In: Operations Management
Compare the sexual harassment liability of a business entity that is a sole proprietorship with an entity that is a corporation.
Liability issues are of particular concern for sole proprietorship because the owner is personaly liable for claims against the business.
Employers whethere they are small or large have many responsibilities in the workplace in a sole proprietorship. In a sole proprietorship even an employer did not engage in sexual harassment, they can still be held liable if a manager engages in sexual harassment or employer failed to take effective action to stop an employee from harassing a co-worker. Whatever happens in the sole proprietorship business it is the owner who would be made liable.
However in a large business it is not so simple. If an employer made unwanted sexual advancements , engaged in quid pro quo sexual harassment the employer will be made liable when one of the following parties commit the act:
The employer or the president or the CEO
Immediate supervisors who have authority over the victimized employee.
Supervisor who engages in quid pro quo harassment.
If another employee or non-immediate supervisor commit the alleged crime, and the employer knows about it but does nothing than also he would me made liable for it.
While in a corporation there are various laws governing sexual harassment in order to protect the employees. If found a detailed investigation would start followed by the termination of the employee if found guilty and he would also be charged according to that country's law.