Mr. Dov Charney, was fired from American Apparel, the company he founded after allegations of sexual harassment and misuse of corporate funds were lodged against him. He was the CEO of American Apparel when he was suspended for 30 days. He was later terminated after months of suspension. He was replaced by Paula Schneider (Dastin, 2014).
Organizational values are the guidelines of any company. It is these very values that help employees in their day to day activities. And its founders are the ones who establish these values in the organization. It is therefore safe to say that, the initial values of any company are the values that the founders and early employees believe in. Dov Charney’s core values neither matched with his organization nor his employees. His failure to lead the company and set an example has cost dearly to the company that once enjoyed a gross margin of around seventy percent in its retail sales. The company’s gross margin was around seventy percent while luxury brands Prada’s blended around sixty five percent (Groth & Bhasin, 2012).
Dov Charney started with to manufacture t-shirts instead of importing them. He started early at an age of 20 years with a debt of $10000 from his father. He was involved in nearly every aspect of the business: design, manufacturing and marketing. The primary objective was to sell garments to screen printers and wholesale clothiers in the United States and Canada (Daren Fonda, 2001). In early 2000’s American Apparel employed over 4,500 employees and generated $250 million per annum (Watamanuk, 2016)
American Apparel’d downfall started when an article was published in claudineko.com. Dov Charney had masturbated twice in front of the young female journalist. She also mentioned that Dov Charney telling her that he was seduced because she told him that she liked dirty shoes (Jane, 2004). Lawsuits were filed against him for sexual harassment. These cases tarnished the reputation of the company. And now, after the termination of Dov Charney, and the downfall of a company that once peaked more than $ Six hundred millions in sales, have filed for bankruptcy for the second time endangering jobs of four thousand seven hundred employees across a hundred and ten stores (Bloomberg News, 2017).
Dov Charney failed to live up to his own company’s core value. American Apparel accused him of violating policies on harassment and retaliation against former employees after he was terminated. His employees filed multiple sexual allegations against him. His actions have led to the downfall of the company. Dev Charney sued American Apparel for defamation after he was fired (Matt Townsend, 2015).
References
Jane. (2004, June/July). Jane. Meet Your New Boss .
Jenkins, A. (2017, July 12). American Apparel Founder Dov Charney Gives Odd Answer to Question About Having Sex With Employees . Retrieved from Fortune: fortune.com/2017/07/12/american-ap...
Watamanuk, T. (2016, February 23). The Rise and Eventual Downfall of American Apparel . Retrieved from Highsnobiety: highsnobiety.com/2016/02/17/americ...
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Mr. Dov Charney, was fired from American Apparel, the company he founded after allegations of sexual harassment and misuse of corporate funds were lodged against him. He was the CEO of American Apparel when he was suspended for 30 days. He was later terminated after months of suspension. He was replaced by Paula Schneider (Dastin, 2014).
Organizational values are the guidelines of any company. It is these very values that help employees in their day to day activities. And its founders are the ones who establish these values in the organization. It is therefore safe to say that, the initial values of any company are the values that the founders and early employees believe in. Dov Charney’s core values neither matched with his organization nor his employees. His failure to lead the company and set an example has cost dearly to the company that once enjoyed a gross margin of around seventy percent in its retail sales. The company’s gross margin was around seventy percent while luxury brands Prada’s blended around sixty five percent (Groth & Bhasin, 2012).
Dov Charney started with to manufacture t-shirts instead of importing them. He started early at an age of 20 years with a debt of $10000 from his father. He was involved in nearly every aspect of the business: design, manufacturing and marketing. The primary objective was to sell garments to screen printers and wholesale clothiers in the United States and Canada (Daren Fonda, 2001). In early 2000’s American Apparel employed over 4,500 employees and generated $250 million per annum (Watamanuk, 2016)
American Apparel’d downfall started when an article was published in claudineko.com. Dov Charney had masturbated twice in front of the young female journalist. She also mentioned that Dov Charney telling her that he was seduced because she told him that she liked dirty shoes (Jane, 2004). Lawsuits were filed against him for sexual harassment. These cases tarnished the reputation of the company. And now, after the termination of Dov Charney, and the downfall of a company that once peaked more than $ Six hundred millions in sales, have filed for bankruptcy for the second time endangering jobs of four thousand seven hundred employees across a hundred and ten stores (Bloomberg News, 2017).
Dov Charney failed to live up to his own company’s core value. American Apparel accused him of violating policies on harassment and retaliation against former employees after he was terminated. His employees filed multiple sexual allegations against him. His actions have led to the downfall of the company. Dev Charney sued American Apparel for defamation after he was fired (Matt Townsend, 2015).
References
Jane. (2004, June/July). Jane. Meet Your New Boss .
Jenkins, A. (2017, July 12). American Apparel Founder Dov Charney Gives Odd Answer to Question About Having Sex With Employees . Retrieved from Fortune: fortune.com/2017/07/12/american-ap...
Watamanuk, T. (2016, February 23). The Rise and Eventual Downfall of American Apparel . Retrieved from Highsnobiety: highsnobiety.com/2016/02/17/americ...