Ethical Issues – American Apparel?

The American Apparel brand is pretty synonymous with controversy. From its business ethics to its advertisements, it has generated a lot of negative feedback.

Since perhaps 1995, its ads have been featuring sexually provocative shots, nudity and models who appears to be underaged. Sometimes, the girls are depicted dazed, and twisted into contortionist poses. The camera often angles upwards towards cleaved legs in mesh, lace or sometimes just thigh-high socks. Arguably, the overtness of female sexuality in the ads could be seen as empowering. However, given that these ads can be seen by young kids, AA should reconsider the influences it can have on them.

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Since 2009, AA stepped up their sex ads even further by hiring a few pornstars. The related ads led to public complaints to the Advertising Standards Authority regarding 27 images, and in the last year, 7 were banned. Although AA has been warned to stop running similar images, it continues to produce inappropriate ads. Interestingly, this same “anti-authority” personality is also found in its founder and CEO, Dov Charney.

Charney has been pressed with several sexual harassment lawsuits by his employees. In 2011 alone, five women sued Charney for sexual harassment and sexual assault in two separate lawsuits. Last year, he was accused of choking an employee. He masturbates in front of others, even when being interviewed.

Despite repeatedly being sued by former employees, Charney has yet to be found guilty. It is because American Apparel requires employees to sign confidentiality and arbitration agreements that state all grievances will be settled outside of a court of law. It is an unusual demand of staff, but because of it, most cases filed against Charney have been dropped. The only case still pending is the incident in which Charney was accused of choking an employee.

It’s no wonder that American Apparel has turned out to have such a negative image. With a mastermind whose often sued for sexual harassment, and also criticized for his discriminatory hiring practices, it is just a matter of time before he destroys its brand image and drives away its remaining customers.

 

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