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American Apparel Inc., whose founder, Dov Charney, was fired in December after being accused of sexual harassment by multiple female employees, has issued a code of ethics that prohibits romantic relationships between workers and their supervisors.
“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,” says the 12-page “Code of Business Conduct and Ethics.” The code appeared on the Los Angeles-based retailer's website on Wednesday, according to news reports.
The code also states no management-level employee “may make sexual advances, welcome or unwelcome, toward any subordinate, regardless of whether the subordinate reports to the management employee, either directly or indirectly.”
Other provisions in the code include that the company “will not tolerate the use of discriminatory slurs, or any other remarks, jokes or conduct that in the judgment of the company, create an offensive or hostile work environment or otherwise constitute abusive conduct.”
The code states that those who violate the code are subject to disciplinary action up to and including suspension or termination of employment.
Mr. Charney was suspended as president and CEO by the company's board in June for alleged misconduct and violations of company policy, then terminated for cause in December after a special committee that conducted an investigation determined “it would not be appropriate to reinstate him,” according to a company statement issued in December.
A company spokeswoman had no comment.
Clothing manufacturer American Apparel Inc. has agreed to settle Federal Trade Commission charges that it falsely claimed it was abiding by a privacy framework that enables U.S. companies to transfer consumer data from the European Union to the United States in compliance with E.U. law, the agency said.