Saturday, September 28, 2019
Issues in management Essay Example | Topics and Well Written Essays - 3000 words
Issues in management - Essay Example 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 firmââ¬â¢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, Chicoââ¬â¢s, Eagle Outfitters and Aeropostale. The companyââ¬â¢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 firmââ¬â¢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 shareholderââ¬â¢s perspective, Abercrombie & Fitch was no longer providin g the wealth and profitability expected by investors. However, why was this occurring so
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