1. Sexual Harassment and Public Accounting: Anecdotal Evidence from the Profession
Gerald J. Miller, PhD, CPA, CGFM
The College of New Jersey
Brian B. Stanko, PhD, CPA
Loyola University-Chicago
Ellen L. Landgraf, PhD, CPA

2. Sexual Harassment in the Professional Business Environment-Prior Studies
1990 National Assoc. of Female Executives:
77% believed sexual harassment is a problem
1991 survey of 524 firms by the American
Management Association: 52% had dealt with allegations of sexual harassment
1994 survey of 8,000 Federal workers: 44% of women respondents had experienced sexual harassment in the past two years

3. Sexual Harassment in Accounting: Prior Studies
Stanko & Miller: Government Accounting
1999 Stanko & Schneider: Public Accounting
2009 Stanko, Zeller & Werner: Public Accounting

4. What is Sexual Harassment?
Fair Employment Practices Manual, EEOC, 1991:
Hostile Environment : unwelcome sexual conduct of co-workers or supervisors that interferes with an individual’s ability to work or creates an intimidating or offensive atmosphere
Quid pro quo: a workplace superior or coworker demands some degree of sexual favor and threatens to or actually does retaliate in a way that has a tangible effect on the working conditions of the harassment victim if he or she refuses to acquiesce

5. Survey Information 2000 female members of the AICPA randomly
selected; 616 responses for a rate of 31%
Each questionnaire included a definition of sexual harassment
Follow up questionnaire after six weeks
Some respondents may no longer have been employed in the public accounting sector

6. Demographic Summary Demographic Category Frequency Percent Age 20-2964
10%
30-39
205
34%
40-49
237
39%
50 and over
104
17%
610
Highest Degree Held
Bachelors
425
70%
Masters or above
182
30%
607
Years of professional accounting experience
0-2 yrs 4 1%
3 to 5 yrs 67
11%
6 to 10 yrs
122
20%
Over 10 yrs
417
68%
Type of firm affiliation
National (big four)
119
23%
National (other) 51 9%
Regional 99
18%
Local
271
50%
540

7. Demographic Summary (con’t.)
Category
Frequency
Percent
Area of specialization
Audit
222
39%
Tax
239
42%
MAS 13 2%
Other 96
17%
570
Present position
Staff 37 7%
Senior/In-Charge
116
22%
Manager
237
44%
Principal/Partner
146
27%
536
Current marital status
Single
140
23%
Married
470
77%
610

8. Narrative Comments
Approximately 18% (111/616) of the respondents provided narrative comments on the issue of sexual harassment.
The comments were analyzed and 96/111 (86%) were classified into five categories (one comment addressed two categories and was included in both).

9. Narrative Comment Categories
Incidence or lack thereof of sexual harassment (39%)
Sexual discrimination versus sexual harassment (23%)
Advice on how women can discourage or prevent future incidents of harassment or described their organization’s policy on sexual harassment (20%)
The current versus the past climate of sexual harassment (16%)
What does or does not constitute sexual harassment (2%)

10. Selected Comments-Incidence
“Sexual harassment and discrimination are very serious problems in public accounting and need to be addressed for women to remain employed in the industry.”
“I feel sexual harassment is extremely prevalent and is not going anywhere. I see it all of the time and have experienced it myself several times.”
“I experienced all of my sexual harassment or similar experiences during my Big 4 career, and virtually none of it outside of my of my Big 4 career.”

11. Incidence (con’t.) “I had no problems in public accounting.”
“I have not known of any sexual harassment cases at my firm in the 7 years I have been employed there.”
“I don’t know if the accounting profession has adequately addressed the issue of sexual harassment because I have never been exposed to it.”

12. Discrimination vs. Harassment
“Sexual discrimination is more of a problem than sexual harassment. Look at all Big 4 accounting firms and you’ll see it quite starkly.”
“Sexual harassment is not the problem, but gender issues.”
A new partner told me that “he didn’t hire female accountants because they just have babies and then quit.”

13. Discrimination vs. Harassment (con’t.)
“I believe the traditional nature of the accounting profession makes it easier for sexual harassment and discrimination to take place.”
“I believe that the accounting profession, as I experienced it during internship and two years of service, has problems with plain harassment toward women.”
“Sexism is still a “BIG” issue.”

14. Discouragement and Prevention
“Company has made adequate provisions, but does not take complaints seriously.”
“On the surface “yes”-policies are in place and enforced if management is aware; “no” because individual attitudes remain in place.”
“I think the large firms are more concerned about protecting the firm from liability than their employees who may have been victims or violators.”

15. Current vs. Past Climate
“The problem has gotten much better over the last 15 years-training in sexual harassment, in general an awareness and better environment.”
“Isolated occurrence early in my career; much has changed in the last 20 years to eliminate issues.”

16. What Constitutes Sexual Harassment
“Harassment also takes the form of derogatory remarks over a female taking the “mommy track;” hence no promotions, lower raises, etc.”
“I do not consider vulgar language and jokes that are not tasteful to be sexual harassment. Further, I believe women abuse the use of the term.”

17. Conclusions, Implications, Recommendations
Public accounting firms continue to be exposed to significant within-firm risk, as well as with associated clients.
Sexual harassment most often takes the form of inappropriate comments or jokes.
The incidence of sexual harassment in public accounting is mixed.
Policies have been put in place but are not always enforced.

18. Conclusions, Implications, Recommendations (con’t.)
There has been a general improvement in both incidences and training during the past years.
Sexual discrimination may be just as important an issue as sexual harassment.
Firms must continue to establish and enforce effective, well-communicated policies denouncing harassing behavior.
The AICPA should establish a separate rule on sexual harassment with an interpretation.