How important is it to be consistently ethical? What if a company is fair trade, but has other weak spots in their business dealings?
Once such example is American Apparel. They are well know for fashionable, “sweatshop-free” clothing, and pride themselves on having a strong relationship with their workers:
For us “sweatshop free” was never about criticizing other business models; it was about attempting something new. It comes down to this: not blindly outsourcing, but rather knowing the faces of our workers and providing them the opportunity to make a fair wage.
But there are two areas that wouldn’t fit within your average ethical business model:
1. The reputation of their CEO
While highly successful at growing and managing the company Dov Charney is known as something of a womanizing sex addict, who has faced a number of sexual harassment lawsuits. He apparently thinks nothing of propositioning his workers:
“I’ve got myself in trouble telling people what I like to do for 20 minutes off-site,” Charney says.
It could be argued that such a workplace isn’t as “fair” or ethical as “sweatshop-free” would suggest.
2. Soft Porn advertising
The company has come under criticism for using advertising which is shamelessly sexually provocative. Images are thought to mimic amateur soft-porn. In response Charney is defiant:
“It’s noise, it’s chatter, it’s bullshit, it’s perceptions, it’s stereotypes, it’s manipulation, it’s garbage…I never started making any proper money until I decided to make clothing that was geared towards young adults only …To meet their sensibility, sexy was job one. Fashion is all about sex and function.”
What do you think? Is it okay for a company to just be “sweatshop-free?”
Update: Influential web designer Cameron Moll has recently taken the decision to stop using American Apparel due to their advertising practices. Learn more about his reasoning here (06/12/2009)
(sources: The Guardian, American Apparel. photo: American Apparel)

{ 1 comment… read it below or add one }
Yes – for now… because a step forward is important.
Other retailers will tolerate and mostly ignore ethical pioneers unless the pioneers make a dent on their turf. AA’s advertising gets you to look at and want their product for reasons other than just the ethical angle. It seems to answer the many utterances of “I’d buy ethical if the clothes weren’t a bit… dull” and from what I can see, AA is driving forward the sweatshop-free message in its marketing too, raising demand for that.
It does pay to mention objections like this though, so people who are concerned about those blemishes can choose accordingly.