Implementing Business Ethics: Sexual Harassment

Author(s): Karen A. Crain and Kenneth A. Heischmidt

Source: Journal of Business Ethics , Apr., 1995, Vol. 14, No. 4 (Apr., 1995), pp. 299-308
Published by: Springer

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 Implementing Business Ethics: Karm A Cmin
Sexual Harassment Kenneth A. Heischmidt

ABSTRACT. Sexual harassment is a problem for 1992). More women tan ever before were com
many organizations. Organizations must understand pelled to air their complaints about injustices
that sexual harassment lies within the broader context
they have received due to sexual harassment in
of sex discrimination and inequality of opportunity the workplace. Many other women were inspired
in the workplace. Sexual harassment is both an illegal to take action:
and unethical practice. Companies need to implement
a policy which respects the rights of individual In the nine months [after] Hill's testimony,
employees by prohibiting sexual harassment. This inquiries sent to the Equal Employment Oppor
policy need to be clearly stated in the company Code tunity Commission (EEOC) [rose] 150 percent,
of Ethics and enforced rigorously. and actual charges filed rose 23 percent (Sandroff,
1992).
The EEOC was crated to enforce Title VII
Introduction
of the Civil Rights Act of 1964 which prohibits
discrimination in employment on the basis of
The vast coverage the media gave to the Anita race, color, sex, national origin, or religion. It
Hill-Clarence Thomas (nominee for the Supreme has been over 10 years since the EEOc issued its
Court of the United States) confrontation over Guidelines on Sexual Harassment, but the subject
sexual harassment in 1991 put the controversial is still widely misunderstood, trivialized, or
issue of sexual harassment into the nation's
ignored by many people. Firms have both an
spotlight and prompted an immediate and ethical and legal obligation to insure that all
passionate response by many women. After the company personnel understand this complex
hearings, calls to a hot line sponsored by the issue so that employees will conduct their
National Association of Working Women business relationships in an ethical and non
doubled to 2000 a month ("1-800-Sexist Boss", discriminatory manner.

Karen A. Grain is a Territory Representative for Wyeth The relevant facts ? what is sexual
Ayerst Laboratories pharmaceutical company. She harassment? how frequently does it occur?
has published in a recent Proceeding of the Inter
national Conference of the Academy of Business Understanding what sexual harassment is can be
Administration.
a problem because there is no simple definition
Kenneth A. Heischmidt is a Professor of Marketing at
of sexual harassment. One thing is clear, however,
Southeast Missouri State University and has published
all forms of sexual harassment are illegal. The
in various professional journals and conferences including
Journal of Advertising, Journal of Professional
Guidelines on Sexual Harassment published by
Services Marketing, Journal of Hospital Marketing, the EEOC on November 10, 1980, specify that
sexual harassment is a kind of sex discrimination
Health Marketing Quarterly and Journal of
Education for Business. He has received best paper under Title VII of the Civil Rights Act of 1964,
awards at both the American Marketing Association and and therefore, an unlawful employment practice.
the Academy of Business Administration conferences. Specifically, the publication states:

Journal of Business Ethics 14: 299-308, 1995.

? 1995 Kluwer Academic Publishers. Printed in the Netherlands.

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 300 K. A. Grain and K. A. Heischmidt

