Tag: board oversight of corporate culture

Does workplace sexual harassment predict poor stock price performance?

We’ve certainly seen any number of examples of companies taking a big hit when sexual harassment of employees by key executives comes to light—sometimes someone even makes a pretty good movie about it.  But what about your everyday non-CEO harasser? Does workplace sexual harassment affect the value of the company?  Some might argue that it’s just a case of correlation, not causation, but in this study, the authors found that a high incidence of workplace sexual harassment has a powerful adverse impact on company value. Toxic culture, it turns out, matters when it comes to shareholder value.