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Corporate Social Responsibility
News
7.13.2005 ET
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GAP Inc.'s 2004 Social Responsibility Report Reveals Continued Progress And Cites Expanded Efforts To Improve Garment Manufacturing Conditions Across Industry
Discussion Highlights More Effective Factory Monitoring, New Steps to Embed Labor Standards in Business Practices and Expanded Stakeholder Engagement
(CSRwire) SAN FRANCISCO -- July 13, 2005 -- Gap Inc. (NYSE:GPS) issued today
its 2004 social responsibility report, underscoring its continued
commitment to improving conditions not only within its own sourcing base
but throughout the global garment industry.
The report, the company's second, details progress made over the last year
across four main areas of focus. Highlights include:
More effective techniques and strategies for monitoring factories and
improving conditions;Steps to embed labor standards across the
company's purchasing practices;
Expanded stakeholder engagement and collaboration to achieve broader
impact; and
Ongoing commitment to communication and transparency.
The full report is available online at www.gapinc.com.
"We recognize our responsibility to be a catalyst for sustainable change,
and believe an integrated approach that includes collaborative
multi-stakeholder engagement can help drive lasting progress across our
industry," said Gap Inc. CEO and President Paul Pressler. "Although we
still face many challenges, we are encouraged by the progress we've made
over the past year across several areas."
The report was prepared with input and guidance from the Public Reporting
Working Group - a group of advisors from the socially responsible
investment community that joined together in late 2002 to help the company
increase transparency around its operations and ethical sourcing work. The
group is comprised of Domini Social Investments, the Calvert Group, the As
You Sow Foundation, the Center for Reflection, Education and Action, and
the Interfaith Center on Corporate Responsibility.
As part of a statement included in the report, the working group said: "We
believe that Gap Inc. has made substantial progress in focusing on the
connections between its core business, systemic global concerns and
workers' lives."
The report places particular emphasis on the continued evolution of Gap
Inc.'s extensive factory monitoring program, which employs more than 90
people around the world, most of whom are Vendor Compliance Officers
(VCOs) who visit factories, conduct inspections, document violations and
work with garment manufacturers to improve conditions on a daily basis.
In 2004, Gap Inc. monitored 99.9% of garment factories approved for
production for all of fiscal year 2004 - up from 94% in 2003. Gap Inc.
also invited Social Accountability International (SAI) and Verité to
conduct thorough assessments of its monitoring program and inspection
protocols. Insights from the analyses are helping the company drive
continued improvement in its monitoring techniques and strategies.
Gap Inc.'s 2004 report also outlines how the company is working to
integrate labor standards into its business practices and supply chain
operations by building closer relationships with garment manufacturers,
reducing inefficiencies in its supply chain process and re-evaluating its
purchasing practices. For example, in 2004, the company hosted its
first-ever Vendor Summit, a forum designed to share business and sourcing
strategies as well as set expectations with top garment manufacturers from
around the world.
Underscoring the company's continued focus on stakeholder engagement, the
report also cites expanded collaboration efforts through multi-stakeholder
initiatives and with external stakeholders and training organizations. Gap
Inc. has been actively involved in the Multi-Fiber Arrangement (MFA)
Forum, a multi-stakeholder effort that has developed a broad set of
recommendations to help stakeholders responsibly manage the transition to
a post-quota environment. The company also continued to support the work
of the International Labor Organization (ILO) to improve working
conditions and boost productivity in Cambodian factories.
In addition to a focus on Gap Inc.'s ethical sourcing practices, the
report describes activities in other areas of Social Responsibility:
Increasing donations and volunteer hours by encouraging the Gap Giving
program, Community Corps and Founders' Award. As a result, employee
participation in both volunteerism and financial contributions increased
from 2003 to 2004.
Responding to the South Asia Tsunami by double-matching employee
contributions to designated agencies with a gift of $1.3 million from Gap
Foundation.
Managing its impact on the environment by conducting an environmental
impact assessment for each stage of the apparel product lifecycle,
maintaining compliance with applicable laws and regulations, encouraging
non-merchandise vendors to adopt more environmentally sound practices and
decreasing energy consumption in U.S. stores.
Ensuring workplace health and safety by exploring better processes and
stricter enforcement of safety protocols. As a result, the worker injury
rate decreased nine percent from 2003.
Attracting and retaining talented employees by providing training and
development opportunities, offering a holistic rewards programs that
incorporates compensation, benefits and a recognition component, and
encouraging open dialogue through formal and informal channels, including
surveys, focus groups and the open-door policy.
"Over the past year, we've learned the power of collective engagement, and
of open, honest discussion about the issues that we and many other
companies face," Mr. Pressler said. "We know we still have a long way to
go. That's why we're continuing to push the boundaries of what's possible,
developing new programs and learning along the way."
Gap Inc. is a leading international specialty retailer offering clothing,
accessories and personal care products for men, women, children and babies
under the Gap, Banana Republic and Old Navy brand names. Fiscal 2004 sales
were $16.3 billion. Gap Inc. operates about 3,000 stores in the United
States, the United Kingdom, Canada, France and Japan. For more
information, please visit gapinc.com.
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