By SANDRA BOGRAD
Welcome to Atelic Consulting's debut blog post, written by Sandra Bograd. Sandra is an experienced and globally focused senior conduct risk expert, legal and compliance risk executive with an established track record of strong leadership in the areas compliance/conduct risk management and program building with Fortune 500 companies (New York Life, Bank of America, Freddie Mac, AIG).
Listen, I’m from New York City. We are somewhat brash and cynical, or so I’ve been told. Actually its worse…I am originally from New Jersey and have been accused of being way too straightforward in my approach. “Straightforward, in your face, some say truthful."
I’ve also been in a male dominated profession for 30 plus years and I’ve seen bad behavior and oh by the way…#MeToo.
So I was not terribly surprised by the claims made by actresses who swallowed their voices and squandered their social media audiences in order to get movie/TV roles and are now exploding on to the scene with blockbuster stories to everyone and anyone who will listen. To quote the great entertainment industry film NETWORK, they are “mad as hell and not going to take it anymore”.
Harassment happens, in all forms and sexual harassment comes in all shapes and sizes. If the “Me Too” campaign is any sign, almost 100% of women are or have experienced gender harassment and/or discrimination in and out of the entertainment industry. A “casting couch” mentality has been around for a long time. Any fan of pre-Hayes Office movies on TCM can tell you that the story of the ingénue forced into a Hobson’s choice by a leering, odious movie producer or studio executive is a classic.
This is not Hollywood of the 1940’s and 50's. The actresses and industry pros coming forward in the Weinstein matter are speaking up and exercising free speech at its finest. They are leveraging their platforms and their social media followings.
I am not so worried about what happened in the past, and I am feeling good about what current and future Hollywood talent is on the road to discovering…they do have control…they can nudge the behavior of the various stakeholders, from the viewers to the industry leaders, to help create a fair and free workplace.
Here’s what I am worried about:
The cynics on the Weinstein Board who traded their company’s culture and conduct for a violator’s fines like it was a virtual swear jar! Weinstein’s employment contract provided for a scale of payments: 1 violation you pay $250k…2 violations you put $500K in the “swear” jar. After 5 violations you pay $1 million for every violation. That adds up to a lot of money, but certainly less than the loss of an ongoing business and reputation.
Does anyone even know what the “Weinstein swear jar” was worth? What would they have done with the money that didn’t go to settlements? Would the Board have used the money to fund a Board retreat? Would they have used the money for an unplanned distribution to corporate executives?
Or would they have used the money to fund behavior modification, communication, education and awareness programs for themselves? For the industry, for their vendors and 3rd Party suppliers? That is what true industry leaders would do! They use their power and standing to make their industry better for everyone.
What other companies are doing the same thing? What else do boards allow to happen as long as the “swear jar” gets full. This is not limited to the entertainment industry.
I heard a news television commentator say that these were standard contract clauses, like “liquidated damages” and then debated his own proposition, finally arriving at the conclusion that a court somewhere would say that these contract clauses were unenforceable because they were “ against public policy”. In other words he “lawyered” it. And that is the problem!
When a company, an industry, a trade association hides behind a transactional analysis, they lose the chance to build the culture that they want/need. Great leaders choose to drive behavioral change by understanding what is really happening across their companies. Great leaders proactively nudge an open and collaborative exchange of ideas within the organization. Great leaders diagnose, treat and heal where it is needed.
Great leaders do not rely on “swear jars” or “morals clauses” and hope for the best. Great leaders drive behavioral change by demanding the best and accepting nothing less in the cultures they build as part of a great organization.
Atelic Consulting offers strategic and operational guidance and recommended solutions to Boards, Chief Risk Officers, Chief Conduct Officers, Chief Compliance Officers, General Counsels and Audit and Risk Committees as part of an ongoing operational and conduct risk mitigation program.