INTHEWAKE OF #METOO, BOARDROOMS WORRY THEIR COMPANIES COULD BE NEXT IN A VERY UNWANTED SPOTLIGHT. By Barbara Shecter

The wave of sexual impropriety accusations that created the #MeToo movement ever since the high-profile downfall of Hollywood powerbroker Harvey Weinstein is sending ripples through corporate boardrooms everywhere, enveloping the likes of casino king Steve Wynn, John Lasseter, head of Pixar Animation Studios and Walt Disney Animation Studios, and well-known Canadian winemaker Norman Hardie.

Corporate directors are now left grappling with how they would respond to what seems like the inevitable #MeToo-inspired accusation in the senior ranks of their companies. Just as important, they’re wondering whether they have the right pre-emptive measures in place to ultimately protect employees and shareholders.

“When you see all these events piling up and you see the impact of what’s happened, you can’t help but say ‘There but for the grace of God go I’,” said one director, who spoke to the Financial Post on condition that he, and, therefore, his board affiliations, would not be identified.

The potential legal and reputational implications for public companies loom large for the bottom line if it’s found that a corporate culture allows bad behaviour — or even the hint of bad behaviour — to flourish or go unpunished.

“If you get a serious allegation of misbehaviour and all of a sudden the stock price drops 25 per cent … the class-action suits start,” said the long-time director. “And the class-action suits are all going to be around

(questions such as) ‘where were you guys, what were you doing, how come you didn’t know about this, or if you knew about this, how come you didn’t disclose these things?’.”