Case study-price waterhouse vs hopkins


Case Study:

Price Waterhouse v. Hopkins 490 U.S. 228 (1989)

Ann Hopkins, a female associate who was refused admission as a partner in an accounting firm, brought a gender discrimination action against the firm. The U.S. Supreme Court held that the evidence was sufficient to show that illegal gender stereotyping played a part in evaluating Hopkins’ candidacy.

Brennan, J.

In a jointly prepared statement supporting her candidacy, the partners in Hopkins’ office showcased her successful 2-year effort to secure a $25 million contract with the Department of State, labeling it “an outstanding performance” and one that Hopkins carried out “virtually at the partner level.” None of the other partnership candidates had a comparable record in terms of successfully securing major contracts for the partnership. The partners in Hopkins’ office praised her character and her accomplishments, describing her as “an outstanding professional” who had a “deft touch,” a “strong character, independence, and integrity.” Clients appeared to have agreed with these assessments. Hopkins “had no difficulty dealing with clients and her clients appeared to be very pleased with her work” and she “was generally viewed as a highly competent project leader who worked long hours, pushed vigorously to meet deadlines, and demanded much from the multidisciplinary staffs with which she worked.” Virtually all of the partners’ negative comments about Hopkins—even those of partners supporting her—had to do with her “interpersonal skills.” Both supporters and opponents of her candidacy indicate she was sometimes “overly aggressive, unduly harsh, difficult to work with, and impatient with staff.” There were clear signs, though, that some of the partners reacted negatively to Hopkins’ personality because she was a woman. One partner described her as “macho”; another suggested that she “overcompensated for being a woman”; a third advised her to take “a course at charm school.” Several partners criticized her use of profanity; in response, one partner suggested that those partners objected to her swearing only “because it[’s] a lady using foul language.” Another supporter explained that Hopkins “ha[d] matured from a tough-talking somewhat masculine hard-nosed manager to an authoritative, formidable, but much more appealing lady partner candidate.” But it was the man who bore responsibility for explaining to Hopkins the reasons for the Policy Board’s decision to place her candidacy on hold who delivered the coup de grace; in order to improve her chances for partnership, Thomas Beyer advised, Hopkins should “walk more femininely, talk more femininely, dress more femininely, wear make-up, have her hair styled, and wear jewelry.” Dr. Susan Fiske, a social psychologist and Associate Professor of Psychology at Carnegie-Mellon University, testified at trial that the partnership selection process at Price Waterhouse was likely influenced by gender stereotyping. Her testimony focused not only on the overtly gender-based comments of partners but also on gender-neutral remarks, made by partners who knew Hopkins only slightly, that were intensely critical of her. One partner, for example, baldly stated that Hopkins was “universally disliked” by staff and another described her as “consistently annoying and irritating”; yet these were people who had had very little contact with Hopkins. According to Fiske, Hopkins’s uniqueness (as the only woman in the pool of candidates) and the subjectivity of the evaluations made it likely that sharply critical remarks such as these were the product of gender stereotyping. An employer who acts on the basis of a belief that a woman cannot be aggressive or that she must not be has acted on the basis of gender. Although the parties do not overtly dispute this last proposition, the placement by Price Waterhouse of “sex stereotyping” in quotation marks throughout its brief seems to us an insinuation either that such stereotyping was not present in this case or that it lacks legal relevance. We reject both possibilities. A number of the partners’ comments showed gender stereotyping at work. As for the legal relevance of gender stereotyping, we are beyond the day when an employer could evaluate employees by assuming or insisting that they matched the stereotype associated with their group, for “[i]n forbidding employers to discriminate against individuals because of their gender, Congress intended to strike at the entire spectrum of disparate treatment of men and women resulting from sex stereotypes.” An employer who objects to aggressiveness in women but whose positions require this trait places women in the intolerable and impermissible Catch-22: out of a job if they behave aggressively and out of a job if they don’t. Title VII lifts women out of this bind. Remarks at work that are based on gender stereotypes do not inevitably prove that gender played a part in a particular employment decision. The plaintiff must show that the employer actually relied on her gender in making its decision. In making this showing, stereotyped remarks can certainly be evidence that gender played a part. REVERSED and REMANDED.

Q1. What were Price Waterhouse’s fatal flaws?
Q2. Does Hopkins’s treatment here make good business sense? Explain.
Q3. How would you avoid the problems in this case?

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format.

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Business Law and Ethics: Case study-price waterhouse vs hopkins
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