The Financial Times and City AM have reported that Ernst Young, one of the big four accounting firms, is facing a backlash from staff after allowing a partner to retain his job after sexually harassing a junior female colleague on a company ski trip.
Neil Hutt, a partner of 16 years with Ernst & Young, was found to have behaved in an ‘obscene and aggressive’ fashion when he made inappropriate remarks to a junior colleague, a disciplinary by the sector’s governing body found. But despite the finding, the Institute of Chartered Accountants in England and Wales determined that he would not be struck off as there was no risk of repeated behaviour.
However, since the panel’s report was made public, Mr Hutt has resigned from the company with immediate effect. The accounting giant told staff it would do more to tackle inappropriate behaviour in a company-wide webcast on Tuesday, according to the Financial Times, which first reported the news. Some EY staff reportedly called the webcast “cringeworthy,” “complete hot air,” and said it demonstrated “how disconnected [EY’s leadership] are from reality,”. Some suggested the latest announcements by the accountancy firm were only made because of the pressure of publicity.
The accounting giant has since reportedly said it will review its disciplinary process and sanctions for staff and partners and set up an anonymous feedback channel.
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