(AP Photo/Seth Wenig, File)
Netflix recently released White Hot: The Rise and Fall of Abercrombie & Fitch; a documentary highlighting the ups and downs of Abercrombie & Fitch (A&F). The documentary chronicles the tumultuous journey of the retail behemoth and is a cautionary tale of what happens when established companies fail to prioritize equity as they grow and evolve. Corporate leaders as well as anyone managing a workplace should watch, as there are several lessons that can be pulled from it. This article highlights three important takeaways from the Netflix documentary.
1. Own past mistakes. Established in 1892, A&F has shape shifted over the last century and has turned into a household name. Gen Xers and millennials alike may have fond memories of the brand, which peaked in popularity during the late 1990s and early 2000s. Over the last few decades, the company has continuously found itself in hot water, as depicted in the documentary. Perhaps the most notable case of controversy that the company found themselves embroiled in was a case of religious discrimination that ended up going to the U.S. Supreme Court. The company’s refusal to hire a Muslim woman, Samantha Elauf, who wore a hijab as part of her religious practice, violated Title VII of the Civil Rights Act. Organizations reflecting on this situation should understand that receipts are forever; any attempt to rectify past transgressions committed by employees or corporate leadership should involve acknowledging and taking ownership of the wrongdoing no matter how long ago it occurred. In an email, A&F’s CEO Fran Horowitz stated “the recently released documentary is not reflective of who we are now. We own and validate that there were exclusionary and inappropriate actions under former leadership.” With social media, past errs are easily accessible. This is not to say that corporations should be forever vilified for past mistakes and missteps, but too often organizations involved in scandals want to move forward without putting structures and systems in place to prevent the wrongdoing from occurring again. Aside from making corporate statements, which are often empty, words should be followed by solid actions to catalyze change.
Samantha Elauf stands outside the Supreme Court in Washington, Wednesday, Feb. 25, 2015. The Muslim ... [+]
2. Leadership accountability is vital. In the aforementioned email, Fran Horowitz stated in regards to the documentary “since I became CEO in 2017, we’ve overhauled A&F and transformed with intention into a place of belonging. We've evolved the organization, including making changes in management, prioritizing representation, implementing new policies, re-envisioning our store experiences and updating the fit, size-range and style of our products.” Another lesson that organizations should pull away from the documentary is how vital leadership accountability is. In 2005, A&F settled a class action lawsuit based on a discriminatory “look policy” that was in place, which many allege showed preference to white male job applicants. As a result of the lawsuit, the company had to create an office of diversity, a formal complaint system, and pay millions of dollars to applicants who were discriminated against based on race or gender. The specific ways that the company held leaders accountable is vague. In order for any DEI efforts to be successful, organizations must prioritize leadership accountability. No matter how many measures are in place to increase diversity, equity, inclusion, and belonging, without holding decision-makers and those in power accountable for their actions and behaviors, no changes will be feasible. Accountability measures must be baked into the fabric of the organizational system.
3. Discrimination is no longer sustainable. A&F engaged in countless instances of discriminatory behavior in their processes, procedures and policies. In a 2006 interview, former CEO Mike Jeffries stated “are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don't alienate anybody, but you don't excite anybody, either.” In 2022 and beyond, consumers are no longer willing to put up with companies behaving badly. In this current era, consumers value brands that are outspoken about social and political issues. Behaviors that flew under the radar in previous decades will not go unnoticed now. A&F had the money, fame, and status to continuously clean up their messes but for smaller and lesser-known brands, a failure to prioritize DEI will lead to an imminent demise. Annually, corporations big and small should audit their company policies. Don’t be afraid to overhaul archaic and outdated practices. Invite a DEI consultant or human resource business partner to conduct an equity audit to check for areas that need improving. Refusing to evolve will no longer be a sustainable practice; aside from resulting in costly litigation, companies could suffer from irreparable damage to their reputation and image.
