Becker's Hospital Review

39 39 CEO/STRATEGY Your CEO got fired for sexual harrassment: Is your board really ready for what's next? By Emily Rappleye T he #MeToo movement hasn't changed much in boardrooms across America. e majority of boards — 57 percent — still haven't discussed sexual misconduct or sexism in the workplace, according to a February and March survey of board members and venture capitalists conducted by theBoardlist and Qualtrics. Boards may believe sexual misconduct would never happen in the top tiers of their organization. Yet executive misconduct of any kind and systemic cultural issues like sexism are absolutely governance issues. So why wait to discuss the potential risk? Respondents to theBoardlist-Qualtrics survey said their boards hadn't discussed sexual misconduct or sexism because these issues are low priority, irrelevant or threatening to the CEO. However, a closer look at how companies are rebounding from #MeToo reveals why all boards should discuss sexual harassment, despite initial misgivings. Many women now fill roles vacated by executives for sexual harassment or assault. Hoda Kotb replaced Matt Lauer on "e Today Show." Edith Chapin took over as NPR's chief news editor following David Sweeney's departure. Robin Wright took the spotlight from Kevin Spacey on "House of Cards." e solution seems simple: Put a woman in charge. It gives a qualified woman the chance to lead. It subverts the power structure in traditionally male-led industries. And while it doesn't right the wrong, it signals something powerful to women in the workforce: You have an advocate at the top. Unfortunately the solution workplaces need is both more nuanced and more sweeping. Consider the decision to appoint a woman to lead aer an executive is ousted for sexual misconduct: How does the board make it clear she was chosen for her talents and experience, rather than as a token female leader tasked with cleaning up the mess? Even more importantly, how can boards help change the cultural norms that allow such transgressions to occur? "People don't have these conversations because they are not comfortable having them," said Antoinette Hardy-Waller, RN, BSN, founder and CEO of e Leverage Network, a nonprofit dedicated to advancing African- Americans in executive, governance and entrepreneurial healthcare roles. Ms. Hardy-Waller has extensive governance experience, most recently on the board of stewardship trustees for Englewood, Colo.- based Catholic Health Initiatives. "In light of what's happened with the #MeToo movement and all the claims that have occurred, in order for organizations to reduce their risk and effectively take care of their organizations, they need to begin to have those conversations." Boards set the tone Boards owe it to their organizations' employees to engage their corporate compliance and HR committees in a review and refresh of sexual harassment policies and investigative procedures, as well as diversity and inclusion programs. Ensuring governance policies are up-to-date creates a framework for boards to process potential sexual misconduct claims if needed, and, if an executive is dismissed, outline the qualities of the ideal candidate for the job and the organization. "A board ought to look at itself on an ongoing basis," said R. Edward Howell, professor of public health sciences at the University of Virginia in Charlottesville. "When an executive is dismissed, that's a very appropriate time [for a board] to look at itself and ask, 'How are we doing? How are we setting the tone? Is it possible that the board had some failing that led to this misconduct or harassment?'" Mr. Howell has nearly 40 years of experience leading academic medical systems, most recently as vice president and CEO of the University of Virginia Medical Center. He is also dedicated to board service and currently chairs the ethics committee of the Jefferson Board for Aging, among other governance engagements. Mr. Howell believes boards set the tone for organizations. e board can send the message that diversity and inclusion are critical to an organization's mission, not just a numbers game or a check-the-box program. If leadership does not come close to reflecting the diversity of an organization's staff or the community it serves, that indicates diversity policies need to be revisited. In many industries like healthcare, there is still work to do. "If you look at the workforce in healthcare, it's dominated by females," said Mr. Howell. "ere are certainly a large number of qualified persons available to take positions that are turning over." e lack of women in healthcare leadership should be an even greater motivator to review talent pipelines than the #MeToo movement. Women make up approximately 62 percent of the healthcare workforce, but fill only 49 percent of healthcare leadership positions, according to a 2017 LinkedIn analysis. Women are even more scarce in hospital executive ranks. Just 26 percent of hospital CEOs are women, according to a 2013 analysis conducted by the American College of Healthcare Executives. If an executive position or board seat is vacated, for sexual misconduct or otherwise, hospital boards can view the turnover as a potential opportunity to reduce longstanding gender discrepancy. e decision to promote a qualified woman following an instance of executive sexual misconduct can ignite a cultural shi, especially in industries like healthcare. Sexual harassment and assault are not uncommon in medicine, and the field's innate hierarchy can silence those who fear stigmatization for reporting issues. Almost a third (30 "When an executive is dismissed, that's a very appropriate time [for a board] to look at itself and ask, 'How are we doing? How are we setting the tone? Is it possible that the board had some failing that led to this misconduct or harassment?'" — R. Edward Howell, Professor of Public Health Sciences, University of Virginia

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