Rio Tinto's Ongoing Fight Against Workplace Harassment

Rio Tinto's (ASX:RIO,NYSE:RIO,LSE:RIO) latest review on workplace culture has revealed an increase in reports of harassment and bullying across its global operations, highlighting challenges in the company’s ongoing efforts to implement cultural reforms.

The findings of the 2024 Everyday Respect report, part of a two-year external Progress Review led by former Australian Sex Discrimination Commissioner Elizabeth Broderick following the first Everyday Respect Report, draw attention to the broader complexities of achieving cultural change in a diverse and global organization.

The review incorporated extensive feedback, with over 11,600 contributions from employees and contractors globally. Broderick's team conducted surveys, listening sessions and site visits across Rio Tinto’s operations in countries such as Mongolia, Canada, the United States, New Zealand and Australia.

While Rio Tinto has implemented all 26 recommendations from the first Everyday Respect Report, the data underscores the need for continued vigilance, presenting a complex picture of progress and persistent harmful behaviors within the workplace.

The portion of respondents who experienced bullying in the previous 12 months rose from 31 percent in 2021 to 39 percent in 2024. While the portion that experienced sexual harassment held at 7 percent, eight respondents said they experienced actual or attempted sexual assault or rape, an increase from five in 2021.

Prevalence of sexual harassment was highest for those working in the iron ore and copper product groups, and

Despite the troubling statistics, the review also notes improvements, including greater employee confidence in the company’s ability to create meaningful change and a notable cultural shift towards more open discussions on workplace respect.

Survey results showed that around half of respondents perceived improvements in workplace behavior, with 47 percent reporting that sexual harassment had improved and 46 percent reporting the same for racism.

However, harmful behaviors persist, and the report indicates that women remain disproportionately affected. A greater portion of women in the company's mining workforces experienced bullying, and women were more likely to report experiencing multiple incidences of bullying than men.

Broderick, who conducted the review, noted that resistance to cultural change within the organization remains a challenge. Instances of gendered bullying appear linked to perceived opposition against diversity initiatives.

The report emphasizes that such resistance is common in large-scale reform efforts but reaffirmed the importance of sustained focus to ensure positive change across all levels of the organization.

Building on the recommendations from the 2022 iteration, Rio Tinto is advancing its long-term strategy to address these challenges by outlining new measures to further its cultural transformation efforts.

These include expanding employee engagement initiatives and listening sessions through its employee resource groups and village councils. Another key area of progress is streamlining reporting mechanisms for employees experiencing workplace misconduct and increasing transparency in resolving such cases.

Training programs are also being redesigned, with a focus on raising awareness about harmful behaviors and fostering accountability. The company aims to have over 90 percent of employees and contractors complete this training by the end of 2025.

Despite the challenges, approximately two-thirds of employees expressed confidence in Rio Tinto's ability to foster meaningful change over the next few years. Broderick pointed out that while certain behaviors persist, early indicators suggest that Rio Tinto’s efforts are laying a robust foundation for long-term transformation.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.