Sexual harassment and misogyny are allowed to go unchecked at City firms because women have a “fear factor” over speaking out and do not trust human resource departments, MPs have been warned.
Speaking as the Treasury committee launched its sexism in the City inquiry, Helena Morrissey, the chair of the Diversity Project, an initiative in the UK investment and savings industry, called for an independent review of how firms deal with complaints of sexual harassment and misogyny.
The influential parliamentary committee renewed its inquiry after a spate of sexual harassment allegations rocked the business world. It aims to determine whether any meaningful progress had been made since its last investigation in 2018.
Lady Morrissey, who said 20 people had come forward to provide evidence, told politicians: “The really striking thing from all 20 of the testimonies that have come forward is the fear factor – and it has really taken my breath away, if I’m honest, because there is such nervousness about confidence being broken.
“There’s also testimony that in each time where women have escalated what has happened to them, it has made their working lives worse.
“Women see that they report something, and the firm ‘investigates’ but closes ranks and gets behind the more senior person … and that person might be let go but they’re kept in the system.
“But they’re very rarely let go and often the woman will end up leaving the firm thinking, ‘I can’t deal with this any more’, or her life is made uncomfortable. It’s very rational for someone to think, ‘I’m not going to report something because that might happen to me’.”
Earlier this year, the Guardian revealed multiple claims of sexual misconduct at the Confederation of British Industry, which prompted a string of companies to terminate their membership, including Aviva, NatWest, John Lewis and BMW.
Separately, Crispin Odey, one of the City’s most prominent hedge fund managers, left Odey Asset Management after allegations that he sexually assaulted or harassed 13 women. His lawyers have “strenuously disputed” the allegations.
“There’s a distrust of HR, [which is] quite widespread,” continued Morrissey, a top fund manager. “I have quite a lot of sympathy with the HR departments because they’re doing a very difficult role here.
“We have two specialists on our team and they get frustrated if someone doesn’t report something quickly because then it becomes harder to establish the truth. But often HR is seen as just on the side of the firm, not supporting the employee.”
The Conservative peer used the start of the committee’s inquiry to call for an independent review of sexism in City of London firms.
“I think we are at a stage where we might need independent investigations,” she said. She also called on the Financial Conduct Authority, the City regulator, to do more to stamp out harassment.
Mark Freed, the chief executive of E2W and Men for Inclusion, told the committee that all men had a responsibility to “stand up” and solve the issue. He said a recent letter from a member about an experience of harassment had read: “So many otherwise, at least relatively, good men turned a blind eye because he [the harasser] was a partner and dealing with his behaviour was probably too problematic.”
“This is happening to our mothers, our wives, our girlfriends, our sisters, our daughters, and men have got to stand up and solve the problem in the workplace at all levels every day,” Freed said.
Meanwhile, the committee was told that the rollback of hybrid working patterns was forcing women out of the City. Fiona Mackenzie, the CEO of thinktank The Other Half, told MPs that the “accidental” introduction of hybrid working in the financial sector due to the Covid pandemic did lead to some “fantastic progress”, aiding working parents.
However, she said very few people defended hybrid working, and many chief executives were quite keen to “switch it off”, forcing many high-performing women out of their jobs.
