Article: Activision Blizzard Sued by California Over Alleged Workplace Discrimination: [[invalid URL removed]]([invalid URL removed]) (Wall Street Journal, July 20, 2021)

Ethical Issue: The article reports on a lawsuit filed by the California Department of Fair Employment and Housing against Activision Blizzard, alleging pervasive gender discrimination and a hostile work environment for women. This included claims of sexual harassment, unequal pay, and retaliation against employees who spoke up.

Organizational Response:

• Positives:
  • Launched internal investigations and terminated some employees.
  • Publicly apologized and committed to changes like diversity and inclusion initiatives.
  • Partnered with the Equal Employment Opportunity Commission (EEOC) for oversight.
• Negatives:
  • Initial response was criticized for being slow and dismissive of allegations.
  • Some high-profile departures in leadership sparked concerns about commitment to change.
  • Concerns remained about the effectiveness of implemented changes.

HR’s Role for Improvement:

• Proactive approach: Implement robust anti-discrimination and harassment policies with clear reporting procedures.
• Stronger investigations: Ensure thorough and impartial investigations with appropriate consequences for violations.
• Cultural shift: Foster a culture of respect and inclusion through training, employee engagement, and leadership accountability.
• Transparency and communication: Communicate openly and honestly with employees about findings, actions taken, and progress on improvements.

Business Impact:

• Reputation damage: Negative publicity led to boycotts, employee protests, and investor pressure.
• Employee morale: Employee trust and engagement likely impacted.
• Financial repercussions: Regulatory fines, settlements, and legal costs, along with potential revenue loss from boycotts.
• Departures of key personnel: Loss of talent and leadership can hurt innovation and business continuity.

Values and Reinforcement:

While Activision Blizzard has a code of conduct outlining values like respect, integrity, and inclusion, the allegations suggest disconnect between stated values and actual practices. Effective implementation requires:

• Training and Reinforcement: All employees, including leadership, must receive regular training on ethical conduct and diversity & inclusion.
• Performance Reviews: Integrate ethical behavior and commitment to values into performance evaluations.
• Leadership Accountability: Hold leaders accountable for fostering a culture aligned with stated values.