The Csr Evaluation of Gap Inc.

2143 Words Oct 29th, 2012 9 Pages
The Gap Inc.: The CSR Evaluation of Gap Inc.

Outline of the notable ethical decisions made by Gap Inc. and their impacts on the company
In 2003, Gap Inc. was sued for its usage of child labor and sweatshop factories in its subsidiary in Saipan. The decision to use child labor and sweatshop in Saipan was made by the management of Gap Inc. that could either be seen as egoism or utilitarianism (Smith, 2004). On one hand, on the egoism perspective, Gap Inc. could have decided to use child and sweatshop labor to cut its costs and maximize its profits. On the other hand, on the utilitarianism perspective, Gap’s decision to use child and sweatshop labor, cruel and ethical as it might seem, provided the
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First of all, employees account for the majority of the population in Gap’s factories; further, these employees are the blood in the whole enterprise body, the very thing that is keeping the whole business engine going (Henkle, 200). Hence, the employees are also the major force to implement the CSR plans and initiatives proposed by the management. By strategically allying with the employees on the CSR issues, they management could expect the employees to cooperate more willingly and heartedly (Urip, 2010). Gap’s CSR goals are also part of its strategic goals, which are closely related to efficiency, productivity, profitability and long-term prosperity (Vogl, 2006). Attaching greater importance to the employee participation could promote more desirable implementation of Gap’s CSR plans.
Secondly, Gap is investing in CSR to improve its operational efficiency. A major part of CSR is about energy reservation and environmental protection (Hollender and Visser, 2011). As a player in the apparel industry, Gap’s factories are consuming considerable gas, oil and electricity. Statistics show that in apparel industries, the wasting of these resources is quite common (Nevaer, 2010). The wasted energy and resource is not only a loss to the human kind, but would also incur unwanted operational costs for the cloth production in Gap, a practice with great harm to Gap’s operational efficiency. In this case, honoring the energy and resource

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