Management agreed with a fresh set of recommendations in the latest report and said it would carry them out by June 30. Image: DCStockPhotography/Shutterstock.com
By: FEDweek StaffFDIC leadership “does not consistently implement the agency’s policies and stated core values, specifically, fairness, accountability, and integrity,” an inspector general report has concluded in the latest in a series of external criticisms of the agency’s culture.
In an agency-wide survey by the IG to which about four-tenths of employees responded, 35 percent “reported that they had either experienced or personally witnessed harassment. Additionally, our review of cases and settlement agreements supported some of the employee perceptions, specifically that some FDIC managers had not protected victims of harassment and retaliated against those who filed a complaint,” a report said.
Further, the FDIC did not consistently maintain documentation related to disciplinary actions resulting from complaints of harassment and related misconduct and did not always document its decision-making process for disciplinary actions, it said.
The report is the latest scrutiny of the FDIC beginning with news reports in late 2023 that triggered an internal “special committee” that the following year “described a culture that was misogynistic, patriarchal, insular, and outdated.” While the FDIC committed to an action plan to carry out its recommendations, the new IG report said that “many of the employees we interviewed perceived that the FDIC would not effectively implement” that plan.
That mirrors findings in the survey in which only 22 percent said they believe that there are adverse consequences for managers who are abusive, disrespectful, or hostile, compared to 55 percent who disagreed.
The IG also noted that it first made recommendations in 2020 regarding prevention, reporting and addressing sexual harassment. While those recommendations were deemed closed in 2021, a follow-up study earlier this year found that the agency “had not sustained many program improvements . . . and in some cases had regressed on the progress that was made.”
It added: “A culture where leadership does not consistently implement the agency’s stated core values can undermine the agency’s overall performance and reputation, leading to long-term challenges in achieving the mission and retaining talent. Based on our research, employees who fear retaliation are less likely to report unethical behavior, discrimination, harassment, or other violations.
“Critical complaints, feedback, or whistleblowing, which could prevent serious issues, may be withheld, allowing problems to escalate. Additionally, an environment where retaliation is feared may also expose the organization to lawsuits, regulatory penalties, and damage to the organization’s reputation.”
Management agreed with a fresh set of recommendations in the latest report and said it would carry them out by June 30.
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