The #MeToo movement in 2017 has provided a wake-up call to many industries, investment management among them. While progress is being made to address inappropriate behavior in the workplace, sexual harassment against women in the industry remains a serious concern. As such, the IMDDA commissioned a survey to identify these issues and provide recommendations on how best we can address them.
The report defines the risks and recommends ways that professional allocators can incorporate the topic in Operational Due Diligence (ODD) reviews. The failure to investigate sexual harassment in ODD could lead to an incomplete assessment, exposing investors to unchecked reputational and financial risk.
As the first annual survey on sexual harassment and due diligence in the industry, the data is a good benchmark for how investors are thinking about these and other human resource issues, such as:
- If allocators inquire about sexual harassment in the workplace;
- If allocators would still invest with a fund manager who has had issues with sexual harassment;
- If background checks are limited to principals and senior staff and if social media is being used to check for red flags.