Ethics of a&F
Consumers may be more willing to purchase from A&F at a higher price due to the advertising rather than for the quality of the clothes itself. There is also conflict of interest between management and employees where A&F benefits from commanding a higher price premium which in turn generates a larger revenue. Non-advantaged employees tends to work with few career advancement opportunities and is treated unfairly against "white" employees.
Secondly, A&F targets their marketing efforts only to only the slim and fit people. They do not offer large size clothes to women. Furthermore, in an interview in 2006 A&F 's CEO Mike Jeffries out rightly claimed that they do not want big sized people to wear their clothes in an effort to preserve their brand image. Such enacted values will have a great influence on existing and future employees which are important stakeholders. Employees whose values are misaligned with A&F may quit.
For the first ethical issue, the risk mainly revolves around the fact that in today 's progressing society, unethical business practices do not go unnoticed. Consumers may deemed A&F as unethical and
References: UBC Blogs. Abercrombie and Fitch—-> unethical and racist? « robertlim. Retrieved from http://blogs.ubc.ca/robertlim/2010/10/09/abercrombie-and-fitch-unethical-and-racist/ The terpAMA Scoop!. The terpAMA Scoop!: Why Abercrombie and Fitch is NOT the Company to be Right Now. Retrieved from http://amascoop.blogspot.sg/2013/05/why-abercrombie-and-fitch-is-not.html Arunrafi 's Blog | Just another WordPress.com weblog.Abercrombie and Fitch: What are ethics? | Arunrafi 's Blog.Retrieved from http://arunrafi.wordpress.com/2009/08/16/299/ Seeking Alpha - Stock Market News & Financial Analysis . The Myth of Abercrombie & Fitch [The TJX Companies, Inc., Ross Stores, Inc., Abercrombie & Fitch Co., American Eagle Outfitters, Aeropostale Inc, The Buckle, Inc., Guess?, Inc.] - Seeking Alpha. Retrieved from http://seekingalpha.com/article/154178-the-myth-of-abercrombie-fitch Truth Is Cool. The Shoddy Ethics of Abercrombie and Fitch - Truth Is Cool. Retrieved from http://truthiscool.com/the-shoddy-ethics-of-abercrombie-and-fitch