Dive Brief:
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As retail veteran Paula Schneider takes over as CEO of American Apparel, the struggling, embattled retailer has instituted a new ethics code covering sexual misconduct and other issues that is four times longer and more detailed than the previous one.
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It is now forbidden for managers and those who work directly for them to have romantic relationships or date each other. The longer, stronger code is likely a response to allegations against founder and former CEO Dov Charney, who was ousted earlier last year as chief executive and fired last month.
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Also last month, the retailer appointed yet another woman to its top ranks, naming Colleen Brown, who joined the board in August, as chairman.
Dive Insight:
Dov Charney is reportedly trying to come back to the retailer he founded, but American Apparel is soldiering on. And it’s taking care of business, bolstering its ethics code to address — and perhaps most importantly prevent — the kind of behavior that got Charney in trouble. Charney was sued repeatedly for sexual harassment and was otherwise notorious for behavior that would run afoul of the retailer’s new conduct code.
If Charney does come back, that code would presumably apply to him. Meanwhile, the retailer has also named several women to top positions. While no guarantee, that could mean that the brand’s history of sometimes sexist and otherwise dubious marketing may also change.