IMDDA Survey: More investors asking about sexual harassment during due diligence process

More investors – nearly 1 in 10 – would still invest with a given manager upon identifying sexual harassment issues at a firm. That is not to say more are not asking about the issue though, according to a new survey released by the Investment Management Due Diligence Association (IMDDA), an organization dedicated to professionals who perform investment and operational due diligence. Nearly one-third of allocators (26%) inquire about sexual harassment during the due diligence process, which is an increase from 2018 when only 11% of those surveyed said they did. Only 9% would still invest with a manager that has workplace sexual harassment issues, but that is up from 4% in the previous study. Another statistic on the rise is the number of due diligence professionals that would dig deeper if individuals did not wish to answer questions regarding sexual harassment – a total of 45% vs 18% in 2018. “Investors need to maintain their moral and ethical responsibilities while making sure not to ignore fiscal responsibilities. This survey shows we are moving in the right direction,” said Andrew Borowiec, executive director of the IMDDA. The risks of ignoring sexual harassment at investment management firms can be devastating for allocators, according to IMDDA. These risks include negative media coverage, reputational damage, tough questions and actions from investment committees, protests from beneficiaries, and allegations that professionals simply did not do their job. In response to the rise of the #MeToo movement in 2017, the IMDDA commissioned anonymous surveys of due diligence professionals at institutional allocator firms. In this new 2019 survey, 78 investors participated representing endowments, pensions, insurance companies, private banks and fund-of-funds. The geographic breakdown of respondents was: 55% North America, 24% Europe, 9% Asia/Australia, and the balance in Africa/Middle East/South America.

IMDDA Survey: More investors asking about sexual harassment during due diligence process

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