A comprehensive guide to dealing with sexual harassment in the tech industry

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With the spat of sexual harassment incidents by venture capitalists Chris Sacca, Dave McClure, and Justin Caldbeck, there’s a spotlight on how organizations should handle such cases if they occur within their ranks, and how to prevent them from happening.

We highlight a few approaches here.

Zero tolerance

LinkedIn co-founder Reid Hoffman thinks there should be a zero tolerance policy towards sexual harassment:

• VCs should understand that they have the same moral position to the entrepreneurs they interact with that a manager has to an employee, or a college professor to a student. That is to say, as soon as you start discussing potential business deals of any kind with an entrepreneur, there is no such thing as an innocent or appropriate sexual proposition or remark. If you are interested in pursuing a business relationship of some kind, you forfeit the prospect of pursuing a romantic or sexual relationship. If you want to mutually pursue a romantic or sexual relationship, then forfeit the prospect of a business relationship.
• If anyone sees a venture capitalist behaving differently from this standard, they should disclose this information to their colleagues as appropriate – just as one would if one saw a manager interacting inappropriately with an employee, or a college professor with a student.
• Any VC who agrees that this is a serious issue that deserves zero tolerance – and I certainly hope most do think this way – should stop doing business with VCs who engage in this behavior. LPs should stop investing. Entrepreneurs of all genders should stop considering those VCs. This behavior occurs in our industry not just because some believe it’s no big deal, but also because those who do find it unacceptable don’t do enough to actively discourage it.

Hoffman also believes the venture capital industry should create an “industry-wide HR function” so that VCs would face the same consequences as employees who’ve sexually assaulted a co-worker.

Venture capital firm Foundry Group also has a zero tolerance policy, which states:

• Any allegation of sexual harassment within a company we are investors in will result in an immediate investigation, with a goal of having it resolved as promptly as possible. If found to be valid, we will request an immediate termination of the harasser, regardless of job position. We will work with all of our companies to put this policy in place.

• Any allegation of sexual harassment by an employee of a fund we are an LP in will result in an immediate investigation, with a goal of having it resolved as promptly as possible. If found to be valid, we will request the immediate resignation of the harasser, regardless of job position. If the harasser is a GP, we will ask for the immediate resignation of the harasser and, if refused, we will engage with other LPs to explore legal removal of the harasser. We will work with all of the funds that we are investors in to put this policy in place, recognizing that we have much less power and influence as an LP than we do as a direct investor and board member of a company.

A more nuanced approach

Others believe that a less punitive policy would be more appropriate, since there are different levels of sexual harassment, starting from inappropriate remarks up to outright sexual assault.

Brittany Laughlin, a partner at Lattice VC, suggests a policy in which repeated offenses will be dealt with more harshly:

• No harassment in the workplace. No groping, unwanted sexual advances, harassing language, or offensive remarks based on gender/race. More details: EEOC guidelines. If harassment takes place, report it.
• Policy applies, even out of the office. Any work related meeting held anywhere, from boardrooms to hotel lobbies, is considered as workplace, and the policy still applies.
• Disclose personal relationships. Conflicts of interest related to personal relationships should be disclosed before, during, or after an investment. If you are in any way unsure of the nature of your relationship, communicate explicitly with words.
• Over report, don’t under report. All incidents should be reported, either with name or anonymously. All incidents will be recorded and reported to the offending party. Whether you are a witness or a victim, your complaint will be recorded.
• Deliver feedback as soon as possible. Once the incident is delivered to the offending party, there will be a documented conversation with management/peers/colleagues. Action steps could include: a letter of apology, a signed record of the misconduct with planned steps to prevent a repeat offense, and/or a request to seek professional counseling.
• Repeat behavior will be met with more action. If the same behavior is repeated after a prior warning, the company will take additional action to have the individual seek professional help or move on from the company. The company will communicate accordingly about the incident to prevent future harm.
• Intoxication is not an excuse. The policy applies, even when there is alcohol or other substances that impair judgement. If you cannot act appropriately when you imbibe: don’t drink or don’t participate in the event.

Different levels of sexual harassment

Finally, Malaysian entrepreneur Cheryl Yeoh, who herself is a victim of sexual assault by Dave McClure, suggests a four-step action plan which includes treating various levels of harassment differently:

Action 1: Clearly define the different levels of “inappropriateness” in a formal company harassment policy

Rules for VCs