"Dame Margaret has noted that this continued relationship was unwise and we understand that Russell McVeagh accepts that point," he said.
"Our dean of law will now be in contact with the firm to explore how we can re-establish a relationship with Russell McVeagh that is mutually productive and protects our students and graduates."
McCutcheon said he was pleased to see that Bazley had produced such a comprehensive report and that Russell McVeagh has accepted all its recommendations.
"The welfare of our students and graduates is paramount; the adoption of these recommendations will undoubtedly improve the situation at Russell McVeagh as well as providing guidance to other professional firms in creating a safe employment environment," he said.
"We certainly agree with the recommendation that the universities advocate for and model excellence in standards for the legal profession."
Bazley noted failings in the firm's governance and policies, including no code of conduct, which she said contributed to poor management of the incidents.
She said the firm began to change the culture after the 2015/16 summer, and she could not find any recent incidents of sexual harassment, sexual assault or alcohol-fuelled misbehaviour.
But as part of her broader review of the firm, she found pockets of bullying, excessive work hours for junior lawyers, underlying sexism and fear among lawyers and partners about the consequences of speaking out.
Russell McVeagh chairman Malcolm Crotty said the board and partners accepted all of the findings and had already started the process to implement all the recommendations.
"The board and partners of Russell McVeagh are deeply sorry for the impact that the incidents of 2015/16 have had on the young women involved and our people.
"We have apologised to the young women for the hurt and damage we caused. We recognise that they have shown great courage and applaud them for this.
"Their actions will result in meaningful change."
Crotty said the firm had believed it had a "speak out" culture, but it was now clear that belief was "misguided".
The New Zealand Bar Association today said Bazley's recommendations needed to be applied across the whole of New Zealand's legal profession.
President of the Bar Association Clive Elliott QC said were clear sign-posts for the need for a change in culture and behaviour across the whole of the legal profession.
"The immediate challenge for the Bar Association will be to translate the Bazley recommendations, which can relate immediately and directly to a large law firms, into smaller office/chambers environments where most of the country's barristers work," he said.
"We know this is a profession-wide problem, as demonstrated in Australia, where regulatory bodies in New South Wales and Victoria have recently announced investigations into sexual harassment within the legal profession in those jurisdictions."
He said the association would continue to push for the implementation of codes of
conduct in all legal profession workplaces.
