Product(RED) Entry

1.       Do you think a partnership with Product (RED) can improve Gap’s image? Is it a sign that they are making a commitment to corporate social responsibility or do you agree with critics who say their involvement is an attempt to spit-shine the company’s image while continuing to do business as usual?

 It is obvious that Gap's image has improved with its partnership with product (RED). While it was known that Gap's clothes come from sweatshops, the publicity and media attention that Gap received as being a philanthropic company joining the RED campaign to fight aids overshadowed the unethical practices implemented by the business. Proof of this is evident by the fact that the Inspi(RED) t-shirt was the best selling item in the past 35 years. The product (RED) collaboration also improved GAPs stock from $16.50 a share to $21.50 in just a three month period. The improvement from both their sales and stock show that the partnership has in fact improved the value and public relations of the company. Critics argue that GAP was continuing its same practices, but after only one year GAP had in fact ended its unethical practices. Many of the criticisms of GAP and sweatshops no longer exist as the latest report of child labor in sweatshops is from 2007. As of today GAP has made a commitment toward corporate social responsibility as they are is one of the biggest retail proponents against child labor as they have implemented a zero child labor tolerance and constantly audit their vendors factories to make sure that their policies are practiced. 

It has only really been within the last 20 years that customers have really focused or noticed the ethical/unethical practices of companies. Do you believe that companies that have enacted more ethical practices are doing so because it is the right thing to do, or because it has become the profitable thing to do? Will corporate social responsibility become the new part of standard business practices or will it go away once the consumer focuses on something else?