Unwelcome sexual advances, requests for sexual ship the two had shared previously disappeared.
favors, and other verbal or physical conduct of a The boss employed harassment tactics of a different
sexual nature constitute sexual harassment when nature in an attempt to make her resign. Finally,
(1) submission to such conduct is made either he suggested outright that she should find another
explicitly or implicitly a term or condition of an job. The secretary then asked the owner of the
individual's employment, (2) submission to or company to take action.
rejection of such conduct by an individual is used
This is clearly a case of quid pro quo harassment
as the basis for employment decisions affecting such
individual, or (3) such conduct has the purpose or because it is a situation in which the secretary
effect of substantially interfering with an indi was faced with possible discharge as a result of
vidual's work performance or creating an intimi denying sexual favors to her boss.
dating, hostile, or offensive working environment In 1986, the Supreme Court ruling in the case
(Federal Register, 1980). o?Meritor Savings Bank, FSB v. Vinson recognized
that the form of harassment known as environ
This type of definition leaves considerable dis mental harassment could be actionable even
cretion to the court when ruling on the legality
without a specific job-related detriment or
of a behavior questioned in a sexual harassment
lawsuit. benefit if the behavior is pervasive to the extent
The EEOC definition of sexual harassment that it permeates the job atmosphere (Fagin and
Rumeld, 1991). The Supreme Court ruled that
distinguishes between two types of sexual harass a hostile environment exists when harassment
ment: quid pro quo (sometimes called sexual actions interfere with an employee's performance
blackmail) and hostile environment sexual harass
or create an intimidating job environment. Court
ment (Greenlaw and Kohl, 1992). For many
cases have recognized the following grounds for
years, employers and the courts directed their suits: unwelcome sexual advances, coercion,
attention primarily toward quid pro quo harass
favoritism, indirect harassment, physical conduct,
ment (Fagin and Rumeld, 1991). A case of quid
and visual harassment (Lublin, 1991). A case of
pro quo sexual harassment is relatively straight hostile environment sexual harassment can be
forward: the employee accuses the harasser of
more complex than quid pro quo harassment
denying job benefits such as promotion, salary because it can be unintentional as well as inten
increase, or a favorable assignment; or the tional (Greenlaw and Kohl, 1992), and the courts
harasser is accused of taking away job benefits have found several situational definitions of
by actions such as demotion or discharge because
hostile environment. Generally, in this case the
sexual favors were not granted (Greenlaw and
employee accuses the harasser of creating an
Kohl, 1992). abusive work environment by behaviors such as
An example of quid pro quo harassment is found
sexually vulgar language or the display of sexually
in the following situation:
demeaning pictures or other behaviors of that
An executive secretary working for the Senior Vice nature. Courts have held that such behaviors
President of a midwestern oil company in the need not be directed at an individual, but only
United States was grabbed and kissed by her boss need be "disproportionately more offensive or
during work hours. This aggressive behavior demeaning to one sex than the other."
followed months of sexual innuendo by her boss. Rulings by the courts which expanded the
The secretary had ignored all inappropriate definition of hostile environment found that
behavior previously, but was forced to directly harassment of a co-worker may create a hostile
reject her boss' advance during the "attack". environment for a woman who is not even the
Unbeknownst to the boss, the secretary advised
target of the harasser if the harassment is perva
upper management of the problem. The secretary
did not want to change jobs, so she advised upper
sive. Also, a hostile environment may exist even
management that since the boss had apologized, when the harassment has not been overtly sexual
she would continue to work for him unless in nature: in McKinney v. Dole, the court ruled
additional problems came uj!>. After the secretary that any harassment or unequal treatment of an
rejected the boss, the positive working relation employee that would not occur but for the sex

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 Business Ethics and Sexual Harassment 301

of the employee could be considered sexual question was unwelcome. It should be noted that
harassment (Greenlaw and Kohl, 1992). These the determination of the unwelcomeness of an
court rulings indicate there are many situations advance can include the consideration of the
which can be defined as hostile environment employee's apparel and other more subtle forms
sexual harassment, thus a simple definition of of conduct that may be an indication of the
sexual harassment does not exist. employee's receptiveness to sexual advances
The following situation is an example of (Fagin and Rumeld, 1991).
hostile environment sexual harassment: In the two examples of sexual harassment
provided earlier,
A woman was hired through a consulting firm to
do drafting work for a Fortune 500 company the harassing behaviors were unwelcome by the
which manufactured pulp and paper. When the female employees, the employees did not solicit the
woman was hired as a permanent employee by the unwanted behavior in any way, and in both situa
company, her new boss denied her work assign tions, the harassed employees expressed their rejec
ments; she was told that she could not handle it tion of the offensive behavior to management.
the assignments and was forced to perform unnec
essary outdoor work in inclement whether just to Lawyers say the number of quid pro quo cases
human the boss. The men who did drafting work is leveling off, but the number of hostile envi
in her department were given all the assignments. ronment complaints has grown in the recent
In addition, the boss used atrocious language and years (Galen, 1991; Lublin 1991). Moskal (1989)
constantly told filthy jokes with sexual implications.
supports this conclusion and suggests that while
He also made sure he brushed against her body
todays style of sexual harassment may be subtler
when they passed in hallways and occasionally
than in the past it is also more pervasive. One of
patted her behind.
the reasons for the rise is many employers do not
This is clearly a case of hostile environment believe employee complaints or their employers
sexual harassment. In this situation the boss was believe they are untouchable if they to harass
not specifically demanding sexual favors in someone.

