Urban Outfitters is a popular American retail company that specializes in selling clothes, accessories, and home decor. Despite its success in the fashion industry, Urban Outfitters has been plagued with several HR problems that have put the company in a negative light. These controversies have affected not only the company's reputation but also its employees and customers. In this article, we are going to delve deeper into the HR problems that Urban Outfitters has faced over the years.
The Racial Discrimination Lawsuit
In 2003, Urban Outfitters was sued by two African American employees who claimed that they were subjected to racial discrimination in the workplace. The employees alleged that they were paid less than their white counterparts and were denied promotions and training opportunities. The lawsuit also claimed that the company had a "glass ceiling" that prevented African American employees from advancing to higher positions.
The lawsuit was settled out of court for an undisclosed amount, but the incident damaged Urban Outfitters' reputation as a company that promoted diversity and inclusion.
The "Ghettopoly" Controversy
In 2003, Urban Outfitters sparked controversy when it sold a board game called "Ghettopoly" on its website. The game, which was a parody of Monopoly, featured racist stereotypes of African Americans and other minorities. The game's creator, David Chang, was sued by Hasbro, the maker of Monopoly, for copyright infringement and trademark dilution.
Urban Outfitters faced backlash from customers and advocacy groups who called for a boycott of the company. The company eventually removed the game from its website and issued an apology.
The "Navajo" Trademark Controversy
In 2011, Urban Outfitters faced criticism when it sold a line of clothing and accessories under the "Navajo" name. The problem was that the Navajo Nation holds a trademark on the name "Navajo" and had not given Urban Outfitters permission to use it. The Navajo Nation sued Urban Outfitters for trademark infringement and the case was settled out of court for an undisclosed amount.
The controversy sparked a larger conversation about cultural appropriation in the fashion industry and the need for companies to be more respectful of indigenous cultures.
The "Offensive" Product Controversies
Urban Outfitters has faced several controversies over the years for selling products that were deemed offensive by customers and advocacy groups. In 2014, the company faced backlash for selling a tapestry that resembled the uniforms worn by gay male prisoners in Nazi concentration camps. The company eventually removed the tapestry from its website and issued an apology.
In 2015, the company faced criticism for selling a sweatshirt with the word "Kent State" written across the front in what appeared to be blood stains. The sweatshirt was seen as insensitive and inappropriate, given that four students were killed by National Guardsmen during a protest at Kent State University in 1970. The company eventually removed the sweatshirt from its website and issued an apology.
The "Noose" Necklace Controversy
In 2015, Urban Outfitters faced criticism for selling a necklace that resembled a noose. The necklace was seen as insensitive and inappropriate, given the history of lynching in the United States. The company eventually removed the necklace from its website and issued an apology.
The "Fat-Shaming" T-Shirt Controversy
In 2014, Urban Outfitters faced backlash for selling a t-shirt with the words "Eat Less" printed on it. The t-shirt was seen as promoting an unhealthy body image and fat-shaming. The company eventually removed the t-shirt from its website and issued an apology.
The Glassdoor Reviews
Urban Outfitters has also faced criticism from its own employees, as seen in the reviews on the job site Glassdoor. Many current and former employees have complained about the company's low pay, long hours, and lack of benefits. Some have also complained about the company's management and HR policies.
These reviews have contributed to the company's negative reputation and have made it difficult for the company to attract and retain top talent.
The Impact of HR Problems on Urban Outfitters
The HR problems that Urban Outfitters has faced over the years have had a significant impact on the company's reputation and bottom line. The controversies have made it difficult for the company to attract and retain customers, especially those who are concerned about social justice issues and ethical business practices.
The controversies have also made it difficult for the company to attract and retain top talent. Many job seekers are hesitant to work for a company with a negative reputation and a history of HR problems.
Furthermore, the controversies have made it difficult for Urban Outfitters to compete with other fashion retailers that have a more positive reputation and a better track record on social justice issues.
The Steps Urban Outfitters is Taking to Address HR Problems
Urban Outfitters has taken steps to address its HR problems and improve its reputation. The company has implemented a diversity and inclusion program that aims to promote diversity and inclusion in the workplace. The company has also hired a new Chief Diversity Officer to oversee the program and ensure that the company is meeting its goals.
The company has also taken steps to address its pay and benefits policies. In 2018, the company announced that it would be raising its minimum wage to $10 per hour and offering benefits to part-time employees.
Furthermore, the company has taken steps to ensure that its products are not offensive or insensitive. The company has implemented a review process for all products to ensure that they are culturally sensitive and appropriate.
Conclusion
Urban Outfitters has faced several HR problems over the years that have damaged its reputation and affected its employees and customers. The controversies have made it difficult for the company to compete with other fashion retailers and attract and retain top talent.
However, the company has taken steps to address its HR problems and improve its reputation. The company has implemented a diversity and inclusion program, improved its pay and benefits policies, and implemented a review process for its products.
It remains to be seen whether these steps will be enough to restore Urban Outfitters' reputation and make it a more socially responsible and ethical company.