In 2010 the  Gap Inc. was rated as one of the worlds most ethical companies for the fourth year in the row. After receiving this reward Gap’s Senior Vice President of Global Responsibility said  “While we’re proud of this recognition, we remain committed to constantly evaluating our efforts and looking for new ways to ensure our business is conducted in an ethical and socially responsible manner each and every day”. To the Gap the interests of its shareholders  are important and because of this they are careful to conduct their business responsibly.

              Some think that if a company conducts itself in a socially responsible manner then they will not be profitable. However, social responsibility and profitability are not mutually exclusive.The Gap is the prime example that ” operating under the highest standards for business behavior goes beyond goodwill and ‘lip-service’ and is linked to performance and profitability”. The Gap has proven not only that they have good Stakeholder behavior, but that you don’t have to sacrifice profitability to obtain good Stakeholder behavior. 


4 responses »

  1. Jordi says:

    What do they actually do to get such an award? How do they avoid the trap of outsourcing like every other competitor in clothing does?

  2. wesmw says:

    I agree with Jordi on this one. I don’t know much about Gap but I think it is important to look at how they outsource their production. With labor being such an expensive commodity in the United States, it is hard to imagine that Gap has any production facilities in the United States. Thus, the question has to be asked how does Gap operate in these foreign countries without compromising their initiative to be an ethical company? I would be really interested to see what they do differently than a company such as Abercrombie and Fitch.

    • Charles says:

      To be honest I have no idea how they avoid the pitfall of outsourcing. I do not even know what exactly went into them receiving the award. It is interesting point though because I never considered the fact that they may have to outsource since there company deals mostly with clothing

  3. Steph P. says:

    I researched a little bit about the outsourcing Gap, Inc. I found an article by Guardian writer, David Teather in 2004 about Gap admitting to child labour violations. He reports malpractices including the use of unsafe machinery and underage workers. Teather reports, “The most frequent violations of The Gap’s code of conduct included factories not complying with local laws on annual leave, failure to pay the minimum wage, working weeks in excess of 60 hours, inaccurate record keeping and machinery lacking safety devices”. I found this to be quite disturbing after hearing about the award they won for four years in a row. On a sidenote, after going to the Thursday session today, Professor Comas brought up that Enron was voted “Most Admired Company” in 1999. After looking into it more, this vote was sustained from 1996 to 2001. I’d say that says a lot, or maybe not enough, about what really goes into awarding these “admirable” companies.

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