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Corporate Social responsibility Case Study

Case Title:

Gap Inc.ís Crusade against Sweatshops

Publication Year : 2006

Authors: Bharathi S Gopal

Industry: Retailing


Case Code: CSR0021B

Teaching Note:  Not Available

Structured Assignment:  Not Available

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Gap Inc. was a leading international specialty retailer that operated through more than 3000 stores across the world. In 2005, the companyís revenues were $16 billion. Though Gap took several initiatives to assist communities in which it operated, it ran into trouble in the 1990s for its factory hiring policy in the third world countries. It was alleged that the factories that produced garments for Gap overlooked basic working conditions and operated like sweatshops. Gap had to face several lawsuits concerning the sweatshop issue. In 1996, it adopted the Code of Vendor Conduct, which laid down the guidelines for hiring factories across the world. It also monitored its factories and made public the findings in its reports, 2003 Social Responsibility Report and 2004 Social Responsibility Report. The reports highlighted Gapís efforts to improve the conditions in its factories. With all these efforts can Gap revamp its tainted image? Would Gapís efforts be a benchmark for the entire apparel industry to follow?

Pedagogical Objectives:

  • To discuss the social responsibilities of companies that subcontract its manufacturing
  • To discuss how GAP would revamp its blemished image
  • To discuss about other companies that run sweat shops and how those companies maintain them.

Keywords : Corporate Social Responsibility Case Study Gap Inc., Garment, Apparel, Sweatshop, Social Responsibility, Working conditions, Factory, Image, Benchmark, Saipan, UNITE, Goodwill, Human Rights Practices, Code of Vendor conduct

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