Mains Daily Question
Nov. 30, 2023

Q2. A woman was sexually harassed by a top-level senior executive in a large IT company. She decided to sue the company in response, and during settlement discussions the company offered her an extremely large monetary settlement. The agreement included a condition that the woman had to confirm that the executive had done nothing wrong and prohibited her from discussing anything about the incident in public.

However, before the date of signing the settlement agreement, the woman's lawyer heard that the executive had done this before, and that the settlement amount was high because the company probably had a legal obligation to dismiss the executive but wanted to keep him for his money-making capabilities. Also, the woman is in need of the money as she is the only bread earner in her family and the condition of the family is very poor and by signing the agreement, she can save her job as she has been threatened by the company officials.

 
1. Who are the stakeholders involved in the case study?
2. What are the ethical issues posed in the case study?
3. What options does the woman have?
4. What should she do and why?                 (250 words, 20 marks) 

Model Answer

Approach to the Answer: 

The case study highlights the issue of sexual harassment of women at workplace and other related issues.

Introduction:  

Introduce the scenario where a woman who was sexually harassed by a senior executive and discuss the woman's need for the money, the potential motives behind the company's offer, and the impact on her job security.

Body:  

As per the demand of the question, we can divide the answer into the following sections: 

Section 1: Identify the stakeholders involved in the case study and discuss the interests, rights, and responsibilities of each stakeholder in relation to the case. 

Section 2: Identify the ethical issues posed in the case study. 

Section 3: Present the options available to the woman in this situation. 

Section 4: Analyze the options available to the woman and make a recommendation based on ethical considerations and her best interests. Emphasize the importance of her well-being, her need for justice, and the potential impact on future victims if she remains silent.

Conclusion: 

Emphasize the importance of seeking legal advice and support to navigate the complexities of the situation.

Answer: This case study highlights some of the issues that women face in the workplace and in the legal system. It shows how a company can use its power to silence victims of sexual harassment by offering a large monetary settlement. The above case study also shows how such practices exist despite The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 coming in force. 

 

  1. Stakeholders involved in the case study:
  1. The woman employee: She is the victim of sexual harassment and is the one being offered a monetary settlement.  
  1. The executive employee: He is the perpetrator of the sexual harassment and the one who stands to benefit from the monetary settlement.  
  1. The company: They are the employer of the executive and are responsible for ensuring that the workplace is free from harassment.  
  1. The woman's lawyer: They are representing the woman and are advocating for her rights. 
  1. The family: They are dependent on the woman for financial support and will be affected by the outcome of the settlement.  

 

  1. Ethical issues posed in the case study:
  1. Inaction against the executive: There is lack of fairness as executive has committed sexual harassment against the woman and other women in the past but is being allowed to remain in his position due to the company's financial interests.  
  1. Freedom of speech: The woman’s voice can be suppressed as she is being offered a large monetary settlement in exchange for her silence about the incident, which could be seen as an attempt to cover up the executive's actions.  
  1. Benefitting from her vulnerabilities: The woman is in a difficult financial situation and needs the money, which may lead her to accept the settlement despite the restrictive terms.  This can highlight the potential conflict of profit over values. 
  1. Lack of corporate governance: The company may be using the woman's financial need to pressurize her into accepting the settlement and its conditions.  
  1. Threats to the women safety: The woman may be facing threats from the company officials, which could make her feel that she has no other option than to accept the settlement.  
  1. Inadequate justice: The woman may not have access to legal advice to help her make an informed decision about the settlement offer. This can lead to lack of fairness in the process.  

  1. Possible Options available to the women:
  1. The woman can accept the settlement and sign the agreement that includes the condition that the executive has done no wrong and that she cannot discuss the incident publicly.  

Merits 

Demerits 

  • Receives a large amount of money, which can improve her family's financial situation. 
  • Can save her job and avoid strained relations with company officials. 
  • Agree that the executive did nothing wrong, which is against the truth. 
  • The employees may never come to know the real truth. 
  • The executive can continue such behavior in future as well. 
  • A culture of covering-up of such issues can develop.  

 

  1. The woman can reject the settlement and pursue legal action against the company and the executive.   

Merits 

Demerits 

  • Will ensure justice by holding the company and executive accountable for their actions. 
  • Maintains the truth and integrity. 
  • This may lead to an expensive legal process. There can be financial burden on the woman and her family. 
  • There is uncertainty of the outcome
  • It can impact her career and professional reputation. 
  • The women can be further harassed from the company. 

 

  1. The woman can accept the settlement but negotiate with the company to alter the agreement to allow her to discuss the incident publicly or to remove the condition that the executive has done no wrong.  

Merits 

Demerits 

  • Get a financial settlement and retain the ability to discuss the incident publicly. 
  • Can renegotiate the condition regarding the executive's wrongdoing. 
  • The company may resist altering the agreement. 
  • Agreeing to conditions that contradict the truth or compromise integrity. 
  • Need to work with a company which covers up unethical issues.  

 

  1. The woman can consult with her lawyer and other stakeholders to come up with an alternative agreement that meets her needs and those of her family. 

Merits 

Demerits 

  • Allows for solutions by considering the woman's needs and her family interests. 
  • Considers the legal and financial implications.  
  • May prolong the resolution process. 
  • Difficulty in reaching consensus among stakeholders.  
  • May lead to compromise on certain aspects to reach an agreement. 

 

  1. The women should:
  • Not sign the settlement agreement. The agreement would require her to confirm that the executive had done nothing wrong, which is clearly not true.  
  • It would also require her to remain silent about the incident, which would not only prevent her from speaking publicly about the incident but would also remove her ability to make any kind of complaint against the executive in the future.  
  • Furthermore, the company's offer of a large monetary settlement indicates that they are aware of the executive's past behavior and may be attempting to cover it up.  
  • In the current situation, the woman's best course of action is to first discuss the issue with other victims and then after their suggestions pursue legal action against the company.  
  • She can take the help of free legal aid provided by the government and file a case against the company citing sexual harassment. This would give her the opportunity to seek justice and potentially receive compensation for any damages she may have incurred.  
  • This will ensure that she is following the ethical course of action while upholding the integrity and fight for justice not just for herself but for other women who have faced a similar problem.  
  • Furthermore, it would also allow her to speak publicly about the incident, which could potentially draw attention to the executive's past behavior and lead to his dismissal.  
  • Ultimately, the woman should weigh the pros and cons of signing the settlement agreement before making a decision. Although the offer may seem tempting, the long-term implications of signing the agreement could be detrimental.  

 

The case study suggests that anyone should be held accountable for any sexual misconduct and should be aware of the consequences of their actions. It also implies that they should not be allowed to gain any benefits from their positions of power and influence. Finally, it stresses the importance of legal obligations in cases of sexual misconduct. 

 

Subjects : Ethics
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