Labor Practices
In 2003, Gap, along with 21 other companies, was involved in a class action lawsuit filed by sweatshop workers in Saipan. The allegations included "off the clock" hours, where workers were not paid for working overtime, unsafe working conditions, and forced abortion policies. A settlement of 20 million dollars was reached whereby The Gap did not admit liability.
In 2007, Ethisphere Magazine (an industry publication) chose Gap from among thousands of companies evaluated as one of 100 "World’s Most Ethical Companies." Gap, Inc. was ranked 25th by CRO Magazine, another industry publication that is a successor to Business Ethics magazine, in its “100 Best Corporate Citizens” list in 2007.
Nevertheless, the company draws continued criticism over labor practices. In May 2006, adult and child employees of Western, a supplier in Jordan, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers. Most of these allegations were directed at Wal-Mart (who mostly ignored the claims), while Gap immediately looked into the matter to remedy the situation.
On October 28, 2007, BBC footage showed child labor being used in Indian Gap factories. Gap has denied that it was aware of such happenings and that it is against its policy to use child labour. The one piece of clothing in question — a smock blouse — was removed from a British store and will be destroyed. Gap promised to investigate breaches in its ethical policy.
Read more about this topic: Gap (clothing Retailer)
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