Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 3

Leta Fay Ford's supervisor in the purchasing department of Revlon, Inc., Karl Braun, made numerous sexual advances toward her. At Revlon's annual service award picnic on May 3, 1980, Braun grabbed Ford, restrained her in a chokehold with his right arm, and ran his hand over her breasts, stomach, and crotch. That same month, Ford began a series of meetings with various members of Revlon's management to report her complaints about Braun. During this time, he continued to harass her. Despite Ford's numerous meetings and complaints, no action was taken by Revlon until nine months after her initial complaint. It was not until this meeting that Braun was finally confronted by the company and told that he would be closely monitored. Three months after this meeting (one year after Ford's initial complaints), Revlon's personnel manager submitted a report confirming Ford's charges and issuing Braun a letter of censure. During the time of her harassment, Ford developed high blood pressure, a nervous tic in her left eye, rapid breathing, and other symptoms of emotional stress. She ultimately attempted suicide. Particularly disturbing is the fact that Revlon knew of the supervisor's outrageous conduct, was aware of Ford's growing emotional and physical distress, and still totally disregarded its own company policy for protecting its employees from such harassment. Specifically, how might this case be used to undermine the profit maximization arguments?