Microsoft opens harassment probe sought by investors

Microsoft said Thursday it is opening an inquiry into how it responds to workplace sexual harassment and gender discrimination, including its handling of allegations about co-founder Bill Gates.

The review is a response to pressure from Microsoft investors. Nearly 78 percent of shareholders at the company’s Nov. 30 annual meeting voted to demand more accountability in addressing workplace sexual harassment complaints.

“We’re committed not just to reviewing the report but learning from the assessment so we can continue to improve the experiences of our employees,” CEO Satya Nadella said in a statement.

The Wall Street Journal reported last year that Microsoft’s board hired a law firm in 2019 to look into Gates after a Microsoft engineer alleged in a letter that she had a sexual relationship with Gates over several years. Gates resigned from the board in 2020.

Activist investor proposals to change corporate policy rarely succeed. Microsoft had urged shareholders to reject the proposal, which called on the company to investigate its harassment policies and release a public report about them.

But the investment firm behind the proposal, Massachusetts-based Arjuna Capital, said it was pleased with how the company has responded since the vote.

“I’m actually quite impressed with how Microsoft has followed up on their commitment since the annual meeting,” said Natasha Lamb, co-founder and managing partner of the socially minded investment firm.