This document proposes a comprehensive sexual harassment policy for Arbor Building Services to comply with legal requirements and prevent costly lawsuits. It outlines the need for a policy due to a recent sexual harassment lawsuit filed against the company. The policy aims to clearly define harassment, establish procedures for reporting incidents and investigating complaints, ensure confidentiality, provide training to promote prevention, and designate an employee to coordinate compliance. Research cited shows sexual harassment claims and related costs to companies have sharply increased in recent years, emphasizing the importance of a strong policy.

1. Arbor Building Services, Inc.
2500 Packard Road
Ann Arbor, MI 48104-6864
Phone 734-971-7890
Fax 734-971-7893
Sexual Harassment Policy
AProposal for
Corporate Operations
Submitted to:
Kim Allen
Submitted by:
Ron Wilbanks
March 11, 2005

2. INTRODUCTION:
Recent legal developments have prompted the need to address our corporation’s position
regarding employee sexual harassment. This problem is an acute and sensitive area that
affects all employees in all areas of operations. This is a comprehensive corporate policy
designed to protect management against possible future civil damages, and a guide for
employees to follow.
Moreover, this comprehensive policy is designed to be in full compliance with the 1964
Civil Rights Act, and current EEOC guidelines. Please feel free to make any comments or
suggestions.
PROBLEM:
Currently, a former employee has filed a civil suit against Arbor Building Services, Inc.
(hereafter referred to as ABS) on the grounds of sexual harassment. This problem, while
not unique to this corporation has been increasing steadily over the past decade,
especially in the construction industry as more a diversified workforce is now becoming
commonplace in a field that was once very heavily male dominated.
In 1998, the Federal Supreme Court ruled, “To defend themselves employers would have
to show that they exercise reasonable care to prevent or promptly correct any sexually
harassing behavior.” With the lack of a fully modern, comprehensive corporate policy
against such circumstances, this leaves the door wide open for further lawsuits against
ABS. Furthermore, in 1999, the Supreme Court again ruled that sexual harassment need
not be from two different genders but also may be from a single gender involving two or
more people.
Furthermore, offensive conduct may include, but is not limited to, offensive jokes, slurs,
epithets or name calling, physical assaults or threats, intimidation, ridicule or mockery,
insults or put-downs, offensive objects or pictures, and interference with work
performance. In the current climate, ABS can be held liable for sexual harassment
damages even when:
• The victim never filed a complaint verbal or written to the company.
• The harassing person is a company employee, not a supervisor.
• The harassing person is a customer.
• The employee’s supervisor did not take action even if the victim requested to
remain anonymous.
• The victim thinks their own opportunities have been hindered by a manager or
supervisor harassment of, or consensual relationship with another employee.

3. RATIONALE:
In the last year, the EEOC has reached three of the agency's largest settlements ever in
sexual harassment complaints against employers for close to $46 million dollars, each of
which had a weak or vague sexual harassment policy. The number of sexual harassment
complaints filed with EEOC has doubled in the last five years and monetary awards in
federal sexual harassment suits rose from $7 million to $50 million.
We cannot afford to have a vague or ineffective sexual harassment policy in an era of
aggressive enforcement by the EEOC and others, who will not hesitate to obtain the
highest dollar amount in damages for their clients. The previous policy regarding this
matter was created on March 18, 1993, and needs to be brought into full compliance with
current federal and state laws.
Therefore, it is the best interest of the ABS to adopt the revised policy and implement
strict enforcement of it, to prevent future monetary losses from possible single or class
action lawsuits.
RESEARCH:
Trends Indicate Costs of Harassment Increasing:
The number of sexual harassment complaints filed with EEOC has doubled in the last
five years and monetary awards in federal sexual harassment suits rose from $7 million to
$80 million, according to US News & World Report. 6/9/02
Annual Costs of Harassment Suits
2002
2003
2004
2005 Projected
$0.00
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
$70,000,000.00
$80,000,000.00
$90,000,000.00
2002 2003 2004 2005 Projected

4. Survey Shows Complaints Continue to Rise:
According to a recent survey by the Society for Human Resource Management,
sexual harassment complaints in the workplace are still on the increase. The survey asked
how many complaints the organizations had received per year since January 1995. The
results indicated an increase each year in the number of complaints received from 0.69
per year in 1995 to 1.9 per year in 1998. 6/7/99
Full story in the May Webb Report Three Largest Settlements by EEOC:
In the last year, the EEOC has reached three of the agency's largest settlements
ever in sexual harassment complaints against employers. The first two were in 1998,
involving Mitsubishi Motor Manufacturing of America Inc. for $34 million and Astra
USA, a pharmaceutical company, for $9.85 million. The third was in 1999 involving
agricultural company Tanimura & Antle for $1.9 million. 6/30/99

