09/13/13

Abercrombie & Fitch’s Deteriorating Brand Reputation

On the recent subject of business ethics, I wish to comment further on the unethical practices that Abercrombie and Fitch, the so-called “casual luxury lifestyle brand“, has continuously been carrying out. After reading a fellow classmate’s blog post in class regarding the A&F employees’ “dress code” controversy, I have decided to further investigate various policies or current news that are associated with A&F. As if the dress code controversy was not enough, it was also found that the CEO of A&F had openly made a remark saying that they only want to “market to cool, good-looking people” and had refused to offer large/ plus sizes in their clothing lines. Why would the CEO make such offensive comments when its U.S. sales was reported to have already declined a hefty 17% in the first quarter 2013? Yes, it is true that the brand has become increasing more popular among age 18-22 year olds in the past couple of years, but is it necessary to use such exclusionary marketing method and promote “unrealistic standards of beauty” in this way? Needless to say, the company’s brand reputations is truly being tested and is nothing but spiralling downward.

Click here to watch “Abercrombie & Fitch Apologizes After Plus-Size Firestorm”

09/11/13

Business and Ethics…?

Immoral practices and poor decision-making are what triggers us to wonder whether business and ethics can truly coexist in such a competitive business-oriented world. From an article  in Los Angeles Times, it was reported that Toyota, one of the world’s largest motor corporations, was accused of keeping a malfunction issue secretive over the course of the last decade. The problem started when vehicle owners complained about sudden and unintended accelerations without applying on the gas pedal; over 12 million recall notices from all over the world were issued. While Toyota did not officially publicize the severity of this issue, the corporation instead bought the vehicles back from the owners in order to keep their clients quiet. In the corporation’s position, such decision was made in order to maintain their reputation, see its share rise in the U.S. and maximize their profits. However, the unethical decisions that had taken place ultimately resulted in the loss of consumer’s loyalty in the corporation; a ruined reputation and a $16.4 million fine do not even come close to compensating for the damages that the unethical decision had caused.