Miners Need to Emulate Rio’s Workplace Culture Report: Lawmaker

(Bloomberg) -- Resources companies operating in Australia must follow Rio Tinto Group's lead in addressing toxic workplace culture, according to a senior lawmaker. 

“They have no choice but to follow suit,” Bill Johnston, Western Australia state's mines and petroleum minister, told Australian Broadcasting Corp. radio. “The only way to respond to this is through this root-and-branch cultural change.”

Johnston was speaking after an external review published this week found more than a quarter of Rio's female employees had experienced sexual harassment, while 21 women reported actual or attempted rape or sexual assault at company sites over the past five years. Chief Executive Officer Jakob Stausholm said he was shamed by the report, which also found evidence of systemic racism and bullying. 

“The problem that's been exposed here is a cultural problem,” Johnston said. “The only way culture can be changed is by admitting the problem and dealing with it.”

READ: Widespread Bullying, Harassment Detailed in Rio Tinto Report

While investors have expressed concern at the disturbing findings in Rio's report, some have also commended the company for its transparency and commitment to addressing the issues raised. 

“We encourage other miners, and Australian companies more broadly, to take inspiration from the steps Rio Tinto has taken,” Deanne Stewart, chief executive officer at one of the nation's largest pension funds, Aware Super, said in an emailed statement Thursday. 

Companies needed “not to fear the outcomes of good governance, but to recognize its importance in modern corporate Australia,” she said. 

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