Workplace Misconduct: The Underestimated Systemic Implications for Investors

Company culture has been in the spotlight for a number of years, with growing recognition of the importance of culture within an organisation, and its contribution to an organisation’s risk profile. It is now widely recognised that weaknesses in culture, and the governance and accountability relating to culture, translate directly into financial risk.

Traditionally, investor engagement on these issues has been focused on human resources-related strategies that can be leveraged to improve company culture. These strategies include appropriate diversity and inclusion practices, creating a ‘speak up’ culture, survivor-centric grievance mechanisms, among others. We fundamentally support and encourage these initiatives and believe they are a critical way to improve workplace culture.