Sexual misconduct is a significant enterprise risk. Reports of the downfall of corporate leaders who have been accused of, or admitted to, sexual misconduct are all too prevalent. Such misconduct leaves in its wake not only damage to the reputations of the accused but also corresponding harm to the company’s share price and reputation.
Due to the reputational and economic damage to organizations wrought by sexual misconduct, prevention should be central to an effective corporate compliance program. Chapter 8 of the Guidelines Manual 2018, the U.S. sentencing guidelines (USSG), is instructive in the development of a sexual misconduct–prevention program. Indeed, the seven elements of an effective compliance program delineated therein provide a useful framework for the prevention of sexual misconduct. Set forth below are practical applications of such guidelines, which will mitigate the risk of sexual misconduct in your organization.