Who’s to Blame When you think of Yoga and fitness, you think of looking good with Lululemon’s apparels. Lululemon was founded in 1998 by Chip Wilson in Vancouver, Canada, which is a high-end yoga-inspired, technical fitness, an athletic apparel company that was centered around women's fitness (Edwards, 2013). Lululemon was one of the top retailers until a few incidents that took place during 2013 where Lululemon encountered some major PR crisis on their product quality and their accusation toward discriminatory conduct by their Chairman of the board and their employee’s conduct. First, Lululemon’s company was accused of using Luon, which is a see-through fabric that caused a sheer, or transparent effect when worn. Which in turned, caused Lululemon to issue a worldwide recall in March of 2013 to bring back approximately 17% of their black yoga pants line that impacted Lululemon’s bottom line. Second, was the unethical behavior of the employees at the store and the very opinionated comment conduct by the chairman of the company. Wilson during his press meeting with Bloomberg TV in November spoke out on what he …show more content…
(Lussier & Sherman, 2013, p. 54). However, the stakeholders, in this case, are the women who would be impacted the most, since the product purchased by Lululemon was intended to be more flexible and more durable, it ended up being more revealing and embarrassing for the women to exercise in. Thus, causing the company to plunge in sales from the 11% increase that was expected to 5 to 8% decrease after the recall in 2013 (Isidore, 2013). However, the other stakeholders are the employees and the investors who would gain if the new material was cheaper, and met the expectations of the consumers and all the stakeholders