Back when I was in college, the usual fraternity "initiation" or hazing ritual somehow involved the humiliation (percieved or otherwise) of some semi-public masturbation. Much as a previous poster described, this often involved some sort of circle-jerk in front of fraternity members and their girlfriends. However, the ritual was ended one year after the girlfriends got a little too tipsy and began making comments about some of the initiates being more well-endowed than their current boyfriends. This quickly deflated the "fraternity initiators" egos, and no public nudity was ever compulsory after that event.
Also, as a related topic, the all of the fraternities and sororities on my campus had their big weekly meetings on the same night (avoided conflicts, etc). Usually the fraternity meetings would end with some booze/weed and porn in the rec room. I was amazed by how many guys would go back to their rooms with obvious hard-ons and (pretty obviously) "take care" of themselves (returning downstairs ten minutes later with deflated dicks and balls). Usually, the presence of other roommated (up to 3 other guys) did not deter anyone from returning to their room to beat their meat. I am not sure what went on in other rooms, but I had two other roommates. One was gay and very closeted (GF and everything), and one drunken night my straight roommate and I convinced the gay roommate that we should all circle jerk. That let us convincing him that it was "okay" if he wanted to suck us off, and he did! We kept that our secret, but for a year my roommate and I were pretty grateful to have BJs whenever we wanted!
Sorry that was such a long post...
Eric