Ending Soon! Save 33% on All Access

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

Susan Montgomery | Shutterstock.com

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)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Apple iPhone 7 Users May Be Owed a Slice of a $35 Million Settlement — Here's How to Claim Your Share

Previous (and current, no judgment) iPhone 7 users may be entitled to up to $349. The deadline to file a claim is June 3.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Did OpenAI steal Scarlett Johansson's voice? 5 Critical Lessons for Entrepreneurs in The AI Era

Did OpenAI steal Scarlett Johansson's voice? OpenAI has since paused the "Sky" voice feature, but Johansson argues that this is no coincidence. In response, Johansson delivers a masterclass for entrepreneurs on navigating the AI era successfully.