The Gap Inc.'s Social Responsibility Report

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Discussion Case 7 The Gap Inc.'s Social Responsibility Report Summary: In 2004 Gap Inc. issued social responsibility report that made the company an inventor in the social auditing and reporting. The company issued three documents to its stakeholders. The three reports tried to answer the following questions: "What is a company's role in society?"; "Can business and Human rights go hand in hand?"; "Can business have a positive impact on the planet?" Gap Inc. based in San Francisco was one of largest retailers of clothing, accessories, and personal care products. The company revenues were high ($14.5 billion in 2009). In 1999s and early 2000 Gap Inc. was the target of protests by the human rights groups because of its products that were made in sweatshops that are factories where underage, underpaid worker, unsafe working conditions. Rather than denying all of this, Gap stepped up by developing one of the most comprehensive monitoring programs. Then the company turned to Social Accountability International (SAI) and it's pledged to do business with contractors that only agree to high set of standards. To assure the contractors appliance of the code the company hired VCOs (Vendor Compliance Officers). The VCOs audited 1016 factories in more than 50 countries across the globe. Once a VCO find a problem, the company moves promptly to correct it. A good example is what happened in India. Gap also moved from "fix to fix" mentality to "find, fix, and prevent". The company reported initiatives to train its contractors in modern HRM systems. The company also has worked with other organizations and partnered with Global Reporting Initiative. Gap Inc. has completely turned the corner and activists should look for another target. The company has its new way of doing business. The financial decline did not deter the company from focusing on corporate citizenship. The

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