Kristy Fraser-Kirk will not control any charity established as a result of her $37 million sexual misconduct suit against David Jones and its former chief executive Mark McInnes.

Anthony McClellan, speaking for the former DJs publicist, confirmed to Crikey any payout will be directed to a new charitable organisation for sexual harassment and workplace bullying victims, or donated to an existing organisation working in the area depending on the amount — or both.

McClellan is keen to counter claims of greed by his client while repairing an image he says could be damaged by the ordeal.

“We needed everyone to understand that all the punitive damages would go to a charity,” McClellan told Crikey, “[in order to] counter any negative perception that Kristy was seeking more than she rightfully deserved.”

Fraser-Kirk sent shockwaves through Australia’s business community on Monday when she filed her claim against the retail giant and its former chief executive David McInnes, detailing allegations of repeated unwanted kisses, touching and text messages.

As well as breach of contract, Fraser-Kirk is seeking punitive damages that amount to 5% of David Jones’ profits for the seven years McInnes was chief executive plus 5% of McInnes’ salary during that period – amounting to a total of $37 million dollars.

“Only by having a large financial penalty will a company realise that, not only is it the right thing for them to do, but that it is in their vital commercial interests to be proactive and prevent such behaviour,” McClellan told Crikey.

McClellan confirmed that “100%” of any damages won would go to a charity nominated by Fraser-Kirk and that she would not be involved to ensure “transparency” and “integrity”.

“It is very early stages but the charity will not in any way be controlled or financially connected with Kristy or her family,” McClellan said. “This is not about Kristy, it’s about all women and men who face a similar situation.”

McClellan also said that, should the case be settled out of court, he would hope that David Jones would be “as keen for transparency as us” in regards to the punitive damages going to charity.

Fraser-Kirk also announced she would be setting up a help line (1300 422 009) for any other David Jones employees concerned with inappropriate behaviour – a service which McClellan said was already operational.

“It is appropriate that all the punitive damages, if awarded by the court, be used in a socially responsible way to make real reform,” McClellan said. “One way of achieving that is for all the punitive damages to go to a third-party specialist charity.”

David Jones has issued a statement saying both it and its directors will vigorously defend themselves against the suit. Meanwhile, experts have already cast doubt on the size of the claim, noting the largest ever case for sexual harassment was awarded last year for $466,000.

CORRECTION: An original version of this story implied the charity to benefit from any payout does not exist. Crikey is happy to clarify that legal documents in the case state any dividend could be donated to an existing charity or be used to establish a new organisation. Crikey apologies for the misunderstanding.