The “Weinstein Clause” May Mark a New Era of Social Due Diligence 9-14-2018
Bruce’s Summary: One more view in the arena of M&A’s and how it may appear that boards are starting to have a little clearer understanding of the impact of the “#MeToo” movement. A new term, the “Weinstein Clause” is beginning to make its debut into M&A negotiations as a real potential business risk item along with other key core financial, operational and legal risks that may have major effects on the value associated with the sale of a business.
The authors share both a negative and positive perceptional view of this change and suggest the use of some additional contractual terms for consideration.
As I said previously for HR Professional’s it’s an opportunity to take a lead role in ensuring that their organizations understand and in-still “Best Practices” before “#MeToo” type allegations are alleged.
By being proactive, HR Professionals can monitor and drive policy development, provide live training for executives, ensure inappropriate manager behavior is recognized and addressed earlier, train employees how to speak up if they become bystanders and using outside investigative experts for more sensitive higher level “#MeToo” type allegations. “None of the information contained herein should be construed as legal advice, nor are Calvin Associates consultants engaged to offer legal advice. If there is a need for legal advice, please contact and seek the advice of independent legal counsel.” www.calvin-associates.com