Incompetent Executives Destroy Companies Through Harassment

 

Read the original article (in Japanese):


Harassment Goes Public — Smartphones and Social Media Changed Everything

With the rise of smartphones and social media, workplace harassment can no longer be hidden. Anonymous posts, audio recordings, and videos serve as undeniable evidence. Once exposed, trust in a company collapses quickly.

  • Public backlash leads to loss of clients and business partners

  • Job seekers turn away, causing hiring difficulties

  • Certifications like SDGs or ESG get revoked

Harassment is no longer an “internal issue”—it has become a direct threat to market value.

Lessons from the U.S.: Harassment as a Management Risk

Companies such as Activision Blizzard and the National Women’s Soccer League (NWSL) were forced into multi-million-dollar settlements over long-standing issues of harassment and discrimination. McDonald’s faced employee protests and scandals involving its CEO, damaging the brand worldwide.

What’s striking in all of these cases is that it wasn't just individual misconduct—the entire organizational culture was called into question.

Japan Is Not Immune — The Silent Risk Within

According to Japan’s Ministry of Health, Labor and Welfare, over 70% of workers have experienced some form of harassment. With over 4 million companies in Japan, that puts nearly 2.8 million businesses at potential risk—many of them without even realizing it.

  • “That’s how we’ve always done it”

  • “It’s not a big deal”

  • “It’s just a misunderstanding”

These outdated mindsets are no longer acceptable in today’s business landscape.

Organizational Culture Is the New Competitive Advantage

As more companies build healthy workplace cultures, those that don’t will begin to stand out—in a negative way—and gradually be eliminated. A clean and accountable organization is no longer a differentiator; it is the minimum requirement.

  • “High salaries” are no longer enough; people seek psychological safety

  • Big-name brands are less appealing than ethical and respectful workplaces

For the younger generation, these values are already the norm.

Harassment Is a Management Issue — Not Just an Ethical One

In today's world, a single manager's inappropriate comment can severely damage an entire organization’s reputation. What used to be dismissed as “just training” or “tough love” can now lead to corporate collapse.

This is why harassment prevention must be treated not as a moral obligation, but as a core business strategy.

Five Key Measures Every Company Must Implement

  1. Clearly defined internal policies and disciplinary procedures

  2. Independent and accessible reporting channels

  3. Mandatory harassment training for managers

  4. Regular anonymous surveys and whistleblower protections

  5. Oversight and alignment across franchises and subsidiaries

“Checking the box” is not enough—systems must actually work and be trusted by employees.

Conclusion: The Divide Between Chosen and Forgotten Companies

Companies that fail to protect their people will no longer be protected by society. Only those with healthy cultures and ethical management will gain trust—from employees, customers, and partners alike.

“If a company cannot protect people, society will not protect the company.”

That is the new reality every business leader must face.


Read in Japanese↓

ハラスメントが会社を潰す～見逃された“社内リスク”が経営を破壊する時代（2025.5.14）

Read more articles (in Japanese)↓

見込み採用の限界と日本企業の人事力──若さ信仰が競争力を削ぐ構造的問題（2025.5.12）

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