European Business Schools Librarian's Group
IESE Research Papers,
IESE Business School
No D/1105: Abercrombie & Fitch: A Business Ethics Perspective in the Fashion Industry
Verónica Arribas, Isabel García, Lourdes Susaeta and José Ramón Pin Arboledas
Additional contact information
Verónica Arribas: ISEM Fashion Business School, Postal: Madrid, Spain
Isabel García: ISEM Fashion Business School, Postal: Madrid, Spain
Lourdes Susaeta: University of Navarra, Postal: Pamplona, Spain
José Ramón Pin Arboledas: IESE Business School, Postal: IESE Business School. Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Abstract: Purpose - The aim of this article is to discuss some ethical issues in the fashion industry and start a debate about business ethics from a stakeholder perspective. It analyzes the implications of fashion companies for employees, with policies and practices, and for customers, with the messages and the lifestyles they communicate, especially when targeting adolescents. It also aims to highlight how company leaders can influence the corporate culture and values. The paper ends with an open discussion of the impact this is having on society and how it can affect a company's sustainability and performance. Design/Methodology/Approach - The methodology used in this paper is the case study. We have chosen the fashion company Abercrombie & Fitch (A&F) as it offers a fascinating example of how businesses - in the fashion industry overall - can promote or destroy ethical behavior through their cultural values and lifestyle as well as through management practices. Findings - The values communicated and promoted by the company - both internally and externally - have a real impact on society and this may have negative consequences for brand perception and company performance. Research Limitations - We are aware of the existence of limitations when analyzing a single case study due to the multiple interpretations it may have and the limited access to the company and to people directly involved in the case. Originality/Value - There are some contributions concerning ethics in the fashion industry related to issues such as manufacturing labor, environmental pollution or consumer purchasing behavior. Nevertheless, as far as the authors are concerned, there have not been any studies so far that address the ethical implications of corporate culture and relationships with stakeholders.
Keywords: Business ethics; Values; Corporate culture; Stakeholders; Fashion industry
17 pages, November 14, 2014
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