EY to investigate sex harassment claim

Global accounting firm Ernst & Young (EY) has announced an investigation into an allegation of sexual harassment made by one of its employees in Hong Kong, which has gone viral on social media.

In a statement to the Post, the firm acknowledged that a report “relating to sexual harassment and misconduct claims against a number of EY personnel” had been circulating on social media and was received by the company internally.

“We have immediately commenced a formal process of independent investigation into the matter,” it said.

The company added that it took a zero-tolerance policy when it came to unethical behaviour and that “any breach of the code will result in strong, decisive and proportionate disciplinary actions”, referring to its global code of conduct. “In this matter, we have also adopted immediate measures to ensure the safety and well-being of the relevant personnel,” it said.

In the letter addressed to senior management, the authenticity of which the Post cannot independently verify, a female employee in Hong Kong says she was at a karaoke bar last week and she and a female colleague were sexually harassed by a senior male manager in the presence of her superior and several other employees.

The company is one of the four largest accounting firms in the world.

Under Hong Kong’s Sex

Discrimination Ordinance, sexual harassment includes creating a sexually hostile or intimidating environment and any behaviour that is generally regarded as offensive, humiliating or intimidating.

It is also illegal to discriminate against a person based on sex, marital status, pregnancy or for breastfeeding, with more severe cases such as indecent assault and rape covered by criminal law.

The Equal Opportunities Commission (EOC) received 298 complaints under the ordinance from January to November 2022, of which 56.7 per cent were related to sexual harassment.

A spokesman for the equality watchdog reiterated that Hongkongers were protected from sexual harassment under the Sex Discrimination Ordinance, which covered specified areas, including employment.

“The aggrieved persons can seek assistance or lodge complaints with the EOC,” he said.

Peter Reading, a former senior legal counsel at the EOC and an expert in discrimination law, told the Post that research and complaints received by organisations such as the watchdog indicated that sexual harassment was widespread in workplaces in Hong Kong – particularly against women.

“Entertainment situations connected to work are also more likely to involve situations, particularly where alcohol is involved,” he said, adding that by the incident being made public, the company could be forced to fully investigate.

The firm’s “EY Oceania Value Realised Scorecard”, published last November covering its Australia, New Zealand, Fiji and Papua New Guinea operations, showed 17 formal workplace investigations were conducted in the last financial year, up from 12 the year before.

Of the 13 substantiated investigations – where allegations were found to be true – in the year running up to June 30, 2022, five were for sexual harassment, four were for bullying and the remaining four had elements of bullying, harassment or sexual harassment.

We have also adopted immediate measures to ensure the safety … of the relevant personnel

AN ERNST & YOUNG STATEMENT