exchange for job benefits, but instead was Despite the lack of a clear definition as to w
harassing the employee by creating an intimi exactly constitutes sexual harassment, there
dating, hostile, and offensive work environment. large number of women who do underst
A key factor in determining whether or not a what sexual harassment is and what it feels
behavior constitutes sexual harassment concerns to be harassed. Female employees filed se
the unwelcomeness of the behavior, which is harassment complaints at 90 percent of
often difficult to determine. Even voluntary nation's largest corporations in 1988 (Mos
relationships can result in a claim of sexual harass 1989). The percentage of working women
ment "... if the employee did not solicit or have encountered sexual harassment has
incite it and the conduct is regarded as undesir estimated at between 42 and 90 percent, an
able or offensive" (Fagin and Rumeld, 1991). In recent years, sexual harassment has become
addition, even a long-term consensual relation of the most frequently litigated issues in em
ship can give rise to a claim of sexual harassment ment law" (Terpstra and Cook, 1985). A su
if the harasser communicates a treat to the by Working Woman magazine found tha
employee that job benefits or detriments are a percent of respondents reported inciden
condition of the employee's continuation of the harassment and the researchers say that t
relationship (Fagin and Rumeld, 1991). When results concur with recent polls of fe
attempting to sort out the factors involved in any chemical engineers, lawyers, and execut
sexual harassment lawsuit, regardless of the type (Sandroff, 1992).
of relationship which existed between the Nevertheless, it is believed that sexual har
harasser and the victim, a primary factor the ment is understated as a social problem and m
courts will consider when ruling is whether or incidents remain unreported (Kremer and Ma
not the employee indicated that the behavior in 1992). Many respondents to the Work

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 302 K. A. Crain and K. A. Heischmidt

Woman survey believe that filing a complaint tionships which can harm the company, the
amounts to "career suicide", and this may be one individuals directly involved, and indirectly, other
reason most sexual harassment incidents remain employees within the company. Companies
unreported. Only one out of four women in the which have a high incidence of sexual harassment
Working Woman survey reported the harassment often have additional problems within their
and a corresponding Working Woman survey of organizational relationships. Freada Klein, a
Fortune 500 human resource executives found corporate consultant, has found that companies
that most companies receive fewer than five which have "high rates of sexual harassment also
complaints a month (Sandroff, 1992). have high rates of racial harassment, discrimina
It has been suggested that another possible tion, and other forms of unfair treatment"
explanation for the reluctance of women to (Sandroff, 1992). This finding indicates that
report harassment may be due to the way some companies which tolerate sexual harassment tend
company policies define sexual harassment and to have personnel problems in general.
the nature of the dispute-resolution process itself A lawsuit resulting from unlawful harassment
which may better fit male rather than female or discrimination can cause severe monetary
perspectives (Riger, 1991). Also, there is a penalties to be imposed on the company which
tendency for the problem of sexual harassment creates economic and competitive problems for
to be trivialized, especially from a male view the company. A lawsuit also alerts society to the
point (Kremer and Marks, 1992). fact that the company is not taking proper
measures to prevent and effectively resolve the
Ethical issues issue of sexual harassment within its organization
which can lead to negative attitudes toward the
Sexual harassment presents legal, ethical, and company and its products.
moral issues for companies in the area of
organizational relationships, which is defined by The stakeholders - women and men
Ferrell and Fraedrich (1991) as "the behavior of
employees, firms, shareholders,
organization members toward customers, sup management
pliers, subordinates, superiors, peers, and others".
These are all relationships in which sexual Most often it is women who are subjected to
harassment can occur, but it occurs most fre sexual harassment, although harassment also
quently within the relationships that Ferrell and effects a significant number of men. The 1981
Fraedrich refer to as "significant others" ? U.S. Merit Systems Protection Board survey of
superiors, peers, and subordinates within the 20000 federal employees found that 73 percent
organization. It has been noted above the sexual of the of respondents who reported they had
harassment is considered a form of discrimina been victims of harassment during a specified two
tion, and as such it is illegal. More important, year period were women; 27 percent were men
perhaps, is the fact that it is unethical for one (Spann, 1990). The most common scenario is a
employee to use sexual blackmail against another female subordinate under the age of 34 being
or for one employee to create a hostile working harassed by a male over the age of 35, according
environment for another employee. to both the survey of Working Woman readers
Both the noted examples of sexual harassment and the survey of human resource executives
are situations in which a "significant others", a conducted by Working Woman. Almost 30
superior, was harassing his subordinate. percent of the incidents occur among women
Sexual harassment also presents economic, who are 18 to 24 years old and "in 83 percent
social, and competitive issues for a company. A of the cases, the harasser is in a more powerful
successful company requires the existence of position than the harassed" (Sandroff, 1992).
good relations among its employees and the These findings are consistent with other studies
people with whom the company does business. which indicate that most often the harasser is a
Sexual harassment creates poor working rela man who is in a supervisory capacity in relation

