A "sexual harassment policy" is a written policy adopted by a company stating that illegal sexual harassment will not be tolerated within the company. Illegal sexual harassment can occur when an employee experiences unwelcome sexual advances, requests for sex and other acts or statements of a sexual nature from another employee that create a hostile or abusive workplace. By adopting and enforcing a sexual harassment policy, three important things can happen:
The occurrence of sexual harassment decreases
The company can try to deal with sexual harassment before it leads to litigation
The company can argue more effectively that it shouldn't be held liable for sexual harassment