The Gap Inc

The Gap Inc

1. Case Summary

The Gap, Inc is a chain of retail stores that sell casual apparel,

shoes, and accessories for men, woman and children. Headquarter in San

Francisco; the stores operate under a variety of names including: Gap,

Banana Republic, Old Navy Clothing Company, Gap Kids, and baby Gap.

All merchandise sold by chain is private label.

The Gap was founded in 1969 when Donald Fisher and his wife, Doris

opened a small clothing store near San Francisco State University. By

1971 they were operating six Gap stores. In 1995, Fisher retired as

CEO and Drexler, now age 50, took over the title.

The Gap contracted with over 500 manufacturers around the world that

made the companies private label apparel according to Gap

specifications. Gap, Inc purchased about 30 % of its cloth from

manufacturer located in United State and 70% from vendor located in 46

foreign countries. No single supplier provided more than 5 % of its

merchandise.

In the wake of concern over third world working conditions, the Gap

also adopted a set of sourcing principle and guideline. This provide

standard that the vendors had to meet including: engage in no form of

discrimination, used no forced or prison labor, employee no children

under 14 years of age, provide a safe working environment for

employees, pay the legal minimum weight of the local industry

standard- whichever is greater. The Gap’s supplier should also meet

all applicable local environmental regulation, and comply with the Gap

own more stringent environmental standards, neither threaten nor

penalize employees for their efforts to organize or bargain

collectively and uphold local custom laws. To ensure compliance with

its standards, the Gap sends a Gap Field Representative to conduct

in-depth interview with a prospective supplier prior to the initiation

of a business relationship.

The Gap supplier in Salvador, run by Mandarin International,

Taiwanese-owned Company that operated apparel assembly plants around

the world. The Gap had begun contracting with Mandarin plants in El

Salvador in 1992. A worker there was paid approximately 12 cents for

assembling a Gap three-quarter sleeves t-shirt or turtle neck, which

retailed at about $20 in the United States. Wages at the Mandarin

plants averaged 56 cents an hour-a level that was claimed to provide

only 80% of the amount neede...

... middle of paper ...

...arin employee who make Gap

product.

- The Gap should make sure the entire supplier fulfills its sourcing

principle and guidelines. The supplier which doesn’t implemented the

entire Gap standard and the local government standard, the Gap should

avoid doing business with them.

- Mandarin International done unethical business by not allowing their

employee to make union (fired all the union members) and all the

unethical behavior toward the employee.

Recommendation

- The Gap should choose their supplier carefully and maximize the Gap

field representative by put an eyes and do the regular inspection not

only when they start the business but always monitoring the working

and social condition of the supplier to comply with the Gap code of

conduct and also the local government laws.

- The Gap representative officer should do the interview without

being known by the Mandarin International, so the employee would be

freely to speak about what really happened in the factory.

- The Gap should give more effort to increase the quality of live

their supplier employee which usually in the third world by giving

education or other benefit.