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 Business Ethics and Sexual Harassment 303

to the harassed victim, who is a woman. For of the women who had actually tried to report
example, a study by Kremer and Marks (1992) harassment, nothing happened to the harasser
found that "without exception", harassers were (Sandroff, 1992). Interestingly, 70 percent of the
men who "were normally in positions of human resource executives believe that most
authority over the person harassed". However, complaints are given justice (Sandroff, 1992).
this is not to say that women in powerful posi Obviously, a large percentage of women
tions are not subjected to harassment. Harassment believe that the only results they will get if they
becomes much more common when women report harassment are additional negative conse
reach upper management which is typically quences, and personnel managers don't seem to
male-dominated (Sandroff, 1992). As might be be aware of this problem. The human resource
expected, it has also been found that harassment management of firms would be well advised to
is much more common when a woman is take a deeper look into the problem of sexual
working in a predominantly male workplace. harassment because it is an important issue with
Note that both examples of sexual harassment many women. More than 90 percent of the re
given above are situations in which a young spondents to the Working Woman survey believe
female employee is harassed by an older male their companies can and must do more to prevent
employee. In addition, in the example of hostile and stop harassment. Seventy-five percent of the
environment sexual harassment, the woman respondents also feel that sexual harassment is an
worked in a predominantly male workplace. issue just as important as salary inequities, prej
For female employees who experience sexual udice against promoting women, and problems
harassment, the short and long-term conse with inadequate child care (Sandroff, 1992).
quences are often considerable. A common The fact that the vast majority of employees
finding is that the majority of those who expe who suffer from sexual harassment are women
rience sexual harassment are victimized twice, and the fact that harassment victims suffer
either by being forced to leave work as a direct extremely negative consequences due to harass
result of the harassment or by being fired for ment, indicate that women are the most impor
failure to comply with the harasser's requests tant stakeholders in this issue. However, the
(Kremer, 1992). The Working Woman survey harassers themselves, most often men as noted
found that 25 percent of respondents were fired earlier, are also obvious stakeholdersMn the past,
or forced to quit their jobs (Sandroff, 1992). harassment has been found to eventually result in
Twenty-seven percent of the respondents felt dismissal for two out often harassers while others
their self-confidence had been seriously under are given written or oral warnings (Moskal,
mined, 13 percent suffered long-t^rm career 1989). In the future, as companies continue to
damage, and 12 percent had impaired health become more aware of the cost associated with
problems such as headaches, chronic fatigue, sexual harassment, which is projected to reach
nausea, sleep and appetite disturbances and more $1 billion over the next five years, prompt firing
frequent colds and urinary-tract infections. of harassers will most likely become more com
Harassment victims also suffer emotional turmoil monplace (Sandroff, 1992).
because they often feel their professional life is It is apparent that women and men employees
at stake if they don't submit to the harassment. are the most obvious stakeholders in the issue of
Impaired self-esteem and feelings of exploitation sexual harassment, but firms and their share
are also common (Sandroff, 1992). holders are also important stakeholders. Once a
If a woman chooses to fight sexual harassment sexual harassment lawsuit is filed against a
she may have little success. Only one out of five company, the court will decide if the company
respondents to the Working Woman survey be has any liability in the case. Liability will always
lieve that most complaints are given justice, and exist if the employer knows about the harassment
over 60 percent believe that charges are either and does not take "prompt and effective measures
completely ignored or the harassers are given to remedy the situation" (Fagin and Rumeld,
only "token" reprimands. For fifty-five percent 1991). In addition, firms are frequently held

