The Case of American Apparel(a Clothing Manufacturer)

Two Practices in Business related to the topic from Business Magazines. The case of American Apparel(a clothing manufacturer): Charney squarely declares : “I've had relationships, loving relationships, that I'm proud of. I think it's a First Amendment right to pursue one's affection for another human being." And he is talking about his staff. He has admitted to having numerous love affairs with colleagues in the past. He is even known to work at office dressed in nothing other than underwear. This attitude in fact percolates to American Apparel’s culture, is almost second-nature for most of the employees and is visible even in the decor of its stores. The stores' white walls are dotted with product shots. Like the company's signature advertisements, these are grainy, seemingly candid photos of young people in various states of undress. Charney has been adept at weaving his libertarian sexual attitude with his progressive labor practices. But to make it the gospel or the bedrock principle for it to be followed by ALL of its employees is another story. In May 2005, he was sued by three women -- all former American Apparel employees -- who claim they were sexually harassed by him at work. Businessweek spoke to multiple employees of American Apparel to gather an understanding of the under-currents of their workplace. Most stated that the place reeks of a highly sexual atmosphere and they were offended by it. So much so that Mr. Charney himself does not deny a report that precluded the sexual harassment case filed, which reported that he engaged in graphic sexual acts with a female employee in presence of the journalist. Seniors actively pursued sexual relationships with the junior colleagues and rewarded them accordingly. Yet, there are people with sound sense everywhere and there were 3 women employees who complained of sexual harassment. They consequently filed a case against Mr. Charney. He came out in his defense flatly refuting the charges against him and