Challenges of Corporate Misconduct: The Organisational, Social, Economic and Financial Dynamics of Workplace Sexual Harassment in the Restaurant Industry in the USA
Authors: Norman Burrell Darrell , L. Morin Stacey , Wansi Theresia , Bianco Mathis Virginia , Ninassi Carlo , Ninassi Susanne 
Published: January 2025

This case study inquiry examines the systemic nature of sexual harassment within the restaurant industry, catalyzed by the recent public disclosure of allegations against “The Best Restaurant Group” involving its founder and senior executives. It highlights the pervasive and structural issues contributing to workplace harassment in this sector, characterized by hierarchical systems and demanding environments that often enable misconduct. Unlike previous studies focusing only on theoretical approaches to sexual harassment, this research adopts real-world and practical approaches, such as analyzing workplace policies and exploring current research, to understand the unique vulnerabilities of the restaurant industry and the broader implications for employee well-being and organizational stability. The research also offers insights into how these dynamics manifest in practice, by providing specific examples of harassment incidents and their impact on the workplace. The global, social, and economic challenges arising from corporate misconduct in interconnected industries reveal how such issues transcend organizational boundaries, amplifying their impact on supply chains, consumer trust, and labor dynamics. Through root cause analysis, the study identifies systemic challenges, including power imbalances, ineffective policies, and cultural norms, that perpetuate sexual misconduct, providing a nuanced understanding of the interplay between leadership styles, hierarchical structures, and operational inefficiencies. By examining a real-world case study, the research offers insights into how these dynamics manifest in practice, contributing to actionable strategies for fostering a safer, more respectful workplace. The findings underscore the critical role of leadership and organizational culture in mitigating harassment, revealing that top-down attitudes significantly influence workplace behavior and employee protection. The study emphasizes the need for comprehensive prevention programs that integrate legal frameworks, policy reforms, and cultural shifts to address these systemic issues effectively. Furthermore, it demonstrates the global significance of aligning corporate practices with evolving societal expectations, particularly in a digitized and democratized world where corporate misconduct faces increasing scrutiny. These insights reflect broader social and economic challenges as organizations must navigate rising legal and reputational risks while ensuring equitable treatment and sustainability in a competitive global marketplace. This research not only identifies the tangible and intangible costs of harassment on organizational performance and financial stability but also provides a roadmap for implementing interventions that prioritize equity and ethical governance. Ultimately, it inspires hope by contributing to bridging the gap between theoretical insights and practical applications, offering a robust framework for addressing workplace harassment in the restaurant industry and beyond, and showing that positive change is possible.