Nearshore Americas

Workplace Harassment: Can Foreign Execs Be Held Accountable?

Workplace harassment is an undeniable reality. But can a Latin American nation hold accountable the CEOs and executives of companies operating within its borders, even if those leaders are foreign nationals residing outside the country?

In 2022, the International Labour Organization (ILO) reported that nearly one in four workers (22.8%) worldwide  faced violence or harassment at their workplace and over 8% of women experienced sexual harassment.

“Companies should understand that investing on transforming mindsets around gender roles and gender violence is a win-win”, says Diego Felipe Otero, a Colombian attorney and consultant for human rights and prevention of violence against women and children.

“You can reduce risks and impact the worker’s households and corporative general wellbeing. Indirectly, you have to keep in mind your organization’s participation in the fight against harassment has an impact on a location’s society.”

Thammara Urrutia, Labor and Employment attorney based in San José (Costa Rica), dealt with cases of harassments  in a range of industries, including BPO services.

When asked how common harassment is in the sector, she stated: “Sexual harassment or abuse is not commonly encountered [in the BPO sector], though such incidents can occur in any workplace environment, regardless of the industry in which the company operates, including call centers, whether in Costa Rica or other LATAM countries.

“The occurrence of these cases may vary based on factors such as the company’s size, workplace culture, the effectiveness of its policies for preventing and reporting sexual harassment and abuse, and the enforcement of labor laws in each country.

Thammara Urrutia, a Labor and Employment attorney based in San José, Costa Rica
Thammara Urrutia, a Labor and Employment attorney based in San José, Costa Rica.

In Latin America’s general business environment, workplace harassment is a pervasive issue, particularly for women in customer-facing roles.

  • In Chile, a 2023 survey found that 70% of workers faced harassment, with verbal abuse being the most common (50.6%). Another report showed 30% of customer service employees endured harassment, disproportionately affecting women.
  • In Argentina, a 2023 study revealed that 40% of public-facing workers experienced harassment, with women comprising over 60% of the victims.
  • In Mexico, a 2022 report indicated that nearly 60% of women in retail and service industries suffered harassment, often tied to gender discrimination.

While countries like Argentina, Chile, and Mexico lead in passing anti-harassment laws, enforcement remains weak. Meanwhile, Central American nations such as Honduras, Nicaragua, and El Salvador lag in creating legal tools for victim protection, education, and complaint mechanisms.

Corporate responsibility

We consulted with Mrs. Urrutia to determine if foreign leadership is held legally liable for what happens in their overseas offices, particularly in instances of workplace abuse (sexual or otherwise):

“When an employee is hired by an outsourcing company, the employment relationship will be governed by the labor laws and regulations of the country in which the employee is hired. Therefore, it is essential for the company’s internal policies, even if it operates in multiple countries, to be adjusted to the legal framework of the country where the employee is hired.”

“For instance, if an employee is hired in Costa Rica, their employment relationship will be subject to the labor laws and regulations of Costa Rica, as well as any internal policies that comply with the country’s legal standards. This remains true even if the company’s corporate capital, leadership, or corporate departments are located in other countries.”

“Consequently, corporate departments, as well as the leadership teams, must ensure that the local legal requirements of the country where the employee is hired are met in all procedures..”

“If an investigation confirms that harassment has occurred, the company may take necessary actions regarding the employee, in accordance with national laws. Beyond the internal investigation process, additional mechanisms for addressing cases of workplace or sexual harassment are available, in most cases, through each country’s Ministry of Labor in administrative proceedings or via relevant labor or penal courts while adhering to the principle of confidentiality throughout the process.”

On the other hand, Mr. Otero suggested that companies should get more involved. “There are companies that certificate others in harassment prevention and safe-space creation. From a demand point-of-view, we can push to deal with others with that in mind”.

Diego Felipe Otero, Colombian attorney and Consultant for Fundación Renacer's Intersectorial Alliance branch
Diego Felipe Otero, a Colombian attorney and consultant for human rights and prevention of violence against women and children.

The Colombian attorney also believes that in-house or outsourced HR approaches to preventing workplace violence should incorporate state-of-the-art investigative techniques. For example, these approaches should recognize the importance of addressing ingrained worker mindsets indirectly. This can be achieved by framing conversations around related topics like employee health or household economics. This indirect approach aims to prevent employees from evading diagnosis, experiencing negative reactions, or facing a decline in overall well-being when their existing beliefs are challenged.

Additionally, Urrutia explained why the industry rarely reads or hears any reports on cases of exploitation, harassment, or abuse:

“When a company encounters a case of harassment, whether sexual or related to the workplace environment, it is imperative for the organization to conduct an internal investigation to ascertain whether harassment has indeed taken place. Consequently, it is essential for all companies, including call centers, to establish comprehensive internal policies aimed at preventing workplace harassment.

These policies should also outline clear procedures to follow if an employee submits a complaint. Importantly, these internal policies must comply with the laws and regulations of the country in which the employee is contracted. Such laws delineate the general procedures the company must adhere to, including maintaining confidentiality during the investigation process and identifying the relevant governmental entities to which the outcomes of such cases must be reported”.

According to Otero, there is an urgent need for companies in Latin America to adopt proactive measures to combat workplace harassment. By promoting accountability, fostering respect, and prioritizing education, organizations can cultivate safer workplaces while setting a positive example for others.

Finally, he was insistent on taking realistic timelines into account. “Cultural changes are not easy or quick. Scandinavian countries, which are so advanced in anti-child-aggression policies or anti-harassment policies, began their work forty to fifty years ago. Modern tools could aid us to advance quicker, but we will never see durable social impact if we don’t push for education that prevents violence of any type from very early stages of schooling.”

Staff Report

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