Here is a paper by Daniel Hemel and Dorothy Lund of the University of Chicago Law School on "Sexual Harassment and Corporate Law," in which they "examine the role of corporate and securities law in regulating and remedying workplace sexual misconduct." The basic mechanism should be familiar to Money Stuff readers:
- Company ______s.
- People find out that the company ______s.
- The stock drops as people worry that the company's ______ing will lead to lawsuits or prosecution or lost customers or reduced employee morale or whatever.
- Shareholders sue company for securities fraud, alleging that the company's ______ing was material to shareholders and should have been disclosed.
You can put all sorts of things in the ______: Polluting, selling opioids, selling guns, mispricing chickens, the stuff Facebook Inc. got up to with Cambridge Analytica, really anything that anyone finds unattractive. "Securities law," I wrote recently, "is an all-purpose tool for punishing corporate badness." If you put "tolerating and protecting sexual harassers" in the ______, then you can use that all-purpose tool to go after sexual harassment.
It is also, though, kind of an awkward tool for many of its purposes.
Read more at Bloomberg