Exploring Lululemon's Compliance With Legal And Regulatory Issues

On March 18th of 2013, after months of customer complaints, Lululemon, an athletic wear company, removed its black legging yoga pants made from luon fabric from its stores and inventory. This was due to faulty recent shipments that were said to have not met the company’s quality standards. As the company attempted to resolve the scandal they replaced the faulty product with new product said to have higher quality testing that is now better than ever before. However, customers continued their complaints and the company denied their culpability. This resulted in the company being entangled in social media debacles and a lawsuit from their stakeholders. Lululemon did identify their risk factors before the scandal. The company had a limited number

The lawsuit from their stakeholders claimed that Lululemon made false and misleading statements by failing to disclose the issues with the luon fabric. They claimed Lululemon did this to cut costs and raise profit margins much to the detriment of product quality and brand reputation. (Smith, 2013) If this is true, this demonstrates inadequate compliance with legal and regulatory issues as they made false claims to their stakeholders for their own financial gain. Lululemon failed to demonstrate ethics, principles, and values. They failed to do so by denying their customers complaints and claims and blaming them for the company’s shortcomings. This behavior goes against the unspoken rules, i.e. principles and values, that responsible companies adhere to. Companies should not blame their customers for quality issues within their products. Lastly, Lululemon has demonstrated little philanthropic activities. Through research on the internet, I could only locate recent demonstrations of philanthropic activities from the company starting in 2021. Despite the company being established in 1998. By reading this analysis, it seems as Lululemon was, and may still be, focused solely on becoming one of the largest retailers in the Unites States. Rather than focusing on how to create a better world and community for