Gap Inc.

The Gap Inc. operates as a specialty retailing company in the United States and internationally. The company operates retail and outlet stores that sell casual apparel, accessories, and personal care products for men, women and children under the Gap, Old Navy, Banana Republic, Piperlime, and Forth & Towne brand names. Its products include denim, khakis, T-shirts, shoes, intimate apparel, and accessories. As of February 3, 2007, the company operated approximately 3,131 stores in the United States, Canada, United Kingdom, France, Ireland, and Japan. [1]

Basic Information

HQ Contact information

2 Folsom St.
San Francisco, CA 94105
U.S.A.
Tel: 1-650-952-4400
http://www.gapinc.com

Country of incorporation

U.S.A.

Ownership status

Public

Primary industry sector

Services; Apparel Stores

Number of employees worldwide

154,000 [2]

Chief executive officer

Glenn Murphy, Chairman and CEO

Financial information

Ticker symbol

GPS

Main exchanges

NYSE

Investor website

http://gapinc.com/public/Investors/investors.shtml

List of largest shareholders

34% of shares held by founding Fisher family. [3]

• Doris F. Fisher (52,437,751 shares)
• Donald G. Fisher (52,437,751 shares)
• John F. Fisher (25,664,005 shares)
• Robert J. Fisher (20,778,199 shares)
• William Sydney Fisher (17,977,080 shares)
• Dodge & Cox Inc. (42,531,820 shares; 5.66%)
• Hotchkis & Wiley Capital Management, LLC (32,374,100 shares; 4.31%)

[4]

Total sales

USD 15.9 billion (Feb. 2007) [5]

Net income

USD 778 million (Feb. 2007) [6]

Detailed Information

Company history

The first Gap store was opened in 1969

Books on company

• Nevaer, Louis E.V. 2001. Into - and out of - the Gap: a cautionary account of an American retailer. Westport, Conn." Quorum Books.

Business scope

Brands

• Gap
• Banana Republic
• Old Navy
• Piperlime

Customers

Gap Inc. retails only through its own stores.

Suppliers

Identified suppliers:

• Gokaldas Exports Ltd., India
• Katexindo Citra Mandiri, Indonesia

Competitors

• Abercrombie & Fitch Co.
• American Eagle Outfitters Inc.
• J. Crew Group, Inc.

Governance

Executives

• Glenn K. Murphy, Chairman and CEO
• Jack Calhoun, President, Banana Republic
• Marka Hansen, President, Gap
• Michael B. Tasooji, EVP and Chief Information Officer
• Sabrina Simmons, EVP and Chief Financial Officer
• Dawn Robertson, President, Old Navy

Board members & affiliations

• Howard P. Behar (director of Shurgard Storage Centers, Inc. and Starbucks Corporation)
• Adrian D.P. Bellamy (chairman of The Body Shop International plc., chairman of Reckitt Benckiser plc.; director of Williams-Sonoma, Inc.
• Domenico De Sole (director of Delta Air Lines, Inc., Newell Rubbermaid, Inc. and Telecom Italia)
• Donald G. Fishder, Founder and Chairman Emeritus (Director of the Charles Schwab Corporation)
• Doris F. Fisher
• Robert J. Fisher
• Penelope L. Hughes (director of Skandinaviska Enskilda Banken AB, Reuters Group plc, and Home Retail Group)
• Bob L. Martin, Lead Independent Director (CEO of Mcon Management Services, Ltd., director of Conn's, inc. and Furniture Brands International, Inc.)
• Jorge P. Montoya (director of Rohm & Haas Company and the Kroger Co.)
• Glenn K. Murphy, Chairman and CEO
• James M. Schneider (executive chairman Frontier Bancshares, Inc.; director of General Communication Inc. and Lockheed Martin Corporation)
• Mayo A. Shattuck III (Chairman, President & CEO of Constellation Energy Group; director of Capital One Financial Corporation)
• Kneeland C. Youngblood (co-founder and managing partner of Pharos Capital Group, LLC; chairman of board of American Beacon Funds; director of Burger King and Starwood Hotels and Resorts)

Date & venue of next AGM

May 2008

Corporate Accountability

Co-op America profile: "Gap brand stores are so popular that a shopping center without a Gap or its subsidiaries, Banana Republic and Old Navy, is a rare sight. Gap has used its popularity to promote pro-diversity measures and encourage community involvement, and the company is now an EPA Climate Leader. Gap has also developed a supplier code of conduct to address unethical labor issues, however, sourcing from non-compliant factories continues to be a problem for the company. Examples of Gap's labor abuses include mandatory and unpaid overtime work; sub-poverty wages; and unhealthy working conditions. Gap is showing an interest in addressing labor violations but it needs to apply greater energy and solicit stronger efforts from industry cohorts to make lasting changes. Measurable results from such interest remain to be seen."

