Gap Inc. CSR: Benefiting from Sustainability Efforts
Gap Inc. management rightly acknowledges Corporate Social Responsibility (CSR) as one of the critically important aspects of the business. The company has won a number of awards for its CSR programs and initiatives, including 2016 Catalyst Award in recognition of its commitment to equality, diversity and inclusion[1]. Moreover, in 2015 Gap Inc. was named as The Most Ethical Company by The Ethisphere Institute.[2]
Gap Inc. releases Global Sustainability Report annually and it includes the details of CSR programs and initiatives engaged by the company. The table below illustrates the highlights from the latest report for 2013-2014:
| Categories of CSR activities | Gap Inc. CSR Performance |
| Supporting local communities | Gap’s employees volunteered 558,000 hours in 2014 alone |
| Educating and empowering workers | The company provided job training and store internships through its This Way Ahead program to more than 2000 teens and young adults. |
| Labor and human rights | Over the past several years the company raised the hourly wage to USD 10 for more than 60,000 employees |
| Employee health and safety | The company has a centralized online reporting system that tracks all incidents and injuries. The information is analyzed at least quarterly to assess risks and develop prevention measures |
| Gender equality and minorities | P.A.C.E. program aims to support female employees and suppliers gain the skills and confidence to advance at work and at home. The program aims to educate one million women throughout the world by 2020.
Gap Inc. pays female and male employees equally for equal work
In 2015, women represented more than 70 per cent of Gap’s senior leadership.
The company sponsored 6 employee resource groups to promote diversity and inclusion. |
| Environment
a) energy consumption
b) water consumption
c) Waste reduction and recycling
d) CO2 emissions
|
The fashion retailer has installed LED lights, which use 80 percent less energy and last 5–10 times longer, at more than 30 percent of its U.S. stores
The company developed Clean Water Program requiring its suppliers special treatment of water used to launder Gap, Banana Republic, and Old Navy denim to ensure that it’s clean and safe when it leaves the denim laundry facility
Gap has announced to achieve 80 percent waste diversion from landfill for its U.S. facilities by 2020 compared to the base year of 2015
The company aims to achieve 50 percent absolute reduction of greenhouse gas (GHG) emissions by 2020 in its owned and operated facilities globally from 2015 levels |
| Sustainable sourcing | Gap visits about 1,000 factories that makes its clothes each year
Starting from 2016, the company discloses the list of factories that produce its clothes around the world |
| Other initiatives and charitable donations | Thanks to Gap’s Women+Water program 17,000 people in India now have access to clean water. The company partners with fabric mills and the Natural Resources Defense Council to conserve water and fight pollution |
Overview of Gap Inc. CSR performance[3]
Gap Inc. Report contains a criticism of Gap Inc. CSR programs and initiatives. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Gap Inc. Moreover, the report contains analysis of Gap Inc.’s marketing strategy along with discussion of its leadership and organizational structure.
[1] Annual Report (2015) GAP Inc.
[2] Gap Inc. Press Release (2015) Available at: http://www.gapinc.com/content/gapinc/html/media/pressrelease/2015/med_pr_2015_WME.html
[3]Figures taken from Global Sustainability Report 2013 – 2014