This is important in terms of fairness and justice, but also because a system that lacks procedural fairness risks creating a backlash that can result in further discrimination against women, such as practices where men feel uncomfortable working closely with or refuse to mentor women.102 Ultimately, the Commission considers that it is through the multifaceted reforms outlined in this report, including a victimcentred, trauma informed and genderresponsive approach to understanding the impacts of sexual harassment on victims, that the faith and trust of workers can be restored in workplace models and institutional processes. 2.6 Understanding the cost of sexual harassment Sexual harassment [has] serious and damaging effects on a workplace. Organisations and individuals pay a high price.103 There has been limited research into the economic costs of workplace sexual harassment to date.104 Under its Terms of Reference for the Inquiry, the Commission was asked to consider the economic impact of workplace sexual harassment drawing on economic modelling. In 2018, the Australian Government Department of Treasury engaged Deloitte Access Economics to conduct this work (the Deloitte Report).105 To the Commission’s knowledge, this is the first time in any country that the cost of sexual harassment has been quantified across all sectors of the economy. The Deloitte Report estimated that in 2018, workplace sexual harassment cost the Australian economy $3.5 billion annually, including approximately $2.6 billion in lost productivity.106 The report found: • The vast majority of the costs associated with lost productivity (approximately $1.8 billion or 70%) were borne by Australian businesses107 • The private sector shouldered the majority of lost productivity costs (approximately $2.2 billion) in comparison to the public sector ($393.7 million).108 The Deloitte Report also estimated that in 2018, victims of workplace sexual harassment spent $103.5 million in accessing the health and justice systems.109 Rather than costing employers, government and victims an estimated $3.5 billion annually, by taking action to prevent and address workplace sexual harassment, Australia has the opportunity to invest in better health and economic outcomes for its workers and workplaces. Respect@Work: National Inquiry into Sexual Harassment in Australian Workplaces • 2020 • 81

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