jasminewing

Ethical or Unethical?

Businesses strive to be ethical for many reasons. Yet what does “business ethics” really mean? It could refer to avoiding lawsuits, avoiding actions that could harm the businesses image, and avoiding breaking the law.

Dov Charney, founder of American Apparel, has a company known to be ethically”sweat shop” friendly where all clothes are made in Los Angeles. However, Charney goes against one main business ethic- he crosses the line with inappropriate employee, employer relationships. Dov Charney believes that “it’s a First Amendment right to pursue one’s affection for another human being.” He believes there are no restrictions and has been involved in consensual sexual relationships with staff members. To make matters worse, he has been charged three times for sexual harassment by former female employees. Seven other women have spoken to Business Week revealing stories about multiple stories where higher ranked employees had sexual relationships with lower ranked employees that were rewarded with promotions.

It is hard to judge Charney, as he hires workers from overseas and pays them twice minimum wage, and provides lunches and English lessons. I believe that Charney is unprofessional because he creates situations that can be uncomfortable for employees and detrimental to the workplace. He is ethical in this sense, yet he is not ethical in his relationships.

Links: http://www.montrealgazette.com/business/American+Apparel+hipster+darling+more+bankruptcy+looms/3422463/story.html

http://www.businessweek.com/magazine/content/05_26/b3939108_mz017.htm