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This study of American Apparel found ethical conflicts such as untimely paying employees, using taboo topics in the community to promote their product, and insults and abuse by supervisors towards rank-and-file employees. Taking a closer look at the problems of bosses treatment of rank-and-file employees, its worth mentioning that Dov Charney, the companys CEO, is essentially to blame for the violations. Charney has been accused of sexual harassment of employees and misuse of company money, and there have even been reports of Charney attempting to strangle a company employee.
American Apparel has repeatedly violated ethical marketing rules. Typically, the violations involve using taboo topics, such as sex, or using models without underwear. TIME magazine says that the photograph shows the models as vulnerable and helpless, which is offensive to women and violates the ethical rules of marketing (Haigh, 2020). Also, one model in the photo did not have any underwear under her skirt, which the companys clients noticed when they viewed the advertisement.
The companys high salaries and efforts to reduce environmental damage look good for its employees and customers. These steps are relevant when the issue of land conservation and demands to reduce ecological damage are particularly acute. But it also benefits the company in that many employees will be willing to not notice other unethical issues if the latter do not affect them personally.
Dowa Charney, the companys CEO, has many accusations from employees. A full investigation is needed to prove the former CEOs guilt and to put him in jail so that he will no longer be a threat to anyone. Charney has no moral standards and is willing to use any method to PR and run the company just to make as much money as possible.
Sex is still a taboo subject in society. Luckily, these days it is slowly being lifted, children are being taught sex education, and parents are being taught how to talk to their children about adult topics. But using such sensitive issues in advertising is still an evil, wrong thing to do. It is a cheap ploy that makes the company look unreliable to partners and, in most cases, will only alienate customers.
There are a large number of methods for publicizing a company. It is important not to cross the line in trying to promote your product, as this will only cause an adverse reaction from society. This line can be explicit photos of models, sexualization of the product, the use of blood, and violence in advertising. American Apparel complies with only 1 out of 5 CSR posts. The company has tried to comply with environmental laws by reducing waste emissions into the environment.
Advertising that will personally encourage me to buy from American Apparel should be minimalist. Its enough that the clothes sit well on the model because, in the first place, I evaluate how it looks, not who it is. Also, there should not be anything flashy or vulgar, as the companys former CEO used to do.
During the survey, American Apparel came across as a very negative, uncooperative company. Given the number of ethics violations, cheap product PR techniques, and violations in the companys internal employee policies, thus I have no desire to buy anything from them. Attempts to attract attention with flashy, shocking advertisements only repel me personally from the company.
Reference
Haigh, M. (2020). How American Apparel is trying to make a comeback after two bankruptcies. CNBC.
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