American Apparel, apparently, required all employees to sign agreements requiring them to arbitrate any disputes, including sexual harassment claims. Because of this, the company was able to sweep most of the complaints away from the public eye since arbitration proceedings are, by definition, private.
But, does this create an abuse of the arbitration system? Is the ADR process designed to perpetuate improper behavior by shielding it from the specter of public scorn? Would so many young adults (and in particular, women) have bought American Apparel clothing if they had been more aware of the conduct of its leadership?