Indian wrestling champions have been protesting against Brij Bhushan Sharan Singh, chief of the Wrestling Federation of India and BJP MP, since January 2023, accusing him of sexual misconduct. After videos and photos of their complaints gained global attention, the Union Sports Ministry set up an Oversight Committee (OC) to investigate these allegations.
However, many wrestlers who testified to the OC voiced concerns about the proceedings on being asked to provide video or audio proof of their harassment. This lack of confidence in OCs as a body to address sexual persecution issues is not limited to the sporting community; it finds resonance even in the start-up landscape, where women's labour participation is still low.
According to DivHERsity Benchmarking Report 2022-2023, women’s representation in small and medium enterprises (SMEs) and start-ups declined by 12 per cent last year to 27 per cent.
Well aware of the benefits of having a diverse workforce, India Inc is proactively working towards achieving gender balance in their organisations. Nonetheless, there are often many slips between the proverbial cup and the lip.
Greater Need For Sensitisation
Product Manager Savita K (name changed on request) quit her job at a Bengaluru-based start-up because she was bothered by the working atmosphere, especially as she was an outlier in her all-male team. "During the late-night shifts, my male colleagues would pass double entendre jokes casually, which made me uncomfortable. On mentioning this to the HR officer, he told me to take it in the right spirit and not make an issue of nothing," she recalls.
Savita's is not an isolated case, nor is it likely to be the last. This is because most start-up employees are unaware of the existence of an Internal Complaints Committee (ICC) and relevant Prevention of Sexual Harassment (PoSH) laws in their companies.
Their ignorance can be traced to the absence of periodic gender equity workshops. Considering that most of the start-up workforce comprises young Gen-Z employees fresh out of college, these workshops are needed for better sensitisation.
A StrideOne report noted that India has over 60,000 registered start-ups. Ankita Sen, the people partner at construction management platform Powerplay, points out that since many early-stage companies employ less than ten staffers, they lack a PoSH committee.
According to FICCI–EY's 'Fostering Safe Workplaces' report, approximately 36 per cent of Indian companies and 25 per cent of multinationals in India do not comply with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Sumit Sabharwal, CEO of TeamLease HRtech, says that 31 per cent of survey respondents were also not compliant with the Act's requirement to establish ICCs to address complaints.
"Additionally, approximately 40 per cent had not trained their ICC members and around 35 per cent were unaware of the penalties for non-compliance," he notes. "Furthermore, 44 per cent of organisations surveyed did not display the penal consequences of sexual harassment on their premises, with the SME sector having the lowest compliance rate at 71 per cent."
The writing on the wall is clear—there is an urgent need for awareness, training and implementation of proper measures to address and prevent sexual harassment in the workplace.
Prioritising Well-Being Above All Else
Start-ups are sometimes hesitant about establishing ICCs for reasons that vary from limited resources to lack of awareness about the legal ramifications. Add to this an informal work culture in coworking spaces where back-slapping and risqué jokes are part of the course, making it a tinderbox for inappropriate conduct.
Prioritising rapid growth, founders may view an ICC as diverting attention and resources from the company's core business operations. "Start-ups that rank their product-market fit over their employees are more likely to overlook other essential aspects of their operations, including establishing an ICC. Such start-ups often fail to comply with basic standard operating procedures, creating a potentially disastrous situation," Sen cautions.
However, as they grow and mature, start-ups must set up an ICC to ensure an inclusive work environment and comply with legal requirements. Ultimately, this decision will be influenced by a combination of resources, priorities, awareness, corporate governance guidelines and organisational culture.
While most start-ups intend to do the right thing for their employees, setting up ICC trails down to the bottom of the list, especially in early-stage entities. This is because the founder personally connects with their employees and acts as the corporate judge, jury and executioner.
Sandeep Raghunath, vice president for HR at Kaleidofin, says, "Start-ups may be concerned about the potential negative impact on their reputation if allegations of sexual harassment or misconduct become public. They may mistakenly believe that not having an ICC would minimise the risk of such incidents being exposed."
