Activision Blizzard must be willing to pay a fine of USD 35 million, to the United States Securities and Exchange Commission (SEC). It was the aftermath of the company's inability to maintain a good work environment.
Reported by us from Reuters, Tuesday (7/2/2023), they are known to have failed in creating a system, to provide handling of employee complaints. In addition, Activision Blizzard is also alleged to have violated the rules for the protection of whistleblowers.
The SEC said that the company was aware of the employee's problems, but did not have the proper steps in place to address them. This occurred in all of its business units between 2018 and 2021.
"Activision Blizzard failed to implement the necessary controls in an effort to collect and review employee complaints about workplace misconduct, which left it with no means of determining there were larger issues to disclose to investors," said SEC chief Jason Burt in Denver.
The owner of this Call of Duty game also requires their employees to report to Activision Blizzard if they are contacted by the SEC. This relates to the SEC's efforts to obtain information regarding violations that occurred between 2016 and 2021.
"Additionally, taking action to prevent former employees from communicating directly with Commission staff about possible securities law violations is not only bad corporate governance, it is also illegal," Burt added.
But confusingly, instead of admitting or denying it, Activision Blizzard agreed to an order to pay a USD 35 million fine.
The problems that arise from this California-based game company are not only that. Previously they had settled a lawsuit against the Equal Employment Opportunity Commission, which alleged sex discrimination.
Until finally Activision Blizzard fired many employees. The aim is none other than to overcome allegations of sexual harassment and so that similar violations do not spread.