Democratizing Social Risk Identification: Addressing Bullying, Abuse, and Discrimination in the Workplace

Bullying, abuse, and discrimination (BAD) are critical social risks that plague many workplaces and supplier networks. BAD accounts for 80% of cultural impediments that hinder positive change. Despite their profound detrimental impact on productivity and performance, they are often overlooked in sustainability reporting, leading to a significant "socialwashing" gap. The failure of Risk Management Frameworks to acknowledge and address these pervasive social risks is undermining the integrity of corporate governance.

It takes exceptional leadership for an organization to report social risks and their impact. One such organization is England’s National Health Service (NHS). Despite facing significant pressures with backlogs and quality issues, the NHS demonstrates a commitment to transparency and addressing these challenges. Their insights are profound and have a far-reaching impact on everyone in the UK.

The 2023 NHS Staff Council (England) social risk report reveals alarming statistics. It found that 18.7% of workers experience bullying or abuse from colleagues, while 11.1% face similar issues from their managers. Additionally, Black, and Minority Ethnic workers are more likely to experience bullying and abuse.

The report quantifies the costs associated with these issues, noting a 20% degradation in worker performance among those who witness bullying, abuse, and discrimination. Furthermore, there is a 50% decrease in the willingness to help others among witnesses of such toxic behaviour. The financial impact is significant, with toxic behaviour costing over GBP 2 billion a year and sickness absenteeism due to bullying adding another GBP 0.6 billion annually. Just as importantly, a toxic culture leads to a greater risk of human error, whereby the impact upon the patient is sometimes fatal.

On May 15, 2024, the Telegraph reported that 52 doctors, nurses, and midwives across 41 different NHS trusts and clinics had identified 177 unnecessary patient deaths and 680 instances of patient harm. This alarming revelation highlights a toxic culture with managers using bullying to protect personal and organizational reputations over patient safety. The stress experienced by workers reporting unnecessary patient deaths and patient harm profoundly affects their work, colleagues, and home life.

The Infected Blood Inquiry, led by Sir Brian Langstaff, published its report on May 20, 2024. It details a prolonged history of systemic behavioural failures that resulted in deaths, illness, and suffering. Central to this harrowing account is a compelling argument for cultural change, emphasizing that safety must be embedded as a first principle and regarded as an essential measure of the quality of care. Despite this, the report quotes Dr. Henrietta Hughes, Patient Safety Commissioner for England, stating, “It is clear that the culture is getting worse.” This deterioration is not surprising given the 2023 bullying, abuse, and discrimination data.

Corporate governance within the NHS is bolstered by comprehensive policies, procedures, training, and communication programs designed to prevent bullying, abuse, and discrimination. Despite the NHS's status as a world leader in reporting ESG social risks in the workplace, a significant behavioural gap persists between written policies and actual practice. This gap is substantial, given that the NHS England employs 1.27 million people, with 140,970 workers experiencing bullying or abuse from their managers.

Looking beyond the NHS, workplace bullying also imposes significant economic costs on the U.S. economy, where 25% of the workforce has experienced bullying. The American Psychological Association estimates that the broader impact of bullying and similar behaviours could cost up to USD 300 billion annually, accounting for lost productivity, absenteeism, turnover, and increased medical expenses.

Surely it is time to think differently. There is an abundance of explicit knowledge documented in policies and procedures, and a wealth of tacit knowledge from subject matter experts. Despite this, bullying, abuse, and discrimination persist, not due to a lack of knowledge, but because the cost of coordinating cultural change is expensive, time-consuming, and often unsuccessful. This is not surprising when evidence shows that some managers are part of the problem.

The challenge is clear: how do we efficiently and effectively change the culture of a workforce of 1.27 million people within a relatively short period of time? This requires innovative approaches that go beyond traditional methods, leveraging technology and new strategies to create a meaningful and lasting cultural shift.

The new model aims to democratize social risk identification in the workplace using AI Agents. These AI Agents interact with each employee to confirm policy adherence or identify instances of bullying, abuse, and discrimination. They are equipped with extensive knowledge to guide individuals step-by-step through the assessment process. The audit trail of the interactions becomes part of an individual’s assessment record, and the generated data enables the organization to detect and respond intelligently to emerging risks.

Democratization through real-time monitoring and reporting can be achieved via AI Agent deployment. While there may be resistance from those with vested interests or who fear uncovering uncomfortable truths in the short term, it is imperative to address bullying, abuse, and discrimination in the workplace and supplier network.

By embracing this innovative approach, organizations can not only create a safer and more harmonised work environment but also enhance overall worker well-being, improve productivity, and strengthen their reputation. The broader benefits include fostering a culture of transparency and trust, reducing turnover, and ensuring compliance with ethical standards, leading to a more resilient and sustainable organization.

The tipping point to embrace such leadership change is getting nearer. Sustainability considerations are becoming increasingly part of regulations and investment decisions. For instance, the Deloittes 2024 M&A Survey found that more than 70% of leaders have reported abandoning potential acquisitions over ESG? (Environment, Social, and Governance) concerns.

Where can early adopter leadership in both the public and private sectors be found to establish the democratization of social risk identification?