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 304 K. A. Crain and K. A. Heischmidt

liable for acts of harassment committed in the increased absenteeism, and increased turnover as
workplace even when they were not aware that a result of sexual harassment (Moskal, 1989).
such acts were taking place (Fagin and Rumeld, Stress-related claims resulting from sexual harass
1991). A general consensus has developed among ment must not be taken lightly because such
the courts as to the principles that apply in claims "draw on average twice as much monetary
determining employer liability for sexual harass damages as physical-injury claims" (Ferrell and
ment by one of its employees. In the case of quid Fraedrich, 1991).
pro quo harassment, liability depends mainly on The direct costs of litigation can also be
whether or not the harasser is viewed as an agent substantial. In 1981, Ford Motor Company was
of the employer. If the harasser has real or assessed damage fees amounting to $187023 as a
apparent authority to make employment-related result of a sexual harassment claim. In 1978,
decisions, the employer will most likely be held Johns-Manville Corporation agreed to pay an
liable for acts of quid pro quo harassment even if out-of-court settlement of $100000 to settle a
the employer was unaware that the harassment sexual harassment charge, Montana Power
was occurring and even if procedures were in Company was forced to pay $73 390 in damages
place for preventing, detecting and remedying in a claim against its company in 1983 (Terpstra
sexual harassment. In the case of hostile envi and Cook, 1985), and AT&T has $2 million
ronment sexual harassment, the employer will award against it for actions taken by an ex
most likely be held liable if the complainant can personnel manager in Los Angeles (Lublin,
establish that the employer knew or should have 1991). Such damage awards can be expected to
known the harassment was occurring. Courts climb even higher in the future. With the passage
will focus on whether or not a reasonable system of the 1991 Civil Rights Act, harassment victims
existed for the victim to file a complaint about were given the right to a jury trial and com
the harassment and whether or not the employer pensatory and punitive damages for financial and
had in place suitable methods to remedy a harass emotional harms, with awards based on company
ment situation (Fagin and Rumeld, 1991). size. In addition, Congress is expected to pass
In the example of quid pro quo harassment, the an amendment that would lift the current cap on
company would have most certainly been found awards (Sandroff, 1992).
liable because the harasser was clearly acting as Management is another important stakeholder
an agent for the employer with capacity to make in the sexual harassment issue. Two-thirds of
employment related decisions for the victim. sexual-harassment complaints at the nations
Further, the company had no policy regarding largest corporations were made against immediate
sexual harassment and no means for reporting supervisors and upper management. This finding
complains of any kind. raises a very serious concern because it is the
In the example of hostile environment sexual responsibility of management to implement
harassment, the company would have been liable programs designed to reduce the occurrence of
after it failed to act upon the original complaint sexual harassment. How effective can a company's
in accordance with stated company policy which sexual harassment prevention policy be if a
prohibited harassment and provided for discipli majority of sexual harassment complaints accuse
nary action to be taken in cases of harassment. the managers themselves of being harassers? To
If the company is found liable in a sexual help remedy this situation, the company presi
harassment lawsuit the monetary penalties can be dent must make it clear that the company's
extensive, which is why the company's share management is committed to enforcing the
holders are also stakeholders in the sexual harass company's policy and disciplinary measures
ment issue. A typical Fortune 500 company loses regarding sexual harassment - even when it
$6.7 million a year because of harassment - not applies to management.
counting lawsuit costs. Much of this cost is Please note once again that both the noted
associated with decreased work effectiveness, examples of harassment involved a harasser who
increased stress [and related health problems], was a member of management.

