By: Kathryn Rainville
Since the dawn of the “#MeToo” movement last year, several institutions have launched investigations, further investigated equality, and promoted the need to bring social injustices in the workplace to light. Wall Street is the latest to join the movement and make a statement.
In a recent article from Fortune, it appears that Wall Street mergers will now include what is being called “the Weinstein Clause.” According to Gregory Bedrosian, chief executive officer of the investment bank Drake Star Partners, “social due diligence is becoming more and more important, and particularly for founder-centric businesses, money is being put aside to address #MeToo issues.” Therefore, the clause will require the company to “…legally vouch for the positive behavior of a company’s leadership.” In fact, the clause will go in so far as to make the sellers “…state that nobody has accused any member of their management or leadership of sexual misconduct.”
This stipulation comes as “more than 400 high-profile executives and employees” have been taken down by the #MeToo movement. At this point, there is no excuse for companies to not be held more responsible. This is Wall Street’s attempt to affect change on a corporate level, as well as protect those companies who have not struggled with #MeToo accusations. The Weinstein Clause is about to change how business is done for the long-term, and I, personally, can’t wait to see how it impacts the broader capitalist market and society.