Shocking levels of sexual harassment and widespread sexism are commonplace in Britain’s financial sector, a powerful parliament says, due to a “culture of impunity” that continues to allow it to go unchecked. The committee warned.
Lawmakers on the finance select committee said they were shocked by some of the evidence presented, including in closed-door meetings where witnesses were encouraged to speak freely.
Their report calls for a complete ban on non-disclosure agreements in sexual harassment cases, as they were found to be “misused” to “conceal abuse”.
The legal arrangement, known as a “gag agreement,” was used to “silence victims and impunity for perpetrators,” the commission said.
They also called for stronger protections for whistleblowers in sexual harassment cases. Whistleblowing was viewed negatively at companies whose focus was on protecting the company rather than the victims of sexual harassment.
The report found “a widespread view that male perpetrators of harassment and abuse suffer little harm as a result of their actions”.
Witnesses said that no action was taken against the perpetrators, leaving them “free to carry out further abuse”.
One survey found that more than six out of 10 victims of harassment and bullying in the city knew that there was another person suffering similarly at the hands of their abuser.
Baroness Helena Morrissey told the committee: When I looked up their names, [FCA ‘fitness and propriety] Please register – I am not going to reveal them – they are certified people with completely unblemished records. ”
The Treasury Select Committee has gathered evidence from female finance executives and employees and found that sexual harassment continues to be “shockingly prevalent”.
The investigation was prompted by sexual harassment allegations against hedge fund boss Crispin O’Day.
They found that too many companies treat diversity and inclusion as “a tick-box exercise rather than a core business priority.”
The majority of witnesses told MPs that the culture at financial services companies remains an “old man’s club”, with hiring and promotion decisions biased towards women.
Regarding equal pay initiatives, only companies with 250 or more employees are required to publish their gender pay gaps annually. It calls for the threshold for the number of employees in the financial sector to be lowered to 50.
Companies with large gender pay gaps will need to explain why and publish action plans.
The report says the government should ban employers from asking about salary history and make it a legal requirement to include salary ranges in job advertisements, both of which “perpetuate a system in which women are paid less than men.” It is said that it will lead to
Committee Chair Harriet Baldwin called the financial services sector “the crown jewel of this country’s economy.”
“This high-paying sector can only maintain its competitive advantage if it is able to tap into the widest possible talent pool. That’s why efforts to tackle sexism in the city are at a snail’s pace. It is extremely frustrating that things are progressing at such a pace.
“Companies must take responsibility for improving their culture. There have been several high-profile incidents that demonstrate the existential risks of companies that do not address sexual misconduct. Diverse organizations perform better. “Doing nothing to improve is not only immoral but also bad for growth and business,” she said.