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 Business Ethics and Sexual Harassment 305

The various sides of the issue - why does 1991). There is another type of power that comes
sexual harassment occur? into play during sexual harassment which may be
an even bigger factor than role power, and is
One of the most significant factors as to why considered to be a fundamental aspect of sexual
sexual harassment occurs may be the fact that harassment. This is a power known as gender
women and men often perceive the issue of power - the power men and women have simply
sexual harassment differently, according to psy because of their particular sex. "Virtually all
chologists. For men, it is usually strictly an issue research indicates that [our] culture attributes
of sexuality; for women it is an issue of power more power to men [than to women]. . . ." In
(Shellhardt, 1991). The Working Woman survey the work environment, men are seen as "more
found that one out of two women believe that competent, responsible, committed and valuable
most men harass due to a desire to "bully and than women." Because of this natural male
humiliate women" and that harassment has little gender power, it is difficult for a woman to resist
to do with flirtatiousness or sexual desire or report harassment; the man's story will usually
(Sandroff, 1992). These women appear to be be believed over the woman's story (Stringer et
correct in their belief, for it has been suggested al, 1991). This conclusion is supported by the
that a common cause for sexual harassment is a results of the Working woman survey which
desire by the harasser to use his power to decrease found that for the majority of women who
the power of the victim by embarrassing or reported harassment, no action was taken against
intimidating the victim. In this case the harasser the harasser, as noted above (Sandroff, 1992).
rarely expects or demands a sexual relationship at Morgenson (1989) has suggested that as more and
all, but instead harasses through the use of more women assert their power and succeed on
constant sexual jokes or stories or by making their own merits, sexual harassment will become
comments about the victims body. This form of less of a serious problem in the future.
harassment is common for women working in
non-traditional jobs (Stringer et al, 1991).
Examples of actions companies can take
Most literature on the subject agrees with the
female perception that sexual harassment is an Many small companies have been slow to react
issue of power by characterizing it as an abuse to the growing problem of sexual harassment by
of either role or sexual power with the two major failing to take preventive measures and failing to
motivators being the obtainment of sexual set up procedures for handling a harassment com
activity or increased power or both (Stringer et plaint. In small companies with a "family" atmos
al., 1991). It is easy to understand how role phere, managers often assume they are "immune
power, the power associated with one's title or from the federal civil rights act that prohibits
position in a company, could give one employee sexual harassment since their company has so few
the ability to sexually harass another. In this case, employees" (Levin, 1992). These companies risk
the harasser may believe he has legitimate power, significant financial loss in the event of a sexual
which is defined by Ferrell and Fraedrich (1991) harassment lawsuit.
as a power which "stems from the belief that (one Most large corporations, however, have
has) the right to exert influence and that certain responded to the potential threat that a sexual
others have an obligation to accept it." harassment lawsuit poses by implementing
What may not be as clearly understood is the policies designed to prevent harassment from
observation that men may not be intentionally occurring and establishing procedures for com
trying to use their role power. Men often believe plaints that may arise. For example, Fortune 500
they can step out of their role in the workplace corporations are likely to annually distribute to
when they want to behave in a sexual manner. all employees a memorandum reaffirming the
Women, on the other hand, do not see a sepa company's commitment to equal employment
ration in roles and as a result, feel intimidated and opportunity. A portion of the memorandum
threatened by sexual behaviors (Schellhardt, specifically stresses the respect that the company

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 306 K. A. Crain and K. A. Heischmidt

