Business Ethics

When I was still in my junior years of High School, I came across an article “Child sweatshop shame threatens Gap’s ethical image

Dan McDougall, The Observer, Sunday 28 October 2007 in a Sunday Paper. The article immediately caught my attention because The Gap Inc. was (and still is) a well-known international clothing retailer with large subdivisions such as Old Navy and Banana Republic. It also owned a substantial portion of the clothing retail market. Based on the information presented in this article, a contract-supplier of GAP clothing was exploiting children as a cheap form of human capital to reduce production costs (and maximize profits) for a line of GAP clothing. Although GAP Inc.’s policy specifically states: “…if it discovers children being used […] to make its clothes the child [must be removed] from the workplace”, it failed to enforce its policies. In my opinion, this directly resulted in the unethical practice of child labour by the contract-suppliers, as the sweatshops were administered for the sole purpose of catering to GAP’s demand for inexpensive means of production.

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