A sexual harassment scandal at the Human Rights Commission could undermine public trust in the organisation, an advocacy group says.

On Sunday, Stuff revealed a young American woman cut short her internship at the commission after she was groped by the organisation's chief financial officer at a work party.

The commission investigated a sexual harassment complaint against Kyle Stutter, which resulted in disciplinary action. However, three months on, he remains employed there as chief financial officer. He threatened to sue if he was identified.

SUPPLIED Human Rights Commission chief executive Cynthia Brophy said she had confidence in her staff.

The commission is the country's watchdog for unlawful discrimination and racial or sexual harassment. But the former intern said it seemed ill-equipped to deal with Stutter targeting her, and it didn't acknowledge the seriousness of the incident.

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Diversity Works NZ, a national membership organisation promoting diverse and inclusive workplaces, has criticised the commission over its handling of the incident.

Chief executive Bev Cassidy-Mackenzie said it risked a "no confidence vote" following the revelations.

"Businesses and the public will lack confidence in the Human Rights Commission unless it demonstrates it has policies and procedures in place to adequately deal with harassment within its own organisation," Cassidy-Mackenzie said.

"The most disappointing aspect of the incident is that the young woman involved felt unsupported by her workplace when she reported the incident, and that there was no specific policy in place to deal with the matter.

"All organisations, big and small, have a responsibility to put procedures in place to look after their staff. And this organisation's core role is to protect the human rights of all people in Aotearoa."

The commission's chief executive, Cynthia Brophy, said her organisation did have policies and procedures for internal sexual harassment complaints, which had been in place since 2009.

"This complaint was dealt with in accordance with this policy," Brophy said.

"Nonetheless, we are looking at all aspects of our operations and checking for any opportunities for improvement."

Following mediation, Stutter sent the intern a written apology and had to undertake anti-harassment counselling.

He also received a formal warning and had the incident recorded on his personnel file, to be removed after three years if there were no further complaints against him.

Stutter sent out an email to all of the commission's employees, naming the intern and saying what happened was not in keeping with the commission's values.

He also apologised and said he was deeply sorry. He advised staff to ask him directly for his account of events if they had any questions.

The government minister who oversees the Human Rights Commission is Justice Minister Andrew Little.

A spokesperson for Little said he was on a work trip abroad and unable to answer questions on Monday.