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So, I was just processing the news this morning and got to thinking about the Matt Lauer sex scandal. It occurs to me that Lauer's actions are probably going to cause NBC a huge amount of financial liability.
Just quickly the NY Times (from their December 29th 2017 article, "NBC Receives Least 2 New Complaints About Matt Lauer").
AND:
All this is going to cost NBC. Sexual harrassment has the following implications:
1. NBC will likely need to pay compensatory damages - sexual harassment compensatory damages are easily between $350,000 and $500,000.
2. NBC's insurance costs will likely increase, if they are not paying for sexual harassment insurance, they'll have to do it now.
3. Psychological costs to victims need to be factored in - this results in increased turnover and decreased employee engagement. This hurts NBC's operations.
4. NBC's reputation is likely to be harmed, this will impact their advertising revenue, harm their credibility and decrease the value of the the company.
Bottom line: This is extremely bad for NBC's bottom line.
Articles:
NY Times article
Marketwatch article on corporate financial costs.
Just quickly the NY Times (from their December 29th 2017 article, "NBC Receives Least 2 New Complaints About Matt Lauer").
On Wednesday, NBC received at least two more complaints related to Mr. Lauer, according to a person briefed on the network’s handling of the matter. One complaint came from a former employee who said Mr. Lauer had summoned her to his office in 2001, locked the door and sexually assaulted her. She provided her account to The New York Times but declined to let her name be used.
She told The Times that she passed out and had to be taken to a nurse. She said that she felt helpless because she didn’t want to lose her job, and that she didn’t report the encounter at the time because she felt ashamed.
She told The Times that she passed out and had to be taken to a nurse. She said that she felt helpless because she didn’t want to lose her job, and that she didn’t report the encounter at the time because she felt ashamed.
In 2001, the woman said, Mr. Lauer, who is married, asked her to his office to discuss a story during a workday. When she sat down, she said, he locked the door, which he could do by pressing a button while sitting at his desk. (People who worked at NBC said the button was a regular security measure installed for high-profile employees.)
The woman said Mr. Lauer asked her to unbutton her blouse, which she did. She said the anchor then stepped out from behind his desk, pulled down her pants, bent her over a chair and had intercourse with her. At some point, she said, she passed out with her pants pulled halfway down. She woke up on the floor of his office, and Mr. Lauer had his assistant take her to a nurse.
The woman said Mr. Lauer asked her to unbutton her blouse, which she did. She said the anchor then stepped out from behind his desk, pulled down her pants, bent her over a chair and had intercourse with her. At some point, she said, she passed out with her pants pulled halfway down. She woke up on the floor of his office, and Mr. Lauer had his assistant take her to a nurse.
1. NBC will likely need to pay compensatory damages - sexual harassment compensatory damages are easily between $350,000 and $500,000.
2. NBC's insurance costs will likely increase, if they are not paying for sexual harassment insurance, they'll have to do it now.
3. Psychological costs to victims need to be factored in - this results in increased turnover and decreased employee engagement. This hurts NBC's operations.
4. NBC's reputation is likely to be harmed, this will impact their advertising revenue, harm their credibility and decrease the value of the the company.
Bottom line: This is extremely bad for NBC's bottom line.
Articles:
NY Times article
Marketwatch article on corporate financial costs.
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