Labor

Global

History:

• 1992: Sourcing Guidelines developed outlining general labor standards for vendors
• 1996: hires first vendor compliance staff
• 1999: establishes indpendent Global Compliance department
• 2002: Global Compliance department starts to focus on stakeholder dialogue and engagement with local organizations
• 2003: joins Social Accountability International's corporate involvement program and United Nations' Global Compact
• 2004: joins Ethical Trading Initiative
• 2004: publishes first social responsibility report
• 2005: joins Joint Initiative on Corporate Accountability and Workers Rights (Jo-In) Turkey Project, which seeks to develop a streamlined approach to codes of conduct and monitoring [7]. Other participants include adidas, Hess Natur, Marks and Spencer, Nike, Patagonia and Puma.

Campaigns against company:

• 1995: National Labor Committee reports labor rights abuses at Mandarin International factory in El Salvador, where Gap is producing. Gap worked with non-governmental organizations Business for Social Responsibility, Center for Reflection, Education and Action, and Interfaith Center on Corporate Responsibility to develop an independent monitoring program.
• 1999: Gap was defendant in lawsuit filed by Global Exchange and Sweatshop Watch on behalf of approximately 40,000 garment workers in Saipan. The suit alleged that workers faced repeated harassment, physical abuse, and poor working conditions in the South Korean-owned Sako factory, Global Manufacturing Incorporated, Diovra Saipan Limited, the Concord Garment Manufacturing Corporation, Jin Apparel Incorporated, and other companies that produced products for large U.S. retailers such as Cutter & Buck, Chadwick's of Boston Limited, Donna Karan International, Polo Ralph Lauren Corp., Gymboree, J. Crew, Phillips Van-Heusen, Nordstrom, Polo Ralph Lauren , Tommy Hilfiger, and Wal-Mart. Gap chose to settle the suit out of court.
• 1999: The Indonesian Prosperity Trade Union (SBSI), reports that 835 of its members have been fired by PT Aneka Garmentama, a clothing manufacturer in North Jakarta which produces for Gap, Inc., Donna Karen, Eddie Bauer, Polo Ralph Lauren and Tommy Hilfiger. The workers were dismissed on August 12 after a one-month strike for fair compensation and after initiating grievance proceedings at the Department of Manpower. Labor rights advocates also will contact PT Aneka Garmentama]'s other major U.S. buyers and urge them to investigate the labor practices of the factory.
• 2000: BBC journalist exposes that an underage worker was employed at June Textile, a Cambodian factory where Gap was producing. [8]
• 2001: Union leaders at Gina Form Bra factory in Thailand are fired. Labour Behind the Label, War on Want, and No Sweat pressure companies sourcing from factory, including Victoria's Secret, Gap Inc., La Senza, Boutique Jacob to intervene with factory managers to resolve conflict. [9]
• 2001: workers at the International Garments Manufacturing Corp. in the Philippines strike to protest union-busting. Factory produces VF Corporation brand Wrangler and for Gap Inc. and these companies are pressured to intervene with factory management through a letter-writing campaign initiated by the Clean Clothes Campaign. Workers were not successful and financial difficulties forced them to accept separation pay. [10]
• 2002: 11 U.S. lawmakers write to Gap Inc. president and CEO Millard Drexler to express concern about working conditions at factories producing for Gap in Lesotho and Guatemala.
• 2007: factory producing for Gap in India is found to use children as young as 10 years old in its production

Major reports:

Maquila Solidarity Network. 2006. "Transparency Report Card"

Environment & product safety

• "Our Code of Vendor Conduct outlines our expectations regarding factories' environmental practices and policies. One principle requires factories to develop an environmental management system. In 2005, all of Gap Inc.'s Vendor Compliance Officers received environmental management system training so they could help factories comply with this requirement. To ensure that factories understand the importance and benefits of a strong environmental program, our efforts currently focus on helping them develop and implement these systems. Our hope is that all factories we work with will have an acceptable environmental management system in place by late 2007." [11]
• "We have implemented a water quality program for all denim laundry facilities that handle our products. We also partnered with CH2M HILL to develop a program that measures denim laundries' effluent against Business for Social Responsibility's (BSR) Water Quality Guidelines. If a facility's effluent fails to meet BSR's strict standards, we prescribe corrective action steps to help it come into compliance. All denim laundry facilities that we work with now participate in our program." [12]

Social responsibility initiatives

• Gap Inc.'s social responsiblity reports

Articles and Resources

Related SourceWatch articles

Business for Social Responsibility

External articles

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