AMERICAN APPAREL:- “UNWRAPPING ETHICS”

1. Does American Apparel have a problem?

Ans: American Apparel is a California based clothing company founded in 1998. the corporate
is best known for its affordable ,
slim-fit, unisex clothes, especially in knitwear category.
The problems company is facing:-
- there's inconsistency and baffling disconnection between the company's socially and
environmentally responsible practices, and pornography-inducing ads. American Apparel ads
often use very young girls with hardly any clothing in seductive poses.
- CEO Dov Charney is accused of harassment to his employees, and inappropriate and
unprofessional acts within the office. Charney using profane language, walking in his
underwear within the office, flirting with employees, and keeping nude photos of them isn't
helpful for the corporate . Besides, he possesses several accusations of harassment from his
young female employees. of these unethical and unprofessional conducts weaken the
company's image within the eyes of public and media.
- Company's assertively controversial marketing strategy, and sexually suggestive ads
campaigns are considered an excessive amount of by the purchasers .
- the corporate keeps losing money and it'll go bankrupt unless the ever-increasing marketing
problem is fixed.

2. What should Carney neutralize terms of his overall marketing and company strategy? Why?
Ans : Carney must bring some changes to the marketing strategy of the firm and therefore the
harassment policy of the firm. With reference to the promotional campaigns, Carney should do
away with its explicit ads featuring underdressed women. He should explore other promotional
strategies like buzz and viral marketing which are getting used with excellent results by
companies like Nike and Chipotle. He should remember that there are other better promotional
strategies which may attract the eye of consumers effectively. this may make the corporate to
raised align its promotional strategy with the opposite elements of the firm’s overall business
and marketing strategies. With reference to allegations of sexual assault , the firm should begin
with a replacement harassment policy which has intolerance towards people that sexually abuse
coworkers. Coming to allegations of sexual exploitation by Carney himself, appropriate
independent investigations should be administered by special committees to seem into
harassment issues.