Provacateur Charney

Hey folks! I came across an interesting article in the June 2008 issue of Fast Company that I'd like to share as the topics covered by journalist Rob Walker, complement our class discussions fairly well.

In "Sex vs. Ethics at American Apparel," Walker interviews a "naked from the waist down" Dov Charney and attempts to unravel the rumors surrounding the American Apparel empire. Rather than getting bogged down by the sensationalism surrounding American Apparel's racy ad campaigns and Charney's reputation as a naughty employer, Walker chooses to focus on the actual business.

Points I found interesting:

1) Charney's insistence that if a business wants to sell something, ethical or otherwise, "Appeal to people's self-interest, not to their mercy." Walker ties in the issue of consumer ethics in support of Charney's point, and that which he unveils is incredibly interesting. Evidence shows that while a whopping majority of American shoppers may consider themselves environmentalists, according to the Journal of Industrial Ecology "only 10% to 12% actually go out of their way to purchases environmentally sound products." This stat brings to mind the downfall of eco-friendly apparel brand Nau. Where were all the environmentally conscious consumers when Nau was taking a hit? Did the folks at Nau fail to appeal to people's self-interest?

(2) Social cause is not always the best way for a firm to compete. Charney does hope that social consciouness will help American Apparel attract consumers. But he happens to know that sexed-up ads are hands-down more effective. He insists that the company's aggressively attention-getting image does not mean that Amreican Apparel has watered down its production practices. The company has simply made less of an effort to tell consumers about them. The benefits the company offers to its works have, in fact, increased. "It's not that he cares less about treating his workers ethically," it just that he doesn't think trumpeting work conditions will help him compete. Understood, but shouldn't Charney, as a market leader, take on the responsibility of educating the public about sweatshop-free manufacturing anyway?

Discuss.