American Apparel Tries On Something New: Ethics. After firing its scandal-mired chairman, the company has updated its code of ethics to include rules about workplace relationships.
By Reuters
This story originally appeared on Reuters
American Apparel Inc updated its code of ethics on the company's website, after firing founder Dov Charney as its chief executive last month for alleged misconduct.
"No management-level employee may make sexual advances, welcome or unwelcome, toward any subordinate," the ethics document of the retailer read.
The retailer, known for its provocative clothing ads, fired Dov Charney last month, ending a tenure racked with sexual assault allegations and scandal.
He was fired as chairman and suspended as chief executive in June last year, with alleged misuse of corporate funds and role in disseminating nude photos of an ex-employee who had sued him being cited as reasons.
"No employee who has a personal relationship or romantic relationship with another employee may be in a position with any perceived or actual influence over the other's terms of employment," the new ethics code on the company's website said.
The new code specified that 'romantic relationship' could refer to both casual dating and committed relationships.
The document included sections titled "Protection and Proper Use of Company Assets" and "Conflicts of Interest," elucidating details about acts involving misappropriation of the company's property that could lead to disciplinary action.
The document also contained sections dedicated to fair treatment of employees, personal relationships between staff and workplace safety.
(Reporting By Sudarshan Varadhan; Editing by Bernard Orr)
