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Issues in management - Essay Example

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Corporate social responsibility (CSR) is an integrated business activity in which a company seeks to achieve superior standards of ethical behaviours in an effort to improve social utility (McWilliams and Siegel 2001). The dynamics of CSR include many different factors,…
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Download file to see previous pages CSR becomes a focus for an organisation as it is believed that it can enhance profitability and build a positive social reputation for the business.
It has been asserted that the idea of CSR is that society and the business are inter-connected and not disparate individuals, hence society maintains anticipation that a business will illustrate appropriate behaviours and outputs beneficial to society (Wood 1991). This essay will debate socially-related issues of corporate social responsibility in relation to the fashion retailer Abercrombie & Fitch (A&F), an organisation providing apparel merchandise to youth markets in the UK and the United States. The essay provides a critical debate on the theories and models of CSR with primary emphasis on the ethical responsibilities of a firm to society and their relation to the socially-related problems at Abercrombie & Fitch currently plaguing this retailer.
Abercrombie & Fitch is a U.S.-headquartered retailer providing casual fashion merchandise targeted at the 18 to 22 year-old female and male market demographic. The firm’s product line consists of T-shirts, jeans, hoodies and fragrances relevant to this market. Prior to the year 2012, A&F had achieved explosive revenue growth and had managed to build considerable customer loyalty against major competitors such as The Buckle, Chico’s, Eagle Outfitters and Aeropostale. The company’s market share and stock value began to plummet in 2012 and the business was forced to close hundreds of stores as a result of diminished consumer interest in purchasing products from the firm (Eaton 2014; Covert 2014). In October 2011, the firm’s stock was valued at nearly $80 USD per share and, by November 2014, the firm witnessed its stock plunge to a value of only $28.98 (Yahoo! Finance 2014). From the shareholder’s perspective, Abercrombie & Fitch was no longer providing the wealth and profitability expected by investors. However, why was this occurring so ...Download file to see next pagesRead More
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