A "work hard, play hard" culture of excessive drinking is being blamed for alleged incidents of sexual harassment at law firm Russell McVeagh.
A "work hard, play hard" culture of excessive drinking is being blamed for alleged incidents of sexual harassment at law firm Russell McVeagh.
Dame Margaret Bazley has just released an 89-page report after interviewing 250 people to get to the bottom of allegations including that five summer clerks were sexually harassed over the summer of 2015/16.
The report found junior lawyers and other young staff were encouraged to "drink to excess" in that period, in a culture that had instances of crude, drunken and sexually inappropriate behaviour.
Bazley noted failings in the firm's governance and policies, including no code of conduct, which she said contributed to poor management of the incidents.
"I found that there was no one in charge in the Wellington office; the team within which the incidents occurred was out of control, and what was happening in that team was not noticed by the partners or brought to the attention of the board."
Bazley said the firm began to change the culture after the 2015/16 summer, and she could not find any recent incidents of sexual harassment, sexual assault or alcohol-fuelled misbehaviour.
But as part of her broader review of the firm, she found pockets of bullying, excessive work hours for junior lawyers, and fear among lawyers and partners about the consequences of speaking out.
She also noted that more work was needed to address underlying sexism, as too many female lawyers were leaving the firm rather than progressing to partnership.
"I consider any form of discrimination against women to be a serious issue because it inhibits the change that is needed to achieve the complete elimination of sexual harassment and sexual assault."
The report issued six pages of bullet-pointed recommendations for change - including sweeping changes to address bullying, the sexual harassment allegations and company policies.
It recommends issuing an apology for the incidents over the summer of 2015/16, and bringing in external expertise to develop a sexual harassment and sexual assault policy.
Bazley's review also identifies a need to protect junior staff from bullying, and recommends a standalone anti-bullying policy and a confidential way of reporting bullying.
Russell McVeagh chairman Malcolm Crotty said the board and partners accepted all of the findings, and had already started the process to implement all the recommendations.
He admitted they made "serious mistakes" in how the 2015/16 allegations were handled.
"The board and partners of Russell McVeagh are deeply sorry for the impact that the incidents of 2015/16 have had on the young women involved and our people.
"We have apologised to the young women for the hurt and damage we caused. We recognise that they have shown great courage and applaud them for this.
"Their actions will result in meaningful change."
Crotty said the firm had believed it had a "speak out" culture, but it was now clear that belief was "misguided".
He said that people felt unable to speak out, and even when some did, best practices weren't followed.
"It is deeply concerning to the board and partners that Dame Margaret's review has identified various degrees of bullying in pockets of our organisation and our people being required to work excessive hours.
"We are dismayed that we did not know many of the things affecting our people and we should have known.
"Despite the circumstances that led to the review being commissioned we are grateful that the terms of reference of the review gave sufficient scope so that such critical issues were able to be brought to our attention."
The chief executive of Russell McVeagh is retiring at the end of the year.
Russell McVeagh has pledged to give a public update on their transformational change programme in the first quarter of next year.
The Law Society said the report was an indictment on culture problems in the legal profession, and highlighted an urgent need for cultural reform.
President Kathryn Beck said they were committed to making the Law Society more accessible than it had been in the past, to help drive the necessary culture change.
"I want to be clear that while this report is about appalling events and a dysfunctional culture, we should not for a minute believe this is isolated to one firm.
"There is nothing to suggest that the issues that have been documented in this report have not occurred elsewhere - the structures, cultures, and work practices are common across the profession.
"We now know through our Workplace Environment Survey that almost one in three female lawyers have been sexually harassed in the workplace and that the legal profession has failed to create a safe, respectful, and inclusive workplace."
Beck said there had been an "outpouring" of complaints and allegations of sexual harassment in the last six months, and there needed to be a concerted programme of change.
The Law Society is currently recruiting lawyers for a taskforce to eliminate sexual harassment and bullying from the profession.
• A full apology and acknowledgement that its handling of the incidents over summer 2015/16 was poor. • That the firm enlists external expertise to develop a sexual harassment and sexual assault policy, and reviews the capability of the HR team to deal with sensitive sexual complaints. • That tight control be maintained over the availability of alcohol. • That the board chair makes it clear there is zero tolerance of bullying, including developing a standalone anti-bullying policy. • That the firm puts in place a confidential way of reporting bullying. • That the firm acts swiftly in relation to any reports of bullying, by giving the staff member opportunity to change, and if change isn't made, taking disciplinary action. • That partners model family-friendly practices and leave the office at a reasonable hour each evening, and ensure that their staff do the same, staying late only in exceptional circumstances. • That the firm engages an independent expert to advise on policies including sexual harassment and sexual assault, anti-bullying, alcohol use, expected behaviours at social functions, and code of conduct. • That senior and junior women sit down together to explore what can be changed to allow women to maintain their career progression towards partnership as they raise a family.
Dame Margaret Bazley was appointed to lead the external review, looking at incidents which occurred through 2015/16.
Allegations include male employees taking part in sexual acts with female intern students who were part of the summer law-clerk programme. There were accusations of a culture of inappropriate sexual behaviour at the firm.
Russell McVeagh staff were briefed this morning, and will be formally briefed again after the press conference.
The law firm pledged at the outset to give Bazley full access to any material she needed, as well as any staff who wished to participate.
Bazley was asked to consider the overall culture of the firm, as well as the firm's standards, systems, and policies for the management of staff.
Former staff and summer clerks were invited to take part.
When the review was announced in March this year, Russell McVeagh chairman Malcolm Crotty said the women who had been subjected to any form of sexual harassment would want to be assured that the review would be thorough.
At least two staff members left after allegations of sexually inappropriate behaviour towards young, female law-clerk students.
Bazley previously headed the Commission of Inquiry into Police Conduct in 2007, was a member of the Royal Commission on Auckland Governance, and reviewed the Legal Aid system in 2009.
She also reviewed the Wellington Rugby Football Union process and protocols for player recruitment, and the management and monitoring of player behaviour, in 2016.
All six of New Zealand's law schools have cut ties with Russell McVeagh after a series of accusations that a culture of sexual harassment was rife within the firm.
