creates an intimidating, hostile or offensive
work environment. According to Eugene Hollander, a Chicago-based
attorney with experience in sexual harassment cases,
behavior that constitutes sexual harassment can range from
seemingly harmless sexual jokes or comments to aggressive
groping, touching, or displaying pornographic images in the
workplace — and everything in between.
Harassment can occur anywhere, by anyone, in any organization.
What many employers also mistakenly overlook is that they can be
held liable for harassment experienced by employees from
someone outside of their organization, such as vendors or clients.
But in most workplaces, harassment is driven by and revolves
around an imbalance of power, according to Dr. Jessica Lippman,
a Chicago-based clinical psychologist. “The perpetrator holds the
key to moving up, so the victim’s choices are either to submit and
be exploited to advance, or resist and risk not advancing or facing
retaliation,” she explains, noting that women are the victims in
most harassment cases. “It’s a lose-lose situation.”
Often, harassment starts in a non-threatening manner but escalates
quickly into aggressive behavior. “The perpetrator sees the victim
as being vulnerable. He might start by complimenting her work and
offering to help with her career. Perpetrators make their victims feel
special. It’s all part of the seduction. They often are very charming,
and they use that charm to manipulate,” Lippman says.
In addition to having manipulative personalities, Lippman says
narcissism is a common trait among sexual harassers. “They have
an inflated view of themselves and their talents, and they can’t
understand why anyone wouldn’t welcome their advances,” she
says. “They have an enormous sense of entitlement, but also a deep
need for approval. It’s the narcissist’s secret that they need to defend
against not being special at all costs.”
Because they see themselves as special, sexual predators often have
a Machiavellian attitude; the means justify the ends, which allows
them to disengage morally and find ways to justify their behavior,
Lippman explains. Another common trait is a lack of empathy.
“They are dismissive of other people’s feelings and careless toward
their victims,” she says.
But power is their ultimate weapon, and they are driven by a desire
to dominate and control. Knowing that they hold power, Lippman
says harassers won’t hesitate to disparage anyone who calls them
out as inappropriate. And in the past, perpetrators in positions of
power knew that they wouldn’t get called out. “People are obedient
to authority,” Lippman stresses. “They may not like what’s going
on, but in many cases, they won’t do anything to stop it.”
BAD BUSINESS
Harassment can be a festering problem, and the effects on
employee morale and productivity can be devastating to business.
Toxic environments increase workplace stress, and often lead to
increased absenteeism and turnover. Despite increasing pleas for
action, many victims would still rather leave than report being
harassed. “Victims don’t want to be labeled, ignored, or not
believed. So, they suck it up and it affects their performance, or
they leave, because they know they can’t work in such a hostile
environment,” Lippman explains.
In addition to the human costs, reputational and financial risks to
organizations can be steep. According to Hollander, a variety of
damage claims can be brought in a sexual harassment case against
an employer, such as pain and suffering, mental anguish, and
compensatory damages, which can quickly add up to costly
payouts. And although compensatory and punitive damage awards
in federal sexual harassment claims are capped, state claims are
not. If a victim brings a negligent supervision claim, for example,
and the facts suggest that an employer knew about the harassment
and swept it under the rug or did nothing to stop it, a company
could face a federal sexual harassment claim and a state claim. “A
jury could award hundreds of thousands of dollars in such cases,
and that can be crippling for many businesses,” Hollander warns.
ZERO TOLERANCE
Employers are responsible for maintaining a safe environment and
protecting employees from any behavior that could cause physical
or psychological harm. Plante Moran, a Midwest-based accounting,
tax, and consulting firm, refers to that responsibility as creating a
“jerk-free culture,” according to Diana Verdun, director of human
resources. “We want to create an environment that shouldn’t and
doesn’t have problems with workplace harassment,” she says,
noting for Plante Moran, achieving that goal starts with hiring
people who fit in with the firm’s culture and values.
Strong anti-harassment policies, clear reporting mechanisms,
and comprehensive training also are key to ensuring that
employees understand what constitutes harassment, how to report
it, and the consequences of any inappropriate behavior. Plante
Moran includes workplace harassment training as part of its
onboarding process and incorporates more advanced training
as people move into managerial and supervisory roles. “We
educate our people on this topic throughout their careers, so
they know how to manage through any issues and how to handle
any concerns,” Verdun explains.
Maintaining an atmosphere where people feel comfortable talking
about sensitive topics also is important. “We always try to
acknowledge that the whole person comes to work, and that
people have things on their minds that they should feel comfortable
talking about. We don’t want people to think they have to check
their concerns at the door,” Verdun says. “Building an environment
of trust gives people confidence that any concerns they have will
be taken seriously and investigated.”
Although organizations need to have clear codes of conduct, rules
will always be broken. As Hollander notes, “The world is made up
of all sorts of humans, and people are still going to do what
they’re going to do.”
That’s why employers need to be prepared to take immediate action
if an issue does arise. “Anti-harassment policies are important, but
they need to have teeth,” Lippman says. “Companies can host town
hall meetings and talk about values, but people have to see what
they’re saying isn’t just rhetoric. Women have to feel that they will
be heard, that their claims will be investigated, and that there will
be consequences if someone crosses the line. Companies need to
show that harassment won’t be tolerated, and they need to be clear
about what will happen if they find out that an employee is being
harassed. And it can’t just be a slap on the wrist.”
Plante Moran adds weight to its zero-tolerance policies with
support from the top. “If evidence shows that someone at our firm
is doing something that falls into ‘jerk’ behavior, then that person
simply will not be with the firm anymore, regardless of his or her
position. Public accounting firms have many owners, and it’s
important that they all agree with that philosophy.”
Ultimately, though, policies and education can only go so far.
Eliminating hostile attitudes and power imbalances in corporate
America will mean promoting more women into the executive
ranks. The accounting and finance industry continues to struggle
on that front, leaving it vulnerable to reputational harm if
change isn’t made. Plante Moran and many other notable firms
have instituted women leadership programs and have increased
their numbers of female partners. Many are also working to
highlight the benefits of a diverse workforce, but there’s still
progress to be made in this profession.
“We need to understand the value of the differences that people
bring,” Verdun says. “While we work really hard at getting this
right, we’re always learning from our staff and others in the
marketplace to ensure we’re continuing to improve in these areas.
It all comes down to respecting each other as humans and creating
environments in which everyone can excel.”