James Hardie’s CEO sacking highlights falling tolerance for workplace bullies

Bosses who intimidate and humiliate staff have been put on notice, as management experts say companies and employees are losing tolerance for workplace bullies.

The $23 billion ASX-listed building materials giant James Hardie Industries shocked shareholders on Friday by firing chief executive Jack Truong over his “intimidating, threatening” and disrespectful behaviour towards colleagues.

Mr Truong’s sacking, which triggered a $1 billion fall in the company’s market value, follows the departure of CEOs from ASX-listed groups Oil Search, Cleanaway and Polynovo in the past year after concerns were raised internally about their management style.

Natalie James, a former Fair Work Ombudsman who now leads Deloitte’s Workplace Integrity Team, said the “Me Too” movement highlighting sexual harassment and misconduct in recent years – which has also led to a number of high-profile CEO resignations and rocked federal parliament – had sparked a broader rethink of what was acceptable in the workplace.

“The heightened public debate about sexual misconduct has also extended into other conduct, particularly bullying because often the two come together,” said Ms James, who was speaking in general terms and not specifically on any company or executive.

Ms James said many employees previously tolerated intimidating and humiliating behaviour from their managers because it was “just the way things are around here”.

“Now people, particularly younger people, are saying: that’s not OK by me and I have choices, and I’m not going to work in a place where this is how things are done,” she said. “There has been that moment where people have reflected on conduct that was perhaps normalised or considered banal in the past and now it is being recognised as harmful.”

Mark Schmitt, who runs the workplace mental health consultancy Thrive In Work, said bullying remained “rife” in corporate Australia, but agreed it was becoming less accepted as companies realised workers would underperform and eventually leave if they failed to provide “psychological safety”.