It is important for start-ups to understand that establishing an ICC is not just a legal requirement but a crucial step in fostering a safe and respectful workplace culture. Implementing policies and procedures to prevent and address sexual harassment can contribute to employee well-being, attract diverse talent, and ultimately contribute to the long-term success of the start-up.
Regular evaluation and improvement of the ICC's effectiveness, based on feedback from employees and relevant stakeholders, can further help to foster trust and ensure a safe and supportive work environment. This is why Awign has initiated mandatory training sessions for its ICC members and separate training sessions to build employee awareness.
The company's chief strategy officer, Anirudh Jaitly, suggests that to enhance an ICC's effectiveness, start-ups can allocate sufficient resources, including budget, personnel, and administrative support, for the smooth functioning of the ICC. "Maintaining confidentiality throughout the complaint handling process is essential, and start-ups can streamline investigations by setting clear timelines, taking prompt action, and regularly updating the parties involved," he adds.
Winds Of Change
The MeToo movement and the power of social media compelled start-ups to ensure they meant business while creating an inclusive workplace where all employees are treated with respect and dignity, irrespective of their gender, age or wage.
For instance, after establishing an ICC in 2016, Shiprocket created an official email address for confidential and anonymous reporting of workplace harassment incidents. This alternative protects identities while seeking redressal and also ensures transparency and accessibility.
Saumya Khati, the company's senior vice president and head of HR, says that to uphold objectivity and fairness, the ICC includes an external NGO member. "We are proud to note that no formal or informal complaints have been made since the ICC's formation. Nevertheless, we remain vigilant and prepared to address any future concerns," she added.
Taking gender balance a step ahead, Kaleidofin's board of seven members has equitable gender representation with four women. The fintech also has an experienced labour law specialist as the external resource person in its ICC.
While ICCs are crucial in addressing workplace harassment cases, it is pertinent that the body has a suitable composition of senior tenured women, legal experts and NGO members to make the structure diverse and unbiased. It should also prioritise confidentiality, conduct impartial investigations, and comply with legal frameworks while promoting awareness through training and empowering employees in a safe environment.
"As part of our PACESetter induction and orientation programme, we provide comprehensive training on conduct and harassment prevention. Through informative mixed-group sessions that focus on the POSH legislation, we ensure that our knowledge is updated. Inclusive discussions are held to safeguard all employees, and our commitment to fair resolutions further earns the trust of our employees," Khati states.
However, as evinced by the ongoing wrestlers' protests, scepticism can arise about the efficacy of ICCs, especially if it lacks training, awareness, or resources or if bias is perceived. This can cause employees to lose faith in the ICC since this trust is influenced by their perception of the committee's impartiality, responsiveness, and ability to maintain confidentiality while addressing complaints.
Satish Khengre, HR Head at PhysicsWallah, states that to boost confidence in the ICC, the edtech creates professionally shot videos featuring its employees to raise awareness and ensure better comprehension among the workforce. "Through this innovative method, we aim to engage employees more effectively, fostering a stronger understanding and commitment to our policy," he adds.
Setting up an ICC is not just about doing what is right anymore; it is also about what is good for the business. In 2018, the Financial Times reported that a deal involving a large US acquirer of payment processing technology required a specific screening of employees for cases of harassment or improper conduct as part of its due diligence.
This came a year after venture capitalist Justin Caldbeck went on leave from Binary Capital, which he co-founded, following allegations from six women that he had made unwanted advances, often in the context of potential business deals.
Erring on the side of caution and willing to safeguard themselves from potential lawsuits and reputational damages, many venture capitalists now include ICC establishment as part of their due diligence process. Start-ups seeking to raise capital, therefore, cannot afford to compromise on this requirement.
Sabharwal notes that investors assess start-ups based on various factors, including legal obligations to prevent harassment. "The absence of an ICC may be a reason for a deal falling through. While an ICC's importance in investment decisions may evolve, its significance varies among investors and their priorities," he noted.
Timely formation of ICC with the suitable set of members, training them to handle PoSH cases prudently and plugging all loopholes for bias are crucial for the start-ups. In their growth journeys, they must not overlook the importance of these measures that can determine their future readiness.