places on the rights and dignity of individuals, companies are proactive and educating their
and states that accordingly, sexual or other harass employees about what actions could be consid
ment is forbidden. Employees are reminded that ered sexual harassment, investigating allegations
company policy strictly prohibits unwelcome fast, protecting victims, and penalizing offenders
sexual advances, physical or verbal conduct of a (Deutschman, 1991). McCalla (1991) suggest that
sexual nature or any other conduct tending to a strong antiharasment policy which is supported
create a hostile work environment and that strict by planned preventive and corrective action go
sanctions will be imposed for any violation of this a long way in eliminating the presence and
policy. Employees are also reminded that they impact of unethical sexual harassment. In the
have clear procedures for reporting sexual harass event harassment does take place, the company
ment, that they may do so without having to go must immediately act to resolve the problem.
through their supervisor, that their complaint will This alternative recognizes the individual rights
be kept confidential to the extent possible, that of employees and thus employs the deontological
prompt steps will be taken to investigate the moral philosophy. Deontological approaches to
complaint and enforce remedial action if deemed business ethics are derived from perceived duties
necessary, and that they will be safe from retali or obligations of one individual for another.
ation of any kind if they have a complaint. Deontologists hold that certain actions are right
Many companies have taken even further not because of some benefit to ourselves or
action to prevent harassment by conducting others, but due to the nature of the actions.
training sessions on the issue. Eight-one percent Employees should be respected as individuals and
of the Fortune 500 companies surveyed by should be able to have positive working rela
Working Woman have training programs on tionships with other employees.
sexual harassment (Sandroff, 1992). Susan L. Following the proactive alternative also ensures
Webb, a consultant to companies which include that the greatest good is achieved for the greatest
Burger King and Coca-Cola, recommends annual number because it benefits the employees, the
training programs for all employees, introductory company, and the shareholders of the company.
programs for new employees, and refresher The employees are protected from harassment;
programs for newly appointed managers (Washer, the company is protected from legal, competi
1992). tive, and social consequences; and the share
holders are protected from the possibility of
Alternative solutions and ethical financial loss. In this regard, the utilitarian moral
consequences philosophy is followed. Utilitarianism is a teleo
logical approach to business ethics. Teleological
Companies are indeed struggling over how best approaches place complete emphasis upon the
to halt sexual harassment on the job (Liblin, outcome, not the intent of the actions (Boatright,
1991). There are two choices a company can 1993; Hosmer, 1991).
make regarding the issue of sexual harassment.
One choice is to ignore the problem. If the Recommended action and guiding moral
management of a company chooses this alterna
philosophy
tive, they are acting in an immoral and, possibly,
illegal manner. In this situation, the company The most logical action a company can take to
would permit harassers to freely operate under deal with the problem of sexual harassment is to
the teleology moral philosophy of egoism by implement a broad program designed to prevent
allowing them to increase their power by sexually harassment, and set up a clear procedure for
harassing other employees. remedying any harassment complaints. This type
The second choice a company can make, of action offers the best possible outcome for all
regarding the issue of sexual harassment, is to be employees of the company, the company itself,
proactive and do everything within its power to and anyone with an interest in the company. The
prevent harassment from occurring. Smart utilitarian moral philosophy is followed in this

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 Business Ethics and Sexual Harassment 307

case - the greatest good for all concerned is 6. Procedures to follow when investigating
achieved. The deontological moral philosophy is harassment complaints.
also followed by protecting the individual rights 7. Assurances of confidentiality, unless in
of employees. So, by acting to prevent sexual appropriate under the circumstances.
harassment, a company is employing both the 8. An appeals process.
deontological and utilitarian moral philosophies. 9. A commitment to investigate harassment
Ignoring the problem and failing to take any claims promptly and thoroughly, coupled
action at all implies that a company condones the with a requirement that employees co
unethical and illegal behavior of sexual harass operate in investigations of harassment
ment. This type of attitude results in increased claims.
incidence of sexual harassment and exposes the 10. A statement that disciplinary measures
company to tremendous risk in the event of a will be imposed against those shown to
sexual harassment lawsuit. Employers who take have harassed or retaliated against others.
the recommended action have less risk of liability, 11. Protection against retaliation for making
and in cases involving hostile environment sexual a harassment claim.
harassment, they may have no liability at all 12. Recognition that maliciously or recklessly
(Fagin and Rumeld, 1991). false accusations of sexual harassment will
For a company considering the steps it should not be tolerated.
take to effectively deal with the sexual harassment 13. Wide publication and distribution of the
issue, corporate consultant Susan L. Webb policy to those affected by it.
suggests there ar six necessary factors: top man 14. Investigation of complaints will be made
agement's support, a written policy that is posted, on a thorough and prompt basis. The best
a procedure for handling complaints, a timetable action an employee can take in the event
for handling complaints so they are resolved they are sexually harassed is to firmly
quickly, training programs, and follow-up in the protest the behavior when it occurs. One
form of additional training and semi-annual out of three women who protested in the
memos regarding company policy on harassment Working Woman survey got the harasser
(Washer, 1992). In Levins' (1992) article entitled to stop, compared to one out of four who
"Best Policy is to Ban Harassment" he states that tried to ignore or avoid the harasser.
a written policy must include several factors: Trying to ignore the problem is a
common tactic, however. This method of
1. A strong, positive statement that sexual handling the problem was employed by
and other harassment will not be tolerated. 46 percent of the women in the survey
2. A statement of what constitutes sexual who had been harassed (Standroff, 1992).
and other harassment, with examples of
the type of offensive behavior which will
not be tolerated. Practical constraints of recommended
3. A list of those the policy covers ? for action
example, employees, clients, and vendors
- and benefits. Establishing a program to prevent sexual harass
4. The designation of specific persons or ment and setting up procedures for resolving
classes of persons to whom instances of complaints requires a company to commit
sexual and other harassment should be resources in the form of personnel and their time
reported. Workers must be able to report which could be used for more direct and
harassment claims to someone other than immediate obtainment of company goals and as
their immediate supervisors. such, presents a cost to the company. This
5. To reduce workers' discomfort about obviously represents a constraint upon the
reporting incidents to one sex or the company. However, it is clear that by failing to
other, designate both males and females. commit such resources, a company risks far

