|Type of paper:||Essay|
|Categories:||Company Strategy Social responsibility|
Corporate Social Responsibility (CSR) refers to a business approach that promotes sustainable development by developing social, economic and environmental benefits. The primary objective of CSR is to enable companies to be aware of the impact that their business has on the society, which includes the environment and every stakeholder of the company. CSR comprises of the following vital elements; environmental responsibility, sustainability, business ethics, corporate philanthropy and corporate citizenship. This paper focuses on the CSR strategy of American Apparel; it will delve into the characteristics of the CSR strategy adopted by American Apparel.
The CSR strategy adopted by American Apparel is voluntary, the term voluntary refers t to the set of initiatives of the company that goes beyond what the law prescribed. American Apparel's CSR is voluntary because it is more familiar with its legal responsibilities and surpasses them such that the company is more willing to associate itself with corporate responsibilities that go beyond the legal minimum. This aspect of voluntarism is illustrated by the fact that American Apparel is not obliged to manufacture and produce its products in one place. However, it has proceeded to apply a made-in-America approach. Such that the whole manufacturing and design process is done in America (Crane, 2016). The company has also gone beyond the minimum by ensuring that all of its workers are adequately compensated, according to the minimum wage provisions in the United States workers should be paid not less than $1,250 per month. The company, however, pays its workers not less than $2,000.
The CSR strategy adopted by American Apparel has not aligned the company's social and economic responsibilities, alignment of social and economic responsibilities deals with the fact that although CSR mainly focuses on the social obligations, it should not interfere with the company's profitability. The company should still make profits while being socially responsible. American Apparel seems to focus mostly on its social, philanthropic responsibilities than its economic responsibilities. The company faced bankruptcy twice and failed to record any turn in annual profit since 2009 but still applies the Made-in-USA approach which despite being socially responsible is very costly (Crane, 2016).
Another characteristic is that the American Apparel's CSR strategy lacks practices and values. The lack of practices and values arises from its advertising strategies, the company applies nudity in its adverts and also has mannequins that pose in provocative borderline poses (Crane, 2016). Although this advertising strategy promotes the company's sales, it promotes immorality.
American Apparel is trying its best by applying a suitable CSR strategy, with regards to the Made-in America approach. However, the strategy requires to alteration to focus on a balance between profitability and social responsibility. The company should also focus on changing its advertising strategy.
Crane, A. &. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
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