Running head: SEXUAL HARRASSMENT IN THE WORKPLACE Sexual Harassment in the Workplace

Susan was very grateful to have a job with the state the economy was in. Many of her friends were out of work; searching day by day, and all to no avail. She knew she needed her modeling job in order to pay the bills and survive. Susans boss also knew this and exploited the situation to his advantage. He knew the company had a fairly lenient, open philosophy on consensual sexual relationships, and proceeded to pursue his interests in her. Susan was not interested, but felt that if she turned him down, she could lose her job and potential pay increases. Susan faced an ethical dilemma. Employees of American Apparel have had to face this same type of scenario. Ongoing problems with sexual harassment and misconduct have continued to exist throughout the years with the latest being publicized in March 2011. The CEO of American Apparel believes that sexual relationships in the workplace are appropriate as long as they are consensual and it is a right afforded of the First Amendment (OBrien, 2011). This belief presents several challenges though. How can it be proved that the sexual relationships are indeed consensual? How can a sexual relationship be considered consensual if the parties involved are on different levels in the organization? One may hold the key to the others promotions or salary increases, and this would make it difficult to consider the relationship truly consensual. The CEOs beliefs have opened the door to these types of questions. Consensual sexual relationships in the workplace should not be allowed because of the ethical dilemmas it presents, the difficulty of proving the relationship was consensual, the differences between employees status levels, and it could create a hostile work environment. The CEO of American Apparel, Dov Charney, believes, its a First Amendment right to pursue ones affection for another human being (OBrien, 2011). Charneys position on sexual

SEXUAL HARRASSMENT IN THE WORKPLACE conduct has created numerous problems, including lawsuits, for the company. By 2008, the

company had already faced four different sexual misconduct lawsuits and two more were filed in March 2011 (Field, 2010). In these lawsuits, the allegations run from the CEO exposing himself to employees, sexual assault, unwanted sexual advances, and derogatory comments towards women (LaSorsa, 2009). His sexual misconducts first became public knowledge back in 2004 when a reporter was writing an article about the companys clothing line. OConnell (2011) reported that during the interview, Charney exposed himself and masturbated in front of the reporter, commenting: Masturbation in front of women is underrated. Its much easier on the woman. She gets to watch, its a sensual experience that doesnt involve a man violating a woman, yet once the man has his release, its over and you can talk to the guy (para. 6).

These actions, statements and beliefs are causing American Apparel some very serious problems and creating a sexually charged, hostile work environment for all employees. Employees should not have to be subjected to this type of treatment or have to observe these activities, and something needs to be done to change this. Title VII of 1964 Civil Rights Act defines sexual harassment as, unwelcome verbal, visual, or physical conduct of a sexual nature that is severe or pervasive and affects working conditions and/or creates a hostile work environment (ERA, nd.). The title also holds employers accountable for protecting their employees from being subjected to any form of sexual harassment. It states, covered employees must: (1) take reasonable care to prevent sexual harassment; (2) take reasonable care to promptly correct sexual harassment that has occurred (ERA, nd.). Although American Apparels CEO believes sex is a right afforded all by the First

SEXUAL HARRASSMENT IN THE WORKPLACE Amendment, the organization actually has the responsibility of preventing, stopping, and protecting their employees from sexual misconduct in the workplace. Thus far they have failed to do so, and this is where the door has opened for ethical questioning. Dov Charneys philosophy on consensual sexual relationships alone is enough to pose

several ethical questions. One of the questions posed by this belief is just how consensual are the sexual relationships when there is a difference between salary and status level. If one person holds a position of authority over the other, then he or she may feel obligated to accept the advancements of the one in charge. He or she may believe that if they turn down the authoritarian, then their job could be at risk or they may be turned down for a promotion or possible pay increase in the future. How can it be determined then that the sexual relationship between the two was indeed consensual?

According to the Equal Rights Advocates (nd.), one should always document the offense and inform the employer. In order for a case of sexual harassment to exist, an employer must be aware that a situation has occurred (ERA, nd.). In this case, American Apparel has been made aware numerous times that harassment has and continues to occur.

The board of directors has failed to take action and ensure that this type of behavior ceases by continuing to allow the CEO to practice and enforce his own personal views on sex. With Chaney owning 51.8 percent of the company and helping American Apparel maximize profits for years, the board of directors may feel that if they stepped in, they could lose the money his leadership offers (OBrien, 2011). When Chaney first opened American Apparel in 2003, revenue has reached upwards of $250 million a year, for at least the first three years (Mankiewicz, 2006). Even though the company has prospered, the lack of responsibility and

SEXUAL HARRASSMENT IN THE WORKPLACE leadership by the board of directors allows these problems to continue to exist, not only for the employees but for the company as well. The company has placed its emphasis on profit rather than on ethics.

Unfortunately, American Apparel has created a hostile work environment by allowing this type of behavior to occur and continue. Employees have been subjected to seeing the CEO pull his pants down in front of them frequently, expose his body parts, listen to sexual innuendos and comments, and observe sexual acts; thus directing violating Title VII. An organization cannot expect employees to perform under this type of duress, nor should they expect them to be productive. American Apparel is acting in complete disregard of others rights, feelings, opinions, and is directly undermining societys emphasis on morals and values.

A possible solution to this problem would be, first and foremost, the board of directors needs to be revamped and restructured. They have allowed these types of actions to occur, thus reflecting that their sense of right and wrong is questionable. They have not held their executives accountable for their actions nor incorporated ethical compliance guidelines. American Apparel has not conducted business with the stakeholders best interests in mind.

After the board of directors has been restructured, then they need to exercise their control and begin making more ethical decisions. Some of these decisions should include incorporating an ethics program and encouraging whistle blowing by rewarding legitimate reports. Training needs to take place in all levels of the organization and must be overseen by the board of directors. Improper conduct needs to be handled correctly and swift action must be taken against those whom do not follow the ethical guidelines laid out by the board of directors. Sexual relationships between employees on different status levels should not be allowed or encouraged

SEXUAL HARRASSMENT IN THE WORKPLACE

in any way. Developing rules against fraternization should help deter this problem and help keep the integrity of the organization. Ultimately, the board of directors is responsible for the failure or success of a company and for overseeing ethical issues. Their main concern should always be the stakeholders interests. By implementing clear cut rules, developing and overseeing an ethics program and by taking control, they are helping ensure a successful future for all stakeholders, as well as a successful future for the organization. If the proper steps are taken, issues such as this would cease to exist and the company would thrive with a more balanced, productive, and safe working environment for all to enjoy.

Sexual harassment affects millions of people annually, whether it is directly or indirectly. It creates a hostile work environment for all employees. All employees should be able to feel safe and secure when doing their jobs, not having to fear if they will be violated. Consensual sexual relationships should also be discouraged between members of unequal status and pay. This opens the door to possible sexual harassment claims, as employees tend to find themselves in precarious situations and ethical dilemmas. These types of situations can be prevented and avoided by just implementing and enforcing clear cut rules, developing and overseeing an ethics program, and by deterring fraternization. These steps will help ensure a successful future for all stakeholders, as well as a successful future for the organization.

SEXUAL HARRASSMENT IN THE WORKPLACE References Equal Rights Advocates. (2012). Know your rights: Sexual harassment at work. Retrieved February 12, 2012, from http://www.equalrights.org/publications/kyr/shwork.asp Field, A. (2010, October 20). The lawsuits that could unravel American Apparel. Retrieved February 12, 2012, from http://www.dailyfinance.com/2010/10/20/the-lawsuits-thatcould-unravel-american-apparel/ LaSorsa, P. M. (2009, January 7). Sexual harassment lawsuit filed against American Apparel [Web log post]. Retrieved from http://www.illinoissexualharassmentattorneyblog.com/ 2009/01/sexual_harassment_class_action.html Mankiewicz, J. (2006, July 28). Sexy marketing or sexual harassment? Retrieved February 12, 2012, from http://www.msnbc.msn.com/id/14082498/ns/dateline_nbc/t/sexy-marketingor-sexual-harassment/#.TzgXG8VSSB8 OBrien, G. (2011, March 28). American Apparel and the ethics of a sexually charged workplace. Business Ethics the Magazine of Corporate Responsibility. Retrieved from http://business-ethics.com/2011/03/15/0852-american-apparel-and-the-ethics-of-asexually-charged-workplace/ OConnell, R. (2011, March 26). The drama of Dov Charneys sexual harassment lawsuits. Retrieved February 12, 2012, from http://thoughtcatalog.com/2011/the-drama-of-dovcharneys-sexual-harassment-lawsuits/