Abstract
In May 2011, Dominique Strauss-Kahn was arrested by New York City police for allegedly committing various criminal sexual acts against a maid at his hotel, including attempted rape, at a time when he was there on business for the IMF. The events brought Strauss-Kahn under intense scrutiny. Not only were his decisions at the IMF investigated, but his leadership capabilities and personal life were also opened to public dissection. However, the ethical issues presented in this case go beyond Strauss-Kahn’s admitted “moral failure”. The Strauss-Kahn case provides the opportunity to outline more specific organizational policies and procedures regarding sexual harassment as well as the need for moral leadership among business executives who must enforce such policies and procedures on their employees.
“If you act against discrimination, you will increase your productivity and profitability” (Stephan Rothlin, Eighteen Rules for Becoming a Top Notch Player, 2004)
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Notes
- 1.
Strauss-Kahn went on to say that “I have a problem with understanding what is expected from politicians of the highest level. It’s different from what [a] Mr. and Miss in the street [can do].” Of course, even by his account of what he did with Ms. Diallo, he would have been arrested, if caught doing it “in the street.” Apparently, in his view, his sexual behavior is quite normal and becomes a problem only when one becomes a politician—or business executive—at the highest level. Whatever Strauss-Kahn’s expertise in finance and economics may have been, his attitude betrays a remarkably naïve view of organizations and the demands of moral leadership within them.
- 2.
The IMF’s core values statement contains this promising explanation of “what do we want to achieve together”: “1) An intellectually open atmosphere that seeks diverse views to develop the best solution, 2) Best management practices that support all of us in making our best contribution, through opportunities for professional development and recognition of achievements. 3) A healthy work-life balance. 4) Fair, transparent rules, equitably applied and avenues to help us seek recourse, without stigma, if we are wrongly treated. 5) A workplace free of all types of discrimination.” The most important of these five goals may be the third one, on cultivating a healthy work-life balance. The old IMF culture apparently turned a blind eye to sexual and other forms of harassment, assuming that such things were bound to occur in the organization’s highly stressful work environment, fostering “a climate in which romances often flourish — and lines are sometimes crossed” (Appelbaum and Stolberg 2011).
- 3.
Chosen at random, see the policy of St. Paul College in St. Paul, MN (St. Paul College 2014), which is provided as guidance to all students. The policy makes it clear that in any relationship “where a power differential exists between the involved parties,” a violation of the college’s ban on sexual harassment will be assumed, with “the burden of accountability” falling upon the more powerful party, making it “exceedingly difficult to use mutual consent as a defense.” In such a situation, where an accusation of sexual harassment may lead to termination of employment, parties who exercise responsibility as teachers and supervisors are well advised to refrain from any romantic or sexual relationship with anyone on campus.
- 4.
In 2014, the EOC released another report, specifically focused on sexual harassment and employment discrimination among airline flight attendants. With a slightly higher response rate (4 %), the survey revealed that 27 % of the respondents had been sexually harassed in the past 12 months and that “the most common harassers were the customers.” Although all international airlines serving Hong Kong have policy statements on sexual harassment, only 61 % the flight attendants were even aware of its existence, and only 11 % knew “the names and contacts of designated staff who handle complaints.” In addition, “68 % of the respondents had not received any training courses on anti-sexual harassment.” Of those who had been harassed in the past year, 50 % had either chosen to do nothing or merely mentioned it to colleagues and relatives. In the EOC’s view, these findings suggest that compliance must go beyond merely having a policy and must provide effective training if the policy is to be credible. “To combat the feelings of fear and helplessness, a strong corporate culture of protecting employees from sexual harassment and discrimination should be promoted in the company.” (EOC 2014)
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Rothlin, S., McCann, D. (2016). Employees: Discrimination and Sexual Harassment. In: International Business Ethics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-47434-1_9
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