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The main goal of this report is to analyze problem of child labor across Gaps supply chain and to give recommendations concerning strategy to cope with this problem

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24.03.2012 To: Mr. Glenn Murphy, the CEO of GAP Inc. From: MK Consulting Subject: Assessment Report evaluating problem of the use of child labor by GAP. 1. The Introduction The main goal of this report is to analyze problem of child labor across Gap?s supply chain and to give recommendations concerning strategy to cope with this problem as well as with decreasing consumers? confidence. 1. The problem of child labor - summary Cheap labor is one commodity India has in abundance, and even though India has laws in place to protect children and bans the use of young workers; they remain pretty ineffective. ...read more.


There exist irrefutable evidence of child labor in our facilities, as pictures presenting child workers and Gap clothes were taken. Children, in this case working in conditions close to slavery, which is simply unacceptable and remarkably harms company?s image. 1. Effects of the incident The conference Board, a market research firm, claims that consumer confidence fell for the third month in a row. In addition to that, Sales in September were 7% lower than a year ago, which caused significant financial damage to the company. Besides short term effects, the company is facing threat of losing its strong position on the market, since its product are not attractive to the consumers anymore. ...read more.


Definite actions have to be introduced to cope with the problem and improve company?s image at once. First of all, the Gap should consider launching campaigns on letting the public know its Code of Conduct. The campaigns should be supported with starting a program of provision of schooling to under-age children and guaranteeing them a job once they reach legal age. Secondly, actions and production processes of the contractors across Gap?s supply chain should be properly monitored. We believe that this problem can be solved by introducing numerous inspectors, who will supervise the factories. Finally, Gap should try to influence Indian government on the issue of child labor. This problem seems to have its roots at the level of faulty legal system, therefore it is important to lobby for stronger regulations. ...read more.

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