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BUAD 301: Case 1 Analysis Everlane
Everlane is a clothing brand that started in 2010. The brand is based on the values of sustainability, ethical supply chain, and transparency. By 2016 the company had generated $100 million and began doubling profits every year from 2015-2018. The company’s business model was well received by the public.
Though the company is built on ideas of fairness and transparency, the company staff began to collect signatures for union authorization vote in 2019. The gathering of signatures is necessary to move towards a vote by the employees to create a union. Generally, unions enforce fair labor practices between the company and employees, whether they are union members or not. Unions also negotiate fair wages for employees. The unionization efforts at Everlane were at the signature gathering stage at the end of 2019.
In 2020, the global COVID-19 pandemic began, and many companies began downsizing. Everlane also downsized, closing storefronts and firing long time employees. The company fired 42 of the 57 employees who worked on the customer experience team. Coincidentally, the members of the customer experience team had introduced the effort to unionize at Everlane in November 2019. Everlane claimed the firing of these employees was a response to the pandemic and not meant to stop the employee unionization efforts.
Allegations of union busting aside, more accusations of workplace toxicity developed during the pandemic. Black employees reported racist behaviors and practices throughout Everlane. Inappropriate descriiptions of Black models and people of color were reported as well as overall toxic behavior such and invasion of personal space and rude behavior towards new hires. The company conducted its own investigation and found the allegations to be true.
Now Everlane is in a position in which the company is going to post a $15 million loss. The reputation and values the company were built on have been proven false based on the company’s own investigation. The company needs to turn around their financial losses, but it has lost the reputation it once had due to the true allegations of toxic work culture.
Prompt: Write a case analysis, recommending a way for Everlane to repair their public image after allegations of a toxic work environment and a loss of profits.
Assessment: All submissions will be evaluated using the CLASS Rubric, graded on a 125-point scale.
Format the document using 1” margins, proper font style and size.Submission should be one page, typed and submitted on a Word document.Do not plagiarize the case language.Use appropriate tone and strategies.Include all parts necessary for a case analysis.
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