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 308 K. A. Grain and K. A. Heischmidt

greater loss from potential sexual harassment Business is Getting the Message', Business Week,
lawsuits. March 18, 98-100.
The attempt to change attitudes and behaviors Greenlaw, P. S. and J. P. Kohl: 1992, 'Proving Title
VII Sexual Harassment: The Courts' View', Labor
among employees is another constraint in a
Law Journal, Mar., 164-171.
policy to prevent sexual harassment. Attitudes are
Hosmer, LaRue T: 1991, The Ethics of Management
generally resistant to change. A company may
(Irwin, Homewood, IL).
have more success by focusing on actions Kremer, J. M. D. and J. Marks: 1992, 'Sexual
designed to change behavior (Washer, 1992). Harassment: The Response of Management and
Strict sanctions against harassment, such as imme Trade Unions', Journal of Occupational and
diate dismissal, are probably the best motivation Organizational Psychology 5(15).
for employees to change their behavior. Levin, L.: 1992, 'Best Policy is to Ban Harassment',
PIMA, Sept, 38.
Lublin, J. S.: 1991, 'Companies Try a Variety of
Conclusion Approaches to Halt Sexual Harassment on the Job',
The Wall Street Journal, Oct. 11.
Sexual harassment represents a large problem for McCalla, R.K.: 1991, 'Stopping Sexual Harassment
Before It Begins', Management Review, Apr. 1991.
organizations within the area of organizational
Morgenson, G.: 1989, 'Watch That Leer, Stifle That
relationships. In order for the problem of sexual
Joke', Forbes, May 15.
harassment in the workplace to be reduced, or Moskal, B. S.: 1989, 'Sexual Harassment '80s Style',
preferably eliminated, it is important for com Industry Week, July.
panies to understand that sexual harassment is an Riger, S.: 1991, 'Gender Dilemmas in Sexual
issue which lies within the broader context of sex Harassment Policies and Procedures', American
discrimination and inequality of opportunity in Psychologist, May, 497-505.
the workplace. In this regard, sexual harassment Standroff, R.: 1992, 'Sexual Harassment ? The Inside
is both an illegal and unethical practice which Story', Working Woman, June, 47-51.
must not be tolerated. Companies should adopt Schellhardt, T. D: 1991, 'Experts Explain Sexuality
a policy which respects the rights of individual vs. Power', The Wall Street Journal, Oct. 10, B-l.
employees by prohibiting sexual harassment. This Spann, J.: 1990, 'Dealing Effectively With Sexual
Harassment: Some Practical Lessons From One
policy should be clearly stated in the company
City's Experience', Public Personnel Management,
Code of Ethics and was enforced rigorously.
Spring, 53-69.
Stringer, D M., H. Remick, J. Salisbury and A. B.
Ginorio: 1990, 'The Power and Reasons Behind
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