5. HARRASMENT CLAIMS:
Men harassing women range between 50 to 67 percent and the opposite is 15 to
30 percent. Each year, more than 2000 women and 200 men file sexual harassment
charges with the Equal Employment Opportunity Commission (EEOC). Men admit to
receiving unwanted sexual attention more often when privately surveyed. The claims
percentage is almost the same as the number of claims announced by women. The
number of formal complaints does not reflect that ratio though.
NOTICE OF HARRASMENT:
If a company has prior notice of a sexually hostile environment but neglects to
take appropriate actions, the company will be in violation of Title VII of the Civil Rights
Act of 1964. A company can receive notice of harassment in a number of ways. For
instance, an employee may have filed a grievance with the Title VII coordinator or
complained to a manager or other responsible employee about fellow employees
harassing him or her. For the purposes of compliance with the sexual harassment
regulations, a company has a duty to respond to harassment that it reasonably should
have known about. In other words, if an official has learned of the harassment complaint,
discernable effort should be put forth to evaluate the situation in question to review
available options for efficient resolution.
THE ROLE OF GRIEVANCE PROCEEDURES:
Companies are required by the sexual harassment regulations to adopt and publish
grievance procedures providing for prompt and equitable resolution of sex discrimination
complaints, including complaints of sexual harassment, and to disseminate a policy
against sex discrimination. Without a disseminated policy and procedure, an employee
does not know either of the company's policy against and obligation to address this form
of discrimination, or how to report harassment so that it can be remedied. The company
will be responsible to take corrective actions if the company fails to comply with the
procedural requirements should the suspected harassment is serious enough to create a
hostile environment. The company is also at fault if it fails to comply with the
requirements of the sexual harassment handling regulations that stalls early notifying and
intervening and permits sexual harassment to suppress an employee's ability to work on
the basis of sex.

6. RECIPIENT'S RESPONSE:
Once a company has notice of possible sexual harassment of employees, it should
take immediate and appropriate steps to investigate or otherwise determine what
occurred, and take prompt and effective steps reasonably calculated to end any
harassment, eliminate a hostile environment if one has been created, and prevent
harassment from occurring again. These steps are the company's responsibility whether
or not the harassed employee makes a complaint or otherwise asks the company to take
action. What constitutes a reasonable response to information about possible sexual
harassment will differ depending upon the circumstances.
CONFIDENTIALITY:
The scope of a reasonable response also may depend upon whether a harassment
reporting employee, or manager, asks that his or her name not be disclosed to the harasser
or denies assistance from the company. In all cases, a company should first discuss
confidentiality standards and concerns with the complainant. The company should inform
the employee that a confidentiality request might limit the company's ability to remedy.
The company also should tell the employee that sexual harassment procedures prohibit
retaliation. The company is guarantee prevention of retaliating and will take.
PREVENTION:
A policy directly refuting sexual harassment and separate grievance procedures
for violations of the policy helps makes sure that all employees know what sexual
harassment is and understand its lack of tolerability. Doing so can bring forth issues
before they become formal complaints and the situation becomes hostile. Further,
training for employees and managers can help to ensure that they understand what types
of conduct can cause sexual harassment and that they know how to react.

7. PROMPT AND EQUITABLE GRIEVANCE PROCEDURES
A company must designate at least one employee to coordinate its efforts to
comply with and carry out its Title VII responsibilities. The company must notify all of
its managers and employees of the name, office address, and telephone number of the
employee or employees designated.
DUE PROCESS RIGHTS OF THE ACCUSED
The Constitution also guarantees due process to accusing and accused employees
of certain types of infractions. The rights established under the sexual harassment
guidelines must be interpreted consistent with any federally guaranteed due process rights
involved in a complaint proceeding. Of course, companies should ensure that steps to
accord due process rights do not prevent the protections provided by sexual harassment
guidelines to the complainant. Additional or separate rights may be created for employees
or managers by State law, institutional regulations and policies. Companies should be
aware of these rights and their legal responsibilities to the accused.
FIRST AMENDMENT:
The protections of the First Amendment need consideration when speech or
expression issues are involved. First Amendment rights apply to the speech of students
and teachers. Sexual harassment guidelines are intended to protect students from sex
discrimination, not to regulate the content of speech. To establish sexual harassment
guideline violations, the harassment must valid and sufficient enough to prevent an
employee's ability to work.
“Revised Sexual Harassment Guidance“
(http://www.ed.gov/offices/OCR/shguide)
“Sexual Harassment - frequencies by gender”
(http://www.vix.com/pub/men/harass/studies/larsen.html)