Business Ethics Case Analyses

Forever 21 was founded in 1984 by Do Wong Chang in LA, California. There are stores in the U.S., Canada, Europe, Middle Eastern countries, and Asia. Forever 21 employs over 30,000 people with around 480 stores. It had been founded upon the basic notion of cheap, trendy clothing modeled after developer styles.

In 2010 Forever 21 was reported to truly have a sweatshop in Los Angeles with terrible working conditions for his or her employees. After the Labor Bureau looked into, Forever 21 was compelled to compensate their workers, and were warned to eliminate the sweatshop atmosphere of the stock. Almost 3 years later conditions have not transformed, but Forever 21 continues to grow in profitability and recognition. If you have ever shopped at Forever 21 you will recall their uniquely designed stores, and you shall remember how many articles of clothing you bought for a little amount of money. You might have proceeded to wonder how it is possible for the clothing to be so cheaply priced.

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As a manufacturer employee in Las Angeles recalls the conditions where she works under, it is simple to understand how Forever 21 can sell clothes at such low prices. She points out the manufacturing plant conditions as the next, “The manufacturer is hot. You’re protected in perspiration. You are on overtime for a ten-hour change, however, not getting any extra settlement. One of the most you’ve had to consume is a measly half a day-old sandwich and you haven’t had your bathrooms break in the past seven hours. Your back hurts from being hunched over a worktable, the hands are cramping nevertheless, you must continue the stitching. You around take a glimpse; decide to have a one-minute break to stretch.

Your supervisor happens to views you, screams for you to continue working, intimidating to in physical form misuse you if you don’t.” Forever 21 employ their factory employees in sweatshop conditions, does not compensate them fairly, and abuses them. Forever 21’s treatment of their factory employees can be examined predicated on four ethical ideas. The ideas are Individualism, Utilitarianism, Kantianism, and Virtue.

Individualism is an economic model based off of corporate and business responsibility, and its main goal is to use resources to accomplish maximum earnings. The U.S. regulates how many hours one is required to work, as well as how much they should be paid, and Forever 21 pushes employees to work long hours with minimal pay, which is against the law. Therefore according to the Individualistic view Forever 21 is unethical.

Utilitarianism is the fact that business should increase happiness for the greatest quantity. Forever 21 did not maximize joy for the best number, The employees are unsatisfied extremely, the stakeholder was worried about the chance of the business, and the critics who had found out the work conditions we appalled. The President of the business was pleased with the gains his company was making, but no regard is acquired by him for the treating his employees.

Therefore regarding Utilitarianism, Forever 21 was unethical because almost all was unhappy with the business. Kantianism believes a person should make sure their actions are coming from the right motivations, as well as acting rationally. Kantianism has four concepts that are to do something rationally, to permit and help people to make rational decisions, to respect people, their autonomy, and individual distinctions and needs, and to be motivated by Good Will.

According to Kant, Forever 21 is unethical. They consider themselves exempt from needing to treat people who have respect, do not follow the Labor Laws, do not allow their employees to make logical decisions, not do they not respect their specific needs of their workers. Forever 21 do not treat their workers like human beings, nor do they do something about good will.

Virtue theory looks at the characteristics that allow what to function properly and is based from four main business virtues of character, which are courage, honesty, temperance/self control, and justice /fairness. Courage is thought as the willingness to stand for the right ideas and actions. Honesty is the fact that business treats people fairly.

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