How Gap Inc. Engaged With its Stakeholders Harvard Case Solution & Analysis

Charges of environmental damage and labor rights abuses are not unusual for leading brands that source from global supply chains. Yet, brand efforts to regulate supply chains to apply business standards rarely function as an effective long term alternative. Frustrated with the constraints of an average compliance-oriented approach and after committing major human and financial resources with senior management buy in, clothes retailer Gap Inc. undertook a strategy of stakeholder involvement. Stakeholder theory indicates that such an approach needs to be more efficient than focusing on compliance, in fulfilling corporate social responsibility and other business targets, but a lot of companies continue to concentrate on policing environmental standards and supply chain labor.

Gap's successful experiment with stakeholder engagement supported academic feeling about the value of stakeholder participation. After just a couple of years of this practice, Gap succeeded in both additionally improving the working conditions of its own contractors' employees and reducing the business 's status as a goal for anti-globalization protesters and other activists. Gap's long supply chain is not unusual, nor is the challenge of tracking the social functionality of thousands of subcontractors.


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