Our ethical ratings and stories for Under Armour, Inc | Ownership structure and associated brands | Related shopping guides. I see this a lot with major corporations copying up and coming designers – the values of the founders would be incompatible with the behaviour, so why does it happen? On Tuesday, Mr. Plank said Under Armour had been “incredibly proactive when it comes to issues that arise” and that this can “happen in any organization” with 14,000-plus employees. I would recommend company-wide ethical training as a start; 70 years ago, men such as those who died on Iwo Jima and elsewhere fought for the right to allow the American Dream to continue. Save my name, email, and website in this browser for the next time I comment. It is to build the brand by developing a park that offers shopping and apartments to people who can afford these things. I might take an additional risk and say no one in senior management was aware of the shirt either. Your email address will not be published. Under Armour currently offers a product line that includes high-performance clothing for men, women, and children, along with accessories and custom equipment for a wide range of sports and activities. Admittedly, more needs to be said. Th… As for the shirt, yes it was insensitive and in its own way, very immature and ignorant. The owner started the company in 1996, making clothing in the basement of his grandmother’s house, and he drove up and. Back in 2015, it looked like UA might eventually be able to catch rivals like Nike Inc. (NYSE:NKE), but fast forward to today and it’s a much different picture. It operates through the following geographical segments: North America; Latin America; Asia-Pacific; and … However, it goes far beyond the shirt itself and its edgy play on words. Under Armour lives in a world that is athletic and aspirational; young and hard-charging. That’s why we’re working to fix the problems athletes don’t even know they have in the most ethical, efficient, and sustainable ways we can. It takes a lot of money to get universities and athletes to “adopt” your brand, and make no mistake that in that world, money talks. Today this is the status quo position. That apparently triggered the filing of a consumer class action against the company. Under Armour Inc 100% on Corporate Equality Index This company is listed as having best practice on a report card on lesbian, gay, bisexual and transgender equality in corporate America. They did add a ethics course but I do not believe it lasted. Under Armour’s revenue streams are heavily dependent on the North American market. Required fields are marked *. Too bad. The social and electronic media exploded with outrage when news of the shirts came to light. Interviewer: Can you tell me a bit about Under Armour, company, number of employees… Amy: Under Armour is a global company that makes athletic apparel. Suppliers and subcontractors must abide by Under Armour’spolicies on gifts and “The first thing they really have to do is focus on the product… It is to build the brand by developing a park that offers shopping and apartments to people who can afford these things. Under Armour has struggled on its home turf as of late in the face of stiff competition from Nike, Adidas and Lululemon. I would be willing to go out on a limb and say that the founder of Under Armour never saw the shirt and never approved it. Corporate Ethics Of Under Armour 1071 Words | 5 Pages. We have approximately $5 billion in revenue. Under Armour moved quickly Wednesday to contain a social media backlash to comments by its founder and CEO Kevin Plank praising President Donald J. Trump's pro-business philosophy. The company pulled the shirts and made the following statement: “We deeply regret and apologize that a t-shirt that was not reflective of our values in honoring and supporting our country’s heroes went on sale.”, Interestingly, the company also said it “would take steps to ensure this doesn’t happen again.”. Under Armour is being accused of promoting a troubling workplace culture, after it was revealed that the sports apparel company used to allow some employees and executives to expense visits … The unethical article I found on Under Armour was “Under Armour deal contradicts core values” (Jackson Santy, 2012). It is an American success story. Website by Prime Concepts. The CEO’s brother left the company in 2012 after allegations of sexual misconduct were raised against him. In the 2016 US presidential election, Bernie Saunders from the Left and Donald Trump from the Right made this criticism. Under Armour is a 5 billion a year company that provides a huge number of jobs overseas. Under Armour was founded by Kevin Plank in 1996, when he got the idea to create a shirt that withstand sweat like his compression shorts. CSR is the claim that for a company to be moral more is required than core business and paying taxes (please see my post at Law & Liberty: http://www.libertylawsite.org/2016/03/23/a-better-account-of-corporate-social-responsibility/). The two things Plank identifies as moral are indeed good but it is hardly CSR. Kevin Plank, the founder of the sports wear company, is justifiably proud of what he has accomplished and the good the company does. The garment industry jobs are firmly overseas where wages are low facilitating high margins. Is the shirt the worst crime ever committed by a company? In a recent interview, he has strongly affirmed the company’s moral character (https://www.fastcompany.com/3065326/the-fast-company-innovation-festival/under-armours-founder-makes-a-passionate-defense-of-big). My next few posts will address these questions. The battle for Iwo Jima took about five weeks and nearly 7,000 American soldiers died of the 70,000 who invaded. They talk about obeying the laws but in this particular incident, they broke NCAA rules. SUSTAINABILITY AT UNDER ARMOUR. We are the world’s number one, we like to think, maker of athletic apparel, and we also have several fitness apps, My Fitness Pal and Map My Run. Nearly 20,000 Americans were wounded and goodness knows how many more lived their lives with PTSD from the horrendous aspects of the battle. As a small company, I can’t understand how growth can remove the need to ensure that everything you put out there represents you. Last week, Under Armour launched a new campaign – #WEWILL. There are a lot of reasons that UA stock is struggling, but one of the firm’s huge issues has been that people are simply not buying what Under Armour is selling. Adding to Under Armour’s woes was a 2018 hacking that resulted in data from 150 million users of Under Armour’s Connected Fitness getting into the hands of an “unauthorized third party,” the company wrote in its annual report. I would imagine most of his production is accomplished off-shore in China and Indonesia. Investor. Its sales in North America dropped 2% in 2018 to $3.7 billion. Their clothing is appeals to the physically fit and to those wanting to be. Under Armour decided to launch an edgy T-shirt. Plans are afoot for an extensive redevelopment of an old industrial space in Baltimore City with shops, apartments, eateries, and parks. The shirt was called “Band of Ballers,” a take-off on the “Band of Brothers,” the book and movie series about the U.S. Marines who hoisted the American flag on Iwo Jima. As a resident of Baltimore City, I am delighted Under Armour is thriving. Under Armour has a strong code of ethics that they claim to abide by. Over the course of its growth, Under Armour has suffered from a male-dominated culture that suffered from serious reputational issues. Ethically, it will reflect badly on our company.” Under Armour, meet Ethics Under Armour decided to launch an edgy T-shirt. The garment industry jobs are firmly overseas where wages are low facilitating high margins. UNDER ARMOUR IS BUILT ON PERFORMANCE. Its sales in North America dropped 2% in 2018 to $3.7 billion. Plank expresses a position that is familiar from the free market ideas of Ronald Reagan and Margaret Thatcher. I believe the company saying that it would take steps, is a statement reflective of the very highest levels of management; perhaps the founder himself. Curry Brand, Powered by Under Armour, Aims to Reach 100K Youth Athletes Globally by 2025. down the east coast extolling the virtues of his product. Under Armour’s commitment to Baltimore is not to provide manufacturing jobs to the large number of poor residents in the city. Is the point moot with the coming robot-revolution? It was a stupid blunder. “The big issue with [Under Armour] is that they need to figure out how to become a sportswear brand as opposed to a sport brand,” says Matt Powell, sports industry analyst at the NPD Group. Competitive Environment Today, Under Armour has two primary competitors: Nike and Adidas. Under Armour's outlook was disappointing too. Under Armour’s most recent earnings report showed that apparel revenue was down 8% and gross margin sunk to 46.2%- a 13… I am quite sure that the grandmother of the founder of Under Armour; the woman who allowed her grandson to start his American Dream in her basement, might have had a few things to say about the shirt as well. Rather are they the straightforward consequences of Under Armour being a big company and a brand. It should go without saying that it was an insult to any family who lost friends and relatives in that battle. If companies continue to disobey the law and perform unethical actions, in the long run, it can hurt their business financially and marketability. Ethically, it will reflect badly on our company.”. Kevin Plank’s first big break came after a $17,000 sale. I recommended (early 1990s) ago that my alma mater, Mills College, Oakland CA, have a course in ethics that I hoped would find its way into their Business major curriculum. From Left and Right, free markets are being criticized for leaving behind populations local to thriving companies. However, it is an incident that was allowed to occur because there were no ethical borders and no ethical governance. The struggling sportswear giant Under Armour confirmed on Sunday evening that it was assisting federal authorities conducting investigations into … It was pushed along the manufacturing timeline, from artist’s conception through to distribution without anyone in authority challenging its creation or even its reason for being. BETTER ATHLETES IN A BETTER WORLD Here’s the future we want to see: the best performance imaginable on the cleanest Earth possible. Hillary Clinton lost the election because the old industrial heartland of the Mid-West in the USA – which had voted for President Obama – voted against offshoring. Under Armour is a sports apparel company that did just a bit more than $3 billion in sales last year. Under Armour’s commitment to Baltimore is not to provide manufacturing jobs to the large number of poor residents in the city. The only thing that keeps it in check is having an ethical sense, and having someone in the organization say, “You know, that just may be crossing the line. How realistic is re-shoring given America’s infrastructure problems, poor education, and broad collapse of blue-collar know-how? STEPHEN CURRY AND UNDER ARMOUR LAUNCH THE CURRY BRAND, AIMED TO CHANGE THE GAME FOR GOOD. How we make you better. You don’t grow from zero to billions without tremendous drive and ambition. I found some casual shirts and pants to buy that were both ethical and affordable, but I am finding it hard to find sports cloth that is ethical and affordable. I also assume – as per my Chapter 7 – that middlemen populate the supply chain of Under Armour to maximize market agility. Many committed suicide rather than risk capture. All Rights Reserved. Ethically, in the hard-charging and edgy world in which the company lives, there are people within the company who act before they think. Under Armour has struggled on its home turf as of late in the face of stiff competition from Nike, Adidas and Lululemon. © 2021 Chuck Gallagher. Plank was a former athlete at University of Maryland college park, where he played football. slavery, human trafficking and immigration. Under Armour’s core business provides garment jobs to poor people overseas, white-collar jobs to business majors generated by the plethora of colleges on America’s East Coast, and tax revenue to Baltimore. The shirt is emblematic where the heart and core values of the company became separated from the products they produce. It is an iconic image because of the price that was paid. We also look at toxic chemicals, Uzbek cotton, and recommend our Best Buys. GIFTS/CONFLICTS OF INTEREST: Under Armour’srelationships with its business partners are built on trust, value, quality and service. Supply chain issues are … Are there adequate ways to have local commitments without re-shored manufacturing? Under Armour chief executive Kevin Plank — who got rocked last year by reports that he had presided over a frat-house culture at the athletic wear giant — will step down from the role next year. Veneration & Refinement: The Ethics of Fashion, Chapter 1: Fashion and Privilege: David Hume and Luxury Fashion, Chapter 2: Fashion and Poverty: The Whig-Tory Debate, Chapter 3: Fashion and Justice: Benedict XVI and Feel Good Fashion, Chapter 4: Fashion and Beauty: Adam Smith and Celebrity Fashion, Chapter 5: Fashion and Vanity: Max Scheler and Craft Fashion, Chapter 6: Fashion and Civilisation: Johan Huizinga and Fantasy Fashion, Chapter 7: Fashion and Nobility: Aurel Kolnai and Fast Fashion, Chapter 8: Fashion and Power: Agamben and Pryzwara on the Vestments of Power, Xabi Alonso: great footballer with an eye for design, https://www.fastcompany.com/3065326/the-fast-company-innovation-festival/under-armours-founder-makes-a-passionate-defense-of-big, http://www.libertylawsite.org/2016/03/23/a-better-account-of-corporate-social-responsibility/, Max Scheler approves of eccentrics (Video), Using Lacan to think about Mary this Christmas. In this guide we investigate, score and rank the ethical and environmental record of 29 brands of sportswear and workout clothes. Are Under Armour and Adidas ethically sound companies? The shirt was called “Band of Ballers,” a take-off on the “Band of Brothers,” the book and movie series about the U.S. Marines who hoisted the American flag